Retrieving Laundered Funds: All Show, No Substance?

Efforts to Recover Laundered Money: Grand Promises, Limited Results

Despite much fanfare surrounding initiatives to recover funds laundered from Bangladesh, tangible progress remains elusive. International organizations such as the World Bank, IMF, GFI, and ADB have offered support, yet the outcomes thus far have been confined to formal communications and meetings.

Following the collapse of the authoritarian Awami League government on August 5, the central task force on money laundering was restructured on September 29, with the Governor of Bangladesh Bank assuming leadership. Since then, two meetings have taken place, the latest on November 19. A third meeting is scheduled for January 5 at 4 p.m. at Bangladesh Bank.

Under the previous government, various measures were proposed to recover laundered money, including a legal provision in the fiscal year 2023–24 allowing the repatriation of undeclared foreign funds in exchange for a 7% tax. This initiative failed, with no funds returning to the country during that period.

After the fall of the Awami League government, an interim administration led by Dr. Yunus took office on August 8. Subsequent investigations revealed extensive corruption, bribery, embezzlement, and financial irregularities spanning 16 years. Billions of takas were misappropriated and laundered abroad, often under the pretense of development projects. The interim government’s White Paper Committee published a detailed report on these irregularities and initiated efforts to engage the international community in recovering the stolen funds.

However, a concrete strategy is still lacking, and the task force has assumed responsibility for the matter. As of yet, no official communication has been made with key international institutions such as Global Financial Integrity or the Swiss National Bank, both central to addressing money laundering concerns.

The restructured task force, which expanded its objectives from three to six on September 29, now focuses on:

1. Identifying laundered assets or funds.
2. Addressing barriers and expediting asset recovery cases.
3. Taking measures for the repatriation of funds.
4. Managing seized or recovered assets.
5. Establishing international communication and information exchange.
6. Enhancing institutional capacities and coordination for asset recovery.

Despite these expanded goals, progress has been limited. Mohammad Matiur Rahman Sheikh, head of the CID police branch and a task force member, stated that although efforts are underway, visible results will take time.

Dr. Iftekharuzzaman, Executive Director of Transparency International Bangladesh, highlighted the complexity of recovering laundered money, which requires cooperation and legal proceedings in the recipient countries. Nonetheless, with the current special government and global backing for the initiative, he expressed cautious optimism, suggesting that meaningful outcomes could eventually be achieved.