[🇧🇩] Corruption Watch

[Saif]

White-collar crimes: Bangladesh perspective

Readers may agree with my supposition that the current financial misfortune of Bangladesh is largely caused by white-collar crimes. Edwin Sutherland, a US sociologist who coined this terminology, defined white-collar crime as “a crime committed by a person of respectability and high social...

www.thedailystar.net

White-collar crimes: Bangladesh perspective

Readers may agree with my supposition that the current financial misfortune of Bangladesh is largely caused by white-collar crimes. Edwin Sutherland, a US sociologist who coined this terminology, defined white-collar crime as "a crime committed by a person of respectability and high social status in the course of his occupation".

In Bangladesh, we fail to isolate white-collar crimes from ordinary deceptions, because it is not clearly defined in our legal system. A fair guideline can be obtained from the US Department of Justice definition, which articulates: "White-collar offences shall constitute those classes of non-violent illegal activities which principally involve traditional notions of deceit, deception, concealment, manipulation, breach of trust, subterfuge or illegal circumvention".

When this crime has caused so much misery in our society, it is pertinent to ask: a) why do socially established people in Bangladesh commit white-collar crimes and b) whether these crimes can be prevented in the coming days.

Regarding the first question, it is commonly understood that white-collar crimes thrive in a modern complex economic system where there is money, trust, greed and opportunity. Bangladeshi politicians created opportunities for a few in the name of progress and development. Contractual trust, which is a basis for all monetary transactions, was widely flouted. Thereby, paving the way for deception and financial scams to surpass all bounds.

The second issue is the prevention of white-collar crime. We need a robust legal framework and institution comparable to the Serious Fraud Office of the UK. Simultaneously, we need to inculcate basic moral precepts. Consider how honesty is being routinely touted in religious sermons, political meetings and civil society in Bangladesh. Yet we do not find their reflection in private morality and public policies. This gives rise to the question of whether our families and society inculcate the moral foundation in the right earnest.

Truly speaking, white-collar crimes cannot be eliminated but can be prevented. With the happening of each financial crime, Western societies make appropriate legal reforms to prevent reoccurrence. Conversely, in our part of the world, white-collar crimes thrive through political patronage and social indifference.

Trivial phrases like "all men are created equal" or George Washington's inaugural speech where he said "there is an enduring union between virtue and happiness" are some of the precepts of American moral beliefs and behaviour.

Secular Western societies derive their public policy from private morality. The stigma of being labelled as a fraudster is a disgrace in the Western world. There is a common saying in the Western world that one could get away with murder, but not with a white-collar crime. In support of this notion, let me cite examples:

During the 1990s, Robert Maxwell, the UK-based media mogul embezzled employees' pension fund. Upon detection, he faced public outrage. Then he died a mysterious death, widely believed to be a suicide out of shame. Likewise, Bernie Madoff, the stockbroker and once Chairman of NASDAQ, who fleeced many people and devastated many lives, when brought to justice, received a 150-year prison sentence and later died in remorse and shame.

Please do not get me wrong. I am citing the Western precepts and examples in order to bring home the truism that any society in the pursuit of ethically run institutions must build a moral premise first. For example, if we need justice in a community, we have to put in place a just society. Only then societies can produce benevolent people.

History demonstrates that public sentiments towards any common cause can create invincible people's power. Perhaps the July 2024 Bangladesh Revolution brings home some hope of transforming the society.

The author is a former banker​

 

[Saif]

ACC probes graft allegations against Shibli, eight others

The Anti-Corruption Commission (ACC) last week began a formal inquiry into the alleged corruption of former chief of the Bangladesh Securities and Exchange Commission (BSEC) Professor Shibli Rubayat-Ul Islam and eight of its other officials.

www.thedailystar.net

ACC probes graft allegations against Shibli, eight others

The Anti-Corruption Commission (ACC) last week began a formal inquiry into the alleged corruption of former chief of the Bangladesh Securities and Exchange Commission (BSEC) Professor Shibli Rubayat-Ul Islam and eight of its other officials.

They allegedly accumulated wealth of around Tk 1,000 crore by abusing their power.

The eight officials are former BSEC commissioner Shaikh Shamsuddin Ahmed, current executive directors Md Mahbubul Alam, Md Saifur Rahman and Mohammad Rezaul Karim, directors Sheikh Mahbub Ur Rahman and Mohammad Mahmoodul Hoque, Additional Director SK Md Lutful Kabir and Joint Director Md Rashidul Alam.

By forgery and cheating, Shibli Rubayat-Ul Islam and the officials allegedly accumulated Tk 1,000 crore in assets at home and abroad, including the United Arab Emirates, Singapore, the United Kingdom, the United States and Canada.

The assets were registered in their names and the names of others, according to ACC sources.

The anti-graft watchdog has tasked its anti-money laundering wing to carry out the investigation, according to the investigation order.

The Daily Star attempted to contact Shibli for comment, but his phone was switched off. Besides, former BSEC commissioner Shaikh Shamsuddin Ahmed did not receive phone calls for a comment.

