https://www.thedailystar.net/news/bangladesh/news/money-laundering-bb-mulling-settlement-suspects-3915321

Bangladesh Bank Governor Ahsan H Mansur said the central bank may pursue financial settlements with business tycoons accused of syphoning off money abroad when Sheikh Hasina was in power, according to a report by Financial Times (FT).

He told the FT that reaching settlements was "one of the options" being considered in less severe cases.

"If the nature is more on the lighter side of violations, we would go for a civil suit, and a financial settlement would be part of that process," he said.

The central bank governor revealed plans to raise up to $100 million to finance international litigation aimed at recovering assets allegedly moved abroad by politically connected individuals during Sheikh Hasina's 15-year rule.

According to the FT report, the interim government claims that tens of billions of dollars were funnelled out of Bangladesh by figures linked to the previous regime.

Eleven high-priority investigations have been launched into families formerly associated with political power, including Hasina's. Domestic bank accounts have also been frozen, and the administration is working with foreign law enforcement agencies to trace the funds, it says.

During a visit to London this week to advance asset recovery efforts, Yunus called for "more enthusiastic support" from UK authorities. "This is stolen money," he told the FT, arguing that the UK government had both a "legal and moral obligation" to assist in tracing and returning the assets.

A white paper commissioned by the government and published in December estimated that around $234 billion was siphoned out of the country during Hasina's time in office.

According to the FT, Mansur and other officials alleged that funds were misappropriated through fraudulent loans acquired via control of bank boards and by embezzling from infrastructure projects.

As part of its recovery strategy, Mansur said the government is in talks with litigation funding firms, entities that cover legal costs in exchange for a share of the settlement or award.

"We have been looking at litigation funding, and we are getting a very positive response," he said. "We would like to see that as much as possible can be funded through litigation funders."

One such firm, Sydney-based Omni Bridgeway, confirmed to the FT that its executives visited Dhaka and held meetings with Mansur and senior officials at more than 16 banks.

"We have expressed a particular interest in supporting the banking sector by financing and managing the recovery of non-performing loans, especially those involving the illicit transfer of funds abroad," said Wieger Wielinga, the company's managing director of enforcement.