Titumir warns of tough action against fake financial reporting
Prime Minister's Finance Adviser Rashed Al Mahmud Titumir today announced a zero-tolerance stance against fraudulent financial reporting, warning that strict legal action will be taken against auditors, valuers, accountants, and other professionals involved in manipulated financial statements. "The government has empowered the Financial Reporting Council (FRC) with full power of the law and administrative independence to ensure transparency and accountability in the country's financial system," he said.
The adviser made the remarks while speaking as the special guest at the "Financial Accounting and Reporting (FAR) Summit 2026" titled "Trustworthy Financial Reporting: What Really Matters," organized by the FRC in collaboration with the Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and Management Accountants of Bangladesh (ICMAB) at the Pan Pacific Sonargaon hotel in the city. Titumir said that years of weak oversight, fake valuations, and manipulated audits had severely damaged the banking sector and capital market, contributing to the rise of non-performing loans and causing heavy losses for ordinary investors.
"Audit firms will not be the document or accomplice of the client," he said, criticizing the culture of whimsical financial statements that failed to reflect the actual condition of businesses. The Adviser identified several long-standing weaknesses in the financial system, including the absence of independent oversight of audit firms, widespread violations of accounting and valuation standards, and the preparation of misleading reports for personal gain. He said fake financial reporting created a distorted business environment where dishonest firms gained unfair advantages while genuine entrepreneurs suffered.
Referring to the impact on the capital market, he said many small investors lost their savings after relying on manipulated financial data published by companies whose actual financial positions were drastically different from the reported figures. The Adviser also linked fraudulent reporting practices to instability in the banking sector, saying large loans were approved based on false valuations and fabricated financial statements.
Describing the FRC as the sentinel of the economy, he warned that no professional - including auditors, accountants, valuers, and actuaries - would remain above the law under the new reform framework. He said the government is now focused on building a governance-based market economy where investment decisions are guided by credible and transparent information. Highlighting the importance of global compliance, the Adviser said Bangladesh must strengthen financial reporting standards to attract greater foreign direct investment (FDI).
He noted that international investors often questioned the credibility of Bangladesh's financial reporting system, which weakened investor confidence and hindered capital inflows. To restore global trust, he stressed the need for adopting international compliance standards, strengthening professional training, and introducing modern technologies in the regulatory system. Finance Minister Amir Khosru Mahmud Chowdhury attended the summit as the chief guest, while Finance Division Secretary Dr. Md Khairuzzaman Mozumder chaired the session.
FRC Chairman Dr. Md Sajjad Hossain Bhuiyan delivered the keynote address at the summit, which brought together senior government officials, accounting professionals, auditors, valuers, actuaries, and business leaders. The event also featured business sessions on improving financial statement quality and strengthening external audit and assurance practices in line with international standards.
