Sanctions used as a tool against corrupt people, US anti-graft official tells foreign ministry

The United States considers sanctions as a strategic tool against corrupt individuals such as money launderers, Foreign Secretary Masud Bin Momen told the media on Monday following a two-hour meeting with a US delegation led by Richard Nephew, the US State Department's coordinator for global anti-corruption efforts.

The visiting US delegation also interacted with civil society members at the US embassy before meeting the foreign secretary.

When asked about the circulating news on social media regarding potential sanctions against 11 Bangladeshi nationals for money laundering, the foreign secretary clarified, "There was no discussion on this specific issue. However, Richard Nephew, given his past involvement in US sanction-related activities, shared insights about the utility of sanctions. The US might be considering sanctions as part of their plans."

Expanding on Richard Nephew's statement, the foreign secretary further explained, "His remarks are not directed at Bangladesh exclusively. Sanctions can be applied to any country, not limited to Bangladesh."

The foreign secretary said money laundering was discussed during his meeting with Nephew, adding, "We told them that many times there are small countries and island countries where money is smuggled. We also talked about the Hundi system."

In response to a question of whether Bangladesh sought cooperation from the US official to recover money laundered to the US and Canada, the foreign secretary said, "Recovering the money is a subsequent step. Initially, the focus should be on preventing further money laundering. Additionally, not all the money may be of illegitimate origin."

The foreign secretary told the media that the visiting US team inquired about how the foreign ministry deals with corruption or financial issues. "We briefed them on what kind of courses we have introduced for the trainees.

"They stated that we have numerous institutions and they also possess capabilities. There is room for further improvement in these, be it through appreciation or assessment."

Responding to inquiries about the Foreign Ministry's role in response to a High Court order that mandates an investigation into media reports alleging that S Alam Group funnelled $1 billion abroad, the foreign secretary stated, "No specific instructions have been received yet. If the Anti-Corruption Commission makes a request, we will take appropriate action within the purview of the law."

When asked whether Bangladesh is satisfied with the sharing of information on US money laundering, the foreign secretary responded, "I cannot comment on that. They came to us through the Bangladesh Bank. So, if the Bangladesh Bank has any specific expectations, they might have communicated."

Meanwhile, sources from the Bangladesh Bank told The Business Standard that Bangladesh Financial Intelligence Unit Director Rafiqul Islam along with several other officials held a meeting with a team from the US State Department.

A senior official from BFIU on condition of anonymity told TBS, "The US State Department delegation inquired about how the BFIU works on combating money laundering. They are interested in understanding the operations of BFIU. They are discussing the BFIU's overall activities with them."
 
Talks on future investment

The US team said that in the future it will need to comply with OECD guidelines during the implementation of big investment and infrastructure projects so that projects that are environmentally harmful could be excluded, according to Masud Bin Momen. The OECD – Organisation for Economic Co-operation and Development – is an intergovernmental organisation with 38 Member countries, founded in 1961 to stimulate economic progress and world trade.

Besides, there is the Blue Dot Network which represents an innovative solution to help mobilise private sector investment by identifying and encouraging market-driven, transparent, and sustainable infrastructure projects.

By promoting, facilitating, and streamlining the application of international standards and best practices, the Blue Dot Network aims to create a level playing field and build trust around quality infrastructure investments.
 
Destination countries of money laundering also have role to play: TIB chief tells Nephew

Meanwhile, Richard Nephew held a meeting with a team of five members from civil society at the US embassy on Monday morning. Dr Iftekharuzzaman, the Executive Director of Transparency International Bangladesh (TIB), also attended the meeting.

Iftekharuzzaman shared his insights with TBS, stating that the US team expressed their country's keen interest in combating corruption in Bangladesh. Their discussions revolved around the challenges of translating political determination, institutional capability, and legal structures into effective anti-corruption measures in Bangladesh.

"We emphasised that, given their willingness, they could assist us in enhancing our capacities, particularly in tackling issues like money laundering," he further added.

Dr Iftekhar said, "Since money laundering is a sophisticated crime, we, as well as the ACC, feel that they lack capacity. We have said that money laundering is not only a problem for countries of origin but also for countries of destination. Destination countries, such as the US, also have a role to play."

"We underlined that money laundering is a reality even within the United States and that it is their responsibility to take measures to counter it. We urged them to assume a proactive role," he continued.

"Furthermore, it is imperative that adequate support is extended to the relevant institutions post-money laundering. Unfortunately, there tends to be a deficiency in this aspect, and we took the opportunity to communicate this concern," he elaborated.

Dr Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue, was also present at the meeting.

A three-member delegation led by the US State Department's global anti-corruption coordinator Richard Nephew is currently visiting Bangladesh. During the first day of the visit on Saturday, the team met officials from the Anti-Corruption Commission.