Reports have it that the government is contemplating a mechanism to bring back the huge amount of money siphoned off the country through various conduits, including false trade declarations. An inter-agency task force, which was restructured recently for gearing up the effort, sat for its first meeting early this week to chalk out possible measures in this regard. The issue, because of its enormity and scale, has been receiving media focus for quite a while. International bodies recently published rough estimates of the money flown off the country over the years to the so-called tax havens and overseas financial institutions. There were moves to combat the situation through collaboration of key state agencies such as the central bank, National Board of Revenue (NBR) and the law enforcing agencies. But nothing in terms of hitting the target has so far been noticed. In fact, there were no targeted shots at all.
Now, will task force be any different from many of the reported stray moves that have waned into oblivion? The key question is: what precisely would form the basis for the task force to start with? The job is challenging for the simple reason that there is no known modes through which money flies from the country. People from various affluent segments of society are allegedly involved in siphoning off money -- billions of taka every year through various means. It is not only confined to false trade declarations - over-invoicing in import, for example, or capital flight by multinationals -- once believed to be the key mode of money flight, but a widening gyre that, among others, includes the most practised mode of money transfer called hundi. It is common knowledge that in the absence of deterrent measures to put a check on hundi, many find it suitable for transferring money overseas, particularly from sale of property in the country.
How much money got laundered through various illegal channels is not known to the central bank. All that has been gathered are from published reports of several international agencies. A noted Washington-based research body Global Financial Integrity in its report 'Illicit Financial Flows (IFFs) to and from Developing Countries: 2005-2014' mentioned some US$61.63 billion having been laundered from Bangladesh during the period. According to the report, on an average, $6.16 billion was laundered every year during the period, and in 2013 the amount soared as high as to $9.66 billion.
One may question the accuracy of the figures. However, the fact that money in huge quantities is laundered from the country is well established. The task force, a high-level body comprising representatives from all relevant agencies, should take into account the reports of various international organisations on money laundered from Bangladesh. To start with, it would be important to develop a mechanism through which information can be gathered from all possible sources including those from abroad.