With the hush-hush policy gone now that Sheikh Hasina’s government is over, the true extent of our economic crisis is coming to light. According to a report by Bonik Barta, over the last 15 years of her rule, nearly $150 billion, equivalent to around Tk 17.6 lakh crore, was siphoned out of the country.
That’s more than double the amount of the current national budget—Tk 7.97 lakh crore—which happens to be the biggest in our history.
The report is based on the findings of the US-based think tank Global Financial Integrity (GFI). Most of the stolen funds came from big loans taken from banks, mostly by politically influential people and businesses.
Those who stole the money included politicians, businessmen, bureaucrats, police officials, high-ups of banks, NBFIs, insurance companies, etc. Even mid-level officials of these institutions were involved. Money was also stolen from government projects through inflated prices and orchestrated cost overruns.
Bangladesh Bank is the regulatory body of the country’s banking sector. The autonomous organization is responsible for establishing good governance in the sector and suppressing irregularities and corruption. However, the bank’s leading officials say that the central bank has been forced to play the role of an accomplice in looting the sector.
The Bangladesh Anti-Corruption Commission has decided to initiate probes into graft allegations against 41 Awami League ministers, state ministers, and lawmakers between 2009 and 2024.
Surprisingly, the Bangladesh Anti-Corruption Commission never prosecuted military personnel for significant corruption.
In a meeting with the media yesterday, the four deputy governors of Bangladesh Bank admitted, “We have failed in fulfilling our responsibilities. Governor Abdur Rauf Talukder did not go to Bangladesh Bank yesterday.
Low salaries and poor training also make public services susceptible to bribery. Ministers, MPs, Police and Military are characterised by political patronage and a culture of impunity. International businesses have said that Bangladeshi government officials are responsible for most corruption.
Hidden offshore bank accounts enable tax evasion, assist people in hiding ownership interests, and facilitate money laundering. Australia was again named as a significant source and destination of potentially dirty money.
The scandal laid bare the need for much greater scrutiny of offshore corporate structures and the flaws in Bangladesh’s corporate registry system and anti-money laundering legislation. In the last 15 years, Transparency International Bangladesh reported on money laundering nine publicly reported examples of foreign nationals purchasing lavish property portfolios across India, Hong Kong, Switzerland, Luxembourg, Singapore, Malaysia, UAE, Australia, UK, USA and New Zealand with what looks like the proceeds of crime and corruption.
The problem is that it is too easy for companies and their associated entities — often with opaque business structures — to be registered in Australia. This enables companies to use India, Hong Kong, Switzerland, Luxembourg, Singapore, Malaysia, UAE, Australia, UK, USA and New Zealand as a launching pad for dubious activities, including money laundering. They can register a company director’s name, even Homer Simpson, without adequate due diligence checks, beneficial ownership disclosure, identification of potential links to politically exposed persons or a robust assessment of their business activities and legitimacy in Australia and internationally.
Tax havens and wealth managers could also face stricter scrutiny for banking aid money. The report singled out Luxembourg, the Cayman Islands, the Bahamas, India, Hong Kong, Switzerland, Luxembourg, Singapore, Malaysia, UAE, Australia, the UK, the USA and New Zealand. However, Switzerland received the most significant funds over the review period.
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