Bangladesh Bank has taken a proactive step to strengthen its oversight mechanisms in a bid to prevent money laundering by multinational companies operating in the country. As part of this initiative, the central bank is enhancing the capacity of its officials through specialized training programs focused on the detection and prevention of illicit financial flows, particularly through transfer pricing.
A workshop titled “Prevention of Money Laundering through Transfer Pricing from Multinational Companies Operating in Bangladesh” was held on Tuesday (September 9) at the Jahangir Alam Conference Hall of Bangladesh Bank. The event was organized for officials of the Foreign Exchange Inspection Department and was chaired by the department’s director, Mahbubul Alam.
In his address as the chief guest, Deputy Governor Dr. Md. Kabir Ahmed underscored the importance of monitoring transfer pricing practices by multinational entities. He noted that such companies often misuse transfer pricing mechanisms to illegally move money out of the country, thereby undermining Bangladesh’s revenue base and exerting pressure on foreign exchange reserves.
He urged participating officials to remain vigilant and enhance their analytical capabilities to detect such activities. “This type of training is an investment in human resources and essential for equipping our officials with the knowledge to combat modern financial crimes,” Dr. Kabir said.
He also emphasized the need for forensic inspections and keeping up with innovative and evolving financial fraud techniques in the era of globalization.
Speaking as a special guest, Executive Director Md. Rafiqul Islam highlighted that capacity building through such training is crucial to meet current and future challenges in the banking and financial sectors. He noted that enhanced monitoring of foreign exchange transactions would contribute to overall financial sector stability.
Mahbubul Alam, Director of the Foreign Exchange Inspection Department, pointed out the department’s role in maintaining market stability by tackling trade-based money laundering and informal remittance channels such as hundi. He also stressed the need for continuous training, both domestically and internationally, to address evolving threats.
The training session featured Md. Kamruzzaman FCA, Managing Partner of M. Rashid Zaman & Co., who served as a resource person. He provided detailed insights on the fundamentals of transfer pricing, including concepts like arm’s length pricing, international transactions, and the role of associated enterprises. He also elaborated on how improper application of transfer pricing can lead to illegal fund repatriation.
The day-long training included sessions on the regulatory framework in Bangladesh, documentation and reporting standards, and current global issues such as Base Erosion and Profit Shifting (BEPS) and digital economy-related challenges.
