To avail the MM2H, every applicant has to transfer at least $82,000 (about Tk 6.4 million) and over the years the number of such Bangladeshis who prefer second homes increased without any interception. Money laundering has potentially devastating economic, security, and social consequences as it diminishes government tax revenue and thereby indirectly harms honest tax-payers. This also makes government tax collection much more difficult. Because the loss of revenue ultimately means imposing higher tax rates, and corruption-inflated higher costs of public works.
Money laundering creates an unstable liability base and unsound asset structures for financial institutions, creating risks of monetary instability and even systemic crisis. This crisis further leads to loss of credibility and investors’ confidence and the potential of destabilising financial systems, particularly in emerging economies.
According to Global Financial Integrity estimates, illicit financial outflows from Bangladesh stood at $ 9.66 billion in 2013 which was $ 7.22 billion in 2012. Despite the scenario, no major initiative to bring back the siphoned off money has been taken. Instead of nabbing the illegal money launderers, the ACC is busy over pursuing petty corruption and thieves to show that they are achieving success.
As ruling party men, Ministers, blessed bureaucrats and privileged businessmen are among the top people who transfer money under MM2H program, no government initiative would bring them under legal scanners. Happily, the ACC has asked Malaysian government for mutual legal assistance and to provide detailed information of some 50 big investments and in response Cash Transaction Report on 14 Bangladeshis has been sent from Malaysia.
Our anti-money laundering laws are strict on paper but not in application. Where actual capital flight has taken place attempts of recovery predictably hit snags. The government must handle the money laundering crimes strictly and at the same time, the legal transactional procedures should be eased up. Only, investment friendly climate can successfully prevent money laundering.
