Bangladesh mulls tough TBML penalties

Bangladesh is mulling the introduction of strict measures to clamp down on trade-based money laundering (TBML) and tax evasion using fake trade documentation and false accounting.

The measures are expected to be implemented by the country’s National Board of Revenue (NBR).


Measures include a penalty equivalent of 50 per cent of the value gap – the difference between the declared and actual values of imports, exports and investments.

The NBR may also be empowered to seize property belonging to taxpayers if they fail to pay penalties.

Fraudulent investments

The measures aim to limit opportunities for TBML and income tax evasion through over-invoicing of imports and under-invoicing of exports and fictitious investments.

Fraudulent investments include the false declaration of capital equipment that is worth much less than the amount declared while the investor claims back tax on the falsely declared value.

Categories: Trade Based Financial crimes News

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