The chief executive officer (CEO) and managing director (MD) of Bangladesh Race Asset Management, the top asset management company associated with the country’s capital market, have been accused of illegal transactions of Tk 700 crore. In the last five years, he has made these illegal transactions for the benefit of his companies, organizations, funds using mutual funds managed by Race. The small investors have faced a big loss.
It is known that Hasan Imam, CEO and MD of Bangladesh Race Management formed a circle to launder money and earn profits from the capital market. He used to lead this circle himself. He is assisted in this work by three people in the top positions of the various companies he founded. All these three are again serving as nominee directors of Race Asset Management’s trust company BGIC. Investors and stakeholders consider such activities a violation of securities laws.
As per the Securities and Exchange Commission (Mutual Funds) Rules, Rule 19(1)(d) of 2001 states- ‘Ineligibility for grant of registration- No company, bank, financial institution or statutory body shall be eligible for grant of registration. A trustee if- he or any of his directors is an entrepreneur or an asset manager of any mutual fund, stock dealer, stock broker, merchant banker and portfolio manager or a director of any company or institution subordinated to him or in any way connected therewith.’
The investigating CID officer confirmed the truth of the complaint. According to the investigation report, Hasan Imam, Chief Executive Officer of Race Asset Management, has committed unethical and illegal transactions worth about 700 crore taka in Race Fund trade operations in the last 5 years. So that public funds and small investors are directly affected. Besides, he is taking control and benefit of multi securities. He swindled a lot of money in a short period of time through managed race assets.
Meanwhile, on June 13, Bangladesh Bank’s Financial Intelligence Unit (BFIU) suspended bank account transactions of wealth management company Race and the funds managed under it. As per BFIU instructions, your attention is drawn that all bank account transactions, FDR and MTDR accounts of Bangladesh Race Asset Management and funds managed thereunder in your organization are prohibited under Section 23(1)(c). Money Laundering Act-2012 for the next 30 days. So it was ordered to be suspended from June 10 to July 9.
Funds managed by Bangladesh Race Asset Management are AB Bank First Mutual Fund, EBL First Mutual Fund, EBL NRB Mutual Fund, Exim Bank First Mutual Fund, First Bangladesh Mutual Fund, IFIC Bank First Mutual Fund, PHP First Mutual Fund, Popular Life First Mutual fund. . Fund, Race Special Opportunity Unit Fund.
This information has come out in an inquiry made by the Criminal Investigation Department of Bangladesh Police.
