The Bangladesh Cricket Board (BCB) handed out the punishment on Monday following an investigation by a special inquiry committee.
"Umpire Nadir Shah will not be considered for a BCB retainer for 10 years," the Bangladesh Cricket Board said in a statement.
"During this period he will not be eligible for any assignment under the jurisdiction of the BCB."
Shah, a member of the International Cricket Council's (ICC) panel of umpires, also officiated in three Twenty20 internationals.
"The ICC takes no pleasure from the fact an umpire has been found to have acted inappropriately and sanctioned accordingly, however, the decision reflects the commitment of the ICC and its members to root out corruption from our great sport," ICC chief executive David Richardson said in a statement.
Sharfuddoula Saikat, the other umpire who was contacted by reporters posing as agents, was cleared to continue umpiring.
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