Banking Digest

 

Mortgage fraud is a serious financial crime that undermines the integrity of the banking and property sectors. In Bangladesh, several sections of the Penal Code, 1860 can be invoked to prosecute individuals involved in such fraudulent activities. Here’s a breakdown of the key sections commonly applicable in mortgage fraud cases. --- 1. General Fraud & Cheating These sections form the core legal foundation for prosecuting deceptive acts. · Section 415 - Definition of Cheating: Defines cheating as deceiving a person fraudulently or dishonestly to induce them to deliver any property, or to intentionally cause them harm in body, mind, reputation, or property. · Section 420 - Cheating and Dishonestly Inducing Delivery of Property: This is the most frequently used charge in financial fraud cases.   · Punishment: Imprisonment for a term which may extend to seven years, and also a fine. 2. Fraudulent Dealings with Property (Sections 421-424) These sections specifically target dishonest...

   Key impacts of the 2026 Amendment on the mortgage registration process: Core 2026 Amendments & Their Impacts 1. Digital Transformation (Sections 77A & 77K) · Change: Introduction of mandatory e-registration via government-approved software. · Impact: Shifts the entire process from a manual, paper-based, in-person system to a streamlined digital workflow. This is the most significant modernization change. 2. Upfront Financial Compliance (Section 52K) · Change: All fees and duties must be paid in full at the time of submission. · Impact: Eliminates incomplete submissions. Financial institutions must calculate and pay stamp duty, registration fees, and taxes upfront, requiring more rigorous preparation. 3. Enforced Efficiency (Section 77) · Change: Strict 30-day deadline for registration completion and a 45-day deadline for appeal resolutions. · Impact: Provides legal certainty and prevents indefinite delays, benefiting both lenders (faster security creation) and borro...

A significant update to property registration laws came into force on January 1, 2026, with the enactment of the Registration (Amendment) Ordinance, 2026. This ordinance amends several key sections of the century-old Registration Act, 1908, introducing changes to the digital registration process, fees, penalties, and timelines. Here is a structured overview of the critical amendments and provisions. --- 1. Key Amendments at a Glance The ordinance has modified several sections, with notable changes to: · Section 77K: Digital registration procedures. · Section 80: Document submission timelines and official responsibilities. · Sections 72, 73, 74: The appeal process against refusal to register. · Sections 17K & 52K: Contract registration and digital deed submission. --- 2. Revised Registration Process & Timelines Completion Deadline: · The Registrar must complete registration within 30 days of the deed's submission. Digital Registration (Section 77K): · Introduces provisions f...

  Financial institutions in Bangladesh are facing a growing threat from collusive fraud, where borrowers and third parties create fictitious claims to obstruct loan recovery. This document outlines common fraud scenarios, early warning signs, and a multi-pronged legal strategy to protect institutional interests. --- 1.0 Introduction & The Threat Landscape. Financial institutions operating in Bangladesh are confronting a sophisticated and escalating threat: fraudulent third-party claims on mortgaged properties. This plan involves borrowers colluding with external actors to fabricate ownership disputes, forge documents, and initiate frivolous litigation. The primary objectives are to avoid loan repayment, delay foreclosure, or extort a settlement from the bank. The fraud typically surfaces when loans become non-performing or when the bank initiates recovery proceedings. The consequences are severe, encompassing: · Financial Loss: Risk to collateral security and increased legal co...

The Financial Institutions Act, 1993 is a cornerstone of Bangladesh's financial regulatory framework, specifically governing Non-Banking Financial Institutions (NBFIs). It aims to ensure sectoral stability, protect depositors, and promote disciplined growth outside the traditional banking system. --- 1. Objectives and Scope · Primary Purpose: To regulate and control financial institutions other than banks, ensuring financial sector stability and protecting depositor interests. · Covered Institutions:   · Leasing companies   · Investment companies   · Housing finance companies   · Merchant banks   · Venture capital firms   · Other NBFIs as specified. 2. Key Regulatory Provisions · Licensing Requirements (Sections 3-5): Mandatory license from Bangladesh Bank; strict capital and "fit and proper" criteria for sponsors/directors. · Capital Adequacy (Section 13): Requirement to maintain minimum capital adequacy ratios (increasingly aligned with Basel-III norms). ...

  Artha Rin Adalat (Money Loan Court) cases form the backbone of financial recovery in Bangladesh, especially for banks and Non-Bank Financial Institutions (NBFIs) grappling with cheque dishonour and loan defaults . For legal practitioners and credit officers, navigating its procedural maze is a daily challenge. This analysis breaks down eight critical problems whether you're preparing for the Bar Council exam , drafting a credit recovery report , or providing opinion this structured guide is your practical toolkit. Why These Cases Are Essential: · Execution pitfalls under the ARAA, 2003 · Party addition and locus standi issues · Court fees and registration complications · Handling third-party claims in auctions 📋 Case At-a-Glance Problem- 1 A developer company proposed Mr. “Y” to develop his land which he got from RAJUK by virtue of a lease agreement for 99 years . He informed the developer company that the title deed of his land had been deposited with the Trust Bank as equita...

  Negotiable instruments are the lifeblood of commercial transactions, providing a secure and transferable means of payment and credit. Under the Negotiable Instruments Act, 1881, these documents play a vital role in business and banking, offering legal certainty and operational efficiency. In this post, we’ll break down the basics, explore key concepts, and look at practical examples—including case law from Bangladesh. --- 📜 What Are Negotiable Instruments? Negotiable instruments are written documents that guarantee the payment of a specific sum of money to a person (the payee ) or to the bearer, either on demand or at a predetermined time. They are freely transferable, making them a flexible tool in trade and finance. Under the Negotiable Instruments Act, 1881, the primary instruments recognized are: 1. Promissory Note (Section 4) 2. Bill of Exchange (Section 5) 3. Chequers (Section 6) --- 🔑 Key Concepts Defined 1. Promissory Note A promissory note is a written promise by on...

Artha Rin Adalat Recovery & Enforcement — Training Schedule Professional Training Programme Artha Rin Adalat Recovery & Enforcement A structured six-module programme covering Money Loan Court litigation and execution, mortgage enforcement, limitation control, negotiated settlement analysis, and portfolio early-warning monitoring. Commences Thursday, 22 October 2026 Concludes Wednesday, 13 January 2027 Duration 12 weeks · 6 modules Format 2-week blocks · practice-led 1 Programme Objectives Outcome-based Draft and file Artha Rin suits, execution petitions and Section 33 certificate applications with procedural accuracy. Review mortgage and collateral documentation for validity, registration and enforceability. Maintain limitation discipline across suit, first execution and subsequent execution stages. ...