BB targets 6 major groups to recover laundered money in first phase

Bangladesh Bank (BB) has identified six major business groups as primary targets in its first phase of strategic efforts to recover laundered loan assets from abroad.

Due to strategic reasons, the central bank has not yet disclosed the names of these groups.

However, sources confirmed that they were selected based on the volume of their defaulted loans, allegations of money laundering, and specific intelligence reports.

According to central bank officials, there is strong evidence that these groups laundered a significant portion of the massive loans they secured from the banking sector. To expedite results, the most "high-risk" and discussed groups have been prioritised.

Under this initiative, affected banks are preparing to initiate civil proceedings in foreign courts with the assistance of international asset recovery agencies and litigation funders. These experts will track the money trail, locate offshore assets, and determine legal strategies for recovery.

Bangladesh Bank Governor Md Mostaqur Rahman has directed banks to intensify their efforts, emphasizing that the laundered money belongs to depositors.

Presiding over a meeting titled ‘Update of Civil Asset Recovery Status’ on Tuesday, the Governor, who also chairs the Stolen Asset Recovery Taskforce (SARTF), assured banks of full support.

"This is a national priority. If any bank faces political pressure while pursuing these cases, they should contact me directly. I will take the responsibility of handling such pressure," he stated.

The recovery process is being conducted through two channels. One is through criminal proceedings, managed on a Government-to-Government (G2G) basis involving state agencies and law enforcement. The other is through civil proceedings, led by the affected banks, who hire international firms to sue for damages and asset repatriation in foreign jurisdictions.

The meeting revealed that 10 banks have already signed 36 Non-Disclosure Agreements (NDAs) with various international asset recovery firms. While private banks are moving swiftly, state-owned commercial banks were urged to accelerate their information-sharing and NDA processes.

Following the first phase involving these six groups, the central bank plans to expand the scope significantly. Preparation is already underway to bring over 100 potential cases under the civil asset recovery framework in the second phase.

Central bank officials believe that successful legal action against these first six groups will set a crucial precedent and send a stern warning to other large-scale loan defaulters.