A joint investigation between the Guardian and Transparency International UK published today has highlighted nearly £400 million worth of UK property owned by Bangladeshi investors now under investigation for financial crime. 

Ranging from mansions in Mayfair to new-build apartments in Merseyside, the investigation highlights how hundreds of UK properties were acquired by politically influential figures during Sheikh Hasina’s tenure as Prime Minister of Bangladesh. Investors include the former Land Minister, family of an influential advisor to the former Prime Minister as well businessmen accused of money laundering.

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Authorities in the country now claim that billions of pounds were laundered out of the country every year, draining Government funds and putting the country’s banking sector at risk. 

All of the investors identified by the investigation have had their bank accounts frozen and are now under investigation by the Bangladeshi authorities for corruption and money laundering offences.

The investigation also highlights the role of UK based professional service providers including lawyers, banks and wealth managers who helped the investors acquire hundreds of millions of pounds in UK property and asks questions about the due diligence carried out on their clients and whether anti-money laundering rules require strengthening. 

Transparency International UK now urges law enforcement agencies to work together to help investigate, freeze and seize assets bought with corrupt wealth by the Bangladeshi elite. 

Regulators should also scrutinise the role of UK professionals in these transactions, with enforcement action taken against any that have failed to discharge their anti-money laundering duties.

Duncan Hames, Director of Policy, Transparency International UK said: 

“Once again the UK has been shown to be a premier destination for those with suspicious wealth to invest. Helping Bangladesh now recover its missing billions is vital to ensuring the future stability of the country. 

“The British government should work closely with allies around the world and partners in Bangladesh to introduce a sanctions regime which freezes suspicious assets, ensuring any corrupt officials or their associates cannot enjoy their ill-gotten gains. 

“These investments would not have been possible without the help of UK banks, lawyers and estate agents who must do due diligence on their customers, and report suspicious activity to UK law enforcement. Regulators should check whether those firms involved in these transactions discharged their duties under anti-money laundering rules.”

“Rising to this moment is the first test of the new Government’s stated ambition to become the anti-corruption capital of the world.”