Money laundering cases pile up on slow disposal

The number of cases filed by various government agencies including the Anti-Corruption Commission over allegations of money laundering has been steadily rising over the years and that seems all in dealing with this menace, as the disposal rate of these cases is shockingly low.

Some 976 money laundering cases have been registered in the country since 2003, of which only 203 have been disposed of, according to official sources.

In the last five years till this October, 322 such cases were registered with the number of cases filed in 2021 representing nearly double those registered in 2018, but only 64 cases were disposed of during the period.

In total, 856 cases filed on charges of syphoning off money to the tune of approximately Tk5,000 crore are pending for years with various trial courts across the country.

Former law minister Barrister Shafique Ahmed has attributed the slow speed in settling money laundering cases mainly to delays in investigation owing to a lack of manpower, experience, and a specific roadmap on the part of the authorities concerned, including the ACC, that are entitled to probe these cases.

On the other hand, Moyeedul Islam, former director general of the ACC and a retired district and session judge, explained the reason for delays in the court proceedings, saying, "Cases filed under the Prevention of Money Laundering Act are tried in special judge's courts. In addition to money laundering cases, cases filed over various crimes including corruption are also tried in these courts, which is why they cannot pay special attention to money laundering cases."

A similar situation prevails in the High Court Division and the Appellate Division of the Supreme Court where several appeals in money laundering cases have been pending for years.

Shafique Ahmed stressed finding ways to boost the experience of the officials alongside increasing manpower in the government agencies concerned in order to complete the investigation of money laundering cases quickly.

Meanwhile, Moyeedul Islam said these cases can be disposed of faster if some lower court is designated for the trial of these cases only. Also, speedy disposal of appeals is possible by constituting a special bench in the High Court, he added.

In 2007, the then caretaker government issued an ordinance, empowering the Anti-Corruption Commission to file cases and investigate them under the money laundering prevention act. Earlier, only police could investigate these cases following complaints lodged by the Bangladesh Bank.

The law was amended in 2015 and jurisdiction was given to the Criminal Investigation Department, the National Board of Revenue, the Customs Department, and the Department of Narcotics Control alongside the ACC to file and investigate crimes related to money laundering.

Out of the 773 cases that were filed by these institutions in the 2003-22 period and currently pending with different courts, 417 were filed by the ACC.

How is the trial delayed?

The ACC filed a case against BNP leader and former foreign minister M Morshed Khan and his son Faisal Morshed with Gulshan police station in the capital on 31 December 2013, accusing them of smuggling Tk321 crore to Hong Kong.

In 2015, the ACC submitted the final report to the court, acquitting the accused in that case. The Dhaka Special Judge's Court accepted the report.

Later, the ACC applied to the High Court for a re-investigation into the case.

ACC lawyer Khorshed Alam Khan told TBS that the High Court ordered a re-investigation into the case in November 2016.

The court also ordered the accused including Morshed Khan to surrender before a trial court which the accused did and obtained bail.

The reinvestigation into the case has not been completed yet, said Khorshed Alam.

In another instance, a case was filed against businessman Monirul Kabir with Gulshan police station in 2003 under the Prevention of Money Laundering Act over allegations of smuggling Tk49.77 crore to Canada through fake invoices.

The case was filed following a written complaint of the Bangladesh Bank after the enactment of the Act.

After a long investigation, the police filed a charge sheet in the case in September 2006, naming Monirul Kabir as the only accused.

In February 2007, the Dhaka Metropolitan District Judge's Court ordered the trial of this accused, showing him as a fugitive.

Thereafter, the Prevention of Money Laundering Act was amended and jurisdiction was given to the Special Judge's Court.

By November 2007, the case was transferred to Dhaka Special Judge's Court-2.

Although six witnesses have been named in the case, none of them have appeared before the court to testify and the case has been pending for 19 years.

ACC lawyer Mir Ahmed Ali Salam told TBS that some bank officials were witnesses in the case, most of them have retired and two have died.

The date for a hearing of the case is fixed at the beginning of next year, he said, adding that a statement would be presented to the court on how to dispose of this case quickly.

He said according to the bank documents, the address of the fugitive accused in the case is shown as Gulshan Avenue, but there is no whereabouts of the accused there. The address used by the accused is also fake, he added.

Who are the accused?

According to court sources, there are 1,508 defendants in the 773 cases that have been pending since 2007. Among the accused, 911 are businessmen, 208 are politicians, and 114 are government officials.

Meanwhile, ACC sources said the anti-graft watchdog was investigating money laundering allegations against 697 people as of this October. Among the suspects, 234 were businessmen, 128 were politicians, and 229 were government officials.

Why are businessmen mostly accused?

Abu Hena Mohammad Razi Hasan, former head of the Bangladesh Financial Intelligence Unit (BFIU), said, "The easiest way to launder money is through letters of credit (LC) or chalans. Import authorisation is required for businesses to issue LCs or chalans. As a result, traders are more involved with this process."

He, however, said the crime has decreased to a great extent, thanks to strict monitoring by the Bangladesh Bank.

Iftekharuzzaman, executive director of the Transparency International Bangladesh (TIB), however, said, no other organisation of the government but the Bangladesh Bank can determine the actual figure of money being smuggled out of the country.

Those who are involved in money laundering always have connections with various influential persons in the government, as a result of which they always remain out of the reach of the law no matter which political party is in power.