Money laundering: Law there, enforcement missing, says TIB

Although there have been substantial advancements in legal frameworks to curb money laundering, there appears to be a lack of government initiative in effectively enforcing these regulations, according to the anti-corruption watchdog Transparency International Bangladesh (TIB). 

There are two aspects in combating money laundering: legal and practical, TIB's Executive Director Dr Iftekharuzzaman said at a press conference on Thursday.

There has been a fair amount of progress in legal implementation but in most cases, the practical progress is very low, he said while presenting a review of the implementation of the UN Convention against Corruption (UNCAC) treaty in Bangladesh.

"Even though there is a law, the Anti-Corruption Commission is not able to work as expected. There is little precedent for taking action against people who are politically powerful or have administrative connections," the economist said. 

There is a lack of initiative, goodwill, coordination and capacity of the government in implementing these laws, he added.  

Despite strong legal frameworks, Bangladesh struggles with UNCAC commitments – a leading legally binding treaty against corruption – due to capacity constraints, coordination issues, and enforcement gaps, resulting in ongoing corruption and money laundering challenges. 

The assessment has revealed significant obstacles in Bangladesh's anti-corruption endeavours, including ineffective enforcement against corruption in the private sector and foreign bribery, the economist said. 

Dr Iftekharuzzaman also pointed out that unjust changes in legislation and administrative actions have impeded the Anti-Corruption Commission's (ACC) ability to combat corruption effectively. 

Moreover, the ACC faces challenges with limited personnel and resources in addressing complex corruption and financial misconduct issues.

He raised concerns about the ACC's independence due to a problematic provision in the Civil Service Act, requiring prior permission to arrest public officials under investigation, which could compromise the commission's autonomy.

Besides, policy gaps and enforcement issues in money laundering and international fund recovery efforts have hindered the ACC's control due to administrative restrictions and poor coordination.

While the Bangladesh Financial Intelligence Unit (BFIU) has the potential, capacity constraints and political influence have hindered both the ACC and BFIU in their efforts.

Dr Iftekharuzzaman asserted that lacking strategic steps, the government's repatriation roadmap faces persistent gaps in initiative, capacity, coordination, and resolve, often due to the influence of wrongdoers.

Advocate Sultana Kamal, chairperson of TIB's Board of Trustees, voiced concerns about corruption's adverse effects on both society and government mechanisms, highlighting the government's responsibility in addressing this issue and underscored citizens' rights to voice their concerns. 

She, however, expressed optimism that the ongoing review would prompt the government to take concrete actions to tackle the acknowledged challenges.

After the review, the anti-corruption watchdog recommended reforms: ensuring ACC and judiciary autonomy, lifting civic space restrictions, enhancing financial management transparency, strengthening anti-bribery laws, boosting ACC's capacity, and improving ACC-BFIU coordination in combating money laundering and illicit funds.