Bangladesh Bank orders banks to partner with global firms to recover laundered money

Bangladesh Bank has instructed all scheduled banks to enter agreements with a group of 12 international law and asset recovery firms in a coordinated effort to bring back money illicitly transferred abroad.

The directive came from Governor Ahsan H Mansur during a meeting with senior bank executives at the central bank headquarters in Dhaka on Monday. Representatives from at least 30 banks attended.

Following the meeting, Islami Bank Bangladesh Managing Director (MD) Omar Faruk Khan said the Criminal Investigation Department had initially identified 11 local business groups allegedly involved in laundering.

“Names disclosed [on Monday] include Bashundhara, NASSA and S Alam Group,” he added.

“We will begin working with the recovery agencies under non-disclosure agreements,” he added. “The key objective is to repatriate the funds that have left the country.”

Explaining the structure, he said some banks will take the lead, forming consortia with others to jointly sign contracts with the overseas firms.

“These agencies will then assist in identifying how the money can be brought back,” Omar added.

AB Bank MD Mizanur Rahman noted that no single institution led the initiative.

“This is being developed as a collective banking approach, aimed at involving multiple lenders.”

Mashrur Arefin, chairman of the Association of Bankers, Bangladesh (ABB) and City Bank MD, said once agreements are in place, the foreign partners will provide both administrative and legal support throughout the repatriation process.

Pubali Bank MD Mohammad Ali said the central bank named the 12 firms in the context of recent money-laundering investigations.

“They will be engaged under NDAs to carry out recovery tasks.”

Speaking about the cost, Bangladesh Bank spokesperson Arief Hossain Khan said: “Banks will not be allowed to pay any upfront fees or service charges to these international entities.

“If they successfully bring back the money, they will be paid a commission from the recovered sum. A taskforce under Bangladesh Bank will coordinate the entire effort,” he added.

He also identified four of the foreign organisations involved: The Stolen Asset Recovery Initiative (StAR), the International Anti-Corruption Coordination Centre (IACCC), the US Department of Justice, and the International Centre for Asset Recovery (ICAR).