Awami league rule: Up to $20b loan money laundered

About $18 billion to $20 billion was laundered abroad during the Awami League regime, said Bangladesh Bank Governor Ahsan H Mansur yesterday.

"Tracking where this money was used abroad or where it was diverted is a massive task for us -- none of us were prepared to handle such tasks," he said at a press conference organised by the Bangladesh Financial Intelligence Unit to unveil its annual report for 2023–2024.

Money was taken from the banking sector as loans.

Efforts are underway to reduce bureaucratic complexities to expedite the process of recovering the laundered funds, he said, adding that a joint investigation is ongoing involving 11 teams.

"If we speak frankly, inter-ministerial cooperation is a major challenge in Bangladesh. One organisation can move quickly, but when four or five organisations are involved, it gets caught in a complex bureaucratic web. That's why we are also looking to make some legal changes — because without those, the blame game will just continue, and no real work will get done."

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The golden rule in recovering stolen assets

The existing law will be amended to bring the joint task force -- formed with representatives from various agencies -- under a legal framework. The task force would be incorporated into the Money Laundering Act, giving it official recognition as a government agency.

"Once that happens, the task force will be significantly empowered. It will then act as a coordinating body among all stakeholders, helping us overcome bureaucratic obstacles."

The government is receiving considerable support from foreign counterparts, said Mansur, also a former economist of the International Monetary Fund.

Already, the assets of one individual have been seized abroad.

"Our goal is to put pressure on the money launderers so that the funds can be recovered through out-of-court settlements. Our intention is not to harass anyone by putting them in jail. We do not aim to shut down anyone's business. We haven't shut down anyone's business -- those whose businesses have closed, it happened for other reasons."

The process of recovering the laundered money would take three to five years, Mansur added.

Assistance is being taken from the World Bank's StAR (Stolen Asset Recovery Initiative), the US Department of Justice, the International Stolen Asset Coordination Committee and the International Centre for Asset Recovery for this end, said BFIU head AFM Shahinul Islam.

Steps have even been initiated to appoint foreign legal firms to aid in asset recovery.

"However, since the process is long-term and complex, it will take time," he added.

Since July last year, the workload of the anti-money laundering agency has increased severalfold, said BFIU Director Mohammad Anisur Rahman.

Suspicious transactions and suspicious activity from banks increased 23 percent to 17,345 last fiscal year.