Banks, needy people to get share from recovered funds of laundered money: BB governor

The government is working to establish a dedicated fund to manage the seized and frozen money and shares of individuals who have embezzled funds through illicit means.

This fund will be used to provide financial support to banks that have been affected by such looting, enabling them to repay their depositors.

Bangladesh Bank governor Ahsan H. Mansur said this while speaking at a press conference held at the Foreign Service Academy in the capital on Monday.

He said the funds recovered from illegal activities outside the banking sector will be allocated for the welfare of the needy and poor people.

Also present at the event were the Chief Adviser’s press secretary Shafiqul Alam and the head of the Bangladesh Financial Intelligence Unit (BFIU), AFM Shahinul Islam.

Earlier in the day, a meeting was held at the State Guest House Jamuna chaired by Chief Adviser Professor Muhammad Yunus, to review the progress of bringing back laundered money. Following the meeting, the governor spoke in the press conference.

Responding to a question regarding his (governor) remarks that those who have laundered money from the country will not be able to live in peace, Mansur said, “I don’t believe they are at peace. They are hiring top lawyers. We have heard that S Alam will spend US$ 30 million (3 crore) annually on his lawyers. This is not a sign of being at peace.”

“Recovering money and being at peace are two different things. We have managed to disrupt their sleep. It will take time to bring back the money because it will proceed following legal procedures,” he remarked.

There are 11 teams under the inter-agency task force currently investigating allegations of money laundering against top 10 business groups and the family of former Prime Minister Sheikh Hasina. Updated information regarding this was presented at the meeting.

The 10 industrial conglomerates outside of Sheikh Hasina’s family under investigation include S Alam Group, Beximco Group, Nabil Group, Summit Group, Orion Group, Gemcon Group, Nasa Group, Bashundhara Group, Sikder Group, and Aramit Group.

Press Secretary Shafiqul Alam stated, “Another indication that they are not at peace is that an additional 125 medium-sized irregularities, involving those who have looted more than Tk 2 billion (200 crore), are coming under investigation.

“We are working with 20 foreign legal firms. The terms of reference for the work with these institutions are now being finalised,” he pointed out.

The press secretary further informed that immovable assets worth Tk 130,758 crore (over 1.3 trillion) belonging to those under investigation have been attached. Additionally, US$ 164 million held abroad and movable assets worth Tk 42,614 crore (426.14 billion) have been seized.

Governor Mansur emphasised that this government is the first to decide to form such a fund because the seized money and assets are already under government control.

He said that the fund’s operations could begin soon, and legal amendments would be made if necessary. Funds belonging to banks will be returned to the banks, while money embezzled from other sectors will be used for public welfare.

Regarding the feasibility of this, the governor explained that funds deposited in banks as savings will be easily accessible. In the case of Islami Bank, shares worth Tk 12,000 to 15,000 crore (120-150 billion) belonging to the S Alam Group have been frozen. These shares will be transferred to a strategic investor, and the proceeds will go to the bank, which will be used to repay depositors.