$68.3bn illicitly transferred out of Bangladesh in a decade: GFI

An estimated $68.3 billion was illicitly transferred out of Bangladesh over the past decade through trade misinvoicing, according to a report by Global Financial Integrity.

At current exchange rates, the amount exceeds Tk 8.33 lakh crore, with average annual outflows of about $6.83 billion.

The report, released on March 26, identified Bangladesh as among the most vulnerable developing economies in Asia to trade-based money laundering, primarily driven by false declarations in import and export transactions.

According to the findings, illicit outflows account for roughly 16 per cent of the country’s total external trade annually, with a significant portion occurring through trade value manipulation.

Separately, a white paper prepared by an interim government committee in December 2024 estimated that $234 billion was siphoned abroad between 2009 and 2023—equivalent to around Tk 28 lakh crore at the time, or roughly Tk 1.8 lakh crore per year.

The report noted that corrupt politicians, business figures, influential financial sector actors, bureaucrats, and intermediaries were involved in facilitating such outflows.

GFI data also showed that about $32.8 billion of the laundered funds were transferred to advanced economies. The organisation warned that illicit financial flows pose a major challenge to development and governance by weakening domestic resource mobilisation, reducing tax revenues, and limiting funding for public services and infrastructure.

Globally, similar trends were observed in major economies, with illicit outflows over the past decade estimated at $6.96 trillion from China, $1.18 trillion from Thailand, and $1.06 trillion from India.

To curb such practices, GFI recommended strengthening customs oversight, enhancing regional information-sharing, ensuring transparency in free trade zones, and expanding international cooperation.