[🇧🇩] Corruption Watch

[Saif]

https://thefinancialexpress.com.bd/trade/acc-investigates-bsec-over-data-smuggling-allegations-via-illegal-connection

ACC investigates BSEC over data smuggling allegations via ‘illegal connection’
bdnews24.com
Published :
Mar 10, 2025 21:40
Updated :
Mar 10, 2025 21:40

The Anti-Corruption Commission, or ACC, has conducted a raid on the Bangladesh Securities and Exchange Commission, or BSEC.

This is the second raid conducted by the anti-graft agency on the BSEC in a week.

The ACC said the raid was conducted to investigate allegations of illegal connection of software linked to the BSEC’s “surveillance” programme, information laundering, fund embezzlement, and irregularities in project implementation.

Four members of the “enforcement” unit led by two assistant directors conducted the raid on Monday morning, the ACC said in a media statement.

It says from 2012 to 2024, the software had a “dedicated” connection to the director’s room outside the surveillance room, which no longer exists.

It is believed this connection containing confidential information may have an impact on the capital market.

The announcement said the drive also examined the implementation of the Capital Market Development Programme, or CMDP, funded by the Asian Development Bank, or ADB.

The project, launched in 2018, will end in 2024. A Project Completion report for the Tk 280 million project has been submitted to the ministry, but the RIS software has yet to be activated and handed over.

The statement also said evidence of irregularities in the implementation of the project was found in the investigation.

On Mar 2, the ACC conducted a drive on allegations of irregularities related to the BSEC’s Initial Public Offering, or IPO, approval.

On the same day, the agency said various institutions had received IPO approval based on false information.

The recommendations and observations of the Dhaka Stock Exchange, or DSE, were not properly considered.

Allegations were also raised about “private placement” fraud, sharp price drops from overpriced shares, and investor losses due to inadequate BSEC regulation.​

 

[Saif]

Corrupt businessmen roaming scot-free: Mirza Abbas

The BNP leader said journalists are not reporting on the businessmen who are now spending huge wealth gained illegally to destroy the country

www.thedailystar.net

Corrupt businessmen roaming scot-free: Mirza Abbas
The BNP leader says journalists are not reporting on the businessmen who are now spending huge wealth gained illegally to destroy the country

File photo of Mirza Abbas

No journalists are reporting about the corrupt businessmen who are now spending the huge wealth they accumulated in the past 17 years to destabilise the country, said BNP's Standing Committee member Mirza Abbas today.

He made these remarks this evening at an iftar event held at a hotel in Gulshan, organised in honour of journalists, photojournalists, and video journalists, organised by "Amra BNP Poribar".

Speaking as the chief guest, Mirza Abbas said, "…Besides the killings in July and August, many businessmen are involved in such crimes, yet you are not writing anything against them."

He questioned why no reports were being published on these individuals.

BNP leader Abbas also spoke about a conference between business leaders and the then-prime minister before the fall of the Awami League government.

"Who attended that conference? Who got arrested? Who didn't? And why? You need to highlight these issues. Because those who have illegally amassed money over the last 17 years will spend the next 17 years using that money to destroy Bangladesh. So, please expose these individuals and warn the nation," he said.

Regarding these businessmen, he further said, "....They do not realise that not all journalists can be bought with money."

Addressing journalists, BNP leader Abbas, journalist should also investigate the bureaucrats.

"Awami League's associates have held their positions at the secretariat, police stations, union parishads ... everywhere. So, find out about them and bring them before the people," he urged them.

Without naming any party, he also said the party that dominated all media space once, are now absent from it entirely.

"No journalist or newspaper is writing anything about a particular party. You are writing nothing at all. But you are writing about the BNP -- exaggerating things as much as possible… There is much more happening behind the scenes, but you are not reporting any of it," said BNP leader Abbas.

BNP Standing Committee member Abdul Moyeen Khan questioned the interim government, asking why the Digital Security Act or the Cyber Security Act, by whatever name it is called, has not yet been repealed.

Other BNP leaders, including standing committee member Selima Rahman also spoke at the event.​

 

[Saif]

Will transport extortion ever end?

Probe finds BNP-linked people involved in extortion in Dhaka’s transport stands

www.thedailystar.net

Will transport extortion ever end?
Tk 2.21cr extorted daily from dhaka transport

VISUAL: STAR

We are alarmed by the findings of a government probe on extortion in Dhaka's transport terminals and stands. The investigation, conducted by an intelligence agency after the ouster of the Awami League government, found the involvement of influential figures including some linked to the Bangladesh Nationalist Party (BNP) in this exploitative practice. Not only is this unacceptable, but the fact that even the fall of an autocratic regime through a violent mass uprising could do nothing to reverse this trend in the transport sector is deeply concerning.

