money laundering
BFIU gets 3 months to sign legal pacts with 10 countries to bring back black money
The High Court has given Bangladesh Financial Intelligence Unit (BFIU) three months to sign mutual legal assistance (MLA) pacts with 10 countries for obtaining information and proof required to recover black money stashed abroad.
An HC bench of justices Md Nazrul Islam Talukder and Khijir Hayat passed the order on Wednesday (October 26, 2022).
Deputy attorney general AKM Amin Uddin Manik appeared for BFIU, while advocate Khurshid Alam Khan represented the Anti-Corruption Commission (ACC).
Read: HC orders BFIU to form research cell to bring back laundered money
In a report submitted to the court on Tuesday, BFIU said that they had advised the Financial Institutions Division (FID) to sign MLA agreements with at least 10 countries to get necessary help in bringing back laundered money from abroad.
These countries are the United States of America (USA), the United Kingdom (UK), Canada, Singapore, Australia, Malaysia, the United Arab Emirates, Switzerland, Thailand and Hong Kong (China).
The report also said that "BFIU has asked Bangladesh Bank (BB) to recruit manpower for the proposed ‘Research Cell’ which will help in identifying money launderers and recovering the money."
Read Black money whitening got little response in FY 22: NBR data
According to the report, the recruitment process is currently ongoing.
The report added that the sixth meeting of the taskforce, led by the attorney general and formed to recover laundered money, took place on January 3, 2022.
The meeting was attended by representatives of the Home Ministry, the Foreign Ministry, FID, ACC, BFIU and the Criminal Investigation Department (CID) of Bangladesh Police.
Read Finance bill 2022 passed with limits on proposal to whiten black money
It was decided at the meeting that urgent steps needed to be taken to identify the launderers and bring back black money stashed in foreign banks.
The High Court on August 31 ordered the head of Bangladesh Financial Intelligence Unit to form a research cell to prevent money laundering, bring back laundered money, monitor and control it.
Bangladesh Financial Intelligence Unit head Md Masud Biswas was also directed to submit a progress report regarding the formation of Research Cell by the next hearing set to be held on October 26.
On August 10, the Swiss ambassador in Dhaka Nathalie Chuard said that they have been providing the Bangladesh government with all information regarding deposits of Bangladeshi money in Swiss banks, "but no request has been submitted regarding any particular account".
On August 11, the High Court bench ordered the government and the Anti-Corruption Commission to explain why the government did not seek information of deposits of Bangladesh money stashed in Swiss banks.
On August 14, Bangladesh Financial Intelligence Unit was asked to submit a report in this regard in the affidavit form.
On August 21, following the High Court order, Bangladesh Financial Intelligence Unit's report was submitted stating that the information regarding deposits of 67 Bangladeshis in various Swiss banks was sought from the authorities concerned in Bern.
PM: During BNP’s regime, human rights were violated at every step
Coming down heavily on BNP, PM Sheikh Hasina has said they raise questions about the election and human rights, but during their regimes, human rights were violated at every step.
The premier was addressing a civic reception on Saturday, accorded to her by the Bangladeshi community in New York, US.
“They (BNP) are champions in vote-rigging. Starting from incorporating 1.23 crore fake voters, there’s no misdeed they haven’t committed,” she said.
Read: Give fitting response to propaganda against us: PM to expat Bangladeshis
The PM said Awami League believes in people’s rights and protects those rights.
“Awami League ensured the voting rights of people in this country,” she said, adding that AL gave back voting rights to people, which once remained confined in the cantonment.
Social development happened in Bangladesh thanks to the continuation of the democratic system since 2009, she said.
Read:PM: Returning from UNGA with friendship for Bangladesh
Sheikh Hasina said BNP tried time and again to disrupt the democratic system by unleashing arson attacks and killings, and imposing blockades.
Blasting Zia’s family, PM Hasina said Khaleda Zia was convicted in a graft case for misappropriating funds for orphans while his son Tarique Rahman for money laundering and 10-truck arms haul case.
