Imran Ahmed, the owner of a garment factory, and his driver Shamim Mia were arrested near the capital Dhaka during a raid last night, the elite anti-crime Rapid Action Battalion (RAB) said.
Ahmed admitted to have funded the neo-JMB (Jamayetul Mujahideen Bangladesh) and helped the group in procuring weapons and explosives, a RAB spokesman told reporters.
Arms and jihadi texts were seized from the two persons.
Another RAB official familiar with the development said Ahmed was pursued by security forces for providing shelter to a JMB operative who had escaped a security raid two months ago in northeastern Sylhet city where four militants were killed.
More From This Section
Two policemen were also killed in that operation.
Since 2013, Bangladesh has witnessed a number of Islamist attacks on foreigners, liberals and religious minority with the Islamic State and the al-Qaeda making competing claims.
In the deadliest terrorist attack in the country, 22 people, including 18 foreigners, were killed when militants stormed the upscale Holey Artisan Bakery and Kitchen restaurant in Dhaka's diplomatic zone on July 1 last year.
An Indian woman was also among the victims of the attack.
The country's security forces have since launched a major crackdown against militants, killing 70 extremists in the past year.