Efforts have begun to trace the “laundered” money and overseas assets of six major industrial groups in the country. So far, 10 banks have signed 36 non-disclosure agreements (NDAs) with multiple multinational firms. The total number of agreements will be 59, with the rest currently in process.
Banks have entered into these agreements to recover funds from six industrial groups that became defaulters after taking loans. Based on information obtained through the NDAs, the concerned banks will sign commercial agreements by 30 June to recover the money. Bangladesh Bank is coordinating the effort, according to sources from various banks.
The six groups are: S Alam Group of Mohammad Saiful Alam in Chattogram; Aramit Group of former land minister Saifuzzaman Chowdhury; Sikder Group of late Zainul Haque Sikder; Beximco Group of Salman F Rahman; Orion Group; and Nassa Group. During the Awami League’s 15-year tenure, Nazrul Islam Mazumder—chairman of Nassa Group—served continuously as chairman of the Bangladesh Association of Banks (BAB).
These groups have been accused of various offences, including bank takeover, looting, and financial irregularities. Because of them, five Islamic banks have had to be merged. Several other banks are also unable to return depositors’ money.
The total loans of the six industrial groups amount to Tk 3.35 trillion (324,501 crore). A large portion of these loans has turned into defaults, according to the concerned banks. Meanwhile, total default loans in the banking sector stood at Tk 5.57 trillion at the end of December last year, accounting for 30.60 per cent of total loans—pushing the entire sector into a crisis.
Officials involved in identifying and recovering laundered money said banks will initially focus only on those who have become defaulters and for whom credible evidence of money laundering abroad exists. No action will be taken now against those with regular loans and ongoing businesses. However, businesses that renewed loans under special facilities will come under scrutiny if even one installment defaults.
The institutions signing NDAs are mainly multinational legal and business advisory firms that also work on asset recovery. Bangladesh Bank sources said these firms will receive a portion of the recovered funds, meaning banks will not incur separate costs. Representatives of several international legal firms have already visited Dhaka and expressed interest in working on recovery.
