Over the past fifteen years, between $12 and $15 billion have been laundered annually from Bangladesh: Iftekharuzzaman

Bangladesh has lost $12 to $15 billion annually due to money laundering over the past 15 years, posing significant challenges in recovering this huge amount, Dr Iftekharuzzaman, Executive Director of Transparency International Bangladesh (TIB) said today (November 2).

He highlighted the issue while addressing a seminar titled ‘Odious Debt & Recovery of Bangladesh’s Laundered Wealth’ organized by Economic Reporters’ Forum (ERF) and Sombabonar Bangladesh at ERF Auditorium at Paltan in Dhaka.

Iftekharuzzaman stressed the urgent need to hold financial criminals accountable, stating that “money launderers must face the consequences, and anti-money laundering agencies must be held accountable to prevent future incidents.”

He noted that while the government has made efforts to curb financial crime, stronger advocacy from civil society and political platforms is necessary to develop a sustainable anti-smuggling system.

Reflecting on the recent efforts of the Bangladesh Bank and the Bangladesh Financial Intelligence Unit, Iftekharuzzaman said these institutions were accused in previous years of overlooking money laundering activities under autocratic influence.

However, he acknowledged that the central bank has now stepped up efforts to tackle money laundering and recover laundered funds. “But this must be turned into a sustainable system for the future.”

Iftekharuzzaman also pointed to the conditional requirements imposed by the International Monetary Fund (IMF) to restrict lending to fictitious companies, but criticized the lack of action.

“Despite the IMF’s conditions to stop lending to fake and paper companies, the practice persists,” he said.

He added that Islami and other banks had allegedly lost money to paper-based companies through fraudulent schemes – a practice, he noted, that Bangladesh Bank has since acknowledged.

Meanwhile, many legitimate businesses that meet all the requirements are struggling to obtain loans.

The keynote paper of the seminar was presented by Anisuzzaman Chowdhury, Professor Emeritus at Western Sydney University, Australia.

Other speakers included Professor Jasim Uddin Ahmed, former Vice Chancellor, and Nayem Chowdhury, economist and founder of Astra Gattaca Oppenheimer in the US.

The program was moderated by a senior journalist and former editor of the Daily New Nation.