She said Bangladesh government had also brought back the money that was illegally siphoned off by Zia’s other son, the late Koko.
Read UN experts seek more help for human rights defenders in push for accountability in Myanmar
She said her government has been working for the welfare of Bangladeshi expatriates after giving a brief description of the efforts.
Praising the expatriates, Sheikh Hasina said they always stand by Bangladesh during its times of need.
TIB urges govt to spare people the burden of foreign debt
Transparency International Bangladesh (TIB) has suggested the government to prevent tax evasion and money laundering by adopting 'Common Reporting Standard (CRS)' to stabilise foreign exchange reserves without burdening the people with foreign debt.
Taking loan from the International Monetary Fund (IMF) and other international institutions is considered normal for stabilising foreign exchange reserves, the graft watchdog body said in a statement on Tuesday.
But the public has to bear the entire burden of repaying such loans along with the interest, it added.
TIB Executive Director Iftekharuzzaman said, "Our question is - to deal with the financial crisis, especially the growing shortage of foreign currency, foreign loan assistance and other ongoing initiatives have been taken with the highest priority of public interest or not! In other words, without increasing the burden of debt on the people, is there an alternative way to be considered?”
In this context, TIB suggested that there is a way open for the government to earn many times more money than the proposed foreign loan annually and sustainably by preventing tax evasion and money laundering at almost no cost.
According to data from Global Financial Integrity, the amount of money laundered through invoice fraud during the 2008-2015 was $8.2 billion annually, which would already be at least $12 billion if data were available to be updated.
Read: CEC’s statement on election-time violence suicidal: TIB
Iftekharuzzaman said, "Growing money laundering is a huge challenge for Bangladesh."
The bulk of money laundering in Bangladesh is organised through misinvoicing or invoice fraud in the import and export trade. As a result, there is massive tax evasion.
It is a legal and moral responsibility for the government to adopt an effective CRS to prevent the large-scale money laundering as well as increase revenue collection, reads the statement.
And it will be helpful in increasing the foreign exchange and national income in a cheap and sustainable manner at a rate many times higher than the one-time proposed international loan of the IMF.
The countries where money is laundered from Bangladesh, even the so-called tax-haven countries or regions are already listed in CRS and are exchanging information, said Dr Zaman.
TIB urged the government to set an example of political will to adopt CRS to tackle the financial crisis in the short term and control tax evasion and money laundering sustainably in the medium and long term.
"We hope that the government will take necessary legal reforms at the national level in addition to the necessary international steps immediately," he added.
More than 120 countries of the world, including many neighboring countries of Bangladesh, are monitoring all types of banking and financial transaction information of citizens located in the country and outside the country automatically through the CRS, which is an initiative of the OECD formed in 2014 and has been effective since 2017.
CRS has helped countries in controlling tax evasion and revenue collection at home and abroad on the one hand and ensuring accountability including preventing, identifying and recovering the laundered money through the exchange of information.
Banks instructed to campaign for bringing back laundered money
Bangladesh Bank (BB) has instructed the country’s scheduled banks to launch a campaign to encourage Bangladeshi nationals to send home the undisclosed money they earned abroad by paying only 7 per cent taxes.
The campaign will be in accordance with the recently made ‘Income Tax Ordinance’ aimed at bringing back undisclosed income and the money laundered by Bangladeshi nationals.
Bangladeshi nationals can show their income, earned abroad by any means, in the income tax return by paying 7 per cent tax. Such income will be legalized by the banking channel and no one (banks or any other agencies) can ask about the sources of this income.
Also read: Black money whitening got little response in FY 22: NBR data
The central bank issued a circular in this regard on Monday and sent it to all scheduled banks for necessary action.
The circular stated the implementation and promotion of offshore tax amnesty under the Income Tax Ordinance.
