Govt targets 11 priority cases for recovering laundered money
Asset Recovery Agency to be formed; conference in London in May seeking global assistance to trace stolen assets
Highlights:
- International firms to aid in asset recovery
- $75-100 billion stolen via corruption
- Special law to fast-track asset repatriation
- BFIU froze 1,374 bank accounts worth Tk614 billion
The government has outlined a roadmap to recover laundered funds linked to 11 individuals and industries, including Sheikh Hasina and former land minister Saifuzzaman Chowdhury, with a target to complete at least half of the cases within this year through legal processes.
International firms will be appointed to seize assets abroad under all cases, and sanctions will be imposed via the UK, US, and UN on the sale or transfer of laundered assets. To institutionalise the recovery process, the government has also outlined plans to establish an Asset Recovery Agency.
These decisions came at a high-level meeting titled "Recovery of Laundered Assets, Steps Taken, and Challenges", chaired by Chief Adviser Muhammad Yunus at his official residence, Jamuna, today (10 March).
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Speaking about the outcome of the meeting, CA's Press Secretary Shafiqul Alam at a press briefing said once the money is returned, a portion will be paid as a fee to the international firms involved.
"A special law will be formulated within a week to accelerate the efforts of repatriating the money," he added.
11 priority money laundering cases: Tk19,680cr in seized BO accounts of ex-land minister Saifuzzaman, 9 industrial groups
At the meeting, the central bank officials reported that between $75 billion and $100 billion has been stolen from the country through fraud, corruption, and irregularities in government contracts.
These stolen funds have primarily been laundered in the US, UK, Canada, Singapore, Malaysia, Thailand, Hong Kong, and other offshore jurisdictions, they mentioned.
In addition to the 11 priority cases, the Anti-Corruption Commission, the National Board of Revenue, and other agencies are continuing their work on other money laundering cases, officials said.
To effectively recover these assets, BB is focusing on building strong informal relationships and partnerships with government agencies and key stakeholders in the primary laundering destinations.
However, the Chief Adviser's Office did not disclose names of other individuals or industrial groups under investigations to prevent legal complications.
According to a recently released white paper on Bangladesh economy, approximately $16 billion was illicitly transferred abroad annually during the last 15 years of the Hasina administration.
Meanwhile, Bangladesh Bank Governor Ahsan H Mansur earlier said $17 billion was siphoned off through the banking sector alone during the same period.
Cenbank's efforts
To facilitate the recovery of laundered funds abroad, the central bank governor will meet with the UK's All Party Parliamentary Group on Corruption on 17 March, seeking assistance in recovering funds laundered in the UK, as well as requesting a ban on the sale or transfer of laundered assets linked to Bangladeshis.
The governor informed the chief adviser that it is possible to achieve the target of imposing sanctions on top Bangladeshi launderers within three to six months.
On 19 March, the governor will hold a conference with international law firms, investigation agencies, and litigation funders regarding the recovery of laundered assets. Additionally, meetings with the UK's Foreign Office, the National Crime Agency, and the country's current and former Justice Secretaries will take place.
In May, the Bangladesh Bank will co-organise the "Bangladesh Asset Recovery Conference" in London, in collaboration with the International Anti-Corruption Coordination Centre and the World Bank's Stolen Asset Recovery Initiative (StAR).
The conference will bring together members of the Anti-Money Laundering Task Force and other stakeholders to strengthen informal relationships with partners.
Involving int'l law firms
The government is also planning to appoint experienced international law firms to help recover laundered funds exceeding Tk200 crore.
Several international firms have already reached out to the government for this purpose.
Assistance from the World Bank's Stolen Asset Recovery Initiative, the International Anti-Corruption Coordination Centre, the US Department of Justice, and the International Centre for Asset Recovery is being sought to recover laundered funds in relation to the 11 priority cases.
With the support of these institutions, illegal assets will be identified and investigated both within Bangladesh and abroad.
Actions include sending letters to authorities in various countries, freezing, attaching, seizing, and confiscating illegal assets, and expediting the judicial process to return and manage the assets swiftly.
Furthermore, the BB governor or the chief adviser's international envoy plans to meet with Singapore's Non-Resident Ambassador to Bangladesh Derek Loh in April to establish an effective strategy for recovery.
Since the launch of the initiative, Bangladesh Bank and the Bangladesh Financial Intelligence Unit (BFIU) have already conducted over 150 meetings with international partners, including more than 30 law firms, investigators, and funders.
The Terms of Reference for engaging private-sector firms will be completed by the end of March, with firms expected to be appointed by late April or early May.
Malaysia to assist in Rosatom bribe investigation
A joint investigation team probing money laundering activities linked to Hasina, her family, and associated individuals and institutions has uncovered evidence of a Russian "slush fund" held in a Malaysian bank.
Hasina is accused of accepting $4 billion in bribes from Russian state-owned Rosatom, the contractor behind the Rooppur nuclear power plant. The investigation team suspects that the bribe money is deposited in a Malaysian bank.
The Malaysian government has pledged its support in assisting Bangladesh with the investigation, confirmed by Bangladesh Bank during the meeting.
The Asset Recovery Taskforce consultant visited Malaysia in February, where they met with the Malaysian Anti-Corruption Commission (MACC), which expressed willingness to cooperate in investigating the case.
Informal discussions have also taken place with the Malaysian Prime Minister's Office, which has shown interest in deepening its support for Bangladesh's asset recovery efforts. A formal request for assistance will be sent from the Chief Adviser's office to the Malaysian PM's Office.
84 accused in 11 cases
In the 11 priority cases, the accused individuals and institutions have shares worth Tk 19,680 crore frozen in their BO accounts. Additionally, the joint investigation team has frozen Tk872 crore in their bank accounts.
Besides, the Bangladesh Financial Intelligence Unit (BFIU) has frozen 1,374 bank accounts, totaling Tk614 billion, and seized shares valued at Tk15,500 crore in 188 BO accounts.
Intelligence reports have been received in 10 cases, with four still under investigation. The government has also imposed travel bans on 84 individuals implicated in these cases.
Of the 11 priority cases, details have been provided regarding Sheikh Hasina, her family, and former land minister Saifuzzaman Chowdhury and his family.
Assets worth Tk1,817 crore have been attached in these cases, alongside court orders for the attachment of assets valued at $1,246 lakh, £37.97 lakh, and €117 lakh, as confirmed by the BFIU.
The BFIU has identified Tk635.14 crore in 124 frozen bank accounts linked to Hasina, her family, and associated entities. Furthermore, eight plots, including a 60-katha plot of Rajuk with a deed value of Tk1.80 crore and additional land valued at Tk8.85 crore, have been blocked.
Investigations have uncovered assets connected to Hasina, her family, and related institutions in the US, the UK, Malaysia, Singapore, Hong Kong, and the Cayman Islands. A Russian "slush fund" has also been discovered in a Malaysian account.
Chargesheets have been filed in six cases related to fraud and forgery involving Hasina's family and associated entities. As a result, seven family members have been banned from traveling abroad.
Saifuzzaman's 578 assets abroad
A total of 125 bank accounts associated with former land minister Saifuzzaman Chowdhury and entities linked to his interests have been frozen, with Tk15.06 crore in cash seized.
Additionally, four properties valued at Tk20 crore have been attached. The government has also applied to the court for the attachment of two flats and 31,594 decimals of land.
Furthermore, his shares worth Tk102.85 crore have been frozen. The Bangladesh Financial Intelligence Unit (BFIU) has requested the Ministry of Foreign Affairs to send letters to relevant countries for the attachment of 228 properties in the UAE, seven in the US, and 343 in the UK.