According to a report by global investigative reporting platform Organized Crime and Corruption Reporting Project, Shibli allegedly received payments from a bank account linked to a multi-million-dollar fraud.

At the heart of the accusations was a convicted scammer, Javeed Matin, whom Islam had met at university and had been friends with for two decades, the report said.

It added that throughout much of 2020, Matin helped launder the proceeds of a scheme that defrauded a Hong Kong-based supply chain and sourcing company, Ming Global Limited, out of more than $13 million.

Under the pretence of an investment, these funds were sent to two accounts held by a US company, Monarch Holdings Inc, which then wired over $800,000 to Shibli's personal account and to the accounts of a Bangladeshi company he appeared to be behind.​

 

[Saif]

ACC to take FBI help to bring back money laundered from Bangladesh

The Anti-Corruption Commission has begun its work to bring back the money laundered abroad during the now overthrown Awami League’s rule between 2009 and 2024.

www.newagebd.net

ACC to take FBI help to bring back money laundered from Bangladesh
Staff Correspondent 09 September, 2024, 23:44

The Anti-Corruption Commission has begun its work to bring back the money laundered abroad during the now overthrown Awami League’s rule between 2009 and 2024.

The national anti-graft agency is taking assistance from local and international agencies, including the Federal Bureau of Investigation of the United States, in this regard.

A delegation from the federal investigation bureau in a meeting on Monday assured the anti-corruption commission to cooperate in any legal proceedings, including the recovery of the laundered money.

Allegations remain that people from various professions, including politicians, businesspeople, bureaucrats, and police officials, laundered nearly Tk 1 lakh crore from the country.

The money launderers made their fortunes abroad and purchased properties, established business entities, and invested in second homes in different countries, including the USA, United Kingdom, Canada, Malaysia, Dubai and Singapore.

The commission took the fresh move to bring back the laundered money as the professor Muhammad Yunus-led interim government, formed on August 8, announced that the laundered money would be recovered.

A two-member FBI team held the meeting with senior officials of the commission’s money laundering wing at the latter’s headquarters in Dhaka.

The meeting came up with a cooperation proposal between the two agencies in any legal proceedings, including the recovery of laundered money.

FBI delegation comprising assistant legal attache Robert J Cameron and its police liaison specialist Mohammad Aminul Islam, and ACC director general for money laundering wing Md Mokammel Haque, and intelligence unit’s director Abdullah Al Zahid were present at the meeting.

When asked about this, ACC secretary Khorsheda Yasmeen confirmed journalists that an FBI delegation came to the commission and held a meeting with the officials of the money laundering wing.

At the meeting, they inquired about the overall process of inquiry and investigation of the commission. The delegation assured them of assistance if required by the ACC, she said.

The ACC might seek assistance from the FBI to bring back laundered money from abroad, she added.

A senior ACC official who was present at the meeting said that the meeting was a long one lasting for about one and a half hours.

The visiting team inquired in details about the three processes, namely, investigation, investigation and trial followed by the commission in its work. The meeting also discussed about how the legally cooperation might work, starting with the repatriation of the laundered money from abroad, he said.

‘Overall they got an idea about the ACC activities. Now they will look at how to cooperate with the ACC udder their legislation. To that end, they can submit a proposal. Later, we will discuss that proposal and what we should do,’ he added.

At the meeting, the commission officials also informed the delegation about money laundering related activities, laws, and its capabilities.

Earlier on Sunday, finance adviser Saleh Uddin Ahmed announced the formation of a task force to recover laundered money from abroad.

After a meeting of the Ministry of Commerce at the Secretariat, he told journalists, ‘What will be the working method of the task force, who will be there, the process, are being worked on. This task force will be visible within a few days.’

Earlier, the interim government announced that it started working to ‘acquire local assets’ of embezzlers and bring back laundered money from abroad.

As part of the step, communication with various foreign organisations has also started, according to a press release sent by the chief adviser’s office on August 28.

‘Contacts have already been initiated seeking help from various foreign agencies regarding repatriation of money,’ the release said.

‘Certain dishonest businesspeople and other influential persons in recent years embezzled huge sums of money through massive corruption and fraud in the banking sector and laundered it abroad,’ said the release.

‘Audit work will begin to determine the money swindled by the corrupt people…(but) it can be assumed that the amount could be over Tk1 lakh crore,’ the release said.

The commission was able to recover approximately S$20.41 lakh (Singapore dollars) in 2012, laundered allegedly by Bangladesh Nationalist Party chairperson Khaleda Zia’s younger son, Arafat Rahman Koko.

But the commission, later, failed to bring back any laundered money from abroad in the past 12 years.

According to Washington-based Global Financial Integrity, on an average $753.37 crore is laundered every year from Bangladesh through international trade.

A GFI 2021 report estimated that $8.27 billion was laundered annually on average between 2009 and 2018.

