Govt on right track: Iftekharuzzaman on roadmap to recover laundered money

The government is on the right track in its efforts to recover laundered money, including its plan to hire international firms for this purpose, Iftekharuzzaman, executive director of Transparency International Bangladesh, has said.

"Recovering laundered funds is one of the interim government's highest priorities, and it aligns with the expectations of the public," he told The Business Standard in his immediate reaction to the government's roadmap to recover laundered money unveiled at a high-level today.

"I believe the government is taking the necessary steps to recover the laundered funds. Next week, the Governor will meet with the UK's All Party Parliamentary Group on Corruption, and the London conference will play a crucial role in recovering the stolen assets," he added.

He mentioned that it is widely known that laundered funds from Bangladesh have illegally ended up in countries like the UK. While these countries are aware of the situation, the money has already been invested, with people running businesses and purchasing properties. 

"These assets have become part of the economies of these nations. Therefore, the role of these countries is critical in the recovery process, but it is rarely discussed," he added.

Iftekharuzzaman stressed the importance of bringing this issue to the forefront at international platforms such as the UK, the US, and the UN, and imposing sanctions to prevent the transfer of laundered assets. 

"Freezing the assets, imposing transfer restrictions, and selling them through appropriate legal processes to return the money to Bangladesh is primarily the responsibility of these countries," he added.

However, he acknowledged the challenges in recovering laundered money. While it is easier to discuss recovery, the actual process is far more difficult. 

"The government has undertaken several initiatives, and it seems that the interim government is on the right track. However, success will depend on the cooperation of the countries where the money was laundered," 

Citing global records and international experience, the economist noted that recovering laundered funds typically takes 5 to 7 years. Only about 1% of laundered funds from various countries have been successfully recovered. 

He stressed that while the government's roadmap aims to resolve 50% of the 11 priority cases within a year, even freezing assets from high-profile individuals would be a significant success.

Countries that have managed to recover laundered funds have done so by hiring international law firms. However, Iftekharuzzaman warned that some law firms may also be complicit in money laundering, so it is crucial to thoroughly vet and carefully select these firms. 

"Caution must be exercised when determining their fees. Otherwise, Bangladesh may end up paying more to the law firms than what is actually recovered," he cautioned.