8 International Firms Search for Defaulters’ Assets Abroad
Eight international law and professional firms have been engaged to identify and recover assets held abroad by major Bangladeshi loan defaulters. Initially, 42 companies with more than Tk 200 crores default loans have been brought under the initiative.
Bangladesh Bank spokesperson Arif Hossain Khan disclosed the information on Sunday, saying some of the loans may have been siphoned abroad and some borrowers or their associates are no longer in the country.
He said internationally recognized legal and professional firms were being engaged to recover the assets in accordance with the laws of the countries concerned. The firms will receive a portion of the recovered money as fees only if assets are successfully identified and recovered. The initiative initially focuses on 11 individuals and entities on the priority list of a government-formed joint investigation team, while 42 companies were identified in a second phase through analysis of Bangladesh Bank’s Credit Information Bureau data.
The eight firms include Grant Thornton, Baker McKenzie, PwC, DLA Piper, Kroll, EY, Dentons and other international legal and professional firms. The initial search covers 12 countries, including the United States, United Kingdom, UAE, Canada, Singapore, Belgium, Hong Kong, China, Malaysia, Thailand and Australia. Based on information provided by banks, the firms are tracing the location, nature and estimated value of assets held abroad and taking legal steps to freeze or seize them where possible.
Banking sector officials said many large defaulters already face cases in Bangladesh, but recovering loans from domestic assets has often proved difficult. They said tracing overseas assets could create a new opportunity to recover outstanding loans. However, the seizure, disposal and repatriation of assets will depend on the laws and court decisions of the respective countries and may therefore take time. The firms have been hired under a “no recovery, no fee” arrangement, meaning banks will pay only if assets are successfully recovered.
