Progress made in preventing money laundering, but risks remain: TIB
Although reforms in the banking sector have reduced large-scale fraud and money laundering compared to the past, significant risks of trade-based money laundering still persist, particularly through mis-invoicing, said Transparency International Bangladesh (TIB).
Speaking at a press conference held at TIB's Dhanmondi office in Dhaka today (4 September), TIB Executive Director Dr Iftekharuzzaman highlighted both progress and ongoing challenges in tackling money laundering.
He noted that reforms in the banking sector have limited opportunities for fraud, and many individuals directly involved in such activities in the past are now facing legal consequences or have fled the country. "However, deeper reforms are still needed," he stressed.
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Dr Iftekharuzzaman added that the outflow of remittances through informal channels like hundi has also been largely curbed. But he warned that the absence of effective reforms in import-export trade practices leaves room for large-scale mis-invoicing, which remains the biggest channel for money laundering.
"This is where the bulk of money laundering takes place," he emphasised.
Calling on the government to treat money laundering prevention as a top priority, he said, "Once laundered, recovering that money is extremely difficult, almost impossible. Therefore, investing more resources and efforts in prevention rather than recovery is the right strategy."
Meanwhile, Transparency International (TI) Chair François Valérian has said that during the 15-year rule of former prime minister Sheikh Hasina, Bangladesh lost an estimated $16 billion annually through corruption and money laundering by political elites and their associates.
"We need to know where the money is, who are the real owners. Only then can international cooperation ensure recovery," he said.
Valérian described the former regime as "authoritarian and massively corrupt, alleging that power was abused to extract profit rather than serve the people."
"Those billions left the country every year and became part of the global economy of corruption," he said.
