Bangladesh's case among most alarming, recovering laundered funds a global responsibility: TI chair Valérian
“We need to know where the money is, who are the real owners. Only then can international cooperation ensure recovery,” says the head of the anti-corruption watchdog
Highlights:
- $16b lost annually under Hasina regime through graft and laundering
- Illicit funds routed via tax havens, crypto, and offshore accounts to global hubs
- Stolen wealth invested in luxury assets instead of health, education, climate needs
- £185m London property seized in joint TI-led anti-corruption effort
- TI calls for transparency law to expose shell company owners
- Asset recovery must return funds to Bangladeshis, not foreign treasuries, Valérian stresses
- Corruption declined after July uprising but still persists, warns TI chief
Bangladesh is facing one of the world's most alarming money laundering crises, Transparency International (TI) chair François Valérian said today (4 September), stressing that the recovery of stolen funds is both a national duty and a global responsibility.
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"According to our estimates, $1 trillion is stolen worldwide every year. Bangladesh's case is among the most alarming, and recovering laundered funds is not only a national duty but a global responsibility," he said while addressing a meet the press event at the Transparency International Bangladesh (TIB) auditorium in Dhaka.
During the 15-year rule of former prime minister Sheikh Hasina, Bangladesh lost an estimated $16 billion annually through corruption and money laundering by political elites and their associates, according to Valérian.
"We need to know where the money is, who are the real owners. Only then can international cooperation ensure recovery," he said.
He described the former regime as "authoritarian and massively corrupt, alleging that power was abused to extract profit rather than serve the people."
"Those billions left the country every year and became part of the global economy of corruption," Valérian added.
According to TI's estimates, much of the illicit money was routed through offshore accounts, cryptocurrency platforms, and tax havens before ending up in financial hubs like Dubai, Singapore, Hong Kong, the United Kingdom, France, Germany, Switzerland, and the United States.
The funds, Valérian noted, were largely invested in real estate and luxury assets instead of public goods such as education, health, or climate resilience.
He highlighted a recent success where £185 million worth of property in London was seized following a joint appeal by TIB, TI UK, and anti-corruption watchdogs.
"This proves that international cooperation can deliver results. But the key challenge now is restitution — ensuring that stolen money comes back to the people of Bangladesh, not enriching foreign treasuries," he said.
Calls for asset recovery, transparency laws
The TI chair called for the immediate passage of a draft law on beneficial ownership transparency in Bangladesh, which would expose the real individuals behind shell companies often used to launder illicit funds.
"We need to know where the assets are and who owns them. Only then can civil society push for recovery," he stressed.
On corruption allegations involving Hasina's family members, Valérian avoided commenting on specific cases but underscored the need for an independent judiciary to investigate and prosecute corruption without political interference.
Highlighting the London case, he emphasised that asset recovery must lead to restitution for the Bangladeshi people. "We don't want confiscated money enriching northern treasuries. It has to go back to the citizens under civil society oversight."
"Bangladesh is at a historic turning point. The sacrifices made by citizens must not be in vain. Recovering stolen assets is both a matter of justice and a foundation for democratic accountability," the TI chief added.
He reiterated that Bangladesh's transitional authorities face high stakes and high challenges to restore democratic accountability, and stressed that civil society and media freedom are crucial in ensuring stolen money is traced and returned.
Acknowledging that "corruption still exists in Bangladesh," he said it has nevertheless declined since the July Uprising that ousted the Hasina government.
He also noted that reform initiatives are under way in several sectors but cautioned it was too early to predict how far they would go.
Reduction in money laundering, risks remain
Meanwhile, Transparency International Bangladesh Executive Director Dr Iftekharuzzaman also addressed the briefing, highlighting both progress and persistent risks in tackling money laundering.
He said reforms in the banking sector have reduced large-scale fraud and illicit transfers compared with previous years, while many individuals once involved are now facing prosecution or have fled the country. However, significant risks of trade-based money laundering still persist, particularly through mis-invoicing.
He stressed that deeper reforms are still needed.
"The outflow of remittances through informal channels like hundi has also been largely curbed. However, the absence of effective reforms in import-export trade practices leaves room for large-scale mis-invoicing, which remains the biggest channel for money laundering," he said.
"This is where the bulk of money laundering takes place," Dr Iftekharuzzaman noted.
He urged the government to prioritise prevention over recovery. "Once laundered, recovering that money is extremely difficult, almost impossible. Therefore, investing more resources and efforts in prevention rather than recovery is the right strategy," he said.
