Law 212: Anti-Corruption and Anti Money Laundering Law

An analysis of Corruption in Bangladesh

Assignment

Submitter to; Submitter By;

Noor-E-Medina Suraiya Jesmin; Ibnul Hasan
Lecturer; Reg. ID: 201211029
University of Asia Pacific 2nd Year, 2nd Semester;
University of Asia Pacific
 1

Table of Contents
Introduction 2

Definition of Corruption 2

Corruption in Bangladesh 3

Anti-corruption laws in Bangladesh 4

Anti-Corruption Commission 4

Establishment of the Commission 4

Appointment and tenure of the Commissioners 5

Selection of Committee 5

Recommendation Process 6

Eligibility and Ineligibility and Removal of Commissioners 6

Qualifications of Commissioners 6

Disqualifications of Commissioners 6

Ineligibility of the Commissioners 6

Resignation and removal of the Commissioners 6

Functions of the Commission (How does it works) 7

Exercise of powers by the Commission 8

Special powers of the Commission in respect of inquiry or investigation 8

Power of inquiry or investigation 9

Workflow of Anti-Corruption Commission 9

Incident of Corruption 10

(1) Padma Bridge Scandals 10

(2) Corruption in North South Universities’ land acquisition 10

Anti-Corruption Commissions Activities 10

How Can ACC is more effective? 11

Conclusion 12
 2

Introduction
The topic of corruption is broad and intricate. It refers to any unethical, impure, or unlawful activity,
particularly by those in positions of power. It is a significant issue in developing nations, but Bangladesh
has long suffered with it. Bangladesh has always struggled with corruption. Every major rating
organisation consistently lists Bangladesh as one of the world's most corrupt nations. The nation is placed
147th out of 180 in the 2021 Corruption Perceptions Index by Transparency International, while the nation
with the most widely considered corrupt public sector is ranked 180. The government-run public sectors
are the ones that are the most corrupt in the nation1. Transparency International (TI) reports that
Bangladesh fell two spots in the ranking of the Global Corruption Perception Index in 2020 and was
second only to Afghanistan in combating corruption among its South Asian neighbors2. No government
or non-government agency, such as a ministry, office, school, college, university, courtroom, police
station, hospital, etc., is immune to corruption, which is a disgrace. Even accident victims and terminally
ill patients are not immune to corruption. In our nation, it has become commonplace for corruption to
have a role in everything that is done.

Definition of Corruption

A person or group in a position of authority may engage in corruption, which is a kind of dishonesty or a
criminal act, in order to get improper advantages or exploit that position for one's own profit 3. Bribery,
influence peddling, and embezzlement are just a few of the behaviours that corruption may encompass. It
may also involve actions that are permitted in many nations. Besides in Bangladesh the definition of
corruption includes the means of offences specified in the schedule of the Anti-Corruption Commission
Act, 2004. According to section 2(e) of the Anti-Corruption Commission Act, 2004, the acts included as
corruptions are—

• Obtaining gratifications other than lawful compensation for performing official business;
using corrupt and illegal ways to influence public servants; obtaining gratification in
exchange for using personal influence over public servants.
• A governmental official receiving something valuable from a party involved in a case or
transaction they are conducting without paying for it
• A public official breaking the law with the aim to harm anyone
• A public official falsifying a document with malicious intent
• Public employee participating in illegal commerce
• Purchasing or placing an illegal bid on property by a public employee
 3

• Pretending to be a government employee

• Flaunting clothing or carrying a symbol that a public servant would use, fraudulently

Corruption in Bangladesh

According to Transparency International's Corruption Perception Index (CPI), Bangladesh was the most
corrupt nation in the world from 2001 to 2005. Despite the fact that things started to change after 2005,
the nation is still at the bottom of the list. Three other metrics, the Fragile States Index (Public Service) of
the Fund for Peace, the World Economic Forum's Assessment of Irregular Payments and Bribes, and the
World Bank's Control of Corruption, all present a similar picture. Bangladesh has been performing well in
several socioeconomic measures, such as GDP, for more than 20 years, yet corruption is still pervasive.
The cost of corruption to the nation's GDP is at least 2% to 3%. Bangladesh, which was ranked last
among nations most plagued by corruption for five
years in a row from 2001 to 2005, is no longer in
that position4. However, it still ranks second
highest in South Asia, just behind Afghanistan,
among those where corruption is thought to be the
most endemic. Figure 1.1 shows us the corruption
index of Bangladesh from year 2012 to 2021. In
which it can be seen that the index rate of

