$12-15 billion annually laundered from Bangladesh in last 15 years: TIB

Bangladesh has lost $12-15 billion annually to money laundering over the past 15 years, creating significant challenges in recovering this huge amount, Dr Iftekharuzzaman, executive director of Transparency International Bangladesh (TIB), said today (November 2).

He highlighted the issue while addressing a seminar titled “Obvious Debt and Recovery of Laundered Wealth in Bangladesh” organized by Economic Reporters Forum (ERF) and Sombabonar Bangladesh at ERF Auditorium in Paltan in Dhaka.

Iftekharuzzaman stressed the urgent need to hold financial criminals accountable, saying “money launderers must face consequences and anti-money laundering agencies should respond to prevent future incidents.”

He noted that although the government has initiated efforts to reduce financial crime, stronger support from civil society and political platforms is needed to develop a sustainable anti-smuggling system.

Reflecting on the recent efforts of Bangladesh Bank and Bangladesh Financial Intelligence Unit, Iftekharuzzaman said that in previous years, these institutions were accused of overlooking money laundering activities under autocratic influence.

However, he acknowledged that the central bank has now stepped up efforts to combat money laundering and recover laundered funds. “But this should be turned into a sustainable system for the future.”

Iftekharuzzaman also pointed to conditional requirements imposed by the International Monetary Fund (IMF) aimed at reducing loans to shell companies, but criticized the lack of action.

“Despite IMF conditions to stop lending to bogus and paper companies, the practice persists,” he said.

He added that Islami and other banks allegedly lost funds to paper-based companies in fraudulent schemes — a practice, he noted, that Bangladesh Bank has since acknowledged.

Meanwhile, many legitimate companies that meet all the requirements struggle to get loans.

The keynote paper of the seminar was presented by Anisuzzaman Chowdhury, Emeritus Professor at the University of Western Sydney, Australia.

Other speakers included Professor Jasim Uddin Ahmed, former Vice-Chancellor, and Nayem Chowdhury, economist and founder of Astra Gattaca Oppenheimer in the US.

The program was moderated by a senior journalist and former editor of Daily New Nation.