Repatriation of siphoned Tk17.6t may be herculean task

Reza Mahmud :

Repatriating the $ 149.20 billion siphoned from Bangladesh over the past 15 years by cronies of the deposed fascist government under Sheikh Hasina may be feasible if a well-planned, multi-tiered global approach is taken, experts suggest.

They have urged the interim government to act swiftly and follow a well-planned approach to achieve this challenging goal.

Despite the urgency, the Bangladesh Bank (BB) has not yet begun concrete initiatives, even though a task force was proposed to address the issue. However, no members have been appointed to the task force so far.

According to the US-based Global Financial Integrity (GFI), approximately 149.20 billion USD (equivalent to Tk 17,60,000 crore, with 1 USD = Tk 118) was siphoned out of Bangladesh during the last 15 years under the regime of dictator Sheikh Hasina. This amounts to an estimated Tk 1,17,000 crore siphoned annually during her tenure.

When contacted, Husne Ara Shikha, Executive Director and spokesperson for Bangladesh Bank, told The New Nation on Thursday, “A decision has been made to form a ‘Stolen Asset Recovery Task Force’ as part of efforts to recover the laundered money from abroad. However, no members have been selected for the task force yet.”

She further stated that the central bank has sought assistance from the World Bank to recover the siphoned funds, and the organization has agreed to help.
Prominent economist Dr. Zahid Hossain, in an interview with The New Nation, explained the process: “Returning siphoned money is not easy, but it is possible. The government needs to follow a three-stage process to recover the laundered funds.”

He outlined the steps as follows: “First, the government must track the origin of the siphoned money and identify how it was transferred to a specific country.

Second, it must sign a mutual legal assistance (MLA) or extradition treaty with the concerned country.

Finally, the government must file a case in the court of that country to seek the return of the money.”

Dr. Iftekharuzzaman, Executive Director of Transparency International Bangladesh (TIB), told The New Nation, “TIB has sent letters to various countries, including the USA, UK, UAE, EU, Canada, and the UN, requesting the freezing of assets owned by corrupt Bangladeshi individuals.

We have received positive responses, but now it is up to the government and relevant agencies to take prompt action.”

He further emphasized that influential figures in any government are often responsible for laundering money using illegal means while benefiting from state power.

“This is an opportune moment for Bangladesh’s non-political government to take the necessary steps to recover the laundered money,” he added.

“If proper procedures are followed, international laws require the concerned countries to assist Bangladesh in recovering the funds.”

Professor Dr. Moinul Islam, a noted economist, also highlighted the challenges involved in recovering laundered money but affirmed that it is indeed achievable.

“The government has yet to take any formal steps in this regard,” he said. “We are waiting to see what actions they will take.”

Experts have emphasized that three-layered actions are crucial to returning the siphoned money. The government must immediately begin these steps without further delay.

First, detailed information about the laundered funds must be collected. This includes tracking how much money was illegally obtained, how it was transferred abroad, and identifying where it has been kept or invested.

If the money has been invested legally in a foreign country, authorities there may not be willing to return it.

Bangladesh will need to provide evidence proving that the funds were acquired through illegal means.

Second, the government must sign mutual legal assistance (MLA) agreements or treaties with the concerned countries to facilitate the recovery of the funds.

Countries like Malaysia, Indonesia, and Nigeria have successfully repatriated large amounts of laundered money in the past.

After 9/11, international laws and organizations were established to track and return laundered money to its country of origin.

Institutions such as the UN, World Bank, and agencies in the US, UK, and EU, including the UNDC and the World Bank’s Stolen Asset Recovery (StAR) initiative, are actively involved in these processes.

Finally, once a legal case is established and track records are submitted, the courts in the concerned country can freeze the bank accounts and other assets of the individuals involved.

These assets may include real estate or investments deemed disputed wealth, which would then be ordered to be returned to Bangladesh.

Experts believe that the widespread occurrence of money laundering is due to the lack of political will within previous governments.

This failure to address the issue has enabled individuals to launder money abroad, often with the involvement of government officials.

The interim government, led by Nobel laureate Professor Dr. Muhammad Yunus, has pledged to combat money laundering and is determined to recover the siphoned funds.

Experts suggest that this government should begin the recovery process immediately by instructing agencies such as the Anti-Corruption Commission (ACC), Bangladesh Financial Intelligence Unit (BFIU), and banks to collect necessary information and track the laundered funds.