corruption is unchanged for last several years. The Figure 1.1: Corruption Index of Bangladesh from 2012-2021

ranking of Bangladesh has been constant over the previous 10 years according to Transparency
International's performance trend analysis in its 2021 report. Due to the performances of other nations, the
nation's ranking rose from 12 to 13. Most of the time, those who are in charge of reducing corruption in
the nation are also heavily corrupt themselves. Bangladesh's underwhelming performance might be
attributed, in part, to its inability to follow through on high-profile anti-corruption promises. Bangladesh
has always had a serious problem with corruption since it has a direct impact on the nation's economy and
growth. Through the implementation of several strict regulations, Bangladesh has done its best to fight
corruption by adopting several laws, rules and also forming the Anti-Corruption Commission under the
Anti-Corruption Commission Act, 2004 to fight against corruption.
 4

Anti-corruption laws in Bangladesh

The Prevention of Corruption Act, 1947 (PCA 1947) was the first specific law to be put in place in
Bangladesh to combat corruption. The Bureau of Anti-Corruption was then formed to deal with and
control bribery and other types of corruption, later the Bangladesh Anti-Corruption Act, 1974 ("BAC
1974"), was passed. BAC 1974 was later abolished and replaced by the Anti-Corruption Commission Act,
2004 ("ACCA 2004"). The former Bureau of Anti-Corruption, formed under the BAC 1974, was no
longer necessary and was abolished as a result of the ACCA 2004's establishment of the Anti-Corruption
Commission. Nevertheless, the Penal Code 1860 ("PC 1860") also includes a variety of offences that are
directly and indirectly connected to corruption and bribery and are thus subject to the aforementioned Act,
regardless of what is stated in any other statute. Additionally, the Anti-Money Laundering Act, 2012 and
some other unrelated legislation have been implemented by the government to combat crimes including
corruption. Bangladesh's government passed the Anti-Corruption Commission (Amendment) Act, 2016 in
the year 2016. According to the Amendment Act of 2016, Sections 408, 420, 462A, 462B, 466,467,468
and 479 of the Penal Code of 1860 shall not be triable under Section 28 of the ACC Act 2004 unless the
alleged person is a government official acting in the course of their official duties, a bank employee or
employer, or an employee or employer of any financial institute acting in the course of their official
duties.

Anti-Corruption Commission

Establishment of the Commission

The BNP-led Bangladeshi Parliament enacted the Anti-Corruption Commission Act (2004), which
established the ACC in its successor. The Act strengthened the previous legislation by granting the Anti-
corruption Commission (ACC) financial autonomy and formal independence, establishing Special Judges
for corruption prosecutions, and authorizing prosecution of government officials without the
government's participation. However, the ACC made little progress during the balance of the BNP-led
government's mandate due to pervasive high-level resistance and persistently low political desire for
effective outcomes.

On January 11, 2007, 11 days before the scheduled election, everyone had entirely lost faith in the
members of the caretaker government and the electoral commission. The Chief Adviser ordered the re
constitution of anti-corruption commission launching the radical anti-corruption campaign described in
section 3 of Anti-Corruption Law 2004.
 5

According to Section 3 of the Anti-corruption Commission Act, 2004, a commission called the Anti-
Corruption Commission must be established as quickly as possible by the government once this
legislation enters into force in order to fulfill its goals. And The Commission will be an independent and
impartial entity with perpetual succession, a common seal, and the authority to acquire, hold, and dispose
of property, both movable and immovable, subject to the provisions of this Act and rules made statutorily.
It will also have the right to sue and be sued under the said name. And Again, According to Section 5 of
the Anti-corruption Commission Act, 2004, The President will choose one of the three commissioners to
serve as Chairman of the Commission. A Commissioner's office being vacant or the Commission having
a constitutional flaw will not render any action taken by the Commission unlawful or subject it to legal
question.

Appointment and tenure of the Commissioners

Operating under the Anti-Corruption Commission Act, 2004, the Anti-Corruption Commission (ACC) is
a statutory independent authority of the state that prevents and investigates corruption. With the proper
ratification of the United Nations Convention against Corruption (UNCAC) on February 27, 2007, it
acquires further force and momentum. The commission in order to carry out the provisions of Anti-
Corruption Commission Act, 2004, constituted with three commissioners and one of them will be selected
by the President to serve as Chairman of the Commission, according of section 5 of the Anti-Corruption
Commission Act, 2004.

