The UK-based firm has reportedly traced $500 million in assets, but seven banks may have to bear the recovery costs upfront, with no guarantee of success.
TBS Report
26 October, 2026, 12:25 am
Last modified: 26 October, 2026, 12:28 am
UK-based international asset recovery firm R1 Consortium has quoted $125 million to recover assets allegedly siphoned abroad by members of the family that owns Sikder Group, according to a senior Bangladesh Bank official.
The central bank disclosed the proposed cost at a meeting with the chairmen and managing directors of seven banks yesterday (25 October). Bangladesh Bank Governor was also present at the meeting, the official told The Business Standard.
The seven commercial banks had provided financing to Sikder Group, from which money was allegedly transferred abroad at various times, the official said.
"So far, assets worth $500 million have been traced. R1 Consortium has estimated that it would cost $125 million to recover them. The firm has sought this amount upfront, and the seven banks will have to bear the cost," the official said.
The official said the firm was reviewing the documentation maintained by the banks to assess whether the traced assets could actually be recovered.
"There is a risk that the banks could spend $125 million and still fail to recover any assets. That would result in a substantial loss for the banks," the official added.
The proposal will now be placed before the boards of the seven banks for approval. An agreement with R1 Consortium will be signed if the boards approve the proposal, the official said.