Kazi Zahidul Hasan :
Though the country is losing huge amount of money from illicit financial out flow every year, the authorities concerned are still remain inactive to take preventive measures in this regard, said economists.
They said, money laundering has become more rigorous under the current political and economic situation in which the launderers continue to siphon off billions of dollars from the country each year
According to a report of Global Financial Integrity (GFI), illegal capital flight from Bangladesh surged 33.78 per cent year-on-year to $9.66 billion in 2013 through trade misinvoicing, tax evasion, crime, corruption, and other illicit activities.
“The country is losing billions of dollars every year through illegal capital flight, posing a potential threat to the economy,” AB Mirza Azizul Islam, a noted economist of the country, told The New Nation on Friday.
Referring to GFI report, he said, on average, $5.59 billion was siphoned off from Bangladesh in between 2004 and 2013 through trade misinvoicing, tax evasion and other illicit activities.
“The high prevalence of capital flight is a matter of concern because the role of illicit financial out flows and their adverse effects on the country’s economy cannot be ignored,” he added.
Mirza Aziz, a former adviser of the caretaker government, further said that the monies which are transferred to other countries in illicit financial out flows have ‘enormous’ development impact. “Such activity reduces productivity in the economy’s real sector by diverting resources and encouraging crime
and corruption, and consequently, slowing the economic growth.”
“We have adequate regulation to prevent the money laundering. But inefficiency of the regulatory bodies and lack of coordination among them is hindering their task to prevent the proceeds of illegal fund movement from the country,” he noted.
Mirza Aziz also called for a coordinated effort from the regulators to combat money laundering.
“The country’s political and economic environment has long been conducive to money laundering. Corrupt people are transferring their ill gotten money to abroad taking advantage of the situation,” Dr Salehuddin Ahmed, another noted economist of the country, told The New Nation on Friday.
Also referring to the latest GFI report, he said, money-laundering has become more rigorous, but the country has failed substantively addressing the crime due mainly to strategic deficiencies in anti-money laundering and counters terrorism financing regime.
“Inefficient regulation and enforcement could also be blamed for unabated capital flight from the country,” he added.
Dr Salehuddin Ahmed believes that trade misinvoicing accounts for the highest percentage of money laundered from the country. But the concerned department is yet to come up with effective steps to curb the practice.
“All the regulators including Bangladesh Bank should work together with comprehensive mutual assistance to fight against illicit financial out flow corruption and to recover proceeds of illegal funds movement,” he said.
When asked, Dr Ahmed said, the present political and investment climate may be encouraging the entrepreneurs and dishonest businessmen to siphon off funds from the country.
Both the economists, however, said that recovery and repatriation of the stolen funds has been a huge for the concerned authorities due to lack of mutual and legal assistance from the international community and governments.
Though the country is losing huge amount of money from illicit financial out flow every year, the authorities concerned are still remain inactive to take preventive measures in this regard, said economists.
They said, money laundering has become more rigorous under the current political and economic situation in which the launderers continue to siphon off billions of dollars from the country each year
According to a report of Global Financial Integrity (GFI), illegal capital flight from Bangladesh surged 33.78 per cent year-on-year to $9.66 billion in 2013 through trade misinvoicing, tax evasion, crime, corruption, and other illicit activities.
“The country is losing billions of dollars every year through illegal capital flight, posing a potential threat to the economy,” AB Mirza Azizul Islam, a noted economist of the country, told The New Nation on Friday.
Referring to GFI report, he said, on average, $5.59 billion was siphoned off from Bangladesh in between 2004 and 2013 through trade misinvoicing, tax evasion and other illicit activities.
“The high prevalence of capital flight is a matter of concern because the role of illicit financial out flows and their adverse effects on the country’s economy cannot be ignored,” he added.
Mirza Aziz, a former adviser of the caretaker government, further said that the monies which are transferred to other countries in illicit financial out flows have ‘enormous’ development impact. “Such activity reduces productivity in the economy’s real sector by diverting resources and encouraging crime
and corruption, and consequently, slowing the economic growth.”
“We have adequate regulation to prevent the money laundering. But inefficiency of the regulatory bodies and lack of coordination among them is hindering their task to prevent the proceeds of illegal fund movement from the country,” he noted.
Mirza Aziz also called for a coordinated effort from the regulators to combat money laundering.
“The country’s political and economic environment has long been conducive to money laundering. Corrupt people are transferring their ill gotten money to abroad taking advantage of the situation,” Dr Salehuddin Ahmed, another noted economist of the country, told The New Nation on Friday.
Also referring to the latest GFI report, he said, money-laundering has become more rigorous, but the country has failed substantively addressing the crime due mainly to strategic deficiencies in anti-money laundering and counters terrorism financing regime.
“Inefficient regulation and enforcement could also be blamed for unabated capital flight from the country,” he added.
Dr Salehuddin Ahmed believes that trade misinvoicing accounts for the highest percentage of money laundered from the country. But the concerned department is yet to come up with effective steps to curb the practice.
“All the regulators including Bangladesh Bank should work together with comprehensive mutual assistance to fight against illicit financial out flow corruption and to recover proceeds of illegal funds movement,” he said.
When asked, Dr Ahmed said, the present political and investment climate may be encouraging the entrepreneurs and dishonest businessmen to siphon off funds from the country.
Both the economists, however, said that recovery and repatriation of the stolen funds has been a huge for the concerned authorities due to lack of mutual and legal assistance from the international community and governments.