Selection of Committee

According to Section 7 of the Anti-corruption Commission Act, 2004, The Chief Justice shall appoint a
judge of the Supreme Court's Appellate Division, a judge of the Supreme Court's High Court Division,
the Comptroller and Auditor-General of Bangladesh, the Chairman of the Public Service Commission,
and the most recent retired Cabinet official to serve on the Selection Committee, which will make
recommendations for the appointment of Commissioners. If one of these retired cabinet secretaries is
unable or unwilling to serve on the selection committee, the next retired cabinet secretary in line will
serve in their place. Furthermore, if a retiring cabinet secretary is unable or unwilling to serve on the
selection committee, the current cabinet secretary in office will do so. The Chief Justice's nominee, the
Judge of the Appellate Division of the Supreme Court will serve as the Chairman of the Selection
Committee. And the Cabinet will offer the secretarial support required to carry out the Selection
Committee's duties.
 6

Recommendation Process

The Selection Committee must compile a list of two candidates for each open Commissioner seat and
transmit it to the President for appointment in order to recommend the appointment of the
Commissioners. This recommendation must be designed depending on the decision of at least three
(three) members present. And at least 4 (four) members must be present for such Selection Committee to
have a quorum.

Eligibility and Ineligibility and Removal of Commissioners

The Anti-corruption Commission (ACC) is an act to establish an Independent Anti-Corruption

Commission to Prevent Corruption and Other Corruption Practices in the Nation, Conduct Inquiries and
Investigations into Corruption and Other Specific Offenses, and Other Matters Incidental Thereto.

Qualifications of Commissioners

According to Section 8(1) of the Anti-corruption Commission Act, 2004, Anyone suitable for the position
of Commissioner must have at least 20 (twenty) years of experience in the fields of law, education,
administration, judiciary, or a disciplined force.

Disqualifications of Commissioners

According to Section 8(2) of the Anti-corruption Commission Act, 2004, No one who: is not a citizen of
Bangladesh; is declared or identified as a defaulter by any bank or financial institution; is not released
from liability after being declared bankrupt by any court; has been found guilty of an offense involving
moral turpitude or corruption and sentenced to imprisonment by a court of law; is employed by the
government; or is incapable of carrying out the duties of the office.

Ineligibility of the Commissioners

According to Section 9 of the Anti-corruption Commission Act, 2004, A Commissioner is not permitted
to take any lucrative positions in the Republic's government after leaving office.

Resignation and removal of the Commissioners

According to Section 10 of the Anti-corruption Commission Act, 2004, A Commissioner may resign from
his position by giving the President a one-month written notice. With the caveat that each departing
Commissioner—aside from the Chairman—shall submit the Chairman a copy of the aforementioned
 7

notice for information. The President may, in the event of a resignation, ask the retiring Commissioner to
hold onto his position until the resignation is formally accepted.

And No Commissioner shall be removed from office other than in the same way and for the same reasons
as a Supreme Court judge.

Functions of the Commission (How does it works)

According to Section 17 of the Anti-corruption Commission Act, 2004, The Commission is authorized to
carry out all or any of the following duties:

• To inquiry and investigate the offenses listed in the Schedule

• On the basis of the inquiry and investigation carried out under subsection (a), to file and
conduct cases under the Anti-corruption Commission Act, 2004;
• to undertake an investigation into any claim of corruption on its own initiative or in
response to a request made by a party who feels wronged or by anybody acting in his or
her behalf;
• To carry out any obligation imposed on the Commission by any legislation relating to
anti-corruption;
• To assess any laws' recognized anti-corruption provisions and provide suggestions to the
President for their successful implementation;
• to foster an atmosphere of honesty and integrity in order to combat corruption and to take
action to increase public awareness of the problem;
• to plan seminars, symposiums, workshops, etc., on issues under the Commission's
purview;
• to pinpoint the numerous corruption-related issues that Bangladesh has in the context of
its socioeconomic situation and suggest actions to the president;
• to undertake an investigation into corruption, file charges against corruption, and set the
process by which the Commission will approve such an investigation, filing, and inquiry;
and
• To carry out any further tasks that may be required for corruption prevention.

Whatever individual may be requested by the Commission for information pertaining to a topic of inquiry
or investigation, and that person is compelled to supply any information he may have. An infraction that
is punishable by imprisonment for a term not to exceed three (three) years, a fine, or both is resisting an
 8

officer who has been legally authorised by the Commission or a Commissioner executing their
jurisdiction under the ACCA of 2004.

