After the Awami League government was overthrown through a student and public uprising, many influential figures fled the country. They have bought properties—houses, cars, and other assets—in countries such as the United States, the United Kingdom, Canada, and Dubai. Former MPs, ministers, and political leaders are reportedly selling off their illegally acquired assets and transferring the money abroad through hundi (informal money transfer systems). Foreign missions of Bangladesh have seen a rush for “power of attorney” documents to facilitate these sales.
Recent data reveals that within just one year, the amount of money held by Bangladeshis in Swiss banks has increased 33-fold. In 2023, the amount was 18 million Swiss francs, while in 2024, it skyrocketed to 589.54 million francs—approximately BDT 89.72 billion (nearly 9,000 crore taka).
Economists and analysts express grave concern over this surge, especially as the interim government is actively working to recover laundered money. They believe the rise reflects renewed interest in parking money abroad due to political instability, change of regime, and opportunities to transfer wealth.
Experts suggest that the massive increase in bank-level deposits may indicate money laundering disguised as foreign investments or trade.
Dr. Zahid Hussain, former lead economist of the World Bank’s Dhaka office, told Kaler Kantho, "If the money hadn’t been laundered, it would have been invested or deposited in domestic banks, where it could be used for loans and productive activities. Money laundering deprives the country of that capital."
He added that recovering laundered funds requires legally proving both the outflow and the foreign entry of that money—an arduous and time-consuming process. Still, the government's effort to freeze assets is a start and may pressure money launderers.
Policy Exchange Chairman Mashrur Riaz commented, “Swiss bank data shows a concerning rise in Bangladeshi deposits in 2024. These include personal, portfolio management, and banking sector funds. But there are concerns that some of these may involve questionable investments, especially when the stock market is underperforming.”
He pointed out that cross-border money laundering spikes during election periods, and after the government fell in August, many powerful individuals who had acquired wealth through corruption may have hastily moved money abroad. However, with corruption and embezzlement somewhat reduced post-August, money laundering may also have slowed. Efforts to recover laundered funds are visible but legally complex, requiring stronger inter-agency coordination.
How much was laundered and where?
A white paper on the economic situation reported that during former PM Sheikh Hasina’s 15-year rule, an average of $16 billion per year was illicitly transferred from Bangladesh. The top 10 destinations for laundered money include the USA, UK, Canada, Australia, Singapore, Hong Kong, UAE, Malaysia, Cayman Islands, British Virgin Islands.
Ahsan H. Mansur, Governor of Bangladesh Bank, stated that $18–20 billion (around BDT 2.2–2.4 trillion) was laundered under the Awami League regime. One individual’s foreign assets have already been confiscated, and more seizures are expected.
Land sales fueling money laundering
During the Awami League’s rule, powerful figures—ministers, MPs, bureaucrats—acquired land through coercion or underpriced deals. Following the fall of the regime, many of these individuals have gone into hiding or fled abroad. They are now reportedly selling off land quickly, including plots in Dhaka’s Purbachal, Rupganj, Gazipur, and Savar. Even former DB chief Monirul reportedly sold 9 bighas of land in Gazipur.
Suspicious transactions on the rise
The Bangladesh Financial Intelligence Unit (BFIU) reported 27,130 suspicious transaction reports (STRs) between July 2023 and May 15, 2024—a 79% increase over the previous year. These involve over 350 former MPs of the fallen regime, senior government and private officials, and banned Awami League affiliates.
In the fiscal year 2023–24, 17,345 STRs were recorded, up from 14,106 the year before. The surge began in July 2023, indicating heightened suspicious financial activity.
Government action
An official task force has been formed to recover laundered funds, said financial advisor Dr. Salehuddin Ahmed. He acknowledged that recovering the money requires technical expertise and verified data, and the process may take time.
Bangladesh Bank’s Governor mentioned it could take 3–5 years to repatriate the funds. He clarified that the goal is not to harass anyone but to apply pressure and negotiate out-of-court settlements when possible.
Major obstacle: Layering
Most of the laundered money was transferred using layering—routing funds through multiple countries before reaching the final destination. This makes it extremely difficult to trace and prove the origin of the funds in court.
An official from BFIU stated that this tactic is the main hurdle in repatriating laundered money, as no country willingly returns foreign-invested capital. The repatriation process involves five steps:
- Identifying the accused individual or entity
- Freezing their bank accounts
- Investigation and case filing with evidence
- Conviction in local courts
- Filing and winning cases in foreign courts with international legal assistance
BFIU has sent over 250 investigation reports to CID and ACC, and 20 audit reports have been finalized. The ACC has begun filing cases based on these.
Expert opinions
Experts note that the uncertainty before national elections usually triggers money laundering. The 2024 national elections and the subsequent fall of the Hasina government led to heightened capital flight, which explains the 33-fold increase in Swiss deposits compared to the previous year.
TI Bangladesh Executive Director Iftekharuzzaman said that entrenched corruption and misuse of institutions enabled this long-running laundering. Although difficult, repatriating the funds is possible through legal agreements with the destination countries, contingent on their willingness to cooperate.
No funds returned yet
Despite forming a task force, not a single dollar has been repatriated so far. However, over 1,500 bank accounts have been frozen, containing approximately BDT 225 billion worth of cash and shares.
Former ACC DG and judge Md. Moydul Islam said that political will is crucial for recovering laundered funds and that government agencies must work in coordination to succeed.
Bd-pratidin English/ ANI