“Through the Finance Act, 2022, as per Section-19 of the Income Tax Ordinance, 1984, paying 7 per cent tax during the period from July 1, 2022, to June 30, 2023, the undisclosed money accumulated outside Bangladesh in any form, can be legally brought into Bangladesh, by banking channels and displayed it in the income tax return,” the circular added.
Also read: Banks must operate in compliance & good governance: BB Governor
Economists and former NBR officials criticized the amnesty saying that money laundering and capital flight from Bangladesh would increase due to this.
BIDS economist opposes budget proposal to whiten black money
Economist Dr Nazneen Ahmed said giving a chance to bring back laundered money without proper application of the country’s existing money laundering act is similar to the acknowledgment of crime.
“The proposal in this year’s budget to bring back laundered money by giving 7 per cent tax to the government should be canceled.
Earlier, the process of whitening black money was not effective. There is no alternative to good governance for a strong economy. The decision to borrow money from the local banks is the right decision in the current situation,” she said.
Read: Budget FY23: Kamal sees rising inflation as a major challenge
Nazneen Ahmed, who has spent most of her career at the Bangladesh Institute of Development Studies, the state-funded thinktank, came up with the observation while addressing a shadow parliament as the chief guest on Saturday organised by Debate for Democracy in the capital’s BFDC.
The Debate for Democracy chairman Hasan Ahmed Chowdhury Kiron presided over the shadow parliament.
The economist said power tariff should not be increased in this post-Covid situation for one year as a hike in power, gas, and oil puts pressure on the people.
Islami University has defeated Jagannath University in the shadow parliament.
Trophies and certificates have been distributed among the participants patronized by the United Commercial Bank Limited.
Money laundering: HC to hear ACC’s appeal against ex-DIG Mizan’s acquittal
The High Court on Sunday accepted for hearing the appeal of the Anti-Corruption Commission (ACC) challenging suspended Deputy Inspector General (DIG) Mizanur Rahman’s acquittal of the money laundering charges.
A bench of Justice Md Nazrul Islam Talukder and Justice Kazi Md Ejarul Haque Akondo passed the order and summoned the documents of the case.
The two appeals will be heard together with Mizan’s appeal against the sentence in bribery case.
Also read: Bribery case: HC to hear ex-DIG Mizan’s appeal seeking acquittal
Lawyer Khurshid Alam Khan appeared for the ACC while Deputy Attorney General AKM Amin Uddin Manik and Assistant Attorney General Anna Khanam Kali represented the state.
Khurshid said the lower court had acquitted former DIG Mizan of money laundering charges. “Later, we appealed to the High Court seeking punishment in that charge.”
“ACC director Khandaker Enamul Basir was sentenced to five years in prison and fined Tk 80 lakh under the money laundering act. However, Mizanur Rahman was acquitted under this section,” he added.
On April 6, the HC accepted for hearing the appeal of former DIG Mizan’s seeking acquittal in a bribery case.
The court sentenced ACC director Basir to eight years imprisonment with Tk 80 lakh fine and Mizan to three years.
Basir was sentenced to three years jail term for bribery and five-year jail term under money laundering act but he will have to spend five years in prison as the two punishments will be served simultaneously, said the court.
DIG Mizan was an additional commissioner of Dhaka Metropolitan Police (DMP). He was withdrawn on January 9, 2019 following the allegation of threatening a female news presenter of a private television channel.
He had also reportedly married a woman forcibly and tortured her. Mizan allegedly abducted the 25-year-old woman in July, 2017 and then forcibly married her.
He had also implicated her in a false case whereby she was arrested and remained in jail for three weeks.
On June 24 in 2019, ACC director Monjur Morshed filed the case against DIG Mizan, his wife Sohelia Anar Ratna, nephew sub-inspector Mahmudul Hasan and younger brother Mahbubur Rahman.
According to the case statement, the ACC found that DIG Mizan concealed information of wealth worth Tk 3.7 crore in his wealth statement.