The ACC will have the power to investigate the offence as a whole, even if a specific offence is not
specified on the schedule of the ACC Act, 2004, if there is even the slightest suspicion of corruption and
the offence was committed with the knowledge of a public official. It is safe to say that the ACC was
correct to issue the impugned notice to the petitioner to look into the allegations of customs duty evasion
and the corruption of the customs officials because the two offences are very closely related. This is
because there are serious allegations that the owner of the bonded warehouse, including the petitioner,
conspired with the customs officials to evade a sizable amount of customs duty through corruption5.

Exercise of powers by the Commission

According to Section 18 of the Anti-corruption Commission Act, 2004, Subject to the requirements of
this Act, the Commission may assign any of its powers to any Commissioner or officer of the
Commission for the purpose of carrying out its duties; such officers shall execute such powers in
accordance with the delegation.

The ACC can grant its officials authority. The ACC Act has a provision that allows the Commission to
provide its officers certain powers6.

Special powers of the Commission in respect of inquiry or investigation

According to Section 19 of the Anti-corruption Commission Act, 2004, in regards to inquiries and
investigations, the Commission shall have the following powers:

(a) to notify witnesses, ensure their attendance, and question them;

(b) to locate and produce any document;
(c) to gather testimony;
(d) to request copies of public records from any court or office;
(e) to issue notices for the examination of witnesses and documents; and
(f) to take any other actions as may be necessary to carry out the purposes of this Act.
 9

Power of inquiry or investigation

According to Section 20 of the Anti-corruption Commission Act, 2004,

(1) The Commission is the sole entity authorized to conduct inquiries into or investigations into
offenses under this Act and those listed in its Schedule, regardless of anything else stated in
the Code of Criminal Procedure.
(2) The Commission may authorize any of its subordinate officers to enquire into or conduct
investigations into the offenses listed in the Schedule of this Act by publishing a notice in the
official Gazette.
(3) In regards to an inquiry or investigation into an offense, an officer with the authority granted
by Section 20(2) of the Anti-corruption Commission Act, 2004 has the same authority as an
officer in charge of a police station.
(4) The Commissioners shall also have the authority to inquire into or investigate offenses in
accordance with subsections (2) and (3), notwithstanding anything to the contrary in those
sections.

Workflow of Anti-Corruption Commission

Anyone may file a complaint with the commission's district, divisional, or headquarters office 7. The
screening committee8 will thereafter receive the complaints from this office. The Screening Committee
must take into account the information and resources that are provided to support complaints that appear
to be true or accurate. They must also create a separate list of complaints for which further investigation is
necessary. The complaints on which the Commission chooses to launch an investigation will then be
given to the official to whom it has assigned power along with instructions for conducting the
investigation9. After conducting the inquiry if the commission is satisfied on the truthfulness of the
complaint they will file an FIR and start investigation10. Addition to the, A Commission officer with this
authority may, with the court's approval, place the suspect under arrest if the officer has reason to believe
that the suspect has obtained or is in possession of real estate that is out of proportion to his declared
sources of income, whether in his own name or another person's11.
 10

Incident of Corruption

(1) Padma Bridge Scandals

The Padma Bridge fraud scandal was a political scandal that rocked Bangladesh in 2016
and 2017. It involved the Bangladesh Awami League and Bangladesh's longest bridge,
the 6.15-kilometer (3.82-mile) road–rail Padma Bridge. The World Bank was supposed to
provide the project with a credit line for 11,367 rupees (US$1.2 billion), but they
withdrew their support on worries about corruption, notably that the Canadian
construction firm SNC-Lavalin had bought a construction contract from a Bangladeshi
politician12. In Canada, two SNC-Lavalin executives were prosecuted; however, the court
dropped the case after the prosecution withdrew after wiretap evidence was excluded13.

(2) Corruption in North South Universities’ land acquisition

According to the complaint, certain Board of Trustees members approved the purchase of
about 9,088 decimal acres of property for NSU's campus expansion, circumventing the
permission of the University Syndicate, University Grants Commission, and the Ministry
of Education. Later, they took money from the buyer by cashing personal checks and
maintained the FDR in their names. According to the complaint, they engaged in criminal
activity, abused their position of authority, and embezzled money from the institution and
the government for their own unfair gain. They have engaged in criminal activity by
using forgery, fraud, and commission exchange while engaging in such unlawful acts.

