Govt to form fund with seized assets to compensate depositors, aid poor: BB governor
The government is set to launch a management fund to handle recovered money and assets seized from financial offenders, says Ahsan H Mansur
The government will form a fund using money and assets seized from individuals accused of embezzlement, Bangladesh Bank Governor Ahsan H Mansur said today (19 May).
The recovered funds looted from banks will be returned to the affected banks to repay depositors, while assets acquired through corruption from non-banking sources will be used for the welfare of the poor.
Governor Mansur shared the details during a press conference held at the Foreign Service Academy in Dhaka, accompanied by the chief adviser's Press Secretary Shafiqul Alam and AFM Shahinul Islam, head of the central bank's Financial Intelligence Unit.
Keep updated, follow The Business Standard's Google news channel
He said frozen shares of various companies with outstanding bank loans will be transferred to strategic investors after the government takes temporary ownership to legalise the process.
"In the case of Islami Bank, shares worth Tk12,000 to 15,000 crore from the S Alam Group have been seized. These shares will be sold to a strategic investor. The money received will go to the bank and will be used to repay depositors," the governor added.
Earlier, Chief Adviser Muhammad Yunus chaired a meeting at his official residence Jamuna, where he instructed officials to establish the fund and manage the recovery of looted money and assets.
An inter-agency task force, operating through 11 teams, is currently investigating money laundering allegations against the country's top 10 business groups and members of former prime minister Sheikh Hasina's family. Updated findings from these investigations were presented at the meeting.
"Recovering the money will take time, as it must follow legal procedures," Mansur said, adding that the fund will be created under existing laws, and if needed, the law will be amended.
Press Secretary Shafiqul Alam added, "Some 125 more mid-level cases of irregularities are now being investigated. Each case involves over Tk200 crore in embezzled funds. We are working with 20 foreign legal firms. The scope of work with each of these firms is currently being defined."
The central bank governor expressed hope that the fund would be created within the tenure of the interim government, urging any future elected government to continue the initiative.
