BB chief asks banks to recover stolen assets without yielding to political pressure

Bangladesh Bank (BB) Governor and Chairman of the Stolen Asset Recovery Taskforce (ARTF) Md Mostaqur Rahman today directed commercial banks to expedite the reclamation of assets smuggled abroad, underscoring the protection of ordinary depositors' interests as a paramount national priority.

Presiding over a high-level review meeting titled "Update of Civil Asset Recovery Status," the Governor was joined by the Head, Deputy Head, and Directors of the Bangladesh Financial Intelligence Unit (BFIU), alongside Managing Directors and Focal Points of the affected banks.

During the session, Advisor Farhanul Ghani Chowdhury apprised the attendees of a strategic framework utilizing two distinct legal pathways for asset reclamation.

The Criminal Proceedings are being executed on a Government-to-Government (G2G) basis, primarily targeting the individuals involved for criminal prosecution.

In contrast, the Civil Proceedings mechanism employs specialized international asset recovery firms and litigation funders. This specialized route serves as the primary legal engine for the actual monetary recovery of funds for the affected commercial banks, ensuring that stolen capital is returned to the domestic financial system.

The Taskforce reported significant progress in institutionalizing international partnerships required for cross-border recovery. Currently, 10 affected banks have signed 36 Non-Disclosure Agreements (NDAs) with six international asset recovery firms. These NDAs function as the essential legal gateway, granting international experts the necessary access to sensitive bank data required to trace, evaluate, and secure assets in foreign jurisdictions.

While approximately 60 percent of the NDA process has been successfully completed by the affected banks, Governor Rahman observed that state-owned commercial banks are currently lagging in their compliance.

He issued a stern directive for these state-owned entities to immediately accelerate their engagement in the NDA process.

Furthermore, all banks were instructed to provide comprehensive loan default data and evaluations to international firms without delay to facilitate the technical phase of the recovery operations.

The civil recovery effort is initially prioritizing high-impact targets to maximize the restoration of bank liquidity.

Based on intelligence regarding the highest volume of defaulted loans and smuggled assets, six major industrial groups have been selected for the first phase of the civil recovery process.

These groups represent the most significant portion of the capital flight that has undermined the stability of the concerned financial institutions.

Governor Md Mostaqur Rahman reiterated that the recovery of public money is an issue of financial stability and economic accountability.

To ensure the mission's integrity, he said that the restoration of funds belonging to ordinary citizens must remain the singular focus of all recovery efforts. He declared an absolute policy of zero tolerance regarding any political meddling in the asset recovery process.

He also instructed Managing Directors to contact with him directly if they face any external political pressure.

He pledged to personally confront and handle such interference to protect the bank's interests.

Bank boards and Managing Directors are also required to take full accountability and play a proactive, leading role in managing civil proceedings for their respective institutions, he added.

Concluding the meeting, the Governor outlined a broader roadmap for the Taskforce.

Upon the successful completion of the first phase involving the top six defaulter groups, he said, Bangladesh Bank plans to launch an expansive second phase.

This subsequent stage will target more than 100 additional cases of large-scale asset smuggling and significant loan defaults, signaling a long-term commitment to restoring discipline within the nation's banking sector, he added.