How Bangladesh Can Recover Its Plundered (Smuggled) Money?
Prof. Dr. Mohd Ma’Sum Billah :
The world witnesses that, Bangladesh is currently facing serious liquidity deficit caused by the gross corruption, mismanagement, misappropriation and malpractices in both public and private sectors including the leaders, rulers and policymakers during the last 15 years of the recently ousted regime, which compelled Bangladesh to carry on at least TK 18 laks crores of debt besides encountering huge funds and assets are smuggled. The Global Financial Integrity (GFI), a Washington-based financial sector research organization, reported that an average of USD 7.53 billion 37 million or Tk 80,000 crores while according to the report of the Daily Star (September 18, 2024) USD 10 billion have been plundered abroad from Bangladesh every year as evidently observed during the last 15 years (2009-2024). The amount smuggled are more than the double of the current national budget of the country.
Does Bangladesh have regulatory supports or backings in recovering its plundered money or assets? Yes…. Bangladesh has adequate back-up in claiming and recovering back its plundered money and assets through the existing regulatory frameworks, procedures and smart strategies. In recovering the plundered money and asset, Bangladesh in its action plan, requires initiating in establishing a recovery commission comprising of a smart team followed by strategic actions with financial intelligence for detection, legal process for achievable outcome and compliance for accuracy. There are numerous challenges awaiting in recovering the smuggled money or asset. Among those challenges are: unseriousness from the right authorities, poor action plan, inaccuracy in intelligence action, unprofessional legal processing, fear and favoring, prioritizing diplomatic or political influences over accurate action plan and legal processing and leniency in auditing and compliance.
There are numerous experiences and cases of several countries where the plundered or smuggled money and or asset have been successfully recovered through the existing legal process. Among them are:
The ousted President Ferdinand Marcos and his associates made off with USD 5 to 10 billion in stolen assets in 1986. The Swiss government set a precedent by taking spontaneous action to freeze their Swiss bank accounts and subsequently assist the Philippine government in tracing and recuperating the plundered funds successfully.
In 2016, one of the largest cyber heists in history, hackers smuggled USD 81 million from the Bangladesh bank (BB) and funneled the money through the Philippines’ banking system through a black hate scamming. Maia Santos Deguito, a bank manager in the Philippine, was convicted for her role in facilitating the smuggling of these funds. In High Court Division of Bangladesh, Justice Nima Haider and Justice Abu Taher Md Saifur Rahman ruled out in 2016 in a Writ Petition (No. 5673) outlining the possible legal process in recovering the smuggled money.
As understood that, the money or assets have been plundered from Bangladesh during the last 15 years is more than doble the amount allocated for the national budget, which compelled the country to face high risk in its economic backbone while positioning the country with an uncertain economic catastrophe. It may be admitted that, the remittance from our real fighters significantly contribute to the sustainability Bangladesh during this catastrophic era. Yet, if the plundered funds or assets (from both the interannually and locally stored unlawfully) can be smartly recovered, may bring a great socio-economic and political impact in the country with long-term effect. Among the impact are: The country’s economic status may significantly be upgraded, the national debt may with gradual effect be diminished, creating a vibration in the national economy while contributing notably to the GDP to place the country with economic bright future. Corruption, misappropriation and mismanagement may tremendously be reduced. And also a great lesson with a dynamic public awareness for all levels either individual, family, private or public sectors to prevent themselves from such malpractices while creating a mind-set for all to build up a country free from corruption and leading it to be with an economic sustainability.
Senior Professor of Finance and Investment King Abdul Aziz University
Saudi Arabia