According to the National Strategy for Prevention of Money Laundering and Combating Financing of Terrorism, most of the Bangladeshi money has been laundered in the United States, United Kingdom, Canada, Australia, Singapore, Hong Kong, United Arab Emirates, Malaysia, Cayman Islands, and British Virgin Islands.​

 

[Saif]

Govt must expedite recovery of money siphoned off

THE main challenge for the interim government in rebuilding the economy is to bring back the money laundered during the authoritarian Awami League regime toppled on August 5. The economic crisis, especially the dollar shortage, has largely been due to an unabated capital flight. A statement of...

www.newagebd.net

Govt must expedite recovery of money siphoned off
12 September, 2024, 00:00

THE main challenge for the interim government in rebuilding the economy is to bring back the money laundered during the authoritarian Awami League regime toppled on August 5. The economic crisis, especially the dollar shortage, has largely been due to an unabated capital flight. A statement of the chief adviser’s office on August 31 said preliminary estimates suggest that the total amount of money embezzled could exceed Tk 1 lakh crore. In April, the World Bank reported that around $3.15 billion outflows from Bangladesh occured annually through illegal offshore accounts. A 2021 Global Financial Integrity report says that $61.6 billion was smuggled out of Bangladesh in 2005–2014, and Bangladesh lost $8.27 billion annually because of trade mis-invoicing. The Financial Intelligence Unit in the 2023 annual report also says that money is siphoned off mostly through trade and over-invoicing and it finds 20–200 per cent over-invoicing in some cases. The Financial Intelligence Unit prepared lists of money launderers, reported a significantly high number of suspicious transactions involving capital flight but did very little to hold the perpetrators to account or to recover the money in the past decade. In this context, it is assuring that the interim government considers the recovery of the money laundered and international agencies have expressed interest in helping the government in this regard.

The government has already taken a number of steps to prevent capital flight and recover the laundered money. The National Coordination Committee on Anti-Money Laundering on August 14 said the finance adviser directed authorities to speed up anti-money laundering activities without fear or favour. As part of the efforts, some of the bank accounts of suspected money launderers have been frozen. The head of the committee meant to prepare a white paper on the state of the economy has, however, termed the process of recovering laundered money or identifying assets purchased with laundered money a complex process. It involves massive diplomatic engagement to investigate suspicious cross-border financial transactions and negotiate with host and destination countries. Once the siphoned off money is located, legal action can be taken in the host country and only after securing a decree from the host country can the money or property purchased with laundered money be frozen and sold to repatriate the fund. The decision to work with the US Federal Bureau of Investigation is, therefore, promising. It is also heartening to see that the United Nations Office on Drugs and Crime has offered support for the Anti-Corruption Commission in this regard. Transparency International Bangladesh and other anti-graft bodies urged the United States, the United Kingdom, Switzerland, the European Union, Australia, Singapore, Malaysia, Hong Kong, and the United Arab Emirates to hold the money smugglers accountable and help Bangladesh’s interim government to repatriate the smuggled money.

It is assuring that the interim government has made laundered money recovery a priority, but to expedite the process, it must improve its expertise considering the complex transnational legal process that involves repatriation of funds.​

 

[Saif]

undefined | The Financial Express

thefinancialexpress.com.bd

A billionaire in S’pore, minnow in Bangladesh
Tax sleuths find Aziz's local asset only 2.52pc of second-home wealth
Doulot Akter Mala
Published :
Sep 16, 2024 00:26
Updated :
Sep 16, 2024 00:26

A multibillionaire tycoon in Singapore is found a minnow in Bangladesh as tax sleuths find his local asset coming to only 2.52 per cent of his second-home wealth.

Taxmen's initial finding reveals that Aziz Khan, rated as the 43rd billionaire Singapore, has Tk 3.30 billion worth of assets in Bangladesh, which accounts only for 2.52 per cent, or a tiny part, of what he has amassed in Singapore.

The richest person in Bangladesh and on the Forbes billionaires list has not shown any car or land in his own name in the tax files.

Mr Khan, chairman of Summit Group, has net assets worth US$1.1 billion in Singapore in 2024. He has investment in energy sector.

Already the Central Intelligence Cell (CIC) of the National Board of Revenue (NBR) collected tax files of Khan and some of his family members, now that an anti-corruption crackdown is on stream following the fall of the Awami League government in a student-mass upsurge.

However, volumes of his annual income and his paid taxes in Bangladesh could not be known by the FE correspondent yet.

In his personal income-tax file, Mr Khan showed a total asset of Tk 3.30 billion in the last tax year. Of the amount, investment in banks, Fixed Deposit Receipt (FDR) and share market amount to Tk 2.95 billion, official sources said by citing his tax returns.

Tax officials have found a total of 150 tax files altogether filed by Mr Khan, seven family members and his associate companies. They, however, say the investigation is going on to look into his assets and income in Bangladesh and the provisional data may vary at final stages.

Seven members of Khan's family have assets worth Tk 12 billion as shown in their tax files. The Khan family members include his two daughters, his wife, brothers and nephew.

