Written by The Banking Post
Bangladesh is losing an estimated Tk 838 billion every year due to trade misinvoicing, in what experts describe as a significant drain on public finances and a major weakness in economic governance.
A report by Global Financial Integrity reveals that illicit financial outflows—largely driven by false declarations in import and export transactions—account for nearly 23 per cent of the country’s annual domestic revenue.
The study estimates average yearly outflows of $6.83 billion, equivalent to about 16 per cent of Bangladesh’s total foreign trade. Over a decade from 2013 to 2022, the cumulative outflow reached $68.3 billion, or more than Tk 8.33 trillion.
The findings place Bangladesh among the top 10 Asian countries affected by trade-based money laundering, where misinvoicing is used to shift capital abroad.
Economists say the scale of the losses underscores systemic weaknesses in trade monitoring and financial oversight. “We have been suggesting that the government check leakages in export-import activities, strengthen vigilance and intensify intelligence efforts to prevent trade-based money laundering,” said an economist.
He added that digitisation of trade processes is critical. “There is no alternative to digitising export-import activities to curb such a huge amount of capital flight.”
Earlier estimates by a government-formed committee suggested even higher annual outflows, though based on older datasets. Analysts believe the latest figures reflect updated methodologies and data sources.
The report warns that unless monitoring improves, such illicit flows will continue to erode revenue collection, weaken foreign exchange stability, and undermine confidence in the country’s financial system.
