TDS Desk:

Bangladesh Bank (BB) is set to freeze several foreign assets acquired through laundered money within the next six months as part of a broader initiative to recover illicit funds and strengthen financial accountability, BB Governor Ahsan H Mansur said on Friday (April 11).

Speaking at a press briefing held at the central bank’s Chattogram branch this afternoon, he said, “The concept of bringing back laundered money is very new to us. We are learning and consulting with international law firms and government officials in countries where we suspect large amounts have been laundered. We are also working with asset-tracing firms. Once we gather conclusive evidence, we will take steps to freeze those assets.”

He added that the legal battle to repatriate the frozen funds would be complex and lengthy.

“It’s not an easy task, but we are trying our best,” he said.

“We are also exploring alternative approaches. We’re trying to repatriate the funds through counseling and dialogue to avoid the lengthy legal process.”

The governor also discussed the central bank’s economic performance, noting achievements in inflation control.

“Since assuming office, we’ve reduced food inflation from 14% to 8%, and non-food inflation from 12% to 9%. This is a major achievement. We aim to bring food inflation down further to 5-6% by next year,” he said.

Despite external pressures, Bangladesh Bank has managed to maintain stable foreign reserves. According to Mansur, this is largely due to a 26-27% increase in remittances and over 11% growth in exports over the past seven months.

“We have managed to maintain the gas supply by importing LNG on time, despite a shortage of foreign currency. We have ensured the supply of fertiliser by increasing imports. We have also controlled food inflation by reducing import duties and VAT,” he added.

Regarding the health of the banking sector, the governor acknowledged past issues related to money laundering but highlighted a turnaround.

“Though a significant portion of funds was laundered, the banking sector has recovered thanks to strong policies and monitoring. UCB and Islami Bank Bangladesh have regained customer trust and no longer need liquidity support from the central bank.”

Banks still struggling are under close monitoring and receiving policy support, the governor said, adding, “If necessary, we will consider mergers.”

Mansur assured the public that depositors’ funds are safe. “No depositor will lose their money. Bangladesh Bank takes full responsibility. There is no reason to withdraw funds from banks.”

He emphasised the importance of prevention in combating money laundering, announcing that senior bank executives will be trained to detect and stop such activities. “We believe prevention is better than cure.”

In response to a journalist’s question, the governor said nearly Tk3,00,000 crore has been laundered from Bangladesh, with around half allegedly linked to business groups based in Chattogram. He specifically named the Beximco Group as having laundered about Tk50,000 crore.

On the issue of internal corruption, Mansur stated that action would only be taken based on solid evidence.

“If any BB official is found guilty, we will take action. We welcome investigations by the Anti-Corruption Commission or any other agency, but we cannot act on speculation.”

He also noted that several bank directors involved in irregularities have already been removed from their posts, with positive results.

The governor also announced plans to establish an international-standard banking training institute in Chattogram. The facility will include accommodations for both trainees and trainers and aims to enhance professional development within the sector.

BB Chattogram Brunch Executive Director Md Jamal Uddin, BFIU Director Md Anisur Rahman, Chattogram Office directors Md Salah Uddin, Md Arifuzzaman, Md Ashiqur Rahman, and Swaroop Kumar Chowdhury were also present at the event moderated by Deputy Director Md Zobaer Hossain.