Bangladesh loses $68b in illicit trade flows from 2013-22: Report

Bangladesh lost an estimated $68.3 billion through trade-related illicit financial flows between 2013 and 2022, according to a report by Global Financial Integrity released on Thursday (26 March). 

Trade misinvoicing involves deliberately falsifying the value or quantity of imports and exports to evade taxes, shift profits, or transfer capital abroad, report said.

The report finds that Bangladesh is among the top 10 countries in developing Asia in terms of total trade value gaps.

In Bangladesh’s case, a significant portion of the illicit flows is linked to trade with advanced economies. The report estimates that around $33 billion of the total gap occurred in transactions with countries such as the United States and those in Europe.

The findings suggest that Bangladesh’s exposure is not limited to regional trade but is tied to global supply chains, particularly in export-oriented sectors and import-dependent industries.

Compared to other South Asian countries, Bangladesh’s losses are substantial but remain far lower than India’s, which recorded more than $1.06 trillion in illicit trade flows over the same period.

Sri Lanka, by contrast, recorded a smaller volume of about $24 billion in trade gaps with advanced economies, though its economic vulnerability amplifies the impact of such leakages.

Across developing Asia, trade-related illicit financial flows reached an estimated $1.69 trillion in 2022 alone, underscoring the scale of the challenge.

Major economies such as China, Thailand and India account for the bulk of these flows, though the problem spans countries of all sizes.

The study said, such practices remain deeply embedded across Asian economies, with no clear sign of decline over the past decade.