Agencies empowered to seize local property

The government has toughened the Anti-Money Laundering Law, allowing investigating agencies to confiscate local properties of a person guilty of stashing money abroad.

The new clause has been added to the law amended through an ordinance on October 11.

The original law allows investigating agencies to issue orders, upon approval from the court, to confiscate illegally earned money or properties at home and abroad.

The new provision empowers the agencies to confiscate launderers' money or properties here equal to the value of their illegally earned money or properties abroad, said a finance ministry official.

According to the ordinance, “If property, money or income linked to money laundering cannot be traced, the accused person's money or property of equal value can be confiscated or seized.”

The official said the Anti-Corruption Commission filed a number of money laundering cases against many individuals, and found proof that the accused had siphoned off money abroad.

But the money could not be brought back due to complex legal procedures.

The new provision provides scope for confiscating a launderer's money or property here equal to the value of the money he sent abroad illegally, added the official.

The amended law has made Bangladesh Financial Intelligence Unit (BFIU) an independent body by separating it from Bangladesh Bank.

The BFIU will have a separate office at the central bank and a full-time chief executive with the status of a deputy governor of Bangladesh Bank.

A selection committee headed by the BB governor will choose the chief executive to be appointed by the government.

The previous practice was that the BB governor picked one of his deputies as BFIU chief executive, who performed the new responsibilities in addition to his duties of a deputy governor.

As per the ordinance, the chief executive will need permission from the BB governor on administrative matters such as appointment of officials at the BFIU.

The chief executive will also have to take prior approval from the government on various issues, including formulation and implementation of guidelines and the policy to prevent money laundering and terror financing.

Officials and employees of the central bank and government agencies could be assigned to work for the BFIU on deputation as per requirement.

In August, Banking Division Secretary M Aslam Alam said Financial Action Task Force, a global money-laundering watchdog, had recommended that the government make the BFIU stronger.

Accordingly, the finance ministry made a move to turn the intelligence unit into an independent entity.