Govt issues 10 red notices against money launderers, sets up task force to recover laundered assets: Minister
Finance minister says legal reforms - including a beneficial ownership register - are underway to prevent future capital flight; 30 affected banks have begun hiring international law firms on a no-win-no-fee basis
The government has issued 10 red notices against individuals who illegally laundered money abroad, Finance Minister Amir Khosru Mahmud Chowdhury told the Parliament today (9 June).
He did not, however, name the individuals or entities against whom the notices were issued.
Responding to a question from Mohammad Kamal Hossain, lawmaker from Dhaka-5, who asked what steps the current government has taken to repatriate money siphoned abroad through looting of tax revenues and bank deposits during previous governments, the minister outlined a series of measures.
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The minister said a 12-member inter-agency task force, led by the Bangladesh Bank governor, has been formed to recover illegally laundered assets from abroad.
According to the minister, the task force has identified 11 priority money laundering cases and constituted 11 joint investigation teams to probe them.
So far, 142 cases have been filed with the Anti-Corruption Commission (ACC), of which 17 have been charge-sheeted and verdicts delivered in six, said Khosru.
He added that a Stolen Asset Recovery Division has been set up under the Bangladesh Financial Intelligence Unit (BFIU) to spearhead the repatriation of laundered assets.
The minister said the government is pursuing civil proceedings alongside criminal cases to bring back laundered funds. Thirty banks damaged by the illegal transfer of defaulted loan money abroad have begun the process of engaging nine international law firms under non-disclosure agreements on a no-win-no-fee basis to recover their money.
He said civil proceedings have already begun in six of the 11 priority cases in the first phase, with the asset recovery drive to be expanded further.
On preventing future capital flight, Khosru said practical and effective steps have been taken to establish good governance in the financial sector.
The legal framework for combating money laundering - including the Money Laundering Prevention Act - will be updated in line with international standards, he said.
A beneficial ownership register will be established to prevent companies, trusts, or partnerships from concealing the identity of their true owners or beneficiaries to take bank loans or conduct business. Institutional reforms to the existing inter-agency task force are also planned, added the minister.
