Poor documentation, evidence plague stolen asset recovery efforts

Infograph: TBS

Highlights:

• Foreign agencies frustrated by Bangladesh's slow asset recovery efforts
• Lack of documentation stalls progress in international court cases
• Task force hampered by weak coordination and legal structure
• Foreign embassies may stop engaging without substantial improvements
• Evidence gaps render asset freezing requests ineffective abroad
• Nine months on, no cases meet international legal standards

Various international agencies and coordinators from foreign embassies are expressing growing frustration with Bangladesh's asset recovery task force, citing slow progress, loose timelines, and inadequate documentation to support cases in international courts.

The British High Commission in Dhaka, a key player in the stolen asset recovery process, recently hosted an informal coordination meeting where all foreign parties conveyed their dissatisfaction with the task force's progress, The Business Standard has learned from multiple sources.

The meeting, held last month at the UK High Commission, saw attendance from representatives of the US, Singapore, Switzerland, the European Union, and Canada. A common concern among all representatives was the pervasive lack of proper documentation for cases. They expressed willingness to support the task force, but stressed that no substantial information had been provided to build a case for an international court, with Bangladeshi officials involved in the task force failing to supply adequate details on any specific case.

Sources indicate that these foreign parties are likely to meet with Bangladesh Bank Governor Ahsan H Mansur to convey that, despite repeated requests for documents, no progress has been made, and that his team has "failed miserably."

Referring to the meeting, one source remarked, "People are just not going to have these meetings anymore. People aren't going to invest time in this problem."

Participants also criticised the protracted process, noting that requests for information must go through the mutual legal assistance team in the Home Ministry, which significantly delays proceedings. They highlighted, for instance, that if a foreign agency requires information from the Criminal Investigation Department (CID) or Anti-Corruption Commission (ACC), it must be channelled through the Home Ministry. Responses from the CID or ACC also return via the same channel, further protracting the process. They added that the task force suffers from loose timelines and lacks focus, becoming entangled in hundreds of cases despite being asked to prioritise specific ones.

Laundering act to be amended to empower task force

When questioned about the frustration expressed by international agencies, Governor Mansur acknowledged the concern, attributing it partly to weak inter-ministerial cooperation. "We're receiving significant support from foreign agencies, but I wish we could do more," he stated.

To address this, the government is working to amend the Money Laundering Prevention Act to formally incorporate the stolen asset recovery task force as a legal entity. "Once the task force is legally recognised, it will have greater authority and capacity to act," he explained, noting that its current ad hoc status limits its effectiveness.

Expressing disappointment, Mansur also pointed out that several government agencies have yet to release their designated staff for full-time task force duties. "We've sent repeated letters asking for their support, but these officials are still tied up with regular departmental work."

He clarified, "It is not the central bank's job to recover stolen assets but still we are doing it to make it faster." He further stated that filing cases and gathering evidence fall under the purview of the ACC and the CID. "If they don't fulfil their responsibilities, it becomes very difficult for us to move forward."

While full repatriation of laundered funds may take five to six years, Mansur stated that the immediate goal is to freeze assets and increase international pressure over the next six months.

Meanwhile, Chief Adviser Muhammad Yunus is scheduled to visit the UK from 9 to 13 June, where he is expected to meet King Charles and Prime Minister Keir Starmer, according to the Foreign Ministry. Governor Mansur will accompany him as part of the delegation. During the visit, the government is expected to press for the repatriation of laundered funds and raise concerns regarding British-Bangladeshi MP Tulip Siddiq, the niece of Sheikh Hasina, ministry sources said.

Lack of documentation delaying recovery

The Home Ministry recently requested mutual legal assistance from the UK High Commission and US Embassy to freeze assets allegedly held in the US and UK by former land minister Saifuzzaman Chowdhury Javed and his wife Rukhmila Zaman. However, the request letter, seen by The Business Standard, lacked detailed information on the couple's properties and bank accounts in the US.

The government's letter stated: "During the course of enquiry, intelligence/information collected/received has been that Mr Saifuzzaman Chowdhury purchased seven properties and sold two properties in the USA between 2005 and 2021. He also maintained one bank account in the USA. During this period, Mr Saifuzzaman Chowdhury served as either State Minister or Minister at the Ministry of Land. His wife held the position of Chairman/Director at United Commercial Bank PLC, Bangladesh."

The letter further elaborated: "Reliable sources also disclose that they took huge amounts of bank loans in different names from the United Commercial Bank which were not repaid at the end of the term of those loans. That clearly indicates that Saifuzzman Chowdhury and his wife obtained those properties through bribe and corruption, when they were serving as the State Minister/Minister and the Chairman/Director of the bank respectively, and as such they did not declare the illegal income to the tax authority and smuggled/laundered the proceeds of crime outside Bangladesh by illegal transfer, conversion etc. Thus, Mr Saifuzzaman Chowdhury and his wife Mrs Rukhmila Zaman committed crimes punishable under Section 27(1) of the Anti-Corruption Commission Act, 2004 and Sections 4(2) and 4(3) of the Prevention of Money Laundering Act, 2012. Hence, the mentioned properties are subject to attachment, freezing, and ultimately confiscation."

The letter only included domestic court orders referencing the freezing of assets abroad. In response, both UK and US authorities highlighted significant evidence gaps that the Bangladeshi government must address before presenting the case to an international court.

'Taking notes from youtube videos'

Referring to these evidence gaps, one source commented, "It's like they watched a YouTube video of an Al Jazeera report on the former land minister and just took notes from that. They want the money but don't have any details. The letter is missing all the evidence."

Citing an example, he said, "The letter says the minister purchased seven properties, but provides no details. What are the properties? If they want an international court to seize the properties, they must provide a detailed list. But the letter doesn't include such details." The letter also vaguely refers to "reliable sources" and mentions "huge amounts of bank loans," which lacks clarity, he said. "Who are these sources? What kind of banking transactions occurred? There are many unanswered questions."

Expressing frustration, the source added, "We sent the letter back and told them, 'You've got to provide some details,' but we haven't heard back. This letter is going to a court, not to your buddy."

Nine months on, no cases ready

Despite the formation of the asset recovery task force nine months ago, Bangladesh has yet to present a single case backed by internationally accepted evidence for submission to a foreign court. The task force, comprising 11 agencies and joint investigation teams, has failed to trace international assets – largely due to poor coordination and lack of expertise in building cases that meet global standards.

Governor Ahsan H Mansur heads the task force, with Ifty Islam serving as its global coordinator and adviser to the governor. In an effort to improve coordination and accelerate the recovery process, the Governor recently arranged office space for all 11 agencies at Bangladesh Bank.

Muhammad A (Rumee) Ali, former Deputy Governor of Bangladesh Bank, said the Bangladesh Financial Intelligence Unit (BFIU) is specifically trained to collect financial intelligence and share it with relevant agencies. "If BFIU has failed to prepare admissible evidence, that failure warrants intervention from the highest level," he said. "Bringing financial criminals to justice should be treated as a national priority."

A senior BFIU official, when contacted, claimed the unit had already shared evidence with the ACC and CID, and it was now their responsibility to interrogate suspects and file cases.

Md Sibgat Ullah, Chief of CID, and Mohammad Abdul Momen, Chairman of ACC, could not be reached for comment despite repeated attempts.