The government of Bangladesh has released a paper naming the countries that are prime destinations for illicit financial flows (IFFs) out of the country. They include the US and the UK, Canada, Australia, Singapore, Hong Kong, the UAE, Malaysia and the British Virgin Islands.
The paper also says the authorities will specifically focus on trade based money laundering (TBML) in their efforts to crackdown on IFFs.
The government identified the countries and territories based on independent studies and recent IFF cases according to the paper.
It also looked at the typologies used to process IFFs. These include the fraudulent use of investment visas, abuses of residency status and trade-based schemes to avoid taxes and duty.
The paper outlines 11 strategies the government has devised to prevent money laundering, terrorist financing and corruption. The government aims to apply the strategies in the next three years.
TBML is the focus of one of the strategies while others include hawala (money exchange) operations, bulk cash smuggling and transfer pricing manipulation.
Categories: Trade Based Financial crimes News