According to the probe report, a staggering Tk 2.21 crore is extorted daily from 53 transport terminals and stands in the capital city. Over a month, this amounts to Tk 66.3 crore to even Tk 80 crore. The system established by Awami League leaders and allies during the party's 15-and-a-half-year rule has simply been taken over by leaders and activists of BNP and its affiliated organisations. Of the daily extortion earnings, Tk 1.17 crore is collected under the name of Bangladesh Road Transport Owners' Association, currently headed by Saiful Islam, convener of BNP's Cumilla (north) unit. All this money is reportedly being extorted as "fees" for city corporations, terminal authorities, "expenditure" of counters and terminals, and payments for workers, linemen, cleaners, and security guards, the intelligence agency has found. Long- and medium-haul buses, trucks, pickups, covered vans, microbuses, private cars, human hauliers, CNG-run autorickshaws, and even rickshaws are being charged these "fees."

It is no secret that extortion has plagued our transport sector for decades. Its extent and sphere of influence can be understood from a study—unveiled by the Transparency International Bangladesh (TIB) in March last year—that revealed that private buses and minibuses pay at least Tk 1,059 crore in illegal tolls and bribes every year. Unfortunately, following the Awami League government's fall, we saw how BNP-affiliated transport leaders took over the sector, seemingly to get their hands on the extortion money, thus perpetuating this unscrupulous practice.

This status quo must be broken. As Bangladesh moves forward with key reform initiatives to establish discipline and accountability in various sectors, the transport sector cannot be left to rot under this age-old cycle of extortion and corruption. The BNP leadership must take into cognisance the allegations against its leaders and take punitive action, as it did against more than 1,000 members and 12 committees when allegations of rent-seeking and illegal occupation were proven. The government should also consider the probe report's recommendation: privatising bus terminals and stands, allowing them to officially charge fees, and using that revenue to run these establishments. Whatever the solution, it must be implemented immediately to rid the sector of this illegal practice.​

 

[Saif]

New committee formed to review reserve heist

The interim government has formed a new committee, headed by Asif Nazrul, adviser for law, justice, and parliamentary affairs, to review the reserve heist from Bangladesh Bank that took place in 2016.

www.thedailystar.net

New committee formed to review reserve heist

The interim government has formed a new committee, headed by Asif Nazrul, adviser for law, justice, and parliamentary affairs, to review the reserve heist from Bangladesh Bank that took place in 2016.

On March 12, the Cabinet Division issued a gazette notification announcing the formation of the six-member committee, which includes Muhammad Fouzul Kabir Khan, adviser for power, energy, and mineral resources; Faiz Ahmed Taiyeb, special assistant for the ministry of posts, telecommunications, and information technology; Ahsan H Mansur, governor of Bangladesh Bank; Ali Ashfaq, director of Biman Bangladesh Airlines; and Nazrul Huda, chairman of Rupali Bank.

The committee will review the progress of the investigation into the Bangladesh Bank reserve heist of February 2016, assess other government measures taken in this regard, determine responsibility for the incident, and provide necessary recommendations to prevent the recurrence of such an incident.

The gazette notice stated that the committee would submit its recommendations within three months of the issuance of the notification.

The Financial Institutions Division will provide secretarial support to the committee, which may co-opt members, if necessary, the notice added, specifying that meetings of the committee will be held as required.

In February 2016, international hackers orchestrated a cyber heist at the country's central bank, stealing $101 million from the Bangladesh Bank's account at the Federal Reserve Bank of New York using fraudulent instructions.

Their intended aim was to make off with around $1 billion.

Of the $81 million transferred to the Philippines, approximately $18 million has been recovered so far.

Further investigation suggested that the Dridex malware may have facilitated the attack.

On March 15, 2016, 39 days after the incident, Bangladesh Bank Deputy Director Zubair Bin Huda filed a case with Motijheel Police Station against unknown individuals under the Money Laundering Prevention Act.

The Criminal Investigation Department was tasked with the investigation but has yet to complete it or submit a report to the court.

