Every year, money laundering from Bangladesh has been increasing, making the economy even more fragile. Despite ongoing efforts, the issue continues to persist. According to a research paper presented at a roundtable discussion organized by the Bangladesh Institute of Bank Management (BIBM) on Tuesday, around 75% of the total amount of money laundered from the country occurs through trade channels. A significant portion of this money is siphoned out by providing false declarations during imports and exports.The research was based on data from the National Board of Revenue (NBR). The paper further reveals that since the amendment of the Money Laundering Prevention Act in 2015, a total of 95 money laundering incidents have been investigated by the Customs Intelligence and Investigation Department, all of which involved trade and amounted to over BDT 3,201 crore.
The paper was developed with the input of three BIBM faculty members, two officials from private banks, and a representative from the Bangladesh Financial Intelligence Unit (BFIU), who gathered data from officials of 37 different banks.
In his presentation, BIBM's teacher Ahsan Habib stated, "The main reason behind the increase in money laundering via trade is that large amounts of money can be moved more easily compared to other channels. Trade provides an avenue for large-scale transactions, which makes it a more attractive medium for money launderers."
The chief guest at the event, Bangladesh Bank's Deputy Governor Nurun Nahar, pointed out, "Money laundering also occurs by undervaluing imports and exports; this is part of trade financing. In many cases, trade transactions appear legitimate on the surface, but there is something hidden underneath. It is essential to investigate thoroughly."
The research further highlighted that, from 2009 to 2018, an average of $8.27 billion was laundered annually through false declarations during trade, accounting for nearly 2% of the country's GDP. It also mentioned that, according to a report published in 2024 by the U.S.-based Global Financial Integrity (GFI), between 2009 and 2023, an average of $16 billion was laundered each year, which is 3.4% of Bangladesh’s GDP. This money laundering mainly occurs in the import of textiles, consumer goods, and fuel products.
The paper also pointed out the existing weaknesses in Bangladesh's trade-based anti-money laundering infrastructure. While all participating banks reported having mechanisms for checking the lists of sanctioned individuals and organizations, only 50% of the banks had access to trade value verification databases.
In his speech, Deputy Governor Nurun Nahar emphasized that money launderers use highly sophisticated methods to move funds, and simply following the rules will not catch them. “We must be very alert and use intelligence to catch them,” she added.
Other speakers at the roundtable included BIBM's Chair Professor A.K. Gangopadhyay, Director General Abdul Hakim, and BIBM faculty member Ali Hossain, as well as officials from the Bangladesh Financial Intelligence Unit (BFIU) and the Bangladesh Bank.
