Bangladesh Bank Strengthens Oversight to Prevent Money Laundering by Multinational Companies

Bangladesh Bank has launched a new initiative to enhance surveillance mechanisms and prevent money laundering by multinational companies operating in the country. As part of this initiative, the central bank is conducting specialized training to strengthen the capacity of its officials in identifying and countering illicit financial flows, particularly through the misuse of transfer pricing.

A workshop titled “Preventing Money Laundering through Transfer Pricing from Multinational Companies Operating in Bangladesh” was held on Tuesday at the Jahangir Alam Conference Hall of Bangladesh Bank. The event was chaired by Mahbubul Alam, Director of the Foreign Exchange Inspection Department, and attended by senior officials of the central bank.

Dr. Md. Kabir Ahmed, Deputy Governor of Bangladesh Bank, attended the workshop as the chief guest. In his speech, he emphasized the growing risks of money laundering through manipulative transfer pricing practices by multinational corporations. He noted that such practices not only reduce the country’s revenue but also exert pressure on foreign exchange reserves.

“Multinational companies often misuse transfer pricing mechanisms to illegally transfer funds out of the country. Strengthening surveillance in this area is crucial to protecting our financial system,” said Dr. Kabir Ahmed.

He advised participating officials to stay vigilant and to apply the knowledge gained from such training programs to detect and prevent suspicious transactions. Highlighting the evolving nature of financial crimes, the Deputy Governor called for continued investment in human resource development and forensic inspection techniques to tackle emerging threats in the financial sector.

Speaking as a special guest, Md. Rafiqul Islam, Executive Director of Bangladesh Bank, stated that ongoing training and capacity-building are essential to address current challenges in the banking sector, especially in monitoring foreign exchange transactions.

Director Mahbubul Alam discussed the critical role of the Foreign Exchange Inspection Department in maintaining market stability and combating trade-based money laundering and illegal remittance outflows (hundi). He also expressed gratitude to the Deputy Governor for supporting timely decisions to resolve the ongoing foreign exchange crisis.

The initiative reflects Bangladesh Bank’s ongoing commitment to upholding the integrity of the financial system and ensuring compliance with international standards in the fight against money laundering.