B Mirror Report:  In a decisive move to reform the country’s Islamic financial sector, Bangladesh Bank (BB) Governor Md Mostaqur Rahman has assured Shariah Board members of full independence and protection to enhance governance and oversight, according to a BB press release.

The assurance came during a high-level meeting titled “Current Status, Challenges, and Future Actions of Islamic Banking” held at BB headquarters on March 30, 2026, where top Shariah scholars and leaders from various Islamic banks discussed critical issues in the sector.

Governor Rahman acknowledged past lapses in supervision that led to financial misconduct and money laundering in some Islamic banks. He emphasized that, while Islamic banking is meant to be asset-backed and risk-averse, practical discrepancies have revealed urgent gaps that need correction.

To address these, he urged that Shariah Boards be empowered to the highest level, with their decisions taking top priority, ensuring proper oversight and compliance.

The meeting also focused on a vision to position Bangladesh as an international hub for Islamic banking. Plans include establishing a dedicated research library, hosting global Shariah conferences, and gradually converting conventional banks into Islamic institutions, following successful models from Malaysia and Pakistan.

Scholars recommended annual External Shariah Audits and the introduction of a “Shariah Compliance Rating” system to maintain public trust. There were also calls to treat money laundering and major corruption as severe criminal offenses.

Governor Rahman concluded by urging all stakeholders to operate free from political influence, likening banking institutions to hospitals that must focus solely on service. He reaffirmed that Bangladesh Bank would provide a secure environment for Shariah scholars to perform their duties without external pressure.

The session included senior central bank officials and notable scholars, such as Professor Dr. Abu Bakar Rafiq and Mufti Shahid Rahmani, along with representatives from Islami Bank Bangladesh and Al-Arafah Islami Bank.