Bangladesh is now in the midst of a major push to recover assets stolen and “smuggled” out of the country. Estimates vary, but there is clear evidence that political operatives and their cronies have in the last quarter of a century pocketed money illegally from government projects, foreign investment, government deals, and export-import business.
Prof Yunus, the chief adviser of the interim government (IG) in Bangladesh, has prioritised the recovery of assets stolen by the previous regime. During a recent meeting, he sought the assistance of attorney Toby Cadman, an internationally known criminal lawyer, in the investigation and pursuance of asset recovery. The Daily Star reported on their recent discussions: “Another major point of discussion was the seizure of stolen assets by the previous regime, and the legal and procedural measures needed to recover and repatriate these assets.”
While the exact magnitude is still to be verified, knowledgeable sources have provided detailed accounts of the key personalities involved in what may be characterised as robbery.
The Bangladesh Bank governor confirmed recently that the government is on track to bring back money that was laundered from Bangladesh. All assets of the S Alam Group have already been seized to recover the money stolen from the banks. The governor also said 12 oligarchs who looted money from banks have been identified. These include the Hallmark Group, Destiny Group, Bismillah Group, AnnonTex, Regent Hospital, NRB Global Bank, and Beximco.
“We are taking the help of foreign experts to find out how they took the money. Efforts are being made to bring back the laundered money in accordance with international protocols,” the governor added.
How do we recover this money, and how many years would that take? The IG has set up a task force chaired by the Bangladesh Bank governor. The White Paper on the economy offers a short list of policy measures. First, the government must act immediately to have agreements with the UAE, India, China, EU, US, and Singapore to deal with Trade-Based Money Laundering. Secondly, the Anti-Corruption Commission (ACC) was advised to seek support from overseas legal experts and firms specialising in stolen asset recovery to support reforms and capacity building of Bangladesh’s relevant institutions such as ACC, Financial Intelligence Unit, Criminal Investigation Department, National Board of Revenue, and the Attorney General’s Office.
Independent research by Transparency International shows that most entities and personalities involved in the “megasteal” are affiliated with former AL and BNP governments. The major megasteal cases are the Rooppur Nuclear Power Plant, Karnaphuli Tunnel, and the Padma Bridge Rail Link. Add to that the six other communications and infrastructure projects identified by a task force that studied megaprojects and uncovered embezzlement, bribery, false declarations and mispricing, including land speculation relating to extensive borrowing from commercial banks.
The IG and the stakeholders all have acknowledged that the timeline for the asset recovery will be lengthy and require the tenacity of Sherlock Holmes. One of the more successful international cases of asset recovery in recent times is the Malaysian 1MDB scandal. The 1MDB scandal was initially covered up by the Malaysian government. The lessons and pointers that we can take away from the 1MDB case are:
1) Public disclosure
2) International cooperation
3) Better enforcement
4) Due diligence and proactive implementation of comprehensive anti-money laundering (AML) compliance frameworks
In the past decade, the value of “public disclosure” or transparency has been amply illustrated by the Panama Papers, Pandora Papers, and Paradise Papers leaks. In these instances, documents exposed offshore financial dealings of wealthy and influential people. The money stolen from Bangladesh and laundered abroad has been moved to different countries under different names and invested in innumerable accounts. However, the key to recovering these assets is due diligence and perseverance.
The government has already identified the key culprits and initiated considerable initiatives to track down the money and manage the recovery: track, freeze, seize, and recover these assets or TFSR. According to The Sunday Times, the National Crime Agency, Britain’s equivalent to the US FBI, has indicated its willingness to help Bangladesh recover certain assets. The IG must push the EU to impose sanctions against those who have enabled any misappropriation of assets from Bangladesh, whether this be lawyers or any other professional enabler in the EU.
In addition, as I already mentioned earlier, resources of the EU, United Nations Office on Drugs and Crime, the World Bank’s Star initiative, Financial Action Task Force, and the US Justice Department must be utilised (“The path to recovering our stolen assets,” The Daily Star, December 22, 2024).
Finally, the IG must frequently update the list. Every day, new details emerge on the various financial deals carried out by the former prime minister and her family. Former UK minister Tulip Siddiq faces fresh questions after videos emerged of her with an official delegation from Bangladesh at the signing of a billion-dollar arms deal and the Rooppur Power Plant. The Bangladeshi High Court heard claims that the British minister may have helped Hasina “broker” the mega-billion dollar deal for Rooppur by the Russian state-backed company, Rosatom.
Another report implicates the former PM, her son Sajeeb Wazed Joy, and niece Tulip Siddiq in financial crimes through various offshore bank accounts in Malaysia. They were also involved in an elaborate scheme to launder money that involved her paternal uncle, Tarique Ahmed Siddique. “Tulip Siddiq and her family members are stakeholders in a company named Prochchaya which along with another entity Destiny Group had laundered $900 million,” as reported in the Indian daily, The Hindu.
The Bangladesh experience underscores the pressing need for unwavering diligence and proactive implementation of comprehensive AML compliance frameworks, particularly robust AML compliance programmes, to safeguard the integrity of our financial system. The history of Bangladesh stands as a testament to the pivotal role AML compliance programmes play in fortifying financial institutions against the insidious threat of money laundering.
Dr Abdullah Shibli is an economist and currently employed at a nonprofit financial intermediary in the US. He previously worked for the World Bank and Harvard University.
Views expressed in this article are the author’s own.
