Banks begin recovery of laundered assets from 42 more top defaulters

Banks have started efforts to recover laundered assets of 42 more top defaulters. After the 11 prioritised institutions, efforts will be made to identify these institutions and recover their hidden assets. 

And for this, the banks concerned have signed agreements with eight world-renowned international legal and professional consulting firms. 

Bangladesh Bank held a meeting on Sunday to learn about the progress in this regard.

It is learned that managing directors of various banks were present at the meeting held from 3pm under the chairmanship of Governor Mostakur Rahman. 

Efforts are being made to recover laundered money, mainly targeting 12 countries including the United Kingdom, the United States, the United Arab Emirates, Canada, Singapore and Malaysia. 

No bank will have to pay advance money in this asset recovery operation under the “no win, no pay” policy. 

Foreign institutions will search for assets at their own expense. They will have to pay a part of the recovered assets as remuneration.

The interim government formed a joint investigation team to find out various irregularities and frauds including bank looting, money laundering and tax evasion of the top 11 groups. 

A total of Tk76,000 crore of assets of former prime minister Sheikh Hasina’s family and the 10 industrial groups discussed in the country and abroad have been seized. These 10 industrial groups are S Alam Group, Beximco Group, Nabil Group, Summit Group, Orion Group, NASA Group, Bashundhara Group, Premier Group, Sikder Group and Aramit Group.

This measure was taken based on a joint investigation by the Anti-Corruption Commission, the Criminal Investigation Department of the police and the Central Intelligence Cell of the National Board of Revenue. 

International organisations such as Grant Thornton, Baker McKenzie, PwC and Deloitte are assisting in recovering foreign assets.

In the second phase, according to the Credit Information Bureau database of Bangladesh Bank, 42 organisations with defaulted loans of more than Tk200 crore have been identified. Eight major foreign firms have been tasked with tracing the assets of these institutions that have been laundered abroad. 

The eight international firms tasked are Grant Thornton, RI Consortium, Baker McKenzie & PwC, DLA Piper & Kroll, EY & Dentons, Rahman Ravelli & Interpath, BCG & HHR and Animus Associates. They are mainly from the United Kingdom, the United States, the United Arab Emirates, Canada, Singapore, Belgium, New Zealand, Hong Kong, China, Malaysia, Thailand and Australia.

Bangladesh Bank spokesperson and executive director Arif Hossain Khan told reporters that based on information from the relevant banks, these international investigators and legal firms are working to identify the location, type and financial amount of assets abroad. 

After the assets are identified, legal procedures will be taken to freeze or seize them in accordance with the laws of the relevant country. Later, the legal process will be completed to bring the money obtained by selling or disposing of those assets back to Bangladesh as per the court order. 

This initiative will not only recover the smuggled national assets, but also make it possible to recover the large amount of defaulted loans of the banks that have been unpaid for a long time.