Recovering BD's stolen wealth: it's time for action

In early 2020, Bangladesh was thrust into the global spotlight as several high-profile financial crimes came to light, igniting widespread outrage across the nation and among the Bangladeshi diaspora abroad, particularly in Canada. While money laundering and illicit money transfers have long plagued Bangladesh, these incidents brought the issue into sharp focus, revealing the stark reality that Canada, a country renowned for its inclusivity and robust legal framework, had inadvertently become a sanctuary for corrupt Bangladeshi politicians, businessmen, and government officials who had siphoned off vast sums of money from Bangladesh and relocated to Canadian soil.

A PERSONAL ENCOUNTER WITH CORRUPTION: During this tumultuous period, I was drawn into the heart of one such case as I was known within the Bangladeshi community for my stance against those corrupt people. A prominent banker from Bangladesh reached out to me through a well-known community worker in Toronto’s Bangladeshi community, affectionately referred to as “uncle.” The banker’s story was unusual. I was told that the banker was not involved in the theft but had come to Canada in pursuit of a defaulter—a corrupt businessman who had embezzled hundreds of crores from a Bangladeshi bank and fled to Canada. Desperate to recover the stolen funds, the banker sought my legal advice on how to proceed.

Recognising the gravity of the situation, I meticulously outlined the legal steps involved, explaining how we could leverage Canadian laws to recover the funds by going after their assets in Canada. The process was complex but feasible. The “uncle” listened intently, assured me that he would relay my advice to the banker, and promised to arrange a follow-up meeting with him. However, that meeting never happened. Months later, I learned through a lawyer friend that the banker had taken my advice, but for an entirely different purpose—he had used it to coerce the defaulter into paying a bribe and then returned to Bangladesh with a promise to “manage” things there. The irony was— what began as an effort to recover stolen wealth had been twisted into yet another act of corruption.

THE BROADER CONTEXT: ILLICIT MONEY TRANSFERS AND THE RISE OF “BEGUM PARA”: The issue of illicit money transfers from Bangladesh to Canada is a complex and multifaceted problem. While money laundering, in its strict legal sense, involves disguising the origin of illegally obtained money, much of the wealth siphoned out of Bangladesh falls into a gray area. These funds are often funnelled through a series of international channels designed to avoid detection by Canadian anti-money laundering laws. The end result is the same—illegally obtained wealth from Bangladesh finds a safe haven in Canada, where it is used to build fortunes, fund luxurious lifestyles, and support families who are often far removed from the realities of the corruption that enabled their prosperity.

A significant portion of this wealth has flowed into Canada through the Quebec Investor Programme, which, until recently, allowed wealthy individuals to obtain Canadian permanent residency with relatively relaxed requirements. With a few crores of Bangladeshi taka—often acquired through corrupt means—these individuals secured Canadian PR, settled their families, and gradually brought in more money to invest and expand their empires. This influx of wealth has led to the creation of what is colloquially known as “Begum Para” in Canada, a reference to the affluent neighbourhoods populated by the wives and families of corrupt Bangladeshi businessmen and officials who have made Canada their home.

Begum Para” is more than just a symbol of wealth; it is a stark reminder of the deep-rooted corruption that continues to bleed Bangladesh dry. The luxurious lifestyles enjoyed by these families are a direct consequence of the millions, if not billions, of dollars that have been funnelled out of Bangladesh, depriving the country of much-needed resources for development and poverty alleviation. This phenomenon underscores the urgent need for a concerted effort to recover this wealth and hold those responsible accountable.

THE LEGAL PATH TO RECOVERY: A FEASIBLE BUT CHALLENGING ROAD: Despite the complexities, it is absolutely possible to recover some, if not all, of the wealth that has been illicitly transferred and stolen from Bangladesh to Canada and other countries. A common misconception is that Bangladesh lacks the necessary reciprocal treaties with key countries, making the enforcement of judgments or the recovery of assets nearly impossible. This is far from the truth. Many countries, particularly those with common law jurisdictions like Canada, the USA, and Singapore, have well-established legal mechanisms that allow for the recognition and enforcement of foreign judgments.

In cases where a borrower in Bangladesh defaults on a loan and subsequently launders the money abroad, the Bangladeshi bank can obtain a court judgment against the defaulter. Once this judgment is secured, it can be brought before the courts in the country where the defaulter’s assets are located—such as Canada—and a request can be made for the judgment to be recognised under the Rules of Civil Procedure of Ontario. If recognised, the judgment can be enforced as if it were a domestic court order, allowing the bank to seize assets and recover the funds held under the name of the defaulter.

However, for this legal path to be effective, two key factors must be in place: the judgment from the Bangladeshi court must be final and conclusive, and the government of Bangladesh must be genuinely committed to pursuing these cases. Without the political will to follow through, even the best legal mechanisms are rendered ineffective. Unfortunately, the lack of commitment from the Bangladeshi government has been a significant impediment in this regard.

ENGAGING THE GOVERNMENT: To tackle this issue, I have contacted various government officials in Bangladesh in the past. During a visit to Dhaka in early 2021, I spoke with my relative, who had a close relationship with the Minister of Foreign Affairs. Together, we tried to initiate a dialogue on recovering the laundered funds. I formally requested an appointment with the minister, and though he agreed initially, but repeatedly postponed our meeting before eventually cancelling it altogether. It became clear that despite the gravity of the situation, there was little genuine interest in addressing it.

My experience with the Bangladeshi High Commissioner in Canada was similar. Although he initially expressed interest, he ultimately avoided taking any concrete steps. The recurring theme is clear: while the mechanisms for recovery exist, the will to use them does not. This apathy towards such a critical issue is not only disheartening but also indicative of the broader systemic corruption that has long plagued Bangladesh.

A CALL TO ACTION: THE NEED FOR GENUINE COMMITMENT: Bangladesh is at a crossroads. The interim government, led by Nobel Laureate Dr. Muhammad Yunus, has a unique opportunity to break the cycle of corruption that has long plagued the nation. Dr. Yunus, a global figure celebrated for his pioneering work in microfinance and poverty alleviation, has the moral authority to spearhead a campaign to recover the wealth stolen from Bangladesh and hidden abroad. However, this will require more than just rhetoric; it will require genuine commitment, both from the government and the financial institutions involved.

If the interim government is serious about tackling corruption, they must take decisive action. This includes pursuing legal avenues to recover stolen funds, engaging with international partners to track and seize illicit assets, and holding accountable those who have used their positions of power to enrich themselves at the expense of the Bangladeshi people. The government must also strengthen Bangladesh’s legal and financial systems to prevent future thefts, ensuring that those attempting to siphon off the nation’s wealth face swift and severe consequences.

For a new Bangladesh, I am ready and willing to assist in this effort as a means of giving back to my motherland. With my legal expertise, knowledge and the resources of my law firm, OWS Law, I can provide legal assistance on how to navigate the complexities of recovering these funds. But the government must be willing to act. The time for half-hearted measures is over. Bangladesh cannot afford to lose more of its wealth to corruption and greed. The interim government must seize this moment to do what is right—recover the stolen funds and restore the nation’s economic integrity.

The question now is whether they will rise to the occasion or if, once again, the voices of justice will be silenced by the forces of corruption. The stakes are high, and the consequences of inaction are dire. Bangladesh’s future depends on the decisions made today. It is time for genuine action, not just empty promises.

Washim Ahmed is a Toronto-based Barrister and Solicitor. He is a member of the Law Society of Ontario (LSO) and practices law through his firm, OWS Law.