Finance Adviser Dr Salehuddin Ahmed has said that while the government remains committed to recovering laundered money from abroad, the process will take time due to the scale and duration of the illicit transfers.
"The concerned taskforce is very active in this regard. However, money has been laundered abroad over a long period," he said in an interview at his office in the Bangladesh Secretariat.
The interview focused on the key features of the upcoming national budget, which will be the first under the interim government headed by Chief Adviser Professor Dr Muhammad Yunus.
When asked about the progress in recovering laundered money, Dr Salehuddin explained that the authorities are currently tracing who laundered the money and where it was sent. The taskforce has already identified some individuals and destinations, he added.
He mentioned that funds have been moved to various tax havens and that some sensitive cases have been identified, with steps taken accordingly.
"This is a testament to the government’s efforts. Personal accounts of many alleged money launderers have been frozen, though their business accounts remain unaffected," he said.
"They have received a clear message that such misdeeds will not go unchallenged."
Dr Salehuddin noted that recovering laundered assets is a complex process and not easily accomplished, as the launderers are not naïve. “Hopefully, we’ll recover the funds. The next government should continue pursuing this effort,” he added.
Meanwhile, Bangladesh Bank Governor Dr Ahsan H Mansur recently stated that the attached and frozen assets of those who “plundered people’s money” during the previous regime of Sheikh Hasina will be transferred into two separate sovereign funds, as decided by the interim government.
One fund will consist of assets seized from individuals who embezzled from banks, while the other will include assets taken from non-banking sources.
Currently, the Bangladesh Financial Intelligence Unit (BFIU), the central bank, and other government agencies are collaborating under an inter-agency taskforce to retrieve laundered money.
Dr Mansur acknowledged that Bangladesh lacks prior experience in repatriating laundered money. "An inter-ministerial initiative is underway, and the government will amend necessary laws and regulations. The taskforce will also be granted greater authority," he said.
When asked whether the upcoming budget would include a provision for whitening black money, Dr Salehuddin clarified that there would be no direct provision. However, he acknowledged the existence of sectors where black money is often used, such as in the registration of high-priced flats underreported in value.
"The government is trying to align registration costs with actual property values to bring such money into the formal economy. We may consider reducing registration costs while maintaining revenue flow," he said.
This reform will initially be implemented in urban areas. A committee headed by the land secretary is working on adjusting mouza valuation. “Revising the mouza valuation nationwide is not an easy task,” he noted.
If the issue cannot be addressed in the upcoming budget, the interim government may propose a policy for the next government to follow.
Regarding the government's efforts to reduce disorder in the banking sector, Dr Salehuddin said that after assuming office, the interim government provided support to banks facing funding shortages and liquidity problems.
"The key point is that depositors of these troubled banks will eventually recover their money, although it may take time," he assured.
However, Dr Salehuddin, a former governor of Bangladesh Bank, noted that supporting banks with severe liquidity crises is difficult, especially when their funds were previously siphoned off abroad. “We’re working to resolve these issues. It’s not feasible to support them by printing money; instead, adequate funding is required,” he said.