BB seeks KL bank's help to bring back siphoned-off money

FE Team | Published: October 31, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The Bangladesh Bank (BB) has sought cooperation of the Bank Negara Malaysia, the central bank of Malaysia, for signing an agreement with the Ministry of Finance of the government of Bangladesh to bring back siphoned-off money by alleged corrupt people.
Sources said the BB has wanted to know from the Malaysian central bank whether it will sign such a deal with the ministry as the existing law does not permit the central bank of Bangladesh to enter into any agreement of this kind with a foreign central bank.
"We will decide on the next steps after receiving opinion from the central bank of Malaysia in this connection," a BB senior official told the FE Tuesday.
He also said the central bank of Bangladesh can not sign such an agreement with the Bank Negara Malaysia as this kind of deal is not allowed under the existing provisions of anti-money laundering act.
Earlier, the central bank recommended for a thorough revision of the existing Anti-Money Laundering Act to speed up efforts for bringing back money siphoned off by alleged corrupt people over the past few years.
Sources, however, said the Ministry of Law is now vetting the draft of Anti-Money Laundering Prevention Ordinance 2007 to curb money laundering and prevent financing of terrorism.
The ordinance will be promulgated after final approval of the advisory council of the caretaker government, the sources said, adding that the ordinance will replace the existing Money Laundering Prevention Act 2002.
The authorities concerned believes, in the last few years, some alleged corrupt people have siphoned off a huge amount of money and kept it illegally in some countries, including Malaysia, Singapore, Switzerland, the United Kingdom, the United States and some Middle East countries.
The BB also will apply for membership of the Egmont Group to operate its financial intelligent unit (FIU) in line with international standard.
The central bank of Bangladesh will be empowered formally to exchange information among the member countries of the Egmont Group after obtaining the membership that will also help bring back laundered money.
The Egmont Group, an international organisation of financial intelligence units, established in 1995, has 101 members across the world.
"We are now working to apply for membership of the Egmont Group," the BB official said, adding that the central bank will apply to the international organisation immediately after completion of all preparations.
Bangladesh is now serving as a member of the Asia Pacific Group of Money Laundering (APG), a regional anti-money laundering body, which is a part of global network.
Besides, the World Bank (WB) has already informed the BB that some countries, including Nigeria, the Philippines, Peru and Costa Rica, have already recovered their siphoned off money.
The WB also showed interest to provide assistance if the government takes legal measures for getting back such money.
"The central bank has initially discussed the issue with the WB and the discussion will continue," the BB official added.
During the recent visit to the United Kingdom, Army Chief Gen Moeen U Ahmed told the media that the caretaker government had already brought back $129 million that had been siphoned off and another $72 million was being brought back. He was also positive about getting back $240 million more.
Currently, the government is also trying to bring back such money through using bilateral and multilateral efforts, the sources added.
Meanwhile, the government formed a 10-member high-powered task force, headed by the BB governor, to coordinate efforts of different agencies to bring back such money.
Sources, however, said the task force will shortly start its functions formally.