Building capacities to investigate financial crimes
Wednesday, 19 December 2007
Mozzamel Haque
A very neglected area of law enforcement comprises unaddressed or poorly addressed cases of financial crimes. The police in Bangladesh are barely able to cope with the situation in this regard. In the first place, they are found under-equipped in the sense of training and specialised knowledge to investigate well the cases of financial crimes. Some financial crimes are simple in nature. But even these require probably training and aptitude of a special kind that most police personnel at the moment do not have or the same is yet to be inculcated among them through selective training. Other such crimes are complex in nature and clearly call for specialist knowledge and training which are simply beyond the knowledge and training base of police officials .
A move has started under the present caretaker government to get back the huge resources that the nexus of corrupt politicians-bureaucrats-businessmen and others have illegally transferred abroad. This is a most commendable endeavour. But its success will depend entirely on the capacities of our various law enforcement and other bodies. They will have to prove through very effective investigations to authorities in foreign countries that the resources stashed away or invested in those countries actually have an origin in Bangladesh and that the same were illegally smuggled out. Till this is done and done meticulously well, Bangladesh will not be able to make a claim on these resources which is the first step in getting them back. But accomplishing of this task all the way would give a big boost to the national economy. It was discussed by expert at roundtables that an amount enough to finance two national budgets of the country have been put away by the corrupt nexus in recent years not to mention the entire amount of resources pumped out of the country clandestinely since the birth of the country.
The acquiring of capacities to investigate financial crimes is also important in the backdrop of the country's growing economy. Investment activities leading to economic growth are helped by many factors and proper enforcement of the laws -- relating to financial litigations or the aggrieved parties getting quick redress from their application and enforcement -- is a chief one among them. It should be obvious that measures are badly needed to this end and at the heart of the same ought to be the substantial upgradation of the abilities of the police and specialised organisations, to investigate financial crimes.
A special squad of the police can be formed to exclusively deal with such crimes or personnel in the general police force can be also enabled, through systematic and resourceful training, to improve their know-how and skills to efficiently investigate cases of financial crimes. If a special police squad is set up and adequately trained, then it should have better chances of investigating sophisticated cases of financial crimes like the alleged manipulations of shares in the capital market by some companies in the share scam of some years ago.
Dealing with financial crimes effectively also calls for much improved individual institutional vigilance. Banks and other financial institutions need to streamline their operating systems so that none can take a free ride on their resources. Sensational cases were reported over the years about embezzlements involving banking resources or depositors' funds. The best prevention to such crimes can be no other than bank management from the highest level further tightening security measures and vigilance so that none can attempt to pilfer banks' resources. The accounts and related sections of many government bodies seem to be in disarray in respect of rationalising expenditures or devising proper accountability procedures that help in the breeding of serious financial crimes causing huge waste and theft of resources. Building of better institutional capabilities to watch over expenditures and to audit them can also go a long way in bringing down these cases of financial crimes.
Besides, the laws of the central bank and other laws need to be immediately and very sternly applied against the activities of private organisations which operate under the garb of non-government organisations, charitable bodies or cooperatives societies whereas their operations are banking like and they have no legal approval to carry out such banking activities. They usually defraud their clients at some stage. There is an urgent need to crack down extensively against such fraudulent organisations.
A very neglected area of law enforcement comprises unaddressed or poorly addressed cases of financial crimes. The police in Bangladesh are barely able to cope with the situation in this regard. In the first place, they are found under-equipped in the sense of training and specialised knowledge to investigate well the cases of financial crimes. Some financial crimes are simple in nature. But even these require probably training and aptitude of a special kind that most police personnel at the moment do not have or the same is yet to be inculcated among them through selective training. Other such crimes are complex in nature and clearly call for specialist knowledge and training which are simply beyond the knowledge and training base of police officials .
A move has started under the present caretaker government to get back the huge resources that the nexus of corrupt politicians-bureaucrats-businessmen and others have illegally transferred abroad. This is a most commendable endeavour. But its success will depend entirely on the capacities of our various law enforcement and other bodies. They will have to prove through very effective investigations to authorities in foreign countries that the resources stashed away or invested in those countries actually have an origin in Bangladesh and that the same were illegally smuggled out. Till this is done and done meticulously well, Bangladesh will not be able to make a claim on these resources which is the first step in getting them back. But accomplishing of this task all the way would give a big boost to the national economy. It was discussed by expert at roundtables that an amount enough to finance two national budgets of the country have been put away by the corrupt nexus in recent years not to mention the entire amount of resources pumped out of the country clandestinely since the birth of the country.
The acquiring of capacities to investigate financial crimes is also important in the backdrop of the country's growing economy. Investment activities leading to economic growth are helped by many factors and proper enforcement of the laws -- relating to financial litigations or the aggrieved parties getting quick redress from their application and enforcement -- is a chief one among them. It should be obvious that measures are badly needed to this end and at the heart of the same ought to be the substantial upgradation of the abilities of the police and specialised organisations, to investigate financial crimes.
A special squad of the police can be formed to exclusively deal with such crimes or personnel in the general police force can be also enabled, through systematic and resourceful training, to improve their know-how and skills to efficiently investigate cases of financial crimes. If a special police squad is set up and adequately trained, then it should have better chances of investigating sophisticated cases of financial crimes like the alleged manipulations of shares in the capital market by some companies in the share scam of some years ago.
Dealing with financial crimes effectively also calls for much improved individual institutional vigilance. Banks and other financial institutions need to streamline their operating systems so that none can take a free ride on their resources. Sensational cases were reported over the years about embezzlements involving banking resources or depositors' funds. The best prevention to such crimes can be no other than bank management from the highest level further tightening security measures and vigilance so that none can attempt to pilfer banks' resources. The accounts and related sections of many government bodies seem to be in disarray in respect of rationalising expenditures or devising proper accountability procedures that help in the breeding of serious financial crimes causing huge waste and theft of resources. Building of better institutional capabilities to watch over expenditures and to audit them can also go a long way in bringing down these cases of financial crimes.
Besides, the laws of the central bank and other laws need to be immediately and very sternly applied against the activities of private organisations which operate under the garb of non-government organisations, charitable bodies or cooperatives societies whereas their operations are banking like and they have no legal approval to carry out such banking activities. They usually defraud their clients at some stage. There is an urgent need to crack down extensively against such fraudulent organisations.