‘Money laundering under cover of dual citizenship’
A section of people, especially unscrupulous businessmen, politicians and bureaucrats, have been laundering money abroad taking the advantage of dual citizenship.
Those who hold dual citizenship have no obligation to inform the Bangladesh authorities about their wealth abroad.
Sikder Group chief’s two sons Ron Haque Sikder and Rick Haque Sikder as the citizens of USA, have registered companies in different countries and have investments there.
Apart from dual citizenship, Bangladeshi nationals, who have wealth abroad, need not mention it in their income tax statement.
Bangladesh lawmaker (Lakhmipur-2 constituency) Mohammad Shahid Islam has companies in Kuwait.
Shahid Islam, who has been arrested on charges of fraudulence and human trafficking in Kuwait, has not mentioned it in his income tax statement or in the affidavit submitted to the election commission.
A Begumpara has been established in Canada with laundered money. Children of influential people lead a luxurious life there, though they have no income there. We all know where this money for their luxurious lives comes from, but steps are not taken.
As a Bangladeshi national legally cannot invest abroad, the National Board of Revenue (NBR) has not kept any space in the income tax statement to record this, the officials have point out. However, India and Pakistan have properly done it and they are receiving tax.
Taking advantage of this loophole, unscrupulous businessmen, politicians and bureaucrats have been laundering money and accumulated wealth abroad.
In the budget for the fiscal 2020-21, a provision has been kept that if anyone launders money, a small amount of it will be fined.
Speaking to Prothom Alo, former adviser to the caretaker government and Comptroller and Auditor General (CAG), M Hafizuddin Khan said steps should be taken so that Bangladeshis must disclose their assets and income abroad.
The law should be amended if necessary, he added.
Hafizuddin said, “A Begumpara has been established in Canada with laundered money. Children of influential people lead a luxurious life there, though they have no income there. We all know where this money for their luxurious lives comes from, but steps are not taken.”
Money laundering under the cover of citizenship
On family or investment grounds, many Bangladeshis have obtained citizenship or started to live permanently in many countries including USA, Canada and Malaysia.
Under ‘My Second Home Programme in Malaysia’, as many as 4,135 Bangladeshis have become permanent residents between 2003 and 2018.
A Bangladeshi has to deposit Tk 10 million in a bank of Malaysia to get the opportunity.
It is the responsibility of NBR to ensure transparency and accountability of wealth possessed at home and abroad by the person who holds dual citizenship.
Similarly, under the investment programme, many Bangladeshis have become permanent residents in Canada. Many big businessmen have invested in many countries including USA, Canada, Vietnam and Cyprus. Money has been laundered under the cover of import-export and through hundi to those countries.
A section of bureaucrats laundered their illegally earned money abroad and obtained citizenship of other countries.
In 2019, India and Pakistan created scope for their citizens to show their wealth abroad in the income tax statement.
Executive director of Policy Research Institute (PRI) Ahsan H Mansur said the information of double citizens’ wealth should be kept in the income tax records.
Transparency International Bangladesh (TIB) executive director Ifthekharuzzaman said it is the responsibility of NBR to ensure transparency and accountability of wealth possessed at home and abroad by the person who holds dual citizenship.
*This report, originally published in Prothom Alo print edition, has been rewritten in English by Rabiul Islam.