Bangladesh is facing a deepening economic challenge as a significant volume of capital continues to flow out of the country through illicit channels, according to findings from both domestic and international research organizations. Reports indicate that irregularities in import-export activities and trade misinvoicing have enabled large-scale financial outflows, posing a serious threat to economic stability.
Data from Global Financial Integrity (GFI) suggests that billions of dollars have been siphoned out of Bangladesh annually over the past decade. Complementing this, analysis by a national white paper drafting committee indicates that the cumulative volume of illicit financial flows has reached tens of billions of dollars over an extended period. On average, an estimated 1.8 trillion taka leaves the country each year through such practices.
Experts warn that these outflows are not only draining financial resources but also weakening the country’s revenue system. As a result, the government faces constraints in making adequate investments in essential public welfare sectors. The issue also presents a significant challenge to good governance.
Research by the Bangladesh Institute of Bank Management (BIBM) highlights trade-based money laundering as the most commonly used method. This typically involves under-invoicing or over-invoicing goods to facilitate the transfer of funds abroad, particularly within sectors engaged in international trade.
The study further notes that limited data verification capacity within banking institutions often makes it difficult to detect such fraudulent activities. Without robust databases, enhanced monitoring systems, and stronger international cooperation, effectively addressing the problem remains a major challenge.
Experts emphasize that modernizing customs administration, strengthening cross-border information exchange, and ensuring transparency in free trade zones could serve as key measures to curb illicit financial flows.