High-level meeting today to prepare roadmap to return laundered money

Highlights

• Meeting to identify major launderers
• It will review actions by BB and BFIU  
• CA to propose a recovery roadmap  
• Roadmap will be effective under any elected govt
• CA sought assistance from countries, int'l orgs
• He will outline strategies to enhance institutional efficiency

Chief Adviser Muhammad Yunus will chair a high-level meeting today with advisers and senior officials responsible for financial crime control to establish a strategic roadmap and action plan for recovering laundered funds from Bangladesh.

In the meeting, the chief adviser will provide directives, including a guideline, on identifying major money launderers, the countries where funds have been syphoned off, and the amounts involved.

He will also review the actions taken by the Bangladesh Bank and the Bangladesh Financial Intelligence Unit (BFIU) to recover these funds and address any challenges hindering the process.

The meeting, titled "Recovering Laundered Money: Actions Taken, Challenges, and Next Steps", will take place at the chief adviser's official residence, Jamuna. 

An official, speaking on condition of anonymity, told The Business Standard that Yunus has  strong personal relationships with international organisations and Western nations and since assuming office, he has sought their cooperation in retrieving laundered money.

"Various countries and organisations have expressed a willingness to assist. Several have offered technical support to streamline the process of recovering illicit funds. The chief adviser will provide guidance on leveraging these offers effectively," the official said.

He added that repatriating laundered funds is a complex and time-consuming process. "To ensure continuity, the chief adviser will propose a mid- to long-term roadmap so that efforts initiated under the interim government can continue seamlessly under an elected government." 

Besides, Yunus will outline strategies to enhance the efficiency of institutions responsible for recovering laundered money and establish a structured, institutional approach in recovery efforts.

According to the 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 has said $17 billion was siphoned off through the banking sector alone during the same period.

At a recent press conference, Mansur said, "The legal process for recovering laundered funds may take three to four years." However, he added that the short-term goal is to identify and seize foreign assets within a year, alongside a broader initiative for asset recovery.

An official from the Chief Adviser's Office said that it was decided at a recent meeting led by the finance adviser to secure the return of funds from at least one major money launderer and ensure exemplary punishment to set a precedent.

Additionally, the BFIU is considering hiring international firms to assist in recovering funds siphoned off through commercial banks, the official added.

Today's meeting will be attended by key officials, including Finance Adviser Saleh Uddin Ahmed, Law Adviser Asif Nazrul, attorney general, central bank governor, chief adviser's principal secretary, ACC chairman, and secretaries from the Home, Foreign Affairs, Finance, and Financial Institutions divisions, along with the chairman of the National Board of Revenue.

Interim govt's effort to return money

The interim government has restructured the task force originally established under the Hasina administration to combat money laundering. It has also sought assistance from the International Monetary Fund, World Bank, Asian Development Bank, and various foreign governments. 

Many of these entities have responded positively, according to relevant officials. 

During the Awami League government's tenure, the task force initiated agreements with the US, Canada, the UAE, the UK, and eight other countries to recover laundered money. However, most of these nations showed little interest at that time.

Following the fall of the Hasina government on 5 August last year, the task force was reconstituted with the Bangladesh Bank Governor as its head. Currently, BFIU, the Anti-Corruption Commission (ACC), the Criminal Investigation Department (CID), and other agencies are investigating financial crimes involving prominent business conglomerates such as S Alam Group and Beximco, as well as top politicians.