Bangladesh Bank has directed commercial banks to halt fund transfers involving mobile financial service provider Nagad, while allowing its customer transactions to continue. Bangladesh Bank governor Ahsan H Mansur revealed this decision during a press briefing following a high-level government meeting at Dhaka’s Foreign Service Academy on Tuesday.
The restriction aims to safeguard customer funds, Mansur explained, citing operational challenges due to a May 7 High Court order that stayed the activities of Bangladesh Bank’s appointed administrator at Nagad. The court order came after a petition by former Nagad director Md Shafayet Alam, who has since assumed the CEO role despite facing fraud charges filed by the central bank.
“With our administrator barred from functioning, Nagad’s current management could potentially tamper with evidence or destroy crucial documents,” Mansur stated, noting the central bank has appealed the court order.
The governor alleged Nagad’s original leadership engaged in “malicious economic activities” — including creating approximately Tk650 crore in unbacked digital money —that enabled financial malfeasance. “We have evidence of embezzlement involving the former board,” he added.
The move comes amid heightened scrutiny of Nagad’s operations, though its core mobile financial services remain operational for end-users.