Money laundering remains a significant challenge in Bangladesh, affecting multiple sectors and hampering the country's economic development. Recent reports suggest that approximately 20 per cent of Bangladesh's international trade is influenced by money laundering activities. This trend poses serious threats to governance, financial transparency, and social justice, as large sums of money are illegally moved out of the country through various methods, including trade-based money laundering, over-invoicing, under-invoicing, and illegal channels like Hundi.
A primary concern is the involvement of powerful political and business figures, who often use their influence to evade justice. Despite the existence of anti-money laundering laws, such as the Money Laundering Prevention Act (MLPA) 2012, enforcement remains weak. Regulatory authorities like the Bangladesh Financial Intelligence Unit (BFIU), the Anti-Corruption Commission (ACC), and other state agencies face challenges, including insufficient resources and limited international cooperation, in investigating and prosecuting offenders. For example, the ACC has sent multiple requests for information to countries like the USA, Canada, and Switzerland, but has received limited responses, hampering progress in asset recovery.
Additionally, sectors like insurance are increasingly vulnerable due to complex financial products and weak customer due diligence mechanisms. Emerging risks include the use of high-premium life insurance and investment-linked products to launder illicit funds.
Despite these challenges, Bangladesh continues to strengthen its regulatory framework. New measures, such as the Money Laundering Prevention Rules 2019 and the Foreign Exchange Regulation Act 1947, aid in outlining penalties and investigative guidelines. However, the effectiveness of these regulations is undermined by gaps in enforcement, political interference, and inadequate international collaboration.
Efforts to combat money laundering in Bangladesh are ongoing, but the country still faces significant obstacles. Addressing these issues will require stronger political will, more effective law enforcement, and enhanced international cooperation to prevent the illicit outflow of funds.
Irin Sultana
Officer, Transaction Monitoring
Standard Chartered Bangladesh
Sultana.irinn@gmail.com
