As the government plans to reintroduce a legal protection scheme for repatriated laundered money invested in priority sectors – particularly productive industries and renewable energy – experts have offered mixed reactions to the proposal.
While some see the move as a pragmatic step to revive investment and employment amid a sluggish economy, others argue the focus should instead be on preventing capital flight and ensuring accountability for illicit financial flows.
Mir Nasir Hossain, businessman and former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), welcomed the initiative, saying the country is currently facing an “investment drought.”
According to him, private-sector investment has remained stuck at around 22% of GDP, although it should ideally be close to 28%.
If laundered assets are allowed to be invested in productive sectors, it could help accelerate investment and employment generation, he told The Business Standard.
However, Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI), stressed that the government should prioritise preventing capital flight instead of offering an opportunity to repatriate laundered funds without scrutiny.
“Once money is laundered, recovery becomes difficult, as we have seen in the past,” he said, adding that the government should create a more business-friendly environment so entrepreneurs do not feel compelled to move money abroad.
Transparency International Bangladesh (TIB) Executive Director Iftekharuzzaman said the proposal may be viewed positively if the government’s intention is genuinely to bring back siphoned-off money.
He noted that several countries have adopted similar mechanisms because recovering illicit wealth through conventional legal channels is often difficult.
However, Iftekharuzzaman said any such facility must follow strict criteria, impose higher-than-normal tax rates and ensure equal treatment for all applicants.
He also warned that individuals who have earned money through criminal activities and laundered it abroad must not be allowed to misuse the opportunity, adding that legal proceedings against them should continue.
About The Author
