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The auditing firms EY, Deloitte, and KPMG are London-based companies and rank among the world’s top four auditors by revenue
Published : 27 Jan 2025, 01:44 AM
Within a month of introducing a policy allowing foreign consultancy firms to audit local banks, three international auditors have begun work.
Bangladesh Bank Governor Ahsan H Mansur said these firms have been tasked with investigating the alleged "bank heist".
He confirmed that the London-based auditors have already commenced their investigations.
In an interview with the Financial Times, the governor said: “To trace and recover the misappropriated funds, the Bangladesh Financial Intelligence Unit (BFIU) has also formed 11 joint investigation teams.”
The appointed auditors – EY, Deloitte, and KPMG – are among the top global auditing firms in terms of revenue.
Governor Mansur added, “We will identify the extent of loan defaults, who took these loans, and the current status. A forensic report will also be prepared.”
Since the ouster of Sheikh Hasina's government following student-led protests, irregularities involving businessmen and influential figures linked to the previous administration have started surfacing under the interim government.
It has been revealed that several powerful business groups and influential individuals exploited their control over bank boards to siphon off billions. These funds were allegedly laundered abroad, according to government sources.
Mansur claimed that $17 billion was embezzled during the previous government’s tenure.
The Financial Times reported that KPMG has confirmed its involvement in the investigation, with the company’s Sri Lanka branch handling the assignment.
However, when asked for comments, EY and Deloitte did not provide any statements, according to the report.
Earlier, on Dec 22, Bangladesh Bank introduced a special regulation allowing the appointment of foreign consultancy firms for auditing the country’s banks.
The regulation highlighted that despite existing oversight measures, the banking sector faced significant challenges, including asset quality issues, corporate governance lapses, and non-compliance with rules and regulations.
These challenges have eroded public confidence and trust in the banking sector, threatening its credibility as a whole.
Under the Special Regulations of Bangladesh Bank 2024, a designated department of the central bank will coordinate the activities of the foreign consultancy firms.
After completing their audits, the firms will submit their reports to the governor, who will then present the findings to the bank's board of directors.
The regulation also mandates that contracts with international consultancy firms clearly specify their remuneration and the method of payment for their services.
The Financial Times reported that KPMG has confirmed its involvement in the investigation, with the company’s Sri Lanka branch handling the assignment.
However, when asked for comments, EY and Deloitte did not provide any statements, according to the report.
Earlier, on Dec 22, Bangladesh Bank introduced a special regulation allowing the appointment of foreign consultancy firms for auditing the country’s banks.
The regulation highlighted that despite existing oversight measures, the banking sector faced significant challenges, including asset quality issues, corporate governance lapses, and non-compliance with rules and regulations.
These challenges have eroded public confidence and trust in the banking sector, threatening its credibility as a whole.
Under the Special Regulations of Bangladesh Bank 2024, a designated department of the central bank will coordinate the activities of the foreign consultancy firms.
After completing their audits, the firms will submit their reports to the governor, who will then present the findings to the bank's board of directors.
The regulation also mandates that contracts with international consultancy firms clearly specify their remuneration and the method of payment for their services.