His two daughters--Aysha and Aziza--hold the highest riches. Aysha Aziz Khan's income-tax returns show Tk 2.82 billion while Azeeza Aziz Khan has Tk 2.75 billion.

Also, Ayesha Aziz has under her name non-agriculture land worth Tk 35 million.

Anjuman Aziz, wife of Aziz Khan, has assets worth Tk 940 million in her tax returns. Of the assets, she has investment worth Tk 500 million in the country's capital market while Tk 440 million in banks.

Latif Khan, brother of Aziz Khan, holds assets worth Tk 870 million. Of the amount, value of company shares showed Tk 760 million. He owns a car worth Tk 35 million.

Another brother of the blessed businessman, Farid Khan, owns around Tk 1.0 billion worth of asset. He has investment in share market worth Tk 1.40 billion while loan Tk 750 million.

Faisal Khan, nephew of Aziz Khan, holds Tk 530 million worth of assets. Of the assets, investment in share market is Tk 410 million.

On August 22 last, the CIC issued letters to banks and other financial institutions to furnish bank-account details of five tycoons, including Mr Khan.

Tax officials have said they would only scrutinize the individual tax liability of those tycoons assessing their paid and payable taxes.

American business magazine Forbes data showed Aziz Khan's real-time net wealth worth $1.0 billion in 2023 that increased to $1.1 billion in 2024.

Having residency in Singapore, he has investment in construction and energy sector.

A senior tax official says Aziz Khan filed tax returns as non-resident taxpayer as he is citizen of Singapore.

Any taxpayer who resides more than 180 days in Bangladesh has to file tax return as resident.

However, individuals having income and Taxpayer Identification Number (TIN) in Bangladesh need to file tax return as non-resident if they stay less than the aforesaid time period.

For the first time, any government entity moved to look into tax files and assets of Aziz Khan, who was first named on the Forbes Singapore list in 2018 with net wealth $910 million. His net wealth was $955 million in 2020 followed by $990 million in 2021.

Aziz ranked 2545th out of 2,781 billionaires across the world on the Forbes World's Billionaires List 2024.​

 

[Bilal9]

undefined | The Financial Express

thefinancialexpress.com.bd

A billionaire in S’pore, minnow in Bangladesh
Tax sleuths find Aziz's local asset only 2.52pc of second-home wealth
Doulot Akter Mala
Published :
Sep 16, 2024 00:26
Updated :
Sep 16, 2024 00:26

View attachment 8487

A multibillionaire tycoon in Singapore is found a minnow in Bangladesh as tax sleuths find his local asset coming to only 2.52 per cent of his second-home wealth.

Taxmen's initial finding reveals that Aziz Khan, rated as the 43rd billionaire Singapore, has Tk 3.30 billion worth of assets in Bangladesh, which accounts only for 2.52 per cent, or a tiny part, of what he has amassed in Singapore.

The richest person in Bangladesh and on the Forbes billionaires list has not shown any car or land in his own name in the tax files.

Mr Khan, chairman of Summit Group, has net assets worth US$1.1 billion in Singapore in 2024. He has investment in energy sector.

Already the Central Intelligence Cell (CIC) of the National Board of Revenue (NBR) collected tax files of Khan and some of his family members, now that an anti-corruption crackdown is on stream following the fall of the Awami League government in a student-mass upsurge.

However, volumes of his annual income and his paid taxes in Bangladesh could not be known by the FE correspondent yet.

In his personal income-tax file, Mr Khan showed a total asset of Tk 3.30 billion in the last tax year. Of the amount, investment in banks, Fixed Deposit Receipt (FDR) and share market amount to Tk 2.95 billion, official sources said by citing his tax returns.

Tax officials have found a total of 150 tax files altogether filed by Mr Khan, seven family members and his associate companies. They, however, say the investigation is going on to look into his assets and income in Bangladesh and the provisional data may vary at final stages.

Seven members of Khan's family have assets worth Tk 12 billion as shown in their tax files. The Khan family members include his two daughters, his wife, brothers and nephew.

His two daughters--Aysha and Aziza--hold the highest riches. Aysha Aziz Khan's income-tax returns show Tk 2.82 billion while Azeeza Aziz Khan has Tk 2.75 billion.

Also, Ayesha Aziz has under her name non-agriculture land worth Tk 35 million.

Anjuman Aziz, wife of Aziz Khan, has assets worth Tk 940 million in her tax returns. Of the assets, she has investment worth Tk 500 million in the country's capital market while Tk 440 million in banks.

Latif Khan, brother of Aziz Khan, holds assets worth Tk 870 million. Of the amount, value of company shares showed Tk 760 million. He owns a car worth Tk 35 million.

Another brother of the blessed businessman, Farid Khan, owns around Tk 1.0 billion worth of asset. He has investment in share market worth Tk 1.40 billion while loan Tk 750 million.

Faisal Khan, nephew of Aziz Khan, holds Tk 530 million worth of assets. Of the assets, investment in share market is Tk 410 million.

