Amid discussions by the interim government about repatriating laundered money from Bangladesh during the Awami League regime, which could alleviate the strain on the ailing macroeconomic outlook, economists have cautioned that the process would not be straightforward or swift.
"Bringing back siphoned money is a complex undertaking requiring expertise, forensic technology and the support of asset recovery institutions," said Professor Mustafizur Rahman, a distinguished fellow at local think tank Centre for Policy Dialogue (CPD).
The cause, according to him, is money launderers have cleverly transferred funds to other countries, obscuring evidence of their ownership in the properties.
"We also do not have a precise figure for the amount of money that has been siphoned," Professor Rahman said while addressing a mock parliament debate competition as the chief guest on Saturday.
After the fall of the Awami League in the first week of August, there have been discussions about repatriating laundered money. However, the authorities do not have specific data regarding the extent of wealth that may have been siphoned off Bangladesh over the past decade.
According to Global Financial Integrity (GFI), Bangladesh lost nearly $8.27 billion annually on average between 2009 and 2018 due to mis-invoicing of import-export goods by traders to evade taxes and illegally transfer money across international borders.
On August 21, Chief Adviser Muhammad Yunus sought assistance from the UK in repatriating the amount possibly laundered to that country.
Besides, after meeting with foreign envoys in Dhaka, top BNP leaders also reported that foreign diplomats had assured them of support for Bangladesh in bringing back the money.
At the debate, Professor Mustafizur Rahman criticised the Bangladesh Bank (BB) for its failure to capitalise on the opportunity to utilise its constitutional power during the previous government's regime due to political pressure.
He said either the BB succumbed to political influences or feared job loss, leading to inaction and the manipulation of default loan data.
Dr Rahman recommended that ailing banks might need to be restructured or merged through amendments to merger and acquisition policies.
He said administrators could be appointed to troubled banks to mitigate any adverse impact on depositors.
Debate for Democracy (DfD) organised the competition at the city's FDC premises. DfD Chairman Hassan Ahmed Chowdhury Kiron presided over the mock parliament as speaker.
Dr Rahman said the bank commission must liberate banks from the familial influences that the previous government irrationally allowed.
Regarding the recent scrutiny of five businessmen's financials by tax authorities, the CPD distinguished fellow said these individuals are under supervision to ensure transparency, not to target their businesses.
In response to a media query, he said there is no reason for the market to be adversely affected by the examination of financial transactions of large businessmen.
Dr Rahman pointed out growing income inequality, the erosion of purchasing power due to inflationary pressure and unemployment as underlying factors that contributed to the "time bomb" behind the mass uprising in the guise of the anti-quota protest, which ultimately led to the fall of the Sheikh Hasina government.
"While the interim government has implemented several reform initiatives, their sustainability will depend on the next elected government," he added.
Hassan Ahmed Chowdhury Kiron said banks have spent Tk 79 billion from their Corporate Social Responsibility (CSR) funds from 2015 to 2023, with Tk 30 billion allocated to the Prime Minister's Relief Fund.
Proper investigations should be conducted to determine how these funds have been utilised, he added.
Citing the Rana Plaza tragedy and subsequent local and foreign institutions donating to the Prime Minister's Special Fund, he said the whereabouts of those funds remain unknown.
In the mock parliament, Bangladesh University emerged victorious, defeating BGMEA University of Fashion and Technology.
doulotakter11@gmail.com