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The government is moving to amend existing laws to adopt the Common Reporting Standard (CRS) — a global framework for the automatic exchange of financial account information — in an effort to enhance transparency, prevent capital flight, and curb illicit fund transfers.

The Financial Institutions Division (FID) under the Ministry of Finance has formed a 10-member committee to prepare a roadmap for CRS implementation, according to officials at the division’s coordination wing.

The decision was finalised during an inter-ministerial meeting on 8 July, chaired by FID Secretary Nazma Mobarek, who described the move as part of the government’s time-bound reform agenda.

CRS: A Global Standard

Developed by the Organisation for Economic Co-operation and Development (OECD) in 2014, CRS requires financial institutions in participating countries to collect and share account holder information with their respective tax authorities. Over 120 countries have so far adopted the system, which enables cross-border tracking of foreign income and detection of tax evasion.

Multi-Agency Coordination

The meeting identified the Finance Division, Internal Resources Division (IRD), Bangladesh Bank (BB), National Board of Revenue (NBR), Anti-Corruption Commission (ACC), and the Bangladesh Financial Intelligence Unit (BFIU) as key stakeholders.

BB’s Additional Director Mohammad Salah Uddin stressed the need to update income tax and banking laws to comply with CRS, recommending that Bangladesh formally join the OECD framework. He also proposed forming a high-level oversight body and exploring study tours to CRS-compliant countries.

BFIU Additional Director AKM Nurunnabi said CRS would close gaps in cross-border income reporting, while NBR Second Secretary Md Ekramul Haque highlighted its potential to boost legal remittances and tax collection.

ACC Director General Md Mokammel Haque noted that CRS would make it easier to identify and take legal action against Bangladeshi nationals holding undisclosed foreign assets.

Implementation Roadmap

The newly formed committee — headed by the FID’s Additional Secretary (Administration) — includes senior representatives from all relevant agencies. The Joint Secretary (Insurance & Capital Market and Reform Focal Point) will serve as member secretary.

The panel must submit recommendations on required legal reforms within 30 working days and may co-opt additional members if needed.

Expert Opinion

Faiz Ahmed, Managing Partner and CEO of F Ahmed & Co., Chartered Accountants, welcomed the move, saying it would help reduce tax evasion and raise the tax-to-GDP ratio. While auditors do not directly assess CRS compliance, they may review its financial impact, he noted.

He added that both the CRS and auditor reports — though distinct in purpose — serve as important tools for promoting financial transparency and global accountability.