Recently, the Anti-Corruption Commission of Bangladesh announced plans to initiate an inquiry into allegations of corruption linked to the 2016 cyber heist.​

 

[Saif]

Businessman brought Tk 730cr as remittance to evade tax

A businessman has brought Tk 730 crore under the guise of remittances from abroad and claimed a tax break, creating suspicions of tax evasion among officials of the National Board of Revenue (NBR).

www.thedailystar.net

Businessman brought Tk 730cr as remittance to evade tax
NBR moves to recover tax

A businessman has brought Tk 730 crore under the guise of remittances from abroad and claimed a tax break, creating suspicions of tax evasion among officials of the National Board of Revenue (NBR).

At an event at the NBR headquarters yesterday, NBR Chairman Abdur Rahman Khan shared the information with members of the Economic Reporters Forum (ERF) and sought the cooperation of the media to check tax evasion.

He said that the NBR is providing tax benefits on remittances sent home by Bangladeshis working abroad to encourage the use of formal channels.

However, one person brought Tk 730 crore as remittance through a bank account and claimed the money was exempt from taxes.

"Can you believe that?" Khan said at the event organised by the BCS Taxation Association at the NBR office in the capital.

As per the income tax law, remittances sent by expatriates are tax-exempt. Additionally, the government offers a 2.5 percent incentive to remitters sending money through formal channels.

Khan said it is not possible for a wage-earning migrant worker from Bangladesh to earn such a large sum. As such, officials believe that this is an attempt to legalise laundered money with income tax benefits.

"It might have been sent abroad in the form of hundi and brought back in phases through a bank account," said a senior official of the NBR.

"We have started tax recovery steps."

The NBR chairman declined to name the person since the tax recovery process is ongoing.

"This is happening because either we are unaware of these issues or we are deliberately turning a blind eye. Allowing such practices to continue is a major problem," Khan said.

He stressed the need for collective action, saying, "If we truly want to solve these issues, we must work together to combat such irregularities. Without proper policy implementation and strict enforcement, nothing will change. This is the reality."

At the event, the NBR chairman also reiterated the failures arising due to policy inconsistency.

"There is a strong demand for our tax policy to be consistent so that taxpayers can clearly understand their tax liability. In this regard, we have largely failed," he said.

"We will make every effort to ensure that tax policies do not change frequently. Our focus will be on offering clear-cut guidance so that tax rates are not changed arbitrarily."

Khan also emphasised the need for integrated digitalisation across all sectors.

"Digitalisation cannot be one-sided—we must ensure all stakeholders are interconnected," he said.

He mentioned that NBR members have been instructed to take initiatives to integrate with the banking system, enabling the automatic inclusion of banking details in online tax returns by next year.

"Taxpayers' bank balances, deducted taxes, and earned profits will be reflected in their returns. Similarly, integrating with the Central Depository Bangladesh Limited (CDBL) will automate access to dividend information," said Khan.

Calling for immediate action, he added, "Now is the time to take initiative, hold meetings, and move forward with implementation."

GM Abul Kalam Kaikobad, a member of tax administration and human resource management of the NBR, Doulot Akter Mala, president of the Economic Reporters Forum, and Mutasim Billah Faruqui and Syed Mohidul Hasan, president and secretary of the BCS Taxation Association, respectively, spoke at the event.​

 

[Saif]

Most TIN holders didn’t submit returns in past 10yrs: NBR chair

National Board of Revenue chairman Abdur Rahman Khan said that laws and rules regarding taxes had not been implemented fully and among the 1.13 crore taxpayers or tax identification number holders in the country, 80-85 lakh taxpayers had not submitted a tax return in the past 10 years...

www.newagebd.net

Most TIN holders didn’t submit returns in past 10yrs: NBR chair
Staff Correspondent 17 March, 2025, 22:07

Abdur Rahman Khan

National Board of Revenue chairman Abdur Rahman Khan said that laws and rules regarding taxes had not been implemented fully and among the 1.13 crore taxpayers or tax identification number holders in the country, 80-85 lakh taxpayers had not submitted a tax return in the past 10 years.

This means the enforcement at the field level is still insufficient, he added.

He was speaking as chief guest at a view exchange meeting titled ‘Economic Dialogue: Revenue Management and Mass Media’ organised by the Bangladesh Civil Service (Taxation) Association on Monday in the capital Dhaka.

He said that the NBR made the remittance receipt through the legal channel tax-free to encourage expatriate earners.

‘Surprisingly, we found a taxpayer, who brought Tk 730 crore as remittance by showing himself as wage earner, to evade the tax. Such kind of activities widened the inequity,’ he added.

He said that such issues had to be solved together.

When journalists asked about the names of tax evaders, the NBR Chairman said that they would disclose the names of such oligarchs after taking proper action against them.

