The government has reconstituted the interagency taskforce -- for the fifth time since its first formation in 2010 -- assigned to help recover Bangladesh's stolen assets.
The Ministry of Finance (MoF) issued a circular on the reconstitution of the taskforce on 29 September 2024, now that there has been a regime change that brought the matter of asset recovery into the limelight.
Members of the taskforce have said the body has primarily convened thrice a year.
According to its terms of reference (ToR), it was tasked with analysing legal frameworks and providing guidance for the recovery of misappropriated funds.
However, critics argue that the past government's reluctance to address money laundering effectively undermined these efforts, favouring business magnates benefiting from a less -scrutinised system.
Initially led by the former Bangladesh Bank governor in 2010, the taskforce saw the Attorney-General take over its reins in 2012 following its first major reconstitution.
In 2018 and 2022, the taskforce underwent another two rounds of restructuring, adding new members and expanding its operational scope.
A senior member of the committee said that since 2018, the reconstituted taskforce had convened 11 meetings with no results.
It was supposed to analyse case details, identify legal obstacles, and propose solutions, yet the Attorney General's commitments to routine duties was major impediments, he added.
Officials noted that the first reconstitution followed the enactment of the Money Laundering Act in 2012, intended to align the taskforce's mission with the new legal standards.
Professor Mustafizur Rahman, a distinguished fellow at the Center for Policy Dialogue (CPD), said previous attempts to revive the taskforce floundered might be for interventions by "influential quarters," which fostered a culture of impunity among wrongdoers.
Professor Rahman expressed hope that the latest reconstitution would yield better outcomes under the interim government, which is less likely to be influenced by such parties.
He highlighted Bangladesh's history of sending back stolen assets to the UK, suggesting it can effectively reclaim its financial losses.
To enhance recovery efforts, Dr Rahman recommends a coordinated strategy that includes the expertise of forensic auditors, tracking financial flows through thorough paperwork, and hiring international legal professionals.
Despite the potential utility of legal provisions established in the MLA-2012, the taskforce has largely failed to leverage these tools to combat capital flight driven by practices such as under- and over-invoicing.
The inaction of the committee has also contributed to an uptick in asset siphoning, according to officials, as those engaged in malfeasance feel emboldened by the lack of consequences.
Effective operation of the taskforce could have positive signalling effects, boosting public confidence in financial recovery efforts.
The newly formed nine-member taskforce, headed by the new governor of the Bangladesh Bank, includes representatives from crucial state agencies like the Bangladesh Financial Intelligence Unit (BFIU), the Anti-Corruption Commission, the Criminal Investigation Department (CID) of Bangladesh Police, Customs Intelligence, the Attorney General's Office, Ministry of Law and Parliamentary Affairs, the Financial Institution Division, and the Ministry of Foreign Affairs.
Under its ToR, the taskforce is tasked with tracing stolen assets abroad and supporting investigations aimed at their recovery. It aims to expedite legal proceedings related to asset recovery, identify and address barriers to recovery, manage frozen or recovered assets abroad, and strengthen communication with relevant domestic and international bodies to gather essential information, while enhancing internal coordination and capabilities.
Md Zakir Hossain, deputy governor of the BB, will coordinate the taskforce's activities, with BFIU providing secretarial support.
Taskforce officials acknowledge that there is a significant shortage of experts trained to investigate money-laundering cases and facilitate recovery through appropriate legal processes.
Most often, money launderers have funnelled illicitly obtained funds abroad via trade-based schemes that involve manipulating invoice values at customs points.
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