Banks instructed to campaign for bringing back laundered money

Bangladesh Bank (BB) has instructed the country’s scheduled banks to launch a campaign to encourage Bangladeshi nationals to send home the undisclosed money they earned abroad by paying only 7 per cent taxes, reports UNB.

The campaign will be in accordance with the recently made ‘Income Tax Ordinance’ aimed at bringing back undisclosed income and the money laundered by Bangladeshi nationals.

Bangladeshi nationals can show their income, earned abroad by any means, in the income tax return by paying 7 per cent tax. Such income will be legalized by the banking channel and no one (banks or any other agencies) can ask about the sources of this income.

The central bank issued a circular in this regard on Monday and sent it to all scheduled banks for necessary action.

The circular stated the implementation and promotion of offshore tax amnesty under the Income Tax Ordinance.

“Through the Finance Act, 2022, as per Section-19 of the Income Tax Ordinance, 1984, paying 7 per cent tax during the period from July 1, 2022, to June 30, 2023, the undisclosed money accumulated outside Bangladesh in any form, can be legally brought into Bangladesh, by banking channels and displayed it in the income tax return,” the circular added.

Economists and former NBR officials criticized the amnesty saying that money laundering and capital flight from Bangladesh would increase due to this.