Bangladesh mulls settlements with tycoons over offshore wealth: BB governor tells FT

Bangladesh may pursue financial settlements with wealthy individuals accused of moving funds abroad during the tenure of ousted prime minister Sheikh Hasina, according to Ahsan Mansur, governor of the Bangladesh Bank and head of the country's asset recovery efforts.

Settlements were "one of the options" the government could consider, particularly in cases deemed less serious, said Ahsan H Mansur in an interview with the Financial Times.

In the interview in Dhaka ahead of a visit with other government leaders and officials to the UK this week, Mansur said the Bangladesh Bank's approach would depend on the nature of the alleged activities of those involved.

"If the nature is more on the lighter side of violations ... we would go for a civil suit, and a financial settlement would be part of that process," he noted, without specifying which individuals or families might be targeted.

The asset recovery campaign, launched by the interim government led by Nobel Peace Prize laureate Muhammad Yunus, has already opened 11 high-priority investigations into families formerly connected to political power — including that of Sheikh Hasina. The government alleges that billions of dollars were siphoned out of the country during Hasina's 15-year rule.

Yunus's administration came to power following a student-led uprising that ousted Hasina last August. Since then, domestic bank accounts have been frozen, and authorities have begun cooperating with foreign law enforcement agencies to reclaim overseas assets.

Mansur, a former IMF official, revealed that his team is aiming to raise up to $100 million to fund international litigation focused on recovering funds allegedly embezzled through fraudulent loans and infrastructure skimming.

Litigation funding firms, which finance legal cases in exchange for a share of the recovered assets, have shown strong interest. Omni Bridgeway, a global litigation funder based in Sydney, confirmed to the Financial Times that its executives held multiple meetings in Dhaka earlier this year with Mansur and officials from over 16 banks.

"We have expressed a particular interest in supporting the banking sector by financing and managing the recovery of non-performing loans, especially those involving the illicit transfer of funds abroad," said Wieger Wielinga, Omni Bridgeway's managing director of enforcement.

During his ongoing visit to the UK, Yunus urged British authorities to offer "more enthusiastic support" in tracing and repatriating allegedly stolen Bangladeshi funds. "This is stolen money," Yunus said, adding that the UK has both a legal and moral obligation to assist.

An economic white paper commissioned by the interim government and published in December estimates that around $234 billion was funnelled out of the country during Hasina's administration.

The Awami League, which was formally banned by the Yunus government last month, has accused the current regime of using the anti-corruption campaign to carry out political vendettas.

Yunus announced last week that a national election to replace the interim administration is expected in April next year.