On August 22 last, the CIC issued letters to banks and other financial institutions to furnish bank-account details of five tycoons, including Mr Khan.

Tax officials have said they would only scrutinize the individual tax liability of those tycoons assessing their paid and payable taxes.

American business magazine Forbes data showed Aziz Khan's real-time net wealth worth $1.0 billion in 2023 that increased to $1.1 billion in 2024.

Having residency in Singapore, he has investment in construction and energy sector.

A senior tax official says Aziz Khan filed tax returns as non-resident taxpayer as he is citizen of Singapore.

Any taxpayer who resides more than 180 days in Bangladesh has to file tax return as resident.

However, individuals having income and Taxpayer Identification Number (TIN) in Bangladesh need to file tax return as non-resident if they stay less than the aforesaid time period.

For the first time, any government entity moved to look into tax files and assets of Aziz Khan, who was first named on the Forbes Singapore list in 2018 with net wealth $910 million. His net wealth was $955 million in 2020 followed by $990 million in 2021.

Aziz ranked 2545th out of 2,781 billionaires across the world on the Forbes World's Billionaires List 2024.​

The Bangladeshi ACC people conducting these probes need some serious money-laundering help and expertise as far as tracing the global route of the money siphoned off.

They really need to retain a globally reputed Law Firm specializing in this sort of operation and overseas govt. financial crime units from a friendly country such as either China, Japan or South Korea.

Together with that - they need to approach UN, World Bank. IMF and ADB financial crime experts.

Seeking UK experts will need to be private company based only, since Putul (Hasina's niece) is a sitting UK MP now. Maybe one of Putul's political rivals in the UK need to be approached for active advice.

 

[Bilal9]

360 luxury properties, Rolls Royce and $8,000 suits: AJ investigation reveals ex-land minister Saifuzzaman’s property empire​

According to the report, the former minister built a half-billion-dollar property empire on a modest official salary​

Former land minister Saifuzzaman Chowdhury Javed has amassed a staggering amount of wealth abroad ranging from hundreds of luxury properties spread across multiple continents, luxury cars, crocodile shoes to Italian suits.

The former minister's property empire was revealed in a recent investigation by Doha-based Al Jazeera's Investigative Unit recently.

The 25.11-minute report titled "The Minister's Millions" has been published today (18 September) on Al Jazeera English's YouTube channel.

In the video, Saifuzzaman is heard telling AJ journos, who met him posing as property investors, that he "has a very nice penthouse" and that "he loves suits".

"It's a very private house. I need a very secure house for my security"



Saifuzzaman Chowdhury to AJ journos during a tour of his house

"A Super 200 Suit costs €6,000 [$8,000]," he is heard saying at one point in the video report.

The minister is also seen giving a tour to the journos of his penthouse in the UK.

"It's a very private house. I need a very secure house for my security," he told the AJ journos during the tour.

The five-floor house has a home theatre, a gym, a 'private lift', and a 'new Rolls Royce' parked in the garage.

According to the report, the former minister built a half-billion-dollar property empire on a modest official salary.

"Strict currency laws restrict citizens from taking more than $12,000 a year out of Bangladesh, and tough government rules ban ministers from holding directorships or profiting from private businesses," a press statement issued by Al Jazeera Media Network on the report reads.

"My father was very close to the prime minister [Sheikh Hasina], actually, and I am also... She is my boss... She knows I have a business here [in Britain]"

Saifuzzaman Chowdhury to undercover AJ journos

The statement reads, that Saifuzzaman Chowdhury, who is also a close ally of the now deposed prime minister Sheikh Hasina, bought over 360 luxury properties in Britain alone worth $250m.

"His appetite for real estate spread to Dubai, New York, Singapore and Malaysia," states the press statement.

The politician boasted of his powerful connections, it added.

"My father was very close to the prime minister [Sheikh Hasina], actually, and I am also... She is my boss... She knows I have a business here [in Britain]," Saifuzzaman is quoted by the AJ.

The AJ report highlights that his property buying gained pace in 2017 when he set up UK companies but accelerated in 2019 when he became a government minister.

Sheikh Hasina is currently in exile in India following her government's brutal crackdown on student protests in July, and many of her ministers, including Chowdhury, have fled the country.

"Bangladesh authorities are now investigating claims that he laundered millions of dollars in the UK; they have frozen his bank accounts and taken control of his family-owned bank, UCBL, to protect depositors' money," reads the AJ Media Network statement

The AJ reporters met with the minister posing as property investors last year in his $14m London home where he bragged about spending thousands of dollars on hand-made crocodile shoes and tailored Italian suits from top London stores.

Chowdhury told Al Jazeera that his properties were purchased with funds earned by his legitimate businesses in the UK, the UAE and America, and that he is the victim of a political witch-hunt.

This is not the first time Saifuzzaman's huge wealth has come to the fore.

Bangladesh's interim government has already approached the United Kingdom to help probe the overseas wealth of allies of Hasina, with particular focus on identifying the source of funds used to pay for a UK property portfolio worth £150mn owned by Saifuzzaman.

