The government is preparing to establish a special compensation fund using assets seized from fraudsters and money launderers to provide relief to depositors who lost money in scams and to support poor and vulnerable communities, Bangladesh Bank Governor Ahsan H Mansur announced on Monday.
At a press briefing in Dhaka, Mansur explained that the fund will be created from recovered money confiscated from criminals involved in illegal activities, including loan fraud and money laundering.
He said it will take four to five years to complete the legal process and recover the laundered money, adding that assets held abroad, however, can be seized within one year.
The Ministry of Finance has already given policy-level approval to set up this fund, he added.
“This fund aims to ensure justice for depositors who have been victims of scams while also providing financial support to economically disadvantaged people,” Mansur said.
According to the central bank governor, the government has successfully repatriated a significant amount of illicit money, with ongoing efforts to recover more funds stashed abroad.
These recovered funds will be allocated to the compensation fund to maximize their positive social impact, he added.
Mansur said the fund is part of a wider government effort to not only punish financial criminals but also to compensate victims and provide aid to marginalized populations.
He asserted that everything will be done following the proper legal provisions. “If necessary, the law will be amended.”
The official highlighted that many fraudulent loan scams have deeply affected the banking sector’s stability.
“The new fund will also help address such financial irregularities by compensating those impacted.”
He noted that combating corruption and financial crime remains a top priority and continuing recovery operations will help strengthen the country’s financial governance and restore public trust.
Mansur said the initiative is expected to bring tangible relief to thousands of defrauded depositors and contribute to poverty alleviation by channelling funds to those in need.
The governor said the new fund will be created and utilized during the current government’s tenure, as these seized funds are already under government control.
He assured everyone that the fund’s activities could begin swiftly.
He mentioned that Islami Bank is the largest bank in the country and the government has seized shares worth between Tk12,000 and Tk15,000 crore belonging to the S Alam Group in the bank.
“These shares will be handed over to a strategic investor and the seized money will be returned to the depositors,” he added.
Meanwhile, Chief Adviser’s Press Secretary Shafiqul Alam said that currently, Tk1,30,758 crore is seized in domestic assets, alongside $16.4 million in foreign assets and another Tk42,614 crore worth of immovable properties.
Mansur said that the money looted from land sales and other sectors will be used for the welfare of the general public.
He added that those who were on the board of Nagad have taken Tk650 crore through corruption and Tk2,000 crore through the government.
Therefore, the board will not be entrusted with the management of Nagad's operations, he said.
Due to legal reasons, they can do many things, but banks will not be able to conduct any major transactions with them, he added.
