Violation of Rules: Large Cash Deposits in Bank Asia’s RFCD Accounts Spent Abroad

Huge Amounts of Cash Dollars Deposited into Two Bank Asia RFCD Accounts

Funds Spent Abroad from Those Accounts

Bangladesh Bank Fines Bank Asia Tk 3 Million for Irregularities

Bank Asia has been fined Tk 3 million for violating foreign exchange regulations by allowing large sums of US dollars to be deposited into two Resident Foreign Currency Deposit (RFCD) accounts and spent abroad. Despite being aware of the irregularities, the bank authorities allegedly concealed the matter. Following an investigation and confirmation of the violations, Bangladesh Bank imposed the fine.

According to central bank rules, a Bangladeshi citizen can spend a maximum of USD 12,000 abroad per year. As per existing foreign exchange regulations, a returning traveler may keep or deposit up to USD 10,000 without declaration. However, if the amount brought into the country exceeds USD 10,000, it must be declared using the FMJ form at the airport and deposited into a bank within 30 days.

A recent inspection by Bangladesh Bank’s Foreign Exchange Inspection Department revealed that between 2023 and 2024, substantial cash deposits in US dollars were made into two RFCD accounts maintained at Bank Asia. The funds were later used for overseas expenditures.

Investigators found that one customer, Farhana Karim, made several deposits exceeding USD 10,000 on multiple occasions, sometimes on the same day, using old travel dates as justification. Notably, some deposits were made by other individuals on her behalf — even while she was abroad. Around USD 150,000 was deposited in this manner. More surprisingly, she managed to make deposits domestically while staying overseas and later used the RFCD card to spend the money abroad.

Similarly, another customer, Alaina Chowdhury, deposited USD 68,000 into her account through another person while residing abroad, and subsequently spent the money overseas.

The central bank’s investigation concluded that these transactions were in clear violation of foreign exchange laws. Although the funds were deposited through official banking channels, they were sourced from the local curb market and used abroad, which is illegal. Bangladesh Bank believes such irregularities could not have occurred without the bank’s cooperation. Consequently, on September 24 this year, the central bank fined Bank Asia Tk 3 million for the violations.

A senior Bangladesh Bank official told Banijjo Protidin, “Bank Asia committed a serious offense. They were aware of the wrongdoing but chose to conceal it, effectively allowing the irregularities to continue. That’s why they were penalized.”

When contacted for comment, Sohel R. K. Hussain, President and Managing Director of Bank Asia, did not respond to multiple phone calls. Messages sent to his WhatsApp number also went unanswered.

Banking experts say such irregularities not only undermine public confidence in the banking system but also threaten the stability of the country’s foreign exchange regime. They emphasize that banks must tighten oversight of RFCD accounts to prevent similar violations in the future.