Amnesty likely for laundered funds invested in industry, renewables

Highlights:

• Govt may revive money repatriation amnesty in FY27 budget
• Returned funds in key sectors may get legal protection
• The move aims to boost investment and jobs
• Tk28 lakh crore was allegedly laundered in 15 years
• Legally earned foreign assets may also be repatriated

The government is planning to reintroduce the amnesty facility to money launderers in the upcoming budget, allowing the repatriation of money syphoned out of Bangladesh without questioning its source, according to officials at the National Board of Revenue (NBR).

Under the scheme, funds brought back into the country and invested in priority sectors – particularly productive industries and renewable energy – would qualify for legal protection regarding the origin of the money.

However, the applicable tax rate may be set slightly higher than the regular rate.

A senior NBR official familiar with the proposal said the initiative is primarily aimed at encouraging the return of illicitly transferred funds held abroad.

"Besides, the idea is being considered to boost investment, generate employment and inject momentum into the economy," he told TBS on condition of anonymity.

He further said the facility would not be limited to money launderers alone. Assets legally earned abroad could also be repatriated under the scheme.

According to the White Paper prepared during the interim government's tenure, nearly Tk28 lakh crore was laundered during the Awami League government's 15 years in power.

Previously, in FY23, the then Awami League government offered an opportunity to legalise offshore assets by paying taxes ranging from 7% to 15%. The initiative, however, produced limited results, and it was not extended in the following budget.

The national budget for FY2026-27 is scheduled to be presented in Parliament on 11 June.

What experts say

Mir Nasir Hossain, a businessman and former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), viewed the initiative positively.

"The country is currently facing an investment drought. Private sector investment remains stuck at around 22% of GDP, whereas it should be closer to 28%," he told TBS.

"If laundered assets are allowed to be invested in productive sectors, it could help accelerate investment and employment generation," he added.

However, Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI), said the government should focus more on preventing capital flight rather than allowing repatriation of laundered money without scrutiny.

He told TBS, "Once money is laundered, recovery becomes difficult, as we have seen in the past. Instead, the priority should be ensuring a business-friendly environment for local entrepreneurs and creating conditions where businesses do not feel compelled to move money abroad."

Iftekharuzzaman, executive director of TIB, said the proposal could be viewed positively if the government's intention is genuinely to bring back siphoned-off funds.

He added that several countries have adopted similar practices because repatriating illicit wealth through conventional legal channels is often difficult. "Given those challenges, the government may consider this as an alternative mechanism," he told TBS.

However, he said any such facility should follow strict criteria, impose higher-than-normal tax rates and ensure equal treatment for all applicants.

"At the same time, the government must ensure that individuals who earned money through criminal activities and laundered it abroad cannot misuse this opportunity. Proper legal proceedings against them must continue," he said.