Don’t object to amnesty for bringing back laundered money: Finance minister

Finance Minister AHM Mustafa Kamal has defended his budget announcement offering money launderers an opportunity to legalise unreported offshore assets without facing any questions from authorities, saying this amnesty will lure back the assets that have been syphoned off the country.

As the move has drawn criticism, the finance minister at a post-budget press conference on Friday urged people not to object to bringing back the laundered money to the mainstream economy.

The people of the country have a "right" to the assets smuggled abroad, which the government aims to secure, he mentioned, adding, "The laundered money will not come back if this opportunity is not offered. What good will that do for the country?"

While replying to a question from journalists, the finance minister said people move anywhere they find to be more comfortable for them. "Those who launder money do not take the money in a suitcase. We are in the digital age now. There are many mechanisms to syphon off money abroad, and money is smuggled out of the country for various reasons."

In the draft budget for the forthcoming fiscal 2022-23, the minister proposed a 15% tax on immovable property located abroad, and a 10% tax on movable property if it is not brought back to the country.

Asked about this, Minister Kamal said 17 countries, including the United Kingdom, the United States, Germany, Malaysia, and France, have granted amnesty to bring back laundered money into their economies in the last several years.

The finance minister claimed that Indonesia has retrieved $9.6 billion, which was smuggled abroad, after the country in 2016 offered amnesty to bring back laundered money.    

He said India has put forth a proposal to send back the money that PK Halder has syphoned off to the country. Besides, the Canadian government also said they would take up initiatives to send back the money that has gone there from Bangladesh through capital flight, said Kamal, adding the Canadian authorities have also pledged to take steps so that no one can buy assets in Canada with smuggled money.

Not all laundered or undisclosed assets are earned through bribery and corruption, the finance minister said. "Some money turns illegal because of the bureaucratic system. Many do not disclose the full amount they earn by selling land, and thus it becomes black money."

He said, "We expect no government agency to question anyone after they bring laundered money back home. And those who keep their wealth in the country by paying taxes regularly also will not lose their dignity."

Bangladesh has offered scope to whiten black money at different times since the tenure of the late finance minister Saifur Rahman, Kamal said, "Yet, this move will draw criticism."

Questions were raised when the Truth Commission – formed during the regime of the military-backed caretaker government that took charge on 11 January 2007 – offered the opportunity to legalise undisclosed assets.

Asked whether similar questions will arise if laundered money is brought back, Agriculture Minister Abdur Razzaque told journalists at the press conference, "At that time there was no constitutional government in the country. But, we are an elected, democratic, and constitutional government…. This time the facility is being given lawfully, so there is no scope to question this."

Echoing Razzaque, Abu Hena Md Rahmatul Muneem, chairman of the National Board of Revenue, said there was no parliament at the time of the formation of the Truth Commission, so their promise was not endorsed by law. "But this time the facility is being given as per the law. So no government agency including the NBR will raise any question in this regard."

Citing a report of the Global Financial Integrity, a journalist said Tk66,000 crore is smuggled from the country every year. So, he questioned the point of retaining the officials of anti-money laundering agencies such as the Anti-Corruption Commission and Bangladesh Financial Intelligence Service officials with the public money.

 In response to this question, the finance minister said, "We do not have any information of laundering of Tk60, let alone Tk66,000 crore from Bangladesh. But when we get any information, we take action against it. Many people in the country have been charged with money laundering, and many are in jail."

Fazle Kabir, governor of the Bangladesh Bank, said 95% of the money that is reportedly laundered by Bangladeshis and deposited in Swiss banks is actually brought from other countries. "We have not received any information that someone has deposited money in Swiss banks after smuggling it out of Bangladesh."