The government is also investigating whether Hasina's regime diverted around $17 billion overseas from the country's banking system, Bangladesh Bank Governor Ahsan H Mansur was quoted by Financial Times in a recent report.

Transparency International UK earlier this year cited the British real estate portfolio owned by companies linked to former land minister Saifuzzaman Chowdhury as an example of "unexplained wealth".

The Financial Times reviewed the HM Land Registry and UK Companies House records and found that entities controlled by Chowdhury acquired at least 280 properties for more than £150mn.

It found that the bulk of the properties were acquired between 2019 and 2022, with Chowdhury's tenure as land minister starting from 2019.

The properties include the freehold to the listed Emerson Bainbridge House in Fitzrovia, central London, 61 properties in Tower Hamlets, east London, and the site of a Co-op supermarket in Bristol.

The financing of the UK property purchases are unclear, although the companies have registered charges at Companies House, indicating the use of mortgage debt, the Financial Times reported today.

Chowdhury's lawyer Ajmalul Hossain KC told the Financial Times that his client had "nothing to hide" and denied he had stolen anything.

In a press conference earlier this year, Chowdhury also said his overseas assets came from international business interests.

Earlier this year, Bloomberg News reported that Saifuzzaman Chowdhury has built up a UK real estate empire of more than 350 properties worth over Tk2,000 crore. The Bloomberg reports also suggest the former minister's involvement in investments in Manhattan, US, further adding to the scrutiny surrounding his financial portfolio.

The Anti-Corruption Commission (ACC) last month launched an investigation against Saifuzzaman over the alleged acquisition of illegal assets worth crores of taka through irregularities and corruption.

The ACC also sought information on stock market investments by the former land minister and his family members as part of its ongoing investigation.

 

[Bilal9]

Here is the Al-Jazeera story about Bangladesh ex-Land Minister Saifuzzaman Javed that came out late yesterday.

 

[Bilal9]

 

[Saif]

The relation between corruption and remittance

Many are sympathetic towards migrant workers for justifiable reasons.

www.thedailystar.net

The relation between corruption and remittance

VISUAL: FATIMA JAHAN ENA

Many Bangladeshis seek employment abroad due to limited job opportunities and economic conditions at home. The overseas employment sector has become a vital source of income for many families and contributes significantly to the national economy.

Workers employed overseas send money back home to support their families. This money, known as remittance, plays a crucial role in the Bangladeshi economy. It is a primary source of foreign currency and helps improve the living standards of many households. Remittances contribute to consumption, investment, and savings in the local economy. A high level of remittance inflow strengthens the forex reserves, which are essential for maintaining the stability of the national currency (taka), managing international trade, and ensuring the country can meet its foreign obligations.

"Corruption" on the other hand hurts the economy in more ways than one. In most cases, perpetrators resort to corrupt practises for their individual financial gains at the expense of the national economy. Therefore, it is important for the corrupt to secure the wealth accumulated through corruption. Gone are the days when black money was kept hidden inside mattresses—the enormity of modern-day scams involving thousands of crores of taka renders that option impractical today. Syphoning the money out of the country is the safest way now to protect the loot, and this is where "corruption" is linked to "remittance."

Those who want to send black money out of the country, need someone who will receive Bangladeshi taka inside the country, in return for foreign exchange handed over abroad. Bangladeshis working abroad are ideal partners for this transaction. These two parties, namely corrupt politicians, government officials, and businessmen on one side and migrant workers on the other, get connected by the "hundi" operators. Hundi is an informal method of transferring money, often used by migrant workers to send remittances back home as well as to transfer illegally accumulated wealth out of the country by the crooks. It is a faster and cheaper alternative to formal banking channels and operates outside the regulatory framework.

Hundi traders also offer services like collection and distribution of fund any time and at any location, short term credit, etc. The main reason migrant workers prefer hundi to official banking channels is because they get a better exchange rate than the official rate. That is why many recommend improving the official rate by bringing it close or equal to the unofficial (hundi) rate as a means to combat illegal transfer of money across the border.

However, "special exchange rates" and incentives to remittance earners have been introduced to no avail. Because, to the corrupt money launderer, the loss incurred due to difference in exchange rate is of little significance; protecting illegally amassed fortune and his/her goodwill are far more important. Therefore, no matter how much the exchange rate for the remittance earner is improved, hundi operators will offer an even better rate.

Many are sympathetic towards migrant workers for justifiable reasons. Migrant workers earn foreign currency staying separated from relatives/friends for lengthy periods, living in difficult conditions, combatting many adversities. Many may ask, "Is it a big deal, if they get a taka or two more for their hard-earned foreign currency opting for informal channels?" Some of them incorrectly think that the foreign exchange is entering Bangladesh, even if the informal channel (hundi) is used to remit the fund. People might also argue that it may not be going in the hands of the government if official banking channels are not used, but is added to local economy anyway. Maybe they do not realise that the US dollar or other foreign exchange earned by migrant workers do not enter Bangladesh at all, if sent through informal channels. Rather, it goes in the hands of corrupt individuals and groups who accumulate wealth illegally and remain abroad. The corrupt parties just hand over their accumulated wealth (taka) to relatives/friends of migrant workers living in Bangladesh, with the help of hundi operators. In effect, politicians and government officials resorting to bribery, businessmen defaulting on bank loans, importers avoiding duty by under-invoicing, smugglers dealing in restricted/banned substances get to enjoy a safe and convenient conduit to transfer their illegal wealth to a safe haven.

