Prime Minister’s Finance Adviser Rashed Al Mahmud Titumir on Wednesday declared a strict zero-tolerance policy against fraudulent financial reporting, warning that auditors, valuers, accountants and other professionals involved in manipulated accounts will face legal action.
He said the government has granted full legal and administrative independence to the Financial Reporting Council (FRC) to ensure transparency and accountability in the country’s financial system.
The remarks were made while speaking as special guest at the “Financial Accounting and Reporting (FAR) Summit 2026” titled “Trustworthy Financial Reporting: What Really Matters”, organised by the FRC in collaboration with the Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and Management Accountants of Bangladesh (ICMAB) at a city hotel.
Titumir said years of weak oversight, fake valuations and manipulated audits had severely damaged the banking sector and capital market, contributing to rising non-performing loans and heavy losses for ordinary investors.
He said audit firms must not act as “documents or accomplices” of clients, criticising the culture of misleading financial statements that fail to reflect the real condition of businesses.
The adviser said weak regulation, violations of accounting standards and falsified reports for personal gain had created a distorted business environment, where dishonest firms gained unfair advantages while genuine entrepreneurs suffered.
He noted that many small investors lost savings after relying on manipulated financial data, while banks approved large loans based on false valuations and fabricated statements.
Describing the FRC as the “sentinel of the economy,” he warned that no professional—including auditors, accountants, valuers and actuaries—would be above the law under the new reform framework.
He said the government is working to build a governance-based market economy where investment decisions are guided by credible and transparent information.
Highlighting global concerns, he said Bangladesh must strengthen financial reporting standards to attract greater foreign direct investment (FDI), adding that weak credibility in reporting systems has undermined investor confidence.
He stressed adopting international standards, improving professional training and introducing modern technologies in regulatory systems to restore trust.
Amir Khosru Mahmud Chowdhury attended the summit as chief guest, while Dr Md Khairuzzaman Mozumder chaired the session.
Dr Md Sajjad Hossain Bhuiyan delivered the keynote address at the event, which brought together senior government officials, accountants, auditors, valuers, actuaries and business leaders.
The summit also held technical sessions on improving financial statement quality and strengthening audit and assurance practices in line with international standards.
