Key highlights
- Inflation will come under control soon, says PM Hasina
- Money Laundering Prevention Act, 2012 currently in force
- PM Hasina anticipates a significant decline in inflation for 2024
- Offenders face imprisonment and fines, with entities liable for higher penalties
It’s widely acknowledged that money laundering in Bangladesh is organized by many stakeholders. Different sector leaders, banking officials, businessmen, and bureaucrats are engaged deeply. Therefore, there’s a critical need for strong political determination to initiate the recovery of laundered funds. The country must engage in recovery efforts, leveraging expertise both domestically and internationally.
To combat money laundering and repatriate illicit funds, Prime Minister Sheikh Hasina unveiled a significant initiative during a national parliamentary session. The government plans to establish legal assistance agreements with ten countries, aiming to secure vital information, evidence, and support essential for recovering laundered funds. This initiative underscores Bangladesh’s firm commitment to combating financial crimes and promoting transparency in its financial sector.
Prime Minister Hasina stressed the importance of the existing “Money Laundering Prevention Act, 2012,” which serves as a cornerstone in the country’s anti-money laundering efforts. The law defines money laundering as the illegal transfer of money or assets acquired through legal or illegal means abroad, prescribing strict penalties for offenders.
Money Laundering Prevention Act, 2012
The Money Laundering Prevention Act of 2012 stands as a crucial legislative tool in Bangladesh’s fight against financial crimes. Aimed at thwarting money laundering activities and preventing criminals from camouflaging illegally obtained funds as lawful income, the Act serves as a cornerstone in the country’s legal framework. However, recent scrutiny has shed light on potential loopholes and issues surrounding the enforcement and efficacy of certain provisions, particularly concerning the Bangladesh Financial Intelligence Unit (BFIU). Section 12 mandates that no court may pursue any offense related to money laundering without the BFIU’s approval, potentially impeding the judiciary’s autonomy in handling such cases. Moreover, the Act grants the BFIU broad powers, including the ability to freeze assets associated with money laundering charges under Section 14. This expansive authority raises questions about accountability and the potential for misuse, highlighting the need for oversight and checks to ensure fairness and due process.
The Maximum Fine for Money Laundering in Bangladesh
According to the Money Laundering Prevention Act, 2012 in Bangladesh, offenders, as per the law, could face imprisonment ranging from four to twelve years and a fine equivalent to twice the value of the involved property or Tk10 lakh, whichever is greater. For entities, the maximum fine is twice the value of the property involved in the offense or Tk20 lakh, whichever is higher.
The Global Economic Outlook
Addressing worries regarding inflation, Prime Minister Hasina voiced confidence in its imminent control. Global projections, encompassing major economies like the United States and the European Union, anticipate a significant downturn in inflation for 2024. The prime minister credited this anticipated improvement to declining global prices of fuel, food items, and fertilizers, adjustments in fuel oil prices within Bangladesh, and governmental initiatives ensuring stable food supply conditions.
Tackling the global challenge of combatting laundered money necessitates collaborative efforts among various mechanisms and institutions. While there lacks a singular international authority dedicated to this endeavor, numerous international laws and conventions establish a framework for inter-country cooperation in combating money laundering and associated crimes. Bangladesh, via its Money Laundering Prevention Act, criminalizes money laundering and facilitates the seizure of laundered assets.
The standard procedure for repatriating laundered funds involves mutual legal assistance (MLA), whereby countries can seek and provide assistance to one another in criminal matters. Bangladesh has entered into multiple mutual legal assistance treaties (MLATs) with nations such as India, the US, and China, fostering cooperation in investigations and asset recovery. Significantly, there exist gaps in MLATs with countries frequently linked to money laundering, such as Canada, Cyprus, and Switzerland.
Furthermore, the United Nations Office on Drugs and Crime (UNODC) offers resources like the Stolen Asset Recovery (StAR) Initiative and the Asset Recovery and Asset Management Program (ARAMP) to aid countries in combatting money laundering and reclaiming illicit assets. These initiatives furnish technical assistance and support capacity-building to bolster international endeavors against financial crimes.
In conclusion, the government’s initiatives to combat money laundering and control inflation underscore its commitment to ensuring a robust and transparent financial system. By forging partnerships with international counterparts and implementing stringent legal measures, Bangladesh is taking decisive steps towards safeguarding its financial integrity and fostering economic stability. These efforts reflect a proactive approach towards addressing contemporary challenges and fostering inclusive development for the nation.