If hundi is the "vehicle" to transfer black money, "corruption" provides its fuel. While curbing corruption is a long-term process, following measures may prove to be effective in the short to medium term.

Creating awareness among all concerned, especially migrant workers, as to how hundi is not only depriving country of foreign currency earned abroad, but also encouraging corruption and providing a safe route to take illegal wealth out of the country.

A more effective measure could be to promulgate laws which will make it mandatory to bring in a certain percentage of migrant workers' income through official channel. The percentage amount should be determined by the Bureau of Manpower, Employment and Training (BMET) or any other competent authority after careful analysis of every worker's income, expenditure, savings and remittance pattern. Non-compliant workers may be held accountable when they return to Bangladesh. And in extreme cases, their NOCs may be cancelled and they may be barred from going abroad again for employment. Such measures may sound harsh, but one should remember that those who resort to hundi cause grave damage to the economy by facilitating corruption.

Mir Ashraful Hossain is the director and group COO of Urmi Group.​

 

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Countering threats from exploiters of national resources

Ever since the takeover of the country's reins by the interim government, well wishes, congratulatory messages, assurances of cooperation and assistance, moral and material support have been showered profusely from all corners of the world. One of the reasons behind the surfeit of cordiality expres

thefinancialexpress.com.bd

Countering threats from exploiters of national resources
Nilratan Halder
Published :
Sep 19, 2024 21:32
Updated :
Sep 19, 2024 21:32

Gen Z Revolution in Bangladesh A Beacon of hope for global justice

Ever since the takeover of the country's reins by the interim government, well wishes, congratulatory messages, assurances of cooperation and assistance, moral and material support have been showered profusely from all corners of the world. One of the reasons behind the surfeit of cordiality expressed is Nobel laureate Dr Yunus's international connection and familiarity with important people the world over, particularly in the US where the Clintons were and still are well disposed towards him.

After the initial issuance of congratulatory notes and expression of warmth, now comes the turn for generous financial commitments. During the US interagency delegation's recent visit to Bangladesh, the USAID signed a development agreement worth US$200 million with the interim government. Now the World Bank (WB) has announced it will provide $3.0 billion in aid this year and the Islamic Development Bank (IsDB) pledges to make available a loan amounting to 4.0-5.0 billion in three years. The Asian Development Bank (ADB) pledged a loan of $800 million for the 2024-25 budget support during the tenure of the deposed government. This was done to help Bangladesh smoothly graduate from the least developed status and most likely it will stand by its commitment. The International Monetary Fund (IMF) approved its third tranche of its $4.7 billion loan programme in June last but not before it made the availability of the third and fourth tranches conditional to compliance of 33 obligations. Now clearing the way for the fifth tranche may not be difficult.

All this shows that the country's plunge into a crisis of Sri Lanka's order is most unlikely. Money, greenback to be precise, is finding its way into the country to the relief of the interim government. But the appearance of the financial bonhomie may be deceptive. In this connection, Finance and Commerce Adviser Dr Salehuddin Ahmed's straightforward demand for making the WB's conditionalities implementable is worth noticing. Notably, by the end of a month after the interim government's inauguration, it has sought budget support of $1.0 billion from the WB.

The streams of loan packages already made available and committed are sure to please quarters well beyond the team now at the helm of state affairs. Some of the foreign credits are most likely to be used after this government leaves office. Bangladesh's external debt has crossed $100 billion mark lately. Per capita foreign debt by March this year was Tk150,000--- a rise of Tk50,000 within three years, according to a local news agency. It should shoot up further now. The fresh doses of foreign debt burden are likely to enmesh the country in an intractable wider net not just of credit but also of commercial and political makeup.

Bangladesh's importance as a theatre of clashes of big powers' interests in South Asia cannot be overemphasised. Its importance has further enhanced with the prospect of exploiting the blue economy in the Bay of Bengal. So the powers are vying for taking it under their geo-political spheres of influence. Gone are the days of blatant way of doing so by instigating or staging military coups. This has been replaced by the behemoths of multinational companies that channelize capitals from around the least developed markets for accumulation. The recipe of tailor-made democracy hardly serves the recipient country and least of all its people.

