In a significant move, Bangladesh Bank (BB) announced on Tuesday that individuals identified as wilful defaulters will face stringent consequences, including a ban on overseas travel and ineligibility for state honors.

A circular issued by the Banking Regulations and Policy Department (BRPD) outlined these measures, emphasizing that defaulters who fail to repay loans or misuse funds will face severe penalties. Such individuals, institutions, or companies will be classified as wilful defaulters if they misuse funds for personal gain, provide false information, or misuse secured assets without permission.

The circular mandates that BB will share the list of wilful defaulters with relevant agencies to enforce bans on foreign travel, issuance of trade licenses, and registration with regulatory bodies such as the Bangladesh Securities and Exchange Commission and the Registrar of Joint Stock Companies and Firms (RJSC). Additionally, details of assets owned by wilful defaulters will be shared with registration authorities for further action.

Moreover, individuals classified as wilful defaulters will be barred from receiving state awards or honors, signaling a robust stance against financial misconduct.

This directive underscores BB's commitment to ensuring accountability and transparency within the banking sector, aiming to deter willful defaulters and uphold the integrity of financial institutions.