TDS Desk:

Despite much fanfare over various initiatives to recover money laundered from the country, actual progress has been minimal. Although international organisations like the World Bank, IMF, GFI, and ADB have pledged support, tangible results are negligible. Progress so far has been limited to letter exchanges and meetings.

After the fall of the authoritarian Awami League government on 5 August, the central task force on the issue was restructured on 29 September, with the Governor of Bangladesh Bank as its head. Since then, two meetings have been held, the most recent on 19 November. Another meeting of the task force is scheduled for today (5 January) at 4 pm at Bangladesh Bank.

Previously, the Awami League government announced various measures to recover laundered funds but failed to bring back even a single penny. In the final fiscal year (2023-24) of its third term, the outgoing government had offered a legal route for undisclosed foreign-held funds to be brought back to the country by paying a 7% tax and declaring them in income tax returns. This initiative also yielded no results, with no money returning to the country during that period.

After the fall of the government, an interim administration led by Dr. Yunus assumed power on 8 August. Subsequently, revelations about massive corruption, bribery, irregularities, and embezzlement over the past 16 years came to light. Billions of takas were misappropriated and laundered abroad under the guise of development projects. The interim government’s White Paper Committee published a detailed report on these financial irregularities, embezzlement, and money laundering.

Simultaneously, efforts have been initiated to engage the international community in recovering laundered funds. However, no effective strategy has yet been formulated, and this responsibility has been handed over to the restructured task force.

The government has not yet sent an official letter to Global Financial Integrity, the largest anti-money laundering organization, nor to the Swiss National Bank (SNB), known for being a safe haven for launderers worldwide.

Reportedly, the scope of the restructured task force was expanded on 29 September. Previously, the task force had three objectives, which have now been increased to six: Identifying money or assets laundered from Bangladesh. Addressing barriers and taking initiatives to expedite the resolution of cases related to asset recovery. Taking measures to repatriate laundered funds. Managing seized or recovered assets. Establishing communication and gathering information with relevant foreign entities and countries. Enhancing the capabilities of relevant parties and coordinating efforts for asset recovery.

Mohammad Matiur Rahman Sheikh, the head of the CID branch of the police and a member of the task force, stated that the task force is actively working, but visible progress will require more time.

Regarding this, Dr. Iftekharuzzaman, Executive Director of the anti-corruption organization Transparency International Bangladesh (TIB), noted that recovering laundered money is a highly complex and lengthy process requiring cooperation from the country where the money was laundered. Legal proceedings are also necessary in that country. However, given the presence of a special government in power now, there is global support for this initiative, and the efforts seem promising. Positive outcomes can be anticipated in this regard.