Bangladesh establishes new unit to tackle TBML via international under- and over-invoicing and transfer pricing

Bangladesh has established a new body to detect and prevent trade-based money laundering (TBML) through under- and over-invoicing in international trade.

The new transfer pricing cell (TPC) has a specific remit to focus on customs duty and VAT evasion, and is additional to existing TPC operations that have no remit to focus on these areas and are more focused on domestic rather than international money laundering concerns.

International perspectives

The new seven-member TPC, which operates within the National Board of Revenue (NBR), is tasked with verifying the authenticity of cross-border transaction values declared.

It will also develop appropriate legislation and a regulatory framework to contain under- and over-invoicing.

The new cell will also work with internationally with customs and other agencies concerned with TBML in other countries.

Abusive pricing

According to the order establishing the new cell, it is also charged with launching an investigation into TBML via abusive transfer pricing that denies Bangladesh rightful payment of customs and VAT.

There is currently no provision in Bangladesh’s customs legislation that addresses the issue of transfer mispricing.

Categories: Trade Based Financial crimes News

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