Bangladesh, Aug. 9 -- Bangladesh Bank has launched investigations into alleged money laundering by 42 companies that have defaulted on bank loans worth more than Tk 2 billion each.

It has also instructed banks to sign agreements with eight international firms selected by the central bank to recover the allegedly laundered funds.

At a meeting on Sunday, Governor Mostaqur Rahman told 38 banks to engage the firms, which will work to have the funds frozen in the countries where they are believed to be held and bring them back to Bangladesh.

Central bank spokesman and Executive Director Arief Hossain Khan said the agreements would be signed after necessary preparations.

"Forty-two companies will be investigated. Each has defaulted on more...