ABB defends bank MDs' US visit amid dollar crunch

The Association of Bankers Bangladesh Limited (ABB) has defended the much-talked about the US tour of managing directors of 30 commercial banks at the cost of $6 lakh, despite the risks from such initiatives to the already dwindling foreign currency reserves in the country.

In a statement on Monday, the platform of chief banking executives termed the relevant media reports “incorrect and misleading”.

The US government’s Office of Prosecutorial Development, Training, and Assistance (OPDAT), in collaboration with the US Embassy in Dhaka and the Bangladesh Financial Intelligence Unit (BFIU), is committed to ensuring governance and compliance in the banking and financial sector.

To this end, the US Department of Justice (DOJ) has invited the managing directors of 26 banks from Bangladesh to the 6th annual US-Bangladesh Bilateral Banking Dialogue, to be held in Washington DC during 20-23 May. 

"This dialogue is designed to significantly strengthen the collaborative efforts among the Bangladesh Financial Intelligence Unit (BFIU) and the financial institutions under its purview. It aims not only to enhance Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) measures but also to establish robust protocols for dealing with entities subject to international sanctions," read the statement signed by Selim RF Hussain, chairman at ABB.

Previous dialogues have taken place in various international financial hubs including New York, London, Kuala Lumpur, Bangkok, and Charlotte, USA.

From the DOJ’s perspective, attending this dialogue and adhering to the practices derived from it are significantly important for banks worldwide.

During this year’s dialogue, experts from DOJ’s Money Laundering and Asset Recovery Section (MLARS), the US Treasury’s Financial Crimes Enforcement Network (FinCEN), and the US Department of Homeland Security will engage with the Bangladeshi managing directors on the topics mentioned above. A field trip is also planned to provide insights into the cybersecurity and AML/CFT operations of a leading US bank.

Following the Washington DC programme, the managing directors of Agrani Bank, BRAC Bank, City Bank, and Dutch-Bangla Bank will proceed to New York. There, they will conduct a separate marketing initiative to promote Bangladesh’s offshore banking fixed deposit products among expatriate Bangladeshis. The outreach programme is specifically designed to support Bangladesh Bank’s recent introduction of certain tax-free dollar deposit products, aiming to boost foreign currency inflow to the country.

Some media reports have inaccurately portrayed the expenses related to the New York dinner event, organised by the four banks for 350 Bangladeshi expatriates and foreigners at a five-star hotel, as the per-person cost for each of the 26 MDs attending the Washington DC dialogue, the banking officials said in a written statement.

"We regret any confusion caused by the inaccurate media coverage and appreciate the opportunity to set the record straight," added the notes.