Bangladesh Bank (BB) Governor Md Mostaqur Rahman -File photo

DHAKA, April 7, 2026 (BSS) – In a landmark move to reform the country's Islamic financial sector, Bangladesh Bank (BB) Governor Md Mostaqur Rahman has assured Shariah Board members of full protection and independence from the central bank to ensure proper governance. 

During a high-level exchange of views titled “Current Status, Challenges, and Future Actions of Islamic Banking” held at the BB headquarters on March 30, 2026, the Governor met with top Shariah experts and leaders from various Islamic banks, said a press release here today.

The meeting addressed critical gaps in the current system, specifically focusing on how to prevent financial irregularities and enhance Shariah compliance.

The Governor acknowledged that past instances of money laundering and financial misconduct in certain Islamic banking institutions were primarily caused by a lack of proper supervision. 

He emphasized that while Islamic banking is theoretically asset-backed and designed to avoid such losses, the reality has shown significant discrepancies that require urgent attention. 

To rectify this, he stressed that Shariah Boards must be empowered to the highest level, and their decisions must be given top priority to restore effective oversight.

The meeting also discussed a vision to transform Bangladesh into an international hub for Islamic banking. 

This would involve creating a rich library and research center under Bangladesh Bank’s initiative and hosting international Shariah conferences featuring world-renowned scholars. 

Additionally, there were suggestions to gradually convert conventional banks into Islamic ones, following models seen in Malaysia and Pakistan.

To maintain public trust, the scholars advocated for External Shariah Audits to be conducted at least once a year and the implementation of a “Shariah Compliance Rating” system for all Islamic banks.

 There was also a strong demand to treat money laundering and major corruption as acts of treason, punishable by severe criminal penalties.

In his closing remarks, the Governor urged all stakeholders to operate free from political influence, emphasizing that banking institutions, much like hospitals, should be treated strictly as service-oriented entities. 

He reaffirmed that the central bank would provide a safety net for Shariah scholars to perform their duties without fear or external pressure.

The meeting saw participation from central bank senior officials and prominent scholars, including Professor Dr. Abu Bakar Rafiq, Mufti Shahid Rahmani, and representatives from leading institutions like Islami Bank Bangladesh and Al-Arafah Islami Bank.