ACC strives to bring back laundered money but how fruitful will be its efforts?

In a bid to recover money laundered from Bangladesh in recent years, the Anti-Corruption Commission (ACC) has intensified its efforts, holding discussions with at least four international organisations over the past three weeks to seek assistance in this matter and sending 71 legal assistance requests to several countries.

However, since its inception in 2004, the graft body has been unable to bring back any laundered money except for the funds laundered by late Arafat Rahman Koko, the younger son of BNP Chairperson Khaleda Zia.

According to ACC sources, following the mass uprising on 5 August, the commission initiated investigations into over 100 influential individuals, including 86 ministers and MPs from the Awami League government. 

ACC intelligence unit's preliminary investigations have found evidence of money laundering against many of these individuals.

A report by the Washington-based research organisation Global Financial Integrity states that at least $149.20 billion was laundered from Bangladesh during Sheikh Hasina's 15 years in power from 2009 to 2023. 

At the current exchange rate, the laundered amount is estimated to be at least Tk17.6 lakh crore.

The ACC has already engaged in discussions with organisations such as the FBI, the United Nations Office for Drugs and Crime (UNODC), and the World Bank. The organisations have also assured their full support in this regard.

Yesterday, the ACC met with a delegation from the European Union to discuss cooperation on recovering the smuggled funds. 

ACC Director General (prevention) Md Akhtar Hossain, following the meeting at the ACC office, told journalists, "We have requested cooperation from the EU representatives in bringing back the laundered money. We highlighted the obstacles in our investigations and shared the names of countries where the funds have been transferred."

"They have assured us of their support," he added.

Only one success in two decades

The ACC could play a key role in recovering laundered money. However, till now, it has seen only one notable success. 

In 2012 and 2013, the ACC recovered Tk 21.55 crore in three instalments from Singapore, which had been laundered by Arafat Rahman Koko. This success, however, required the hiring of lobbyists.

Experts believe that the lack of political will was a major obstacle in recovering laundered money.

Moidul Islam, former ACC DG, told The Business Standard, "Though recovering the smuggled money has its challenges, it is not impossible; with political intent being the main obstacle."

"The ACC sends a Mutual Legal Assistance Request (MLAR) to the Ministry of Home Affairs, which then contacts the relevant countries. The problem is that even this simple step is often not taken," he added.

Explaining further, Moidul said relationship with the country to which the money has been laundered, along with its foreign policy also plays a role in the recovery process. 

"However, the most crucial factor is the government's will. The lack of will is the primary reason why no funds, except those of Koko, have been successfully recovered," he added.

He also stressed that the ACC must prioritise its fundamental responsibilities, such as securing court permission, submitting MLARs, and establishing connections with countries involved. More vigorous efforts are necessary to make progress, he added.

71 MLARs issued to recover laundered money

The ACC has sent a total of 71 MLARs to various countries, seeking legal assistance in recovering laundered funds from Bangladesh. Of these, responses have been received for only 27 requests. 

In criminal matters, MLAR in the Bangladesh context is a formal request made by the Ministry of Home Affairs to the home ministry of another country under any Bilateral Treaty/Agreement, Multilateral Treaty/Agreement or International Convention or under assurance of reciprocity. 

According to the ACC, the majority of the laundered funds are believed to be in the European Union, Switzerland, the United States, Canada, Singapore, the UAE, Malaysia, and Australia.

The ACC DG Akhtar Hossain said they are struggling to get adequate cooperation from the countries involved. 

"Of the 71 MLARs, we have received responses for only 27. This is why we have reached out to international organisations for help in retrieving the funds, and they have assured us of their support," he added.