Published: 04:10 AM, 01 July 2018
Tk 6 lakh cr laundered in 10 yrs
Lack of good governance blamed
The magnitude of money laundering has been mounting by leaps and bounds for last several years. The sums of laundered money have amounted to approximately 6 lakh crore taka during last ten years relevant sources have informed.
This amount is one and half fold higher than Bangladesh's national budget. Besides, 18 projects like Padma Bridges could have been accomplished with this money.
Economists have blamed extreme lack of good governance and accountability in the country's financial and banking sectors for the extensively rising figures of illegally transferred money from Bangladesh to foreign countries. Reportedly the money launderers are too influential which is why they do not care about any regulations or warnings.
Different national and international organizations have identified four reasons in broad terms for ceaseless money laundering which are absence of investment-friendly environment, worries about political instability, weak surveillance by the regulatory authorities and indomitable corruption.
Swiss banks, Global Financial Integrity (GFI) and International Consortium of Investigative Journalists (ICIJ) have meanwhile unveiled reports about the deadly form of money laundering from Bangladesh.
Financial experts have referred to political influence and inefficiency of Finance Ministry and Bangladesh Bank as some more principal causes behind money laundering.
In recent times it has been exposed by concerned sources that a powerful group of money launderers are making false shipment papers and fake invoices to facilitate illegal money transfer from Bangladesh to overseas destinations.
Under-invoicing and over-invoicing are another two ways utilized by financial culprits for transferring money to foreign countries through unauthorized pranks.
Reportedly letters of credit (LC) are being opened by some traders but the goods named on the LCs are not being imported. Economists have marked it as a major way of money laundering.
Scholars and prominent citizens have said that a list with names and particulars of several money launderers was unfolded by Panama Papers and Paradise Papers but no remarkable actions have been yet taken by the financial regulators.
A broad number of politicians and civil society members have in the meantime called upon the government to sack Finance Minister AMA Muhith for his failure to halt money laundering and other monetary irregularities. Bangladesh Bank's Governor Fazle Kabir has also faced acute criticism for the central bank's inability to initiate required measures against money launderers and financial crooks.
Economic analysts have also held political influence responsible for money laundering and defaulted loans. Bangladesh is now facing the highest ever trade deficit and burgeoning import expenses which are vivid threats to national economy according to financial wings.
A recent report from Switzerland shows that Bangladeshi clients have deposited 4 thousand 100 crore taka in a number of Swiss banks. US-based ICIJ, Panama Papers and Paradise Papers have so far named 82 Bangladeshi businessmen who are involved with money laundering. GFI disclosed in last year's September that 6 lakh crore taka was laundered to foreign countries from Bangladesh during last ten years.
Financial sources have said that Bangladesh became a member of Egmont Group headquartered in Canada in 2013 to exchange information about money laundering and terror finance. Egmont Group has 147 member countries. But reportedly neither Finance Ministry nor Bangladesh Bank is making substantial efforts to procure information about money launderers through Egmont Group.
Bangladesh's state-owned and private banks are currently bogged down with nearly 89 thousand crore taka defaulted loans. Including written off loans this sum crosses 1 lakh 20 thousand crore taka, banking sources have stated. Economists have remarked that most of the defaulted loans might have been laundered to overseas locations.
Bangladesh Bank's former Governor Dr. Salehuddin Ahmed said to The Asian Age, "General people suffer most due to money laundering because high taxes are taken from the masses to cover up the losses caused by illegal money transfer. The government should take immediate and stern initiatives to restrain money laundering."
Dr. Ahsan H. Mansur, Executive Director, Policy Research Institute (PRI) told The Asian Age, "Children of most of the politicians and bureaucrats study in foreign countries.
In this way a lot of money is being transferred to overseas institutions. Most of the political leaders visit foreign countries for medical treatment. Politicians have a great role to play to stop money laundering. Political leaders should work for the country's economic betterment with patriotism keeping away from corruption."
Dr. Iftekharuzzaman, Executive Director, Transparency International Bangladesh (TIB) have said, "The government should recover the laundered money through proper channels and tough actions should be carried out against the money launderers.
Finance Ministry, Bangladesh Bank, Anti Corruption Commission, National Board of Revenue (NBR) and other financial agencies should work in coordinated ways to stop money laundering."
Dr. Zahid Hossain, Lead Economist, World Bank, Bangladesh Office told The Asian Age, "Money laundering is happening due to unhealthy investment atmosphere in the country.
Besides, some people dispatch money to foreign countries to avoid political and financial risk. Weakness of Finance Ministry, Bangladesh Bank and NBR are also responsible for continuous capital flight."
On the other hand, Ziauddin Ahmed Bablu, Member of Parliament, Jatiya Party told The Asian Age, "Finance Minister AMA Muhith has absolutely failed to reduce corruption in banks. We have urged the government a number of times to dismiss him."