Then director of ACC Enamul Basir was made the investigation officer in the case.
Also read:Suspended DIG Mizan, ACC director Enamul Basir indicted
During the investigation DIG Mizan accused Basir of claiming Tk 40 lakh as bribe for acquitting him from the charges.
Following the allegation, another ACC director Monjur Morshed was made the investigation officer in the case, withdrawing Basir.
A three-member probe body was formed led by ACC director Sheikh Mohammad Fanafillah to look into the allegations of bribery.
On July 16, 2019, Sheikh Mohammad Fanafillah filed the case over the bribery scandal against Mizan and Basir.
On April 16, 2020, a Dhaka court indicted the two and directed the official beginning of the trial in this case.
Judgment in casino case against expelled AL politicians deferred
A Dhaka court on Wednesday deferred the judgment in the illegal casino and money laundering case filed against 11 people, including expelled Awami League politicians Enamul Haque Enu and Rupon Bhuiyan, till April 25.
The final judgment in the case was scheduled to be pronounced by Dhaka Special Court-5 judge Iqbal Hossain on Wednesday. As the judge is on leave, the judgment has been deferred, said Saiful Islam, a court official.
Special public prosecutor Shawkat Alam said that acting judge Monir Kamal fixed April 25 as the new date for announcing the judgment.
On March 16, the Dhaka court fixed April 6 for delivering its judgment in the case after both prosecution and defence wrapped up their arguments.
Also Read: Casino drive: brothers Enamul, Rupon held from Keraniganj
The other accused in the case are Shahidul Haque Bhuiyan, Rashidul Haque Bhuiyan, Merajul Haque Bhuiyan, Joy Gopal Sarkar, Tuhin Munshi, Nabir Hossain Sikder, Saiful Islam, Abul Kalam Azad and Pavel Rahman.
Shahidul, Rashidul, Merajul and Pavel are on the run, while the others are currently in judicial custody.
The criminal investigation department submitted the chargesheet in the case on July 22, 2020.
On January 13, 2020, Enamul and Rupon were arrested, along with their associates, from a house in the Subadda area of Keraniganj. Some 12 mobile phones and Tk 40 lakh in cash were seized from their possession.
Enamul, the director of Dhaka Wanderers Club, was also the vice-president of the Awami League's Gendaria unit, while his brother Rupom was the joint general secretary.
Also Read: Anti-casino drive: Now DNCC councillor Rajib held
Both the AL leaders were involved in the casino business at Wanderer’s Club, according to Rab.
On September 18 last year, a Rab-3 team conducted a drive in the casino inside Dhaka Wanderer’s Club where illegal drugs, fake currency notes, money and gambling materials were seized.
Four money-laundering cases were subsequently filed against them.
Nagad organises workshop on money laundering & crime control
'Nagad,' one of the country’s leading mobile financial services, recently conducted a workshop for the entrepreneurs in Gaibandha district aiming at identifying, controlling and preventing money laundering in order to avert fraudulent activity and terrorism financing.
During the session, the speakers emphasized the importance of preventing money laundering and terrorist financing for conducting ‘Nagad’ business and identifying potential risk areas. The organisers also discussed the strategies for increasing awareness of the entrepreneurs, reporting suspicious transactions, and raising awareness about fraudulent activity.
Lt Col Md Kousar Soukat Ali (retd), Chief of External Affairs Officer of Nagad, said, “Nagad has always prioritised entrepreneurial awareness and a secure business framework. As part of our efforts, we will continue to organize such awareness events across the country.”
READ: NRB Islamic Life Insurance premiums can be paid through Nagad
Representatives of the Gaibandha District Police highlighted their expertise in conducting various criminal cases, including fraud, and relevant challenges, and drew attention to the areas of cooperation of the entrepreneurs at the workshop.
Md. Mahbub Alam, PPM, DIG (Retd.), Head Stakeholder Management of Nagad assured complete cooperation in the correct procedure of regulating with the assistance of Nagad. He also urged the police department to work cooperatively with the local ‘Nagad Uddoktas’.
Additionally, top authorities from 'Nagad' visited several ‘Uddokta points’ in Gaibandha, Rangpur and Nilphamari districts to apprise them of the importance of preventing money laundering and terrorism funding. The entrepreneurs of Nagad participated spontaneously in the inspection process and made several constructive proposals to address the different obstacles inherent in running the business.
Read Nagad training workshop with Postal officials held
The workshop was also attended by Gaibandha District Police representative and senior officials.
Fmr minister Mosharraf’s brother arrested in Tk 2,000cr money laundering case
Former minister Khandaker Mosharraf Hossain's brother was arrested by the Faridpur police in the early hours of Tuesday in a Tk 2,000-crore money laundering case.
Faridpur police chief Md Alimuzzaman said Khandaker Mohtesam Hossain Babar was nabbed from the Bashundhara residential area of Dhaka around 3am.
Read:Expelled Sramik League leader Tufan gets bail in money laundering case
Babar was the co-chairman of the incumbent committee of the district Awami League. Earlier, he was the chairman of the Faridpur Sadar upazila.
Details will be revealed at a press briefing by the Faridpur district police at Kotwali police station around noon, said additional SP Jamal Pasha.
On March 3 last year, the criminal investigation department (CID) filed a chargesheet against 10 people, including Babar, brother of former local government, rural development and co-operatives (LGRD) minister Mosharraf Hossain, in the case.
CID's assistant superintendent Uttam Kumar Biswas submitted the chargesheet in the Dhaka metropolitan magistrate's court.
Read: Non-submission of report on money laundering by e-commerce firms irks HC
The other accused in the case are Sajjad Hossain Barkat, former president of city Awami League, and his younger brother Imtiaz Hasan Rubel, former president and minister of district Juba League, APS AHM Fouad, former president of city Awami League Khandaker Nazmul Islam Levi, Juba League leader Ashikur Rahman Farhan, former general secretary of the district Swechasebak League, Fahad bin Wazed alias Fahim, and Juba League leaders Kamrul Hasan David, Mohammad Ali Didar and Tariqul Islam Nasim.
BFIU launched standalone website to strengthen awareness against money laundering
Bangladesh Financial Intelligence Unit (BFIU), central body for prevention of money laundering and terror funding, has launched its standalone website to strengthen anti-money laundering activities.
The BFIU Chief Md. Masud Biswas officially launched the website (https://www.bfiu.org.bd) at Jahangir Alam Conference Hall 3rd floor of Bangladesh Bank (BB) building on Monday.
Earlier, the web content of BFIU was displayed as a separate page on the website of Bangladesh Bank.
In Bangladesh, the prevention of Money Laundering Act was enacted in 2002 to curb money laundering. At the same time, to make these activities fruitful, money laundering prevention department was established by Bangladesh Bank in July 2002.
Also read: BFIU summons bank accounts update of 30 e-commerce companies
The department was described later in 2012 as a separate entity called Bangladesh Financial Intelligence Unit.
In the web portal brief descriptions, work of BFIU, Circulars and Guidance Notes issued from time to time have been included.
BFIU statement said through the portal, people of all walks of life will be able to lodge complaints with the BFIU, keeping their identities secret, if necessary.
In addition, the steps taken by BFIU to raise public awareness about money laundering and terrorist financing will be displayed in the website, which will help raise awareness among common people.
Also read: IFC inks deal with BFIU to develop eKYC infrastructure for fast-tracking financial Inclusion
Besides, web links with introductions from various international organizations such as APG, FATF, Egmont Group, Security Council and donor agencies are included, which will help keep stakeholders updated on other issues, including international regulations on money laundering and embezzlement.
On the other hand, the Financial Intelligence Unit of different countries will be able to easily inform the concerned international organizations about the updated steps taken by BFIU to prevent money laundering.