Anti-Corruption Commissions Activities

Bangladesh is experiencing extreme corruption, yet there is no dedicated authority to combat it. Although
nothing akin to this has been launched, we all know that the Anti-Corruption Commission (ACC) is in
charge of keeping an eye on anti-corruption efforts. Many scandals that have happened in Bangladesh
remain uninvestigated. Numerous complaints regarding corruption committed by public and private
authorities have been made to the Anti-Corruption Commission (ACC), but the responsible body has not
taken the necessary action to address them. The Anti-Corruption Commission (ACC), which is run by the
ruling party every term, is also under fire. This organisation cannot escape this responsibility. This
organisation has preconceived notions about how it would manage Bangladesh's corruption. The head of
this Commission is also employed politically, which obstructs the commission's ability to operate
 11

transparently. Even while it appears that the commission is independent, it is not. Different political
parties obstruct this commission's operations. Therefore, it is apparent that the Anti-Corruption
Commission has not been very successful in eradicating corruption in Bangladesh.

How Can ACC is more effective?

The ACC will be as effective as the current administration desires. The effectiveness of the ACC is
equally dependent on how well its leadership is able to utilise the institutional and legal resources
available to carry out the organization's purpose. No government has yet granted the ACC complete
autonomy, and the ACC hasn't been able to function as well as it could or win the public's trust. The truth
is that successive administrations have treated the ACC as an extension of their executive branch, and the
ACC has also treated itself as a government agency, both of which have forgotten that, despite being a
government agency established by the government, the role of the ACC is to hold the government
accountable.

The Commission was unable to convey a feeling of purpose and seriousness. The three commissioners
engaged in animosity and distrust toward one another about things like who was the most powerful
among them. When the Commission sweptly hired the employees of the notorious Bureau of Anti-
Corruption without conducting proper due diligence, it also took on the baggage of that organisation,
sowing the seeds for the ACC's lack of efficiency and integrity.

An efficient ACC is still achievable, despite how challenging it might appear. It is necessary to have four
mutually reinforcing drives. The first is the political will to allow ACC to carry out its institutional and
legal obligations free from political or bureaucratic intervention at all levels, both on paper and in
practise. Second, the ACC needs to find itself, especially now that it has the prime minister's commitment
to a zero-tolerance policy for corruption on its side in addition to the legal authority and institutional
competence. In order to guarantee that everyone is treated equally before the law regardless of their
identity or status, it must tenaciously combat impunity and bring the corrupt to justice. Third, both
individually and collectively, the institutions of the NIS that support the ACC must be open, effective,
efficient, and responsible. Fourth, an atmosphere that encourages people to raise and strengthen their calls
for a successful ACC must be developed. This environment should focus on the media, civil society, and
NGOs.
 12

Conclusion

The Anti-Corruption Commission (ACC) was established with the goal of eradicating corruption from
Bangladesh and turning it into a corruption-free nation, however it was unable to fully achieve these
goals. The Anti-Corruption Commission (ACC) began its investigations correctly the majority of the
time, but made mistakes along the way. The Anti-Corruption Commission (ACC) occasionally attempts
to influence it, although it is impossible to completely escape other influences. In addition, it has certain
structural issues and a staffing shortage. The government hires everyone who works at this institution. As
a result, although being an autonomous entity, the Anti-Corruption Commission (ACC) cannot effectively
carry out its duties. It was given the nickname "Toothless Tiger" for these reasons. Therefore, we may
conclude that Bangladesh's Anti-Corruption Commission (ACC) has failed in its efforts to eradicate
corruption there.

1. Noore Alam; Dissecting Public Sector Corruption in Bangladesh: Issues and Problems of Control

2. Dhaka Tribune; Bangladesh still languishes among world's most corrupt countries

3. World Bank, "Helping Countries Countries Combat Corruption: The Role of the World Bank," 1997

4. The Daily Star; Corruption has spread over the whole society

5. National Warehouse vs ACC, 71 DLR (2019) 260 (264, para 20, 21)

6. Abdus Sadek v ACC, 15 BLC (2010) 464

7. Rule 3(1), Anti-Corruption Commission Rules, 2007

8. Rule 5, Anti-Corruption Commission Rules, 2007

9. Rule 6, Anti-Corruption Commission Rules, 2007

10. Section 23, Anti-corruption Commission Act, 2004

11. Section 21, Anti-corruption Commission Act, 2004

12. "World Bank cancels Bangladesh bridge loan over corruption". BBC News. 30 June 2012. Retrieved 31 December 2016.

13. "Canada court finds no proof of Padma bridge bribery conspiracy". The Daily Star. 11 February 2017. Retrieved 7 February 2019.