Editorial Desk :
A close look on last year’s major economic indicators points to a disturbing trend. The disturbing trend in the performances of some major economic indicators for Bangladesh in 2017 has led economists to ask a very important question: Is the scale of money siphoning on the rise? As corruption is going on such a vast scale under the protection of the government, the plunderers naturally do not feel safe to keep the ill-gotten money in the country. They are powerful people
and have no difficulty in transferring the money abroad. Even if they are caught when out of power they have nothing to lose, because the money is not their earned money.
The question becomes even more pertinent after the name of prominent businessmen and politicians emerged in the Paradise Papers – the second-largest leak of documents pertaining to tax avoidance. However, the point is now – there should be exclusive and detailed investigations about who are transferring money and by which means. Undeniably, by now the whole financial and banking sector have been riddled with corruption and that’s why money laundering or illegal outflow of cash is on the rise. Even if the culprits had invested their black money at home it would have made some sense had the money made here also stayed here but the situation is more than just alarming.
The entire banking and financial chain have gone into the hands of a corrupt syndicate – which is strong enough to bankrupt the country. The country’s account deficit amounted to $7,655 million in the first nine months of 2017 calendar year, resulting in a wide trade gap. Export earnings experienced very slow growth, while imports went up by more than 30%.Moreover- registration for a second home in Malaysia and many other countries has also increased during this time frame. Even though, we don’t have specific data or statistical details but it is easily understandable that since the crooked money is not safe so it had to be transferred abroad.
However, the draining-off money is primarily happening in four forms — over and under invoicing, over and under shipment, multiple invoices, and falsely declared goods and services. According to the country’s one of the major think-tanks 88% of illicit financial flows from Bangladesh in the last 10 years took place through trade mispricing. Moreover, a recent trend called ‘Digital Hundi’ that uses the mobile banking network is being used to launder money. A significant number of overseas workers have confessed that they are more interested in remitting the money through Digital Hundi – it is basically money laundering in a different form.
The million dollar question, however, what has the government done to address the loopholes?
It has done almost nothing at all. The government will not survive if it tries to fight big corruption. The government secures support through corruption.
Preventing money laundering is one of the major challenges for Bangladesh, which has an underground economy. A sense of security in terms of law and order and an investment-friendly climate can prevent the outward flow of money from Bangladesh. The wealthy are scared of keeping their money in Bangladesh and believe that their money will be safer abroad, leading to the increasing outflow.
The political necessity to fight corruption is completely missing. The progress stories are mostly lies. It has to be like this when the government depends entirely on police power and corruption.
A close look on last year’s major economic indicators points to a disturbing trend. The disturbing trend in the performances of some major economic indicators for Bangladesh in 2017 has led economists to ask a very important question: Is the scale of money siphoning on the rise? As corruption is going on such a vast scale under the protection of the government, the plunderers naturally do not feel safe to keep the ill-gotten money in the country. They are powerful people
and have no difficulty in transferring the money abroad. Even if they are caught when out of power they have nothing to lose, because the money is not their earned money.
The question becomes even more pertinent after the name of prominent businessmen and politicians emerged in the Paradise Papers – the second-largest leak of documents pertaining to tax avoidance. However, the point is now – there should be exclusive and detailed investigations about who are transferring money and by which means. Undeniably, by now the whole financial and banking sector have been riddled with corruption and that’s why money laundering or illegal outflow of cash is on the rise. Even if the culprits had invested their black money at home it would have made some sense had the money made here also stayed here but the situation is more than just alarming.
The entire banking and financial chain have gone into the hands of a corrupt syndicate – which is strong enough to bankrupt the country. The country’s account deficit amounted to $7,655 million in the first nine months of 2017 calendar year, resulting in a wide trade gap. Export earnings experienced very slow growth, while imports went up by more than 30%.Moreover- registration for a second home in Malaysia and many other countries has also increased during this time frame. Even though, we don’t have specific data or statistical details but it is easily understandable that since the crooked money is not safe so it had to be transferred abroad.
However, the draining-off money is primarily happening in four forms — over and under invoicing, over and under shipment, multiple invoices, and falsely declared goods and services. According to the country’s one of the major think-tanks 88% of illicit financial flows from Bangladesh in the last 10 years took place through trade mispricing. Moreover, a recent trend called ‘Digital Hundi’ that uses the mobile banking network is being used to launder money. A significant number of overseas workers have confessed that they are more interested in remitting the money through Digital Hundi – it is basically money laundering in a different form.
The million dollar question, however, what has the government done to address the loopholes?
It has done almost nothing at all. The government will not survive if it tries to fight big corruption. The government secures support through corruption.
Preventing money laundering is one of the major challenges for Bangladesh, which has an underground economy. A sense of security in terms of law and order and an investment-friendly climate can prevent the outward flow of money from Bangladesh. The wealthy are scared of keeping their money in Bangladesh and believe that their money will be safer abroad, leading to the increasing outflow.
The political necessity to fight corruption is completely missing. The progress stories are mostly lies. It has to be like this when the government depends entirely on police power and corruption.
