No clear decline in money laundering, but steps taken to curb it: TIB

Transparency International Bangladesh (TIB) Executive Director Dr Iftekharuzzaman has said that while it cannot be confirmed that money laundering has decreased, several measures have been implemented to prevent it.

Speaking at a press conference held on Thursday at the TIB office in Dhanmondi, Dr Iftekharuzzaman highlighted reforms within the banking sector, a major channel for money laundering. He noted that previous widespread practices of taking loans and laundering money through various fraudulent means have been significantly curtailed.

He stated that many of the actors involved in the banking sector are either abroad or facing legal proceedings, and their influence in the sector has virtually disappeared. However, he added, it cannot be said that no new actors have emerged. Overall, the banking sector has undergone significant changes and reforms compared to before. These reforms have taken important steps to regulate and control the major channels through which money laundering used to occur.

He further explained that a substantial amount of money laundering takes place through our expatriate workers abroad. Their earnings are supposed to be transferred directly into the country through official banking channels, but this process was being misused. Instead, money was being sent abroad through informal means like hundi, bypassing the banking system. Thankfully, this practice has now been largely controlled, though not completely eliminated.

Referring to money laundering through fake import and export invoices, Iftikharuzzaman noted that he cannot claim full control over this form of laundering. Real reforms have yet to take place in this area. Some steps have been initiated, and specific proposals have been made by the reform commission. If these proposals are implemented, gradual control will be possible.

He emphasized that controlling and preventing money laundering from Bangladesh should be a top priority. Once money is laundered abroad, recovering it becomes extremely difficult, almost impossible. Freezing assets does not guarantee recovery; it must be proven in foreign courts that the money was illicitly transferred from Bangladesh. The entire process of tracing and reclaiming laundered funds is complex, lengthy, and challenging.

Finally, he said that if money launderers had no opportunity to transfer funds abroad, they wouldn’t be able to invest in places like London, Canada, or Dubai. Therefore, it’s crucial to shut down these avenues. Bangladesh has some tools for this purpose, but they need to be sharpened and the existing laws enforced more rigorously. Doing so will make it possible to effectively prevent money laundering.