Bangladesh’s Central Bank Governor Addresses Urgent Asset Recovery Efforts
Following the collapse of the Awami League government in Bangladesh, newly appointed Central Bank Governor Ahsan Mansur is spearheading efforts to recover billions smuggled abroad by elite families. The bank has formed 11 teams to investigate and initiate asset freezes, focusing on the UK as a destination for laundered money. Challenges include complex legal jurisdictions and changes in international cooperation.
In August 2024, following the collapse of the Awami League government in Bangladesh amid violent protests and the fleeing of Prime Minister Sheikh Hasina, the newly appointed Governor of Bangladesh Bank, Ahsan Mansur, initiated efforts to recover significant funds allegedly embezzled by political and business elites. The central bank has assembled 11 specialist teams tasked with investigating the financial activities of 11 prominent families suspected of laundering billions of dollars to various nations, including the United Kingdom and the United States.
The scale of the funds in question is extraordinary, with one family reportedly involved in shifting approximately $15 billion out of the country. This included a situation where nearly 90 percent of one bank’s deposits were withdrawn, putting its viability at risk. Governor Mansur emphasizes the urgency of recovering these assets, warning that delays could result in further financial losses, stating, “We know that time is of the essence. Erosion of the asset base is a possibility.”
Mansur’s focus primarily lies in the UK, where discussions are ongoing with the British Foreign and Commonwealth Office and legal firms to trace an estimated $25 billion in unlawfully laundered funds. He notes, “Many of these families have their assets … in London in particular, so we think we will find a lot of assets here,” highlighting the UK as a common destination for illicit wealth.
Prominent figures under scrutiny include former land minister Saifuzzaman Chowdhury, who has been linked to more than $500 million in real estate holdings, primarily in London and Dubai. The Anti-Corruption Commission has taken measures to freeze his bank accounts and impose a travel ban while Bangladesh Bank seeks to immobilize his overseas properties to prevent their liquidation. Chowdhury contends this inquiry is a politically charged “witch-hunt” against affiliates of the previous government.
In addition to asset recovery, Governor Mansur has urged UK authorities to investigate those in banking and legal sectors who facilitated these financial misdeeds. He declared, “It is a moral imperative for the country authorities to take a tougher stance against those things.”
Mansur predicts it may take up to five years to reclaim the laundered assets, acknowledging the challenges faced. He is exploring the potential for offering plea deals to individuals who assisted in the offshore transfers in exchange for information on the masterminds. Furthermore, he indicated that changes in U.S. government funding have hindered investigative collaboration, noting that canceled U.S. Agency for International Development (USAID) support has negatively impacted progress against these criminal enterprises.
The urgent efforts to recover laundered funds by the new Governor of Bangladesh Bank highlight the critical challenge the nation faces in tackling corruption and illicit financial flows. With active investigations into prominent political figures, a focus on international collaboration, and innovative approaches such as plea deals, Governor Mansur seeks to reclaim the wealth stripped from Bangladesh. The complexity of this mission, amidst changing political dynamics both domestically and internationally, stresses the importance of sustained efforts in combating corruption.
Original Source: www.aljazeera.com
