CHATTOGRAM, Apr 11: Bangladesh Bank is set to freeze several foreign assets acquired through laundered money within next six months, as part of a broader initiative to recover illicit funds and strengthen financial accountability.
Governor of the central bank Dr Ahsan H. Mansur said here today (Friday) while rolling out actions for recovery of ill-gotten assets abroad and also measures taken for banking reforms and macroeconomic management.
Speaking at a press briefing held at the central bank's Chattogram branch, the BB governor said, "The concept of bringing back laundered money is very new to us. We are learning and consulting international law firms and government officials in countries where we suspect large amounts have been laundered to. We are also working with asset-tracing firms. Once we gather conclusive evidence, we will take steps to freeze those assets." He added that the legal battle to repatriate the frozen funds would be complex and lengthy. "It's not an easy task, but we are trying our best."
He further said, "We are also exploring alternative approaches. We're trying to repatriate the funds through counselling and dialogue to avoid the lengthy legal process."
The governor also discussed the central bank's economic performance, claiming significant achievements in inflation control.
He said, "Since assuming office, we've reduced food inflation from 14 per cent to 8.0 per cent and non-food inflation from 12 to 9 per cent. This is a major achievement. We aim to bring food inflation down further to 5-6 per cent by next year."
Despite external pressures, Bangladesh Bank has managed to maintain stable foreign-exchange reserves. According to Mansur, this is largely due to a 26-27-percent increase in remittances and over 11-perecent growth in exports over the past seven months, he mentioned.
"We have managed to maintain the gas supply by importing LNG on time, despite a shortage of foreign currency. We have ensured the supply of fertiliser by increasing imports. We have also controlled food inflation by reducing import duties and VAT," he notes.
Turning to banking sector's health, the central bank governor acknowledged past issues related to money laundering but highlighted a turnaround. "Though a significant portion of funds was laundered, the banking sector has recovered thanks to strong policies and monitoring. UCB and Islami Bank Bangladesh have regained customer trust and no longer need liquidity support from the central bank."
Banks still struggling are under close monitoring and receiving policy support.
"If necessary, we will consider mergers," the governor said about the ultimate cure for the ills.
The economist reassures the public that depositors' funds are safe. "No depositor will lose their money. Bangladesh Bank takes full responsibility. There is no reason to withdraw funds from banks."
He emphasizes prevention in combating money laundering, announcing that senior bank executives will be trained to detect and stop such activities. "We believe prevention is better than cure."
In response to a journalist's question, the governor said nearly Tk 3.0 trillion has been laundered from Bangladesh, with around half allegedly linked to business groups based in Chattogram. He specifically named Beximco Group as having laundered about Tk 50,000 crore.
On the issue of internal corruption, the BB chief said action would only be taken based on solid evidence. "If any BB official is found guilty, we will take action. We welcome investigations by the Anti-Corruption Commission or any other agency, but we cannot act on speculation."
He also notes that several bank directors involved in irregularities have already been removed, with positive results.
In a final announcement, the governor revealed plans to establish an international-standard banking training institute in Chattogram. The facility will include accommodations for both trainees and trainers and aims to enhance professional development within the sector.
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