Reserve heist among 10 cases stuck over lack of info from respective countries

Highlights 

• In March 2016, BB filed a case for $101 million heist 
• CID investigating the case for over eight and a half years, received 80 time 
• Investigators stuck due to pending responses to MLARs sent to China, Sri Lanka
• CID is considering alternatives to MLARs, such as seeking assistance through embassies
  

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In March 2016, a Bangladesh Bank official filed a case under the Money Laundering Prevention Act over the $101 million heist from the central bank's reserves held at the US Federal Reserve.

The Financial Crime Unit of the Criminal Investigation Department (CID) has since been investigating the country's most sensational financial crime that drew global attention.

Despite 80 extensions for submitting the investigation report, the process remains incomplete. The court has now ordered the CID to file the report by 4 February.  

Investigators claim the probe is in its final stages but are unable to file the charge sheet due to pending responses to Mutual Legal Assistance Requests (MLARs) sent to China and Sri Lanka.  

An MLAR is a formal request made between countries to assist in criminal investigations or prosecutions. Its purpose is to prevent criminals from evading justice or undermining legal proceedings by ensuring that evidence held in one country can be accessed and shared with another country involved in the case.

According to CID sources, the investigation of at least 10 high-profile money laundering cases, including the reserve heist, has stalled due to a lack of information from relevant countries.  

These cases include Selim Pradhan, linked to the casino scandal, who has been sued for laundering Tk98.95 lakh abroad; former MP Kazi Shahid Islam Papul for Tk38.26 crore; Jubo League leaders Ismail Hossain Chowdhury Samrat and Enamul Haque Arman for Tk195 crore; and Khaled Mahmud Bhuiyan for Tk8.5 crore. 

Additionally, former commissioner and Jubo League leader AKM Mominul Haque Sayeed faces the charge of laundering Tk46.49 lakh, and Fareast Stock and Bonds Chairman MA Khalek for Tk116 crore.  

The Business Standard contacted the investigating officers of at least six cases, who confirmed that their investigations are nearly complete. However, they are unable to submit the charge sheets due to pending responses to MLARs from the respective countries.  

Abdullah Al Yasin, special superintendent of police, who is leading the investigation into the reserve heist, told TBS that obtaining information from the relevant countries is crucial for submitting the charge sheet.  

"We sent MLARs to China, the United States, Japan, the Philippines and Sri Lanka. However, we have yet to receive responses from Sri Lanka and China," he said.  

Yasin emphasised the importance of information from these two countries for the investigation.  

"Over the past four years, we have sent multiple MLARs to both countries, but no replies have been received. Without this information, it will not be possible to complete and submit the investigation report," he added.  

In February 2016, hackers stole $101 million from the Bangladesh Bank's accounts with the US Federal Reserve. Of this amount, $81 million was transferred to four accounts at RCBC in the Philippines, and another $20 million was sent to a bank in Sri Lanka.

However, the $20 million transfer to Sri Lanka failed due to a spelling error made by the hackers.

Later, the Bangladesh Bank managed to recover approximately $15 million from the Philippines.

Iftekharuzzaman, executive director of Transparency International Bangladesh, highlighted deficiencies in Bangladesh's approach to MLAR requests.  

"MLARs are often not sent to the appropriate authorities or lack proper procedures, leading to non-responses."  

He emphasised that MLAR requests must include court instructions and be addressed to the correct authority.  

"For example, an MLAR was recently sent to the British trade ministry, which has no relevance to the matter. Such oversights undermine the process," he said.  

"A country's willingness to respond depends on whether the MLAR adheres to proper procedures and includes court-mandated instructions."  

Additionally, Iftekharuzzaman, who heads the anti-corruption reform commission, said many governments are reluctant to return laundered money because it benefits their economies.  

"No country willingly damages its economy by repatriating laundered funds," he added.  

Inspector Mehedi Maqsud, who is investigating cases against Papul and Samrat, told TBS that while both investigations are nearly complete, chargesheets have not been filed due to pending information from Kuwait and Malaysia.  

"We requested information on Samrat's wealth from Malaysia in 2020 and reached out to Kuwait in 2021. However, we have yet to receive responses from either country," he said.  

Matiur Rahman Sheikh, additional inspector general, head of the CID, told TBS serious efforts are being made to complete the investigation into the reserve heist case.  

"Since we are not receiving information through MLAR, we will explore alternatives, such as seeking assistance via embassies in the respective countries," he said.  

Regarding other cases, he said, "MLAR is part of the investigation, but we must also pursue other avenues. Investigations into money laundering cases generally take longer than other cases. For now, we are not considering any alternatives to MLAR."