Prime Minister’s Finance Adviser Rashed Al Mahmud Titumir on Wednesday warned of strict legal action against professionals involved in fraudulent financial reporting, including auditors, valuers, accountants and others responsible for manipulated financial statements.
He said the government has empowered the Financial Reporting Council (FRC) with full legal authority and administrative independence to ensure transparency, accountability and integrity in the country’s financial system.
The adviser made the remarks while speaking as a special guest at the ‘Financial Accounting and Reporting (FAR) Summit 2026’ titled “Trustworthy Financial Reporting: What Really Matters,” held at a hotel in Dhaka and jointly organised by the Financial Reporting Council (FRC), the Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and Management Accountants of Bangladesh (ICMAB).
Titumir said weak oversight, fake valuations and manipulated audit reports over the years have significantly damaged Bangladesh’s banking sector and capital market, contributing to rising non-performing loans and losses for small investors.
He stressed that audit firms must not act as accomplices to their clients, criticising the culture of preparing selective or misleading financial statements that do not reflect the true condition of companies.
The adviser identified long-standing structural weaknesses in the financial reporting system, including lack of independent supervision over audit firms and repeated violations of accounting standards.
He said misleading financial statements distort the market, allowing dishonest companies to gain unfair advantages while genuine entrepreneurs are discouraged.
Linking the issue to the capital market, he noted that many investors have lost savings after relying on inaccurate corporate disclosures, while the banking sector has also been affected through loans approved on the basis of false financial data.
Describing the FRC as the “sentinel of the economy,” he said no professional, regardless of position, would be above the law under the ongoing reform framework.
He added that Bangladesh is working toward a governance-based market economy where investment decisions are supported by reliable and transparent information.
Titumir also emphasised the importance of aligning with international reporting standards to attract foreign direct investment, saying global investors often question the credibility of financial disclosures in Bangladesh.
He called for stronger professional training, improved regulatory systems and the use of modern technology to restore trust and ensure compliance with global best practices.
Finance Minister Amir Khosru Mahmud Chowdhury attended the event as the chief guest, while Finance Division Secretary Dr Md Khairuzzaman Mozumder chaired the session.