The hidden agenda of accumulation of capital often miss the debate over democracy in the Third World. But the facts are cruel. Globalisation has reshaped patterns of production, consumption and commerce on a global scale. Of the largest 100 economies in the world, 51 were corporations and 49 countries before 2000, according to Sarah Anderson and John Cavanagh of the Institute of Policy Studies, a US think tank. The combined sales of 200 corporations were bigger than the combined economies of all countries minus the top 10. With rising clouts of the MNC goliaths, their share is likely to be greater by this time. There are complaints that big powers implements their political ambition through these corporations that control natural resources in African, Asian and Latin American countries by way of investments in development and industrialisation or activities like extraction of oil or gas and mining. Agreements are made overwhelmingly favouring the MNCs courtesy of greedy and unpatriotic elements ready to advance personal gains. Multilateral lending agencies are not unwilling to promote their agenda.

It is exactly at this point the core issue of the anti-discrimination movement encounter a formidable challenge not only from the corrupt and derelict political parties at home but also from the MNCs which are not ready to let go their grip on their business interests. The fracas over Scimitar's gas and oil exploration in Jalalabad, Sylhet can be cited as an example of how things can fall foul on casual approach to defending national resources. Committees formed recently to evaluate various agreements on projects may dig out scams involving advancement of personal or coterie gains at the cost of national interests.

A views exchange meeting on "Toward a Non-Discriminatory Bangladesh: Youth Manifesto" voiced on Tuesday last the concern about perpetuation of the culture of exploitation not sparing even the university dormitories. New generation youth leadership resents this and has rightly demanded young leaders' inclusion in business and politics. But the odds are stacked against them. They will have to stay alert and confront the combined power of outdated but entrenched political forces and the multinational corporate biggies along with their local subservient partners in business and bureaucracy. But the unalloyed sincerity of their purpose and commitment to a sacred cause of fighting for well-being of the nation is their most potent weapon. The generation Z (Gen Z) should beat off the commercial collusion of MNCs much as those may be more powerful than their governments.​

 

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Destination countries no less responsible for returning stolen assets: TIB

However, it is also no less a responsibility of countries or territories where the laundered money from Bangladesh have been invested and thereby helped the host economies, the statement added. It also said the richer and so-called developed countries are the main destinations and beneficiaries...

en.prothomalo.com

Destination countries no less responsible for returning stolen assets: TIB
Staff Correspondent
Dhaka
Updated: 19 Sep 2024, 19: 25

Transparency International Bangladesh in a statement on Thursday said the burden of responsibility to prevent, control and bring back laundered money lies mainly on Bangladesh’s shoulders.

However, it is also no less a responsibility of countries or territories where the laundered money from Bangladesh has been invested and thereby benefitted the host economies, the statement added.

It also said the richer and so-called developed countries are the main destinations and beneficiaries of the lion's share of Bangladesh’s laundered money.

Take immediate actions to dismantle and hold to account syndicates facilitators of accumulation of money and wealth through illicit transfers
In view of the continued national and international media disclosures of accumulation of wealth in such countries by high profile publicly exposed Bangladeshis of the fallen regime, TIB has reiterated its call upon governments of the destination countries to take concrete action to help Bangladesh expedite the return of stolen assets as part of their international commitments and responsibility.

TIB executive director Iftekharuzzaman said, “Conventional hosts of money laundering like UK, USA and proverbial Switzerland have been joined in the recent couple of decades by Canada, Australia, Singapore, Hong Hong, Malaysia, Middle East countries like UAE, especially Dubai and even many offshore island territories as attractive hosts of Bangladeshi laundered money."

"In each destination of illicit transfers, there are powerful syndicates of highly skilled law firms, trust companies, offshore specialists, real estate agents, accountants, regulatory experts, and banking and financial services companies that facilitate the secret deals," he pointed out.

Iftekharuzzaman said, "These syndicates have systematically strengthened the demand side over the years, and by providing safe and lucrative incentives to our money launderers, contributed to flows of investments in host economies in multiple sectors, especially real estate, banking and luxury consumption.”

In some cases, he also said these are outcomes of relevant government policies or policy loopholes, whether deliberate or not. Many such countries have been persistently keeping provisions to invest laundered money by various means like trusts, real estate, investment passports, etc.

If not by policy provisions or loopholes in policies, enforcement deficiencies have helped creation of heavens for the money laundering facilitators who have been systematically incentivizing money launderers of Bangladesh, Iftekharuzzaman added.

TIB executive director calls upon governments of the host countries of Bangladesh’s laundered money like UK, USA, Canada, Dubai and Singapore to proactively identify and freeze any illegal assets owned by Bangladeshi nationals or entities in their respective jurisdictions.

Take immediate actions to dismantle and hold to account syndicates facilitators of accumulation of money and wealth through illicit transfers, he said.

Iftekharuzzaman also calls for cooperating with the government of Bangladesh to start and expedite the process of repatriation of the stolen assets and hold the money launderers to account through the available international processes including mutual legal assistance and technical support.

He laid emphasis on contributing to building the necessary professional and international capacity of relevant Bangladeshi state agencies, especially ACC, BFIU, CID, NBR and attorney general’s office to collaborate and coordinate with other above-mentioned host countries of Bangladesh’s laundered money to take similar actions.​