Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Wednesday, November 22, 2017 01:21:24 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Doubtful jumps of capital machinery imports

By
08th-Jan-2017       
Comments
Share your thought
Post a comment »
Read all () »

IMPORT payments for capital machinery increased by 80.80 per cent to US$ 2.49 billion in the first five months (July-November) of the current financial year compared with that in the same period a year ago, strengthening suspicion of money laundering as the growth came amid dull business and investment situation in the country, as per a report of a local daily.

The latest Bangladesh Bank data released on Thursday showed that import of industrial raw materials also posted a positive growth in the July-November period of FY17 compared with that of the same period in FY16. Experts and BB officials said that some businessmen were now laundering money abroad in the form of import of capital machinery when the country's business was facing a dull situation.

The country's business is now facing a stagnant situation, and so the rising import of capital machinery raises a suspicion that money laundering might be occurring behind the scenes.

Former interim government adviser AB Mirza Azizul Islam is reported to have said that some persons had conducted capital flight in the form of import of capital machinery, as per the report. They have done it through over-invoicing in the letters of credit form (LCF) as the country's economy now was not so strong that the jump in the import of capital machinery could be explained. This view was echoed by former BB governor Salehuddin Ahmed, as per the report.

It is well known that capital flight is a serious problem facing all developing countries including Bangladesh. The solutions to the problem are also easy -- it should not be a big matter to coordinate the knowledge of Bangladeshi citizens who hold accounts which have huge cash reserves -- provided the central banks of developed countries co-operate. While the Western banks have strict privacy policies these can be circumvented -- as the US has done with the FACTA Act which requires all banks -- including Swiss ones, to notify the US of the wealth of their US citizen accounts.

Data from the Global Financial Integrity (GFI), a Washington-based research organisation, gives a comprehensive picture about money laundered out of a country. Illegal capital flight from Bangladesh surged 33.78 percent year-on-year to $9.66 billion in 2013 through trade misinvoicing and other channels, according to the GFI.

The highest in a decade, the amount was more than six percent of the country's GDP and one-third of the export receipts in 2013. It is three times the size of average foreign aid Bangladesh received in recent times. The organisation had ranked Bangladesh 26th in the list of the countries that lost most money to illicit money outflows.  This is why Bangladeshi citizens' deposits with Swiss banks rose to 8.85 percent year-on-year in 2015 to an astounding Tk 4,423 crore (550.85 million Swiss franc), shows Swiss central bank data -- up from only 1222 crore in 2011.This tremendous amount should not be lost forever, it must be brought back into the country.       
 

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

HC verdict is well meaning: Hospitals must appreciate


THE High Court ordered hospitals and clinics not to hold body of a deceased if his or her family fails to immediately pay the medical bill to release the body. It has also asked the Health Secretary and the Director General of the Directorate of Health Services to issue a ...

International »

Putin, Assad for political solution to Syria`s conflict


Reuters, Moscow  :Russian President Vladimir Putin hosted Syrian leader Bashar al-Assad to talk about the need to move from military operations to the search for a political solution to Syria's conflict, the Kremlin said on Tuesday.Russia is actively trying to build an international consensus around a peace deal for Syria, ...

Sports »

A scene from the opening ceremony of the Omicon Group 43rd National A Chess Championship held at Bangladesh Chess Federation hall-room on Tuesday.


Sports »

Sharapova named in India luxury housing fraud probe


AFP, New Delhi :Five-time Grand Slam champion Maria Sharapova is under investigation in India for cheating and criminal conspiracy after the collapse of a luxury housing project that she endorsed, police and a lawyer said Tuesday.The firm behind the development is alleged to have taken millions of dollars from homebuyers ...

Entertainment »

Janhvi dazzles at IFFI in ethnic wear


Janhvi Kapoor who is all set mark her Bollywood debut with Karan Johar’s Dhadak opposite Ishaan Khatter makes a dazzling entry at 48th IFFI 2017 in Goa. Janhvi was accompanied by her mother Sridevi and father Boney Kapoor. Janhvi looked elegant wearing Anamika Khanna lehenga choli. It is probably Janhvi’s ...

City »

Uphold image of Armed Forces: President


President M Abdul Hamid on Tuesday asked the members of Armed Forces to uphold their image at national and international levels by ensuing utmost professionalism. "Uphold the image of the armed forces . . . Help continue the country's ongoing development trend in the days to come," President's Press Secretary ...

Editorial »

Use of toxic tannery wastes in poultry feed


MEDIA reports said an increasing number of poultry feed mills using dangerously toxic tannery wastes laced with poisonous chemicals as raw materials remain the biggest threat to public health. They are moreover flouting is a ban of the High Court for producing and marketing the toxic feed for animals which ...

International »

Putin plan to rejuvenate Russian politics makes slow progress


Reuters, Moscow :Poised to run for a fourth term, President Vladimir Putin has started clearing out the old Russian political elite and says he's bringing in young people with "fire in their eyes."But a Reuters analysis shows that he has made limited progress so far.In the run up to March ...

Sports »

Participants run during the Delhi Half Marathon in New Delhi, India on Sunday. Ethiopia's Birhanu Legese and Almaz Ayana won the men's and women's elite categories, respectively.


Entertainment »

Bollywood congratulates Manushi Chillar on winning Miss World crown


After a wait of 17 long years, Indian model Manushi Chhillar has won the Miss World crown. Since yesterday’s announcement, many Bollywood celebs and public figures have congratulated her on winning the prestigious event. Here are some endearing messages from Bollywood celebs: The Megastar of Bollywood Amitabh Bachchan congratulated Manushi ...

Entertainment »

Runa Khan coming with her first movie


Sheikh Arif Bulbon :Most of her colleagues always appreciate the acting of Runa Khan. There is no other alternative or choice of her in TV plays. So she has acceptability among the directors. Viewers also like her acting. Runa will entertain the viewers by virtue of her acting skill with ...

City »

BNP Chairperson Begum Khaleda Zia cutting cake marking birthday of BNP Senior Vice-Chairman Tarique Rahman at her Gulshan office in the city on the early hours of Monday.


National »

GAFFARGAON: Vice-Chairman of the Central Committee of Muktijodha Sanghati Parishad Major (Retd.) Md Rezaul Karim, a veteran freedom fighter and an Awami League leader addressing a meeting on his participation in the coming National Election as a candidate from Awami League in the election area Mymensingh-10 (Gaffargaon & Pagla PS) Primary School field, Gaffargaon on Friday. Among others, freedom fighter Mofazzal Hossain, Auditor (retd.) Alhaj Abdul Karim and Ex Ward Member Saiful Islam also spoke in the meeting at Charalgi (Nidiar Char) .


Editorial »

Higher production capacity for power plants


THE state-owned power plants can't generate electricity to a minimum of their stated capacity as they lack improved technology, besides management failure to achieve the highest output as per a report in The New Nation on Sunday. The report quoting Bangladesh Power Development Board (BPDB) said its power plants can ...

International »

Hariri announces return to Lebanon as crisis simmers


AP, Paris :Lebanon's Prime Minister Saad Hariri said he will return home in the coming days from where he will declare a political stance for the first time since making a strange resignation announcement from Saudi Arabia that unleashed fears of a crisis in Lebanon.Hariri and his family met Saturday ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news