8 foreign firms to trace overseas assets of 42 defaulting companies: BB

The Bangladesh Bank has given banks a list of eight international legal and forensic consulting firms they can engage to trace overseas assets of 42 companies, each with more than Tk200 crore in default loans, suspected of having laundered money abroad.

The firms will identify the assets and take legal steps to seize or attach them, with the recovered funds to be brought back to Bangladesh, Arief Hossain Khan, executive director and spokesperson of Bangladesh Bank, told The Business Standard.

Based on information provided by the relevant banks, the firms will identify the location, nature and value of overseas assets belonging to the defaulting borrowers, he said. They will then take legal measures under the laws of the respective countries to recover the assets.

"If any assets are identified and successfully seized or attached through legal procedures, the proceeds from their subsequent sale or disposal will be brought back to Bangladesh and used to repay the dues owed to the relevant banks," Arief said.

The eight firms are Grant Thornton, RI Consortium, Baker McKenzie and PwC, DLA Piper and Kroll, EY and Dentons, Rahman Ravelli and Interpath, BCG and HHR, and Animus Associates.

The foreign law firms will not charge any upfront fees or expenses. Instead, they will receive a fixed portion of the recovered funds as remuneration if they successfully identify and recover overseas assets. "The firms will therefore work on a 'no win, no pay' basis."

The countries where the laundered money or assets are initially believed to be located include the United States, United Kingdom, United Arab Emirates, Canada, Singapore, Belgium, New Zealand, Hong Kong, China, Malaysia, Thailand and Australia.

The spokesperson further said top executives of 38 banks held a meeting with the Bangladesh Financial Intelligence Unit (BFIU) today (9 August) in the presence of the central bank governor, where the 42 companies were identified.

The latest move follows an earlier initiative targeting the family of former prime minister Sheikh Hasina and 10 business groups over allegations of money laundering abroad.

The Anti-Corruption Commission, Criminal Investigation Department of police, relevant Customs units and Income Tax units are working on that initiative.

Meanwhile, the banks concerned are also seeking assistance from foreign law firms to recover default loans from borrowers' overseas assets.