Finance adviser, BB governor vow to crack down on money launderers

The government and the Bangladesh Bank have taken an unprecedented tough stance against money launderers and black money generators, warning that stern actions will be taken.

Dr Ahsan H Mansur, the newly appointed governor of the Bangladesh Bank, on Wednesday (14 August) issued a stern warning, stating that those involved in money laundering in the country will face legal accountability and will not be allowed to sleep in peace.

Later in the evening, Finance Adviser Dr Salehuddin Ahmed, in a separate meeting, urged officials to begin efforts to recover laundered money without fear.

"We have the names of some individuals involved in money laundering, and we will take action against them right away. Measures such as freezing their bank accounts will be implemented," said the finance adviser to the interim government.

After a meeting of the National Coordination Committee on Anti-Money Laundering at the Secretariat on Wednesday, Dr Salehuddin told journalists of this. The meeting was held nearly two years after the last one.

He said, "We will meet again in a few days to review what we have done to prevent money laundering and what further steps need to be taken in the future."

Asked if they discussed the returning of money laundered abroad, the finance adviser said they had.

"We will investigate where the money has been laundered to and how it is being held. If it is abroad, we will certainly work to recover it. This involves international relations and legal considerations, which have been discussed," said Salehuddin, also a former governor of the Bangladesh Bank.

The finance adviser said preventing money laundering and financing of terrorism is highly sensitive for the country's overall interest. He said he has instructed all relevant ministries and agencies to ensure that anti-money laundering activities, if they have slowed, are activated and to start taking swift actions. "We cannot afford long delays," he said.

He said if any amendments to existing laws are necessary to prevent money laundering, they will be made. However, he assured that the current laws provide sufficient grounds for action. "There is nothing to fear if you work in the country's interest and in compliance with laws and regulations," he said.

The finance adviser has also instructed officials to ensure that black money is not generated. "We must prevent the generation of black money. If black money is allowed to circulate, it disrupts the level-playing field and honest businesses will be discouraged to operate effectively," he said. 

While the central bank governor said efforts will continue to recover the money from launderers.

"We will coordinate with the government to stop money laundering and work through national as well as international laws," he told reporters after his first day of taking office at the central bank yesterday.

Mentioning that the Bangladesh Bank also has weaknesses due to the prevailing situation in the country's economy, he said now there is no scope to keep any central bank report, or audit report in the drawers. Also, there is no scope for any kind of data manipulation.

"To get the actual health of banks, I will find out the real picture of the central bank itself as well as coordinate with newspaper reports," said the governor.

The defaulted loans of many banks are much higher than the actual figure, Mansur said, adding, "Those can no longer be kept a secret."

Eight banks were dominated by a certain group, which was responsible for the loan irregularities of those banks, he said.

"At the same time, the Bangladesh Bank's role will also be examined," he noted.

The governor also outlined his priority tasks, which include controlling inflation, restoring discipline in the financial sector, and building up foreign exchange reserves.

According to a 2021 Global Financial Integrity report, $61.6 billion was smuggled out of Bangladesh from 2005 to 2014. Bangladesh lost $8.27 billion annually to trade misinvoicing. The GFI predicts this could exceed $14 billion annually by 2030.

There are widespread allegations of money laundering in Bangladesh. Reports suggest that certain vested interests have taken out bank loans and purchased US dollars from the market to launder the funds abroad.