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Banks owning laundered assets are directed to sign deals with competent global firms in a regulatory firman that says a dozen stolen-asset-recovery groups are ready for hire to launch the hunt.
Bangladesh Bank (BB) Monday issued the instructions for such commercial banks to enter into non-disclosure agreement (NDA) with internationally renowned legal firms to bring back stolen assets of the lenders.
The central bank governor, Dr Ahsan H. Mansur, in a meeting with top executives of 35 commercial banks at the BB headquarters spelt out the instructions for them to accelerate the process of recovery of stolen assets further.
The chief of the banking regulator shared names of eight global litigation and stolen-asset-recovery firms which have enough expertise in the respective areas.
According to meeting sources, the banking regulator suggested that they initially start investigation into the money laundering involving 11 major parties, including family members of former Prime Minister Sheikh Hasina, with the help of the global law firms.
Seeking anonymity, the managing director of a private commercial bank said the BB governor suggested inking NDA with eight international law firms to bring back laundered bank assets.
He said the regulator instructed them to initially launch the stolen-money-recovery process against 11 major parties like S Alam Group, NASA, Beximco, Orion, Nabil and Sikder group.
Islami Bank Bangladesh Managing Director and CEO Omar Faruk Khan said the banks will engage international law-and asset-recovery firms to trace and repatriate the funds.
He said the CID initially identified 11 local industrial groups suspected of money laundering, including Bashundhara, Nasa, and S Alam.
"We will work with the asset-recovery agencies under NDA. Some preliminary negotiations have begun," he added.
Bangladesh Bank spokesperson Arif Hossain Khan says bringing back distressed assets from outside has become a difficult task but there are some international firms having success stories in terms of recovering such assets.
"We shared some of their names with the bank executives today. If they (banks) find some other firms having success stories, the banks can choose them," he adds.
On condition of not being quoted by name, a BB official who was present at the meeting said some business groups laundered assets from several banks. In that case, the regulator asked the banks to form a consortium and engage one bank as lead bank to lead the process. He said they had already formed an asset-recovery wing under the BFIU or Bangladesh Financial Intelligent Unit to oversee the process and support the banks, "if necessary".
The central bank considers issuing a circular regarding the matter in the coming days, he informed.
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