Efforts should be made to seize the local assets of money launderers through legal processes. This is important because if no action is taken against them, they will become more motivated to engage in such activities in the future.
The amount of money laundered is not the main issue; even if a few individuals receive exemplary punishment through legal processes, many will be deterred from laundering money in the future. There must be a fear created that the kind of leniency that money launderers previously received will not be given again in the future.
As proof, a few money launderers should be punished. If their local assets are seized and auctioned through legal procedures, it will set a precedent. This is relatively easy for the government. Therefore, the government can take action against money launderers through the law of its own country.
At the same time, in order to bring back the laundered money, the interim government will need to work on two fronts. They need to track how the money was moved, which route it took, and who was involved in it. Money launderers don’t do this through direct routes. If they did, the chances of getting caught would be much higher.
Therefore, money launderers establish shell companies in different countries. By moving through several countries, the money turns from black to white by the time it reaches its final destination.
So, first, the entire process of money laundering must be tracked and identified. After that, using the legal agreements between countries, action can be taken in court to present proper evidence of money laundering. If the evidence is strong, it will be possible to recover the money. Truth be told, this is a very difficult task. There are not many examples of success in this area.
If the goal is to recover the money, experts in the field should be involved. Through tracking and collecting all the information about the laundering process, legal action should be taken to recover the money.
Writer: Former Lead Economist, World Bank, Dhaka Office
Translated by Rafid
