Recent statistics and international banking reports suggest that capital flight from Bangladesh is on the rise. This trend stems primarily from two reasons.
First is the tendency to launder money earned through corruption. Those who accumulate wealth illicitly often fear accountability if the funds remain within the country—risking exposure by economic intelligence units, the Anti-Corruption Commission (ACC), or the media. However, in certain foreign jurisdictions—especially those with highly secretive banking systems—such individuals are able to stash money with ease, away from scrutiny, and enjoy the proceeds freely. These destinations typically do not ask difficult questions about the source of funds, thus allowing wrongdoers to remain outside