‘We are working to end frequent policy changes through some clear-cut guidance,’ he added.

Regarding a question about a super tax – a type of tax imposed on oligarchs and the super-rich, the NBR chairman said that currently, the country did not have any tax on the super-rich.

However, he said, as everything is now online, they are thinking again about implementing a super tax on the superrich.

He also said that the media and the NBR must play vital roles in creating public awareness, expanding the tax net and resolving the problems.

Doulat Akhter Mala, president of the ERF, said that journalists’ main obstacle in working with the NBR was the lack of open data to analyse and quantify something.

She urged the NBR to increase resources in the research and analysis sector. She also urged engaging journalists in the impact assessment level of policies and also suggested to introduce media fellowships and media awards for journalists.

The presentation suggested introducing a super tax, sin tax, entertainment tax, etc.

Mohtasim Billah Faruki, president of the BCS (Taxation) Association, Syed Mohidul Hasan, secretary general of the association, and GM Abul Kalam Kaikobad, member (tax administration and HRM) of NBR, also spoke at the event.​

 

[Saif]

Corruption waning, but still stubborn

Corruption in Bangladesh has not been eradicated and remains quite difficult to eliminate, according to Commerce Adviser Sk Bashir Uddin.

www.thedailystar.net

Corruption waning, but still stubborn
Bashir says

Photo: Collected

Corruption in Bangladesh has not been eradicated and remains quite difficult to eliminate, according to Commerce Adviser Sk Bashir Uddin.

Bashir made this comment at a seminar organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at its auditorium in Dhaka, yesterday.

"The advisory council does not take any money. From the chief adviser to all other advisers, no one is here for financial gain," he said.

"These individuals [the advisory council] did not come here for money. Instead, our working relationship is transparent. We learn from one another and work together. This itself is a sign of reduced corruption," Bashir added.

The commerce adviser further claimed that the large-scale corruption, which previously led to the theft of Tk 28 lakh crore, is no longer occurring at the same level.

"That level of theft is no longer happening. However, corruption has not been eradicated -- it is quite difficult to eliminate," he said.

Among the most counterfeited items in the world, the US dollar ranks at the top, the adviser noted.

"This cannot be stopped overnight -- it is a very challenging task. However, we have taken various initiatives to address these issues. Due to these measures, corruption has decreased, and it will continue to decline further in the future," he concluded.

Adviser said that to tackle the challenges of post-LDC graduation, sector-based associations and the business community must work together.

He said that in trade, no country is a friend—everyone is a competitor. Accepting this reality, businesses must build consensus among themselves.

The opportunities ahead are far greater than the challenges, and by working together, these opportunities can be seized, he added.

Bangladesh is scheduled to graduate from the Least Developed Country (LDC) category to a developing nation on November 24, 2026, after meeting all three graduation criteria: Gross National Income per capita, Human Assets Index, and Economic and Environmental Vulnerability Index.

FBCCI Administrator Md. Hafizur Rahman, said that one of the key challenges Bangladesh will face after LDC graduation is product diversification.

He stressed the need to identify priority sectors and products and develop targeted strategies accordingly.

Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue, advised businesses to prepare for operating under the new policy framework in the post-LDC era.

"We need to step out of our comfort zone, and we must innovate new products and explore new markets," he said.

"We cannot survive in competition by focusing on how much tax relief we received from any country or what support the government provided," he said.

Moinul Khan, chairman of the Bangladesh Trade and Tariff Commission, said the interim government is committed to addressing the challenges of post-LDC graduation and resolving issues in the private sector.​

 

[Saif]

Securing Bangladesh's export sector against fraud

For many years, dirty money has been drained from Bangladesh to various international locations. A businessman from Chattogram, known for taking over multiple banks and channelling substantial amounts as loans, selected Singapore as the sanctuary for his laundered money where he established a billi

thefinancialexpress.com.bd

Securing Bangladesh's export sector against fraud
SYED MUHAMMED SHOWAIB
Published :
Mar 22, 2025 00:07
Updated :
Mar 22, 2025 00:07

For many years, dirty money has been drained from Bangladesh to various international locations. A businessman from Chattogram, known for taking over multiple banks and channelling substantial amounts as loans, selected Singapore as the sanctuary for his laundered money where he established a billion-dollar business empire. Another corrupt politician, formerly a minister, adopted a more flamboyant approach. He invested his ill-gotten wealth into numerous luxury properties in London, Dubai, and New York. Many government officials, however, reportedly prefer the upscale neighbourhoods of Toronto, Canada, as a safe place to reside with their laundered wealth. The fact that money laundering is a financial crime with potential for prosecution and punishment did little to deter them from engaging in it. According to the White Paper on the state of the economy released last December, approximately $240 billion has been illicitly transferred out of the country in the last 15 years, a practice that depletes national wealth while enriching a select few overseas.

