Financial Crime World

Bangladesh Remains High-Risk for Money Laundering and Terrorist Financing

Despite progress in combating money laundering and terrorist financing risks, Bangladesh remains a high-risk country according to the Basel Anti-Money Laundering (AML) Index 2021.

Progress Made but Still a Long Way to Go

The index ranked Bangladesh 33rd out of 110 countries, with a lower risk score than the South Asian average. The country’s money laundering risk score decreased to 5.84 from last year’s score of 5.88, while the global average score increased to 5.3 from 5.22.

Regional Comparison

Bangladesh has the lowest money laundering risk among four South Asian countries:

  • Pakistan: ranked 28th globally with a risk score of 6
  • Sri Lanka: scored 6.51
  • Bhutan: scored 6.24

According to Sirajul Islam, spokesperson and executive director at Bangladesh Bank, “We are making progress in tackling the money laundering risk due to overall improvement in economic and social aspects.”

Challenges Ahead

However, he acknowledged that it is still tough to be completely risk-free, but added that the country will continue to work on mitigating these risks.

Global Assessment of Money Laundering and Terrorist Financing Risks

The 10th annual public edition of the Basel AML Index assessed money laundering and terrorist financing threats around the world and the capacity of jurisdictions’ anti-money laundering and counter financing of terrorism measures to address their risks.

Countries at High Risk

According to the report, Bhutan, Pakistan, and Sri Lanka face significant terrorist financing risks and demonstrate low effectiveness in relation to prevention and prosecution of TF offences.

In related news:

  • A US-based think-tank, Global Financial Integrity (GFI), published a report last year that estimated Bangladesh lost $7.53 billion annually between 2008 and 2017 due to trade misinvoicing.
  • Another study by Tax Justice Network ranked Bangladesh 54th out of 133 nations in terms of financial secrecy, indicating how intensely the country’s legal and financial systems allow wealthy individuals and criminals to hide and launder money.

International Watchdogs Closely Monitoring Bangladesh’s Progress

Bangladesh’s efforts to combat money laundering and terrorist financing risks will continue to be closely monitored by international watchdogs.