JS body for action against local cohorts

A parliamentary body yesterday asked the authorities concerned to identify and take action against the local beneficiaries in connection with the laundering of US$ 55 million by Arab Bangladesh Bank in the name of offshore banking.

Bangladesh Bank has so far recovered US$ 22.1 million of the total money laundered and is working on to recover the rest of the money, said Abdur Razzaque, chief of the parliamentary standing committee on finance, after a meeting of the committee at the parliament.

According to a finance ministry report submitted to the committee, US$ 55 million have been laundered as loans through an offshore unit of AB Bank to four firms in Singapore and the United Arab Emirates (UAE).

In 2014 and 2015, the bank provided loans of US$ 1.2 million and US$ 29.5 to Global ME General Trading and Semat City General Trading of the UAE respectively, while US$ 10 million and US$ 14.4 million to ATZ Communications Pte Limited and Eurocrats Holding Pte Ltd of Singapore respectively.

The loans were provided without scrutinising the risks and assessing business capabilities, and also against insufficient collateral and equity and others, the report read.

So far, the total due including interest has reached US$ 38.76 million, it added.

“The four overseas organisations were asked to refund the money by September 2016. We have asked the authorities to identify and take action against the local beneficiaries…,” said Abdur Razzaque.

Bangladesh Bank intelligence unit reported that they were working to identify the local beneficiaries of the money laundering, he added.

All dues from Global ME General Trading has been recovered, Razzaque informed.

“It's taking time to recover the money as all the companies are located abroad,” he said.