The Anti-Corruption Commission (ACC) has sought more powers to investigate money laundering cases as the commission is currently hampered by jurisdictional barriers and other obstacles.
The ACC made the request in its annual report for 2022. ACC Chairman Mohammad Moinuddin Abdullah presented the report to President Abdul Hamid at Bangabhaban on March 20.
ACC Commissioners Mozammel Haque Khan and Zahurul Haque, and Secretary Mohammad Mahbub Hossain were present alongside the ACC chairman.
According to the report, the ACC is only empowered to investigate bribery and corruption out of 27 money laundering related offences. Due to its inability to properly investigate money laundering, the ACC has been failing to get convictions in corruption cases.
Besides the ACC, Bangladesh Bank's Financial Intelligence Unit, the Criminal Investigation Department, and Detective Branch of Police have special wings to investigate money laundering.
In order to ease money laundering investigations, the ACC has asked for the power to directly investigate money laundering, customs offences, tax offences, capital market offences, document forgery offences, fraud, and forgery. In view of the ACC's application, the Cabinet Department has sent a letter to the Financial Institutions Department to take necessary action.
The Cabinet Division has also been requested to enter into Mutual Legal Assistance Agreement (MLAR) in the matter of a recovery of laundered money.
The ACC's annual report also highlighted the fact that rapid advances in technology, especially technology that allows the digital transfer of funds to other countries, is making it more difficult to crackdown on corruption. It referred to Hundi, over-invoicing, under-invoicing, the Panama Papers, Paradise Papers, Begumpara, crypto currency, and the use of shell companies.
The ACC is liaising at the international level with organisations in an attempt to bring back laundered money and corrupt individuals from abroad, but the jurisdictional difficulties are making investigations difficult, the report added.
Besides, the commission continues to strive for partnership with national and international organizations in line with the guidelines spelt out in Article 48 of the United Nations Convention Against Corruption (UNCAC) to prevent corruption in the country, it said.
How successful has the ACC been?
In 2022, the commission could finish 31 out of 157 ongoing inquiries. A total of seven cases were filed, while 20 of the inquiries were terminated and four were disposed of through other lawful processes.
As many as 34 new money laundering investigations were launched last year. A final report was filed in one case, four charge sheets have been submitted, four were disposed of and nine were terminated.
However, data from a special judge's court on money laundering cases showed that 95% of cases had ended, with 20 cases disposed of, 19 convictions, and one acquittal.
The ACC's former chairman, Ghulam Rahman, said the commission was 100% empowered to investigate such cases during his tenure in 2009. Later, its power was cut down.
Commission statistics also show that the conviction rate in money laundering cases is almost 100% through an application of the ACC's existing powers.
Civil society favours empowerment of ACC
Eminent citizens of the country have said they are in favour of empowering the ACC.
Dr Ali Riaz, a Bangladeshi-American political scientist and writer, told Dhaka Tribune: “Before empowerment, creating a commission that is free from political influence in its appointment process and exercise of powers should be given utmost independence.”
He also suggested that the government stop using the ACC to suppress political opponents.
Shusashoner Jonno Nagorik (Shujan) Secretary Badiul Alam Majumdar said: “We want empowerment (of the ACC) as people believe that the commission has created a state of fear among corrupt people.”
Transparency International Bangladesh (TIB) Executive Director Dr Iftekharuzzaman thinks that the ACC's call for expanding its jurisdiction with regard to financial crimes, including money laundering, is quite logical.
He suggested that the ACC develop the necessary professional skills to investigate and prosecute this increasingly sophisticated crime if it wants to derive true benefit from such empowerment.
“Equally, if not more importantly, the ACC must demonstrate the courage and commitment to deliver this proposed additional mandate without fear or favour, unbiased by the status or identity of the alleged offenders,” said the TIB director.
Unfortunately, the track record of an increasingly bureaucracy-controlled ACC is far from being consistent with such expectations, he added.
“Even with extended powers in ACC's hands, the prevailing impunity of kingpins of money launderers can hardly be expected to be effectively challenged without a legally obligatory institutional arrangement for necessary strategic collaboration and coordination of ACC with other relevant institutions like BFIU, CID of Police, NBR and Attorney General's Office. There is much to be desired on this account too,” he further said.
