From 18m to 590m Swiss francs: Bangladeshi deposits fly high in Swiss banks

Money parked by Bangladeshi individuals and banks in Swiss banks skyrocketed to 589.54 million Swiss francs (CHF) (about Tk8,832 crore) in 2024 – a staggering jump (33 times) from the historic low of CHF 17.71 million just a year earlier.

This steep surge comes on the heels of an increase in deposits from Bangladeshi banks, amounting to CHF 576.61 million from a mere CHF 3.48 million in 2023, according to the Swiss National Bank's annual banking statistics released today (19 June).

The 2024 figure marks the fifth-highest total since 1996 and the second-largest inflow in the past five years, trailing only the record CHF 871.1 million held by Bangladeshis in Swiss banks at the end of 2021.

However, this dramatic rise follows a historic dip in 2023, when Bangladeshi funds in Swiss banks plummeted to their lowest level since records began in 1996.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, said, "I don't think the rise is related to trade LCs, as Bangladesh does not import much from Switzerland. Moreover, I don't see any trade-related reason that could justify such a massive increase within a single year."

"These transactions could have taken place prior to the takeover by the interim government in August as there's little likelihood that this occurred after the interim government assumed office." he added.

According to SNB statistics, Bangladeshi individuals deposited CHF 12.62 million in Swiss banks in 2024, marking a 9.6% decrease year-on-year and other deposits increased by 17% to CHF 0.31 million.

The figures do not indicate anything about the much-talked-about illicit money, if any, parked by Bangladeshis there.

Bangladesh yet to pledge commitment to the AEOI

Swiss banks, once famed for client secrecy, have shifted towards transparency, combating money laundering through initiatives like the Automatic Exchange of Information (AEOI) started in 2018 to curb tax evasion.

In 2024, the Swiss Federal Tax Administration (ESTV) shared information on approximately 3.7 million financial accounts with 108 countries under the global standard for the Automatic Exchange of Information (AEOI).

As of March 2025, the latest update from OECD's Global Forum on Transparency and Exchange of Information for Tax Purposes indicates that Bangladesh has not yet pledged commitment to the AEOI, whereas neighbouring countries like India and Pakistan have already participated in these exchanges.

Earlier in 2022, the Bangladesh Financial Intelligence Unit (BFIU) sought information on the deposits of a total of 67 Bangladeshis, involved in alleged money laundering.

However, Swiss authorities only provided the details of one individual.

Economist Zahid Hussain said, "Although the matter has been discussed repeatedly in the past, previous governments have taken no concrete steps to formally commit to the AEOI framework."

"I believe the interim government should treat this issue with urgency and initiate the process of signing the multilateral agreement for the exchange of financial account information. If this opportunity is missed during their tenure, Bangladesh's chances of joining the agreement in the future will become increasingly slim," he added.