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WEDNESDAY, MAY 3, 2017
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$61.63bn capital drained from
Bangladesh in a decade
• Ibrahim Hossain Ovi and
Shariful Islam
Unrecorded capital flow from
Bangladesh stood $61.63 billion between
2005 and 2014, riding mostly
on misinvoicing, according to a
report of Global Financial Integrity.
The GFI report also revealed
that illicit capital flight from Bangladesh
was on a higher trend from
2007 following political turmoil
of the time, and it continued until
2013 when the highest $9.66 billion
was siphoned off.
Of the total $61.63 billion illicit
capital flow, $56.83 billion was
through trade misinvoicing while
the rest $4.8 billion could not be
traced in the balance of payments
data, the report added.
The Washington-based research
and advisory organisation unveiled
the report, titled “Illicit Financial
Flows (IFFs) to and from Developing
Countries: 2005-2014”, on
Monday.
Commenting on the report, former
chief economist of Bangladesh
Bank, Biru Paksha Paul, pointed out
that under-invoicing in export and
over-invoicing in import are the key
drivers behind illicit capital flight.
If under-invoicing in export
and over-invoicing in import can
be controlled, around 50% illegal
capital flight could be stopped, said
Paul.
He also suggested increasing
capacity of ports and adopting scientific
monitoring to control misinvoicing.
Political uncertainty will have to
be removed to prevent illicit capital
10
8
6
4
2
0
ILLEGAL CAPITAL FLIGHT FROM BANGLADESH
4.26
3.38
flight, observed former finance adviser
to a caretaker government AB
Mirza Azizul Islam.
The government should ensure
investment friendly atmosphere
in the country so that people can
make investment easily, he added.
A businessman, preferring not
to be named, told the Dhaka Tribune
that people usually send money
illegally only for their safety.
With the change of political regimes,
it brings trouble to politicians
as well as businesses to some
4.1
6.44
Total $61.63bn
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
extent, he added.
“Illicit capital outflow from
Bangladesh in 2014 is a little less
compared to 2013, but there is no
visible sign of improvement. It may
be that due to better monitoring
of the National Board of Revenue,
Bangladesh Bank and law enforcement
agencies, illegal capital flow
has seen a slight fall,” noted AB
Mirza Azizul Islam.
Bangladesh Bank Executive Director
Subhankar Saha told the Dhaka
Tribune: “I do not prefer to comment
on the finding of GFI report as
data used in the report are based on
perception and not justified.”
The central bank is working
with other commercial banks and
law enforcement agencies to prevent
illegal capital flight, he added.
An average of 87% of global illicit
financial outflows over the
2005-2014 period were due to the
fraudulent misinvoicing of trade,
the GFI report showed.
GFI President Raymond Baker
said: “The combination of illicit
outflows and inflows, arising from
both balance of payments data and
direction of trade statistics, leads
to an estimate of IFFs at 14% to
24% of total developing country
merchandise trade.”
The GFI recommended a number
of policy measures to curtail
illicit flows that include increasing
transparency in the global financial
system and taking measures related
to tax haven secrecy, anonymous
companies, and money laundering
techniques. •
Bangladeshi Rashedul makes it to top 20 of MasterChef Australia
6.13
5.41
5.92
7.23
9.66
9.1
Amount in $ billion
Source: GFI
DhakaTribune
• Tribune Desk
Bangladeshi-origin Rashedul
Hasan has successfully earned his
place among the top 20 finalists in
season 9 of MasterChef Australia.
Rashedul cooked “Saffron
Poached Pears with Smoked Vanilla
Ice Cream” to win over the judges
on the first episode of the new
season that aired on Network Ten
on Monday.
Entertainment portal Elachi
Times shared a post on its Facebook
page Monday saying that
Rashedul is the first Bangladeshi
to make it to MasterChef Australia.
The initial rounds of MasterChef
Australia consist of a large
number of hopeful contestants
from across Australia individually
auditioning by presenting a dish
before the three judges.
The contestants must be over
18 years of age.
The winner is awarded a prize
that includes chef training from
leading professional chefs, the
chance to have their own cookbook
published, and AUD250,000
in cash.
MasterChef Australia airs five
nights a week from Sunday to
Thursday.
Earlier in March, An American
boy of Bangladeshi origin, Afnan
Ahmad from Jonesboro, Georgia,
made it to the top 10 of MasterChef
Junior 2017 US Season 5. •
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