The Bangladesh Financial Intelligence Unit (BFIU) has frozen nearly 300 bank accounts since 5 August as part of an intensified effort to combat money laundering.
Significant sums of money are involved, according to officials, who noted that this move forms part of a broader initiative aimed at identifying and halting the illegal outflow of funds from the country.
Sources at the central bank’s financial intelligence division revealed that the ongoing investigation is focused on tracing funds laundered abroad.
They said the freezing of these accounts is intended to disrupt illicit activities and protect the financial system from further harm.
As a result of the seizures, some 100 legal cases have been filed.
The BFIU has said that, if financial embezzlement is proven in court, the seized funds will be transferred to the Bangladesh Bank’s treasury.
However, should the allegations be dismissed, the accounts will be unfrozen and the funds returned to their rightful holders.
The central bank, working closely with the task force and the BFIU, is optimistic about the recovery of stolen assets.
They regard this collaborative effort as a positive step towards retrieving illicitly transferred funds and preventing future financial crimes.
Authorities are also committed to tightening regulatory oversight as the investigation progresses. These measures aim to curb money laundering and bolster the country’s financial integrity.
A recent report by Transparency International Bangladesh (TIB) revealed that approximately Tk 26,400 crore (USD 3.1 billion) is illicitly sent out of Bangladesh every year. Hundi, over-invoicing, under-invoicing, and trade mis-invoicing have been identified as the primary techniques for laundering money.
Shahrear Ahamed, an Associate Member of the Institute of Chartered Accountants of Bangladesh (ICAB), highlighted in a 10 March 2024 article that the existing regulatory framework imposed on fintech companies has effectively curbed money laundering and the financing of terrorism.
However, as the fintech sector evolves, so do the risks of emerging fraudulent activities.
He said that fintech organisations, particularly their anti-money laundering departments, must implement prevention and mitigation strategies.
With consistent monitoring and updates to current policies and guidelines, the mobile financial services (MFS) industry could propel Bangladesh to new levels of financial transparency and security.
