Bangladesh banks enlist global firms to trace $2.5 billion in overseas assets

Bangladesh authorities have stepped up efforts to recover $2.5 billion in assets allegedly siphoned abroad by 42 major loan defaulters, central bank officials said.

Around 35 lenders have agreed to provide information to eight international legal and consulting groups tasked with tracing assets in countries including the United States, United Kingdom, United Arab Emirates, Canada and Singapore.

Each targeted entity has defaulted loans exceeding Tk 200 crore, approximately $16.2 million, according to Bangladesh Bank data.

The firms will work under a “no win, no pay” arrangement, requiring no upfront payments from the banks.

“The foreign firms will conduct investigations and trace assets at their own expense. They will be paid a portion of the assets recovered as their fees,” one meeting attendee said.

Authorities previously launched efforts to recover about $11 billion linked to six major loan defaulters.