Bangladesh's economy is heavily reliant on export earnings, with the garment sector contributing over 80 per cent of total exports. While exports grew significantly, reaching $55 billion in 2023, the actual figures could have been considerably higher without illicit money transfers. With an average GDP growth of 7.0 per cent, the authorities have so far felt little urgency to address money laundering's impact on exports. However, as the country prepares for LDC graduation in 2026 which will result in the loss of duty-free access to key markets, the economic drain caused by money laundering can no longer be overlooked.

For now, the government is revising export policies to fortify the sector. One major change has been a reduction in cash incentives for exporters. Previously, Bangladesh offered cash assistance ranging from 1.0 per cent to 20 per cent to enhance export competitiveness. However, from January 1 to June 30 this year, the maximum rate was lowered to 15 per cent, with a minimum of 0.5 per cent. This adjustment is part of a gradual phase-out process, because when Bangladesh will become a developing country, under World Trade Organization (WTO) rules it will be required to fully eliminate cash incentives. The WTO considers direct cash subsidies on export receipts trade-distorting, so it prohibits such practices in both developing and developed nations.

Cash subsidies are meant to strengthen export competitiveness, but, as revealed by numerous media reports, they've become a gateway for exploitation. Some companies have taken advantage of this government policy by falsely declaring exports, often with the help of corrupt customs officials and clearing and forwarding (C&F) agents. In many cases, no goods were even shipped, yet fraudulent claims led to the payout of tens of millions of taka. Compounding the challenge are external trade barriers such as anti-dumping measures. For example, India imposed anti-dumping duties on Bangladeshi jute and jute products, which significantly reduced exports to India and effectively nullified any benefits gained from the subsidies.

The long-term sustainability of export growth cannot depend on cash incentives. Businesses must move beyond reliance on subsidies as a crutch and focus on building their own competitiveness. This mindset of pursuing exports at any cost created a high-risk environment that opened avenues for money laundering. As Bangladesh transitions to a post-LDC era, phasing out subsidies must be paired with structural reforms that will prevent illicit financial flows within the export sector.

A significant portion of the illicit financial outflow occurs through trade and business. One common method used is mis-invoicing-undervaluation of exports and overvaluation of imports. Such exploitation of loopholes in the banking sector's export-import mechanisms has allowed financial fraud to flourish on a massive scale.

The back-to-back Letter of Credit (LC) system, widely used in the garment industry, is a prime target for money launderers. Under the system, raw material imports are financed against export orders. While regulations are in place to ensure import costs do not exceed export revenue. But these rules are often flouted. The Bangladesh Financial Intelligence Unit (BFIU) has uncovered such a case at Premier Bank's Narayanganj branch where 18 entities were provided with excessive unauthorised back-to-back LC facilities far beyond the allowable limit. This scheme facilitated the siphoning off Tk 6.21 billion through fraudulent transactions.

Even when staying within the regulatory limit, back-to-back LC transactions can still be susceptible to manipulation for money laundering. A key vulnerability lies in the proforma invoice-a preliminary bill of sale detailing goods or services, including their description, quantity, price, delivery, and payment terms. Banks are tasked with reviewing these invoices to ensure they align with master LCs, verify supplier credibility, and assess the reasonableness of pricing. However, the absence of a standardised price leaves banks without a reliable benchmark to cross-check invoice values.

In practice, bank employees often resort to informal methods to verify pricing, such as conducting Google searches. This approach is unreliable and ineffective. Consequently, banks struggle to detect over-invoicing and other fraudulent pricing tactics used in trade-based money laundering.

To tackle this issue, the Bangladesh Bank should create and maintain a comprehensive, regularly updated price list of all exported and imported goods. This list should account for market fluctuations, product quality, brand, model, and economies of scale. Making this database accessible to all banks online would enable them to quickly identify discrepancies between LC prices and official prices and help block suspicious transactions. To ensure accountability, punitive measures should be enforced against banks that neglect these checks despite access to the data.

A price list is not a cure-all, but it is a practical step towards securing the export sector's future.

By reducing illicit financial outflows and mis-invoicing, it could redirect billions of dollars from fraudulent trade into legitimate export revenue, boosting foreign exchange reserves and the economy.​