Laundered money goes into two sovereign funds

Attached and frozen assets of the oligarchs who "plundered people's money" during the deposed regime of Sheikh Hasina will go into two separate sovereign funds the interim government has decided to form.

Bangladesh Bank Governor Dr Ahsan H Mansur Monday disclosed the decision about the modalities of appropriations of the stolen assets after a high- level meeting on repatriation of the laundered assets.

"Two separate funds will be created. One will be with the attached assets of those who plundered banks and another fund will be created with the assets plundered from non-banking sources," the Governor told a press briefing after the consultation.

Explaining the plan he said the bank shares of an oligarch, which have been attached or frozen by the government, would be handed over to the banks concerned so that it can use the money for its recapitalisation.

These shares will be sold to strategic investors so that the banks concerned can compensate their clients.

In this context, he mentions that the value of the attached Islamic Bank shares of S Alam Group is worth Tk 120 billion to 140 billion.

Mr Ahsan said the money plundered through non-banking corruption would be deposited in another fund and this money would be utilised for the wellbeing of the poor.

Responding to a question he said, "The entire process would be done lawfully, and if needed, the government may amend relevant rules."

The BB governor of the central bank was flanked by the Press Secretary to the Chief Adviser, Shafiqul Alam, and the head of Financial Intelligence Unit of the central bank, AFM Sahinul Islam.

To a question, he said usually four to five years are required to complete the legal procedures to bring back the siphoned-off money. "But some intermediate measures like freezing the assets could be done, and may take one year or less than one-year time."

Narrating the process, Mansur said the legal procedures must be completed in Bangladesh and then the request for mutual legal assistances (MLAs) should be sent abroad in proper way.

"We are on this process now. We are sending the request. And if we get this assistance of foreigners, we will be able to freeze the laundered assets," he told the journalists.

He said once the assets are frozen, the legal process would begin in courts abroad, which requires four to five years to complete.

The government has already communicated with many foreign institutions seeking their support in returning the laundered money to the country, he notes.

The government is sending MLAs to different countries seeking to freeze the money siphoned off from Bangladesh.

The Bangladesh Bank governor said the day's meeting discussed management of seized money deposited with different banks and seized shares of many banks and companies.

Also discussed was how the interests of the depositors could be protected as money was "looted from banks".

The central bank governor said Chief Adviser Professor Muhammad Yunus will visit the United Kingdom and he will focus the money-laundering issue during his tour, which was also discussed at the day's meeting.

Responding to a question whether his commitment that he would make sure that the money launderers could not sleep peacefully became futile as they are passing life peacefully abroad, the governor said he did not think that they are having peaceful sleep at night.

"I heard that S Alam has to appoint a law firm by paying 30 million US dollars annually. So this cannot be the sign of peaceful life for one who has to spend this much of money to defend him," Mr Mansur argues.

Responding to a question Mr Shafiqul Alam said tangible assets worth Tk 130757 crore (over 1.31 trillion) of the former Prime Minister and 10 business conglomerates has been attached so far. Besides, their foreign assets worth 164 million US dollars have been attached.

Regarding a question on Nagad, the BB Governor said according to the investigation, the company plundered Tk 26.50 billion of which Tk 6.40 billion was plundered through e-money.

A company needs to deposit one taka to create e-money worth one taka but Nagad created Tk 6.50 billion in excess of their deposit with the banking system, which is "totally illegal", he said.

He apprehends that as the previous management got back controlling authority of the company through a court verdict, they might erase the evidence related to their "corruption".

However, he mentions that the central bank has filed an appeal against the court order.

But they cannot do that much harm to the clients as the central bank has taken necessary steps to protect the interests of the Nagad clients, the chief of the regulator told the reporters.

mirmostafiz@yahoo.com