The Swiss National Bank came up with a disclosure that Bangladeshi nationals’ deposits in Swiss banks dropped 27 percent year-on-year in 2017 to Tk 4,064 crore. According to Banks in Switzerland 2017 report the amount was Tk 5,575 crore in 2016 and Tk 4,423 crore in 2015. The fall in deposits comes amid an ongoing global clampdown on the famed secrecy wall of Swiss banking system.
Despite the decline in deposits in Swiss banks, large amounts of money continue to be siphoned off as the country’s anti-money laundering act appears inadequate in deterring capital flight. The biggest chunk of laundered money ends up in Malaysia, Singapore, Thailand, USA, Canada, Switzerland, UK, and other places where the laws protect the capital inflows into their countries through different forms.
Every year a vast amount of money goes off primarily in four forms – through over and under-invoicing, tampering with shipment figures, multiple invoices and false declaration on goods and services. The recent clampdown diverts the money launderers of the country to new destinations as the Swiss banks are not the best places for depositing ill gotten funds, as economists believe.
Given the current situation and the fact that the next general elections are looming , more money is likely to flow out of the country. It is evident that a big chunk of wealth goes off from the country ahead of every national election. Offshore accounts are not illegal, but many people use those to hide cash from the tax authorities.
A series of concerted efforts need to be taken to stem money laundering. According to think tanks and economists, if Bangladesh Bank, Anti-Corruption Commission, NBR and the office of the attorney general work together, capital flight can be stopped while money siphoned off can be brought back to the country.
As per the Global Financial Integrity reports, Bangladesh lost between $6 billion and $9 billion to illegal money outflows in 2014. The government is not interested in stopping the capital flight as ruling party men, government-blessed businessmen and top bureaucrats top the list of money launderers. Unless political commitment of the government and accountability to citizens is restored, the capital flight will not end.
Despite the decline in deposits in Swiss banks, large amounts of money continue to be siphoned off as the country’s anti-money laundering act appears inadequate in deterring capital flight. The biggest chunk of laundered money ends up in Malaysia, Singapore, Thailand, USA, Canada, Switzerland, UK, and other places where the laws protect the capital inflows into their countries through different forms.
Every year a vast amount of money goes off primarily in four forms – through over and under-invoicing, tampering with shipment figures, multiple invoices and false declaration on goods and services. The recent clampdown diverts the money launderers of the country to new destinations as the Swiss banks are not the best places for depositing ill gotten funds, as economists believe.
Given the current situation and the fact that the next general elections are looming , more money is likely to flow out of the country. It is evident that a big chunk of wealth goes off from the country ahead of every national election. Offshore accounts are not illegal, but many people use those to hide cash from the tax authorities.
A series of concerted efforts need to be taken to stem money laundering. According to think tanks and economists, if Bangladesh Bank, Anti-Corruption Commission, NBR and the office of the attorney general work together, capital flight can be stopped while money siphoned off can be brought back to the country.
As per the Global Financial Integrity reports, Bangladesh lost between $6 billion and $9 billion to illegal money outflows in 2014. The government is not interested in stopping the capital flight as ruling party men, government-blessed businessmen and top bureaucrats top the list of money launderers. Unless political commitment of the government and accountability to citizens is restored, the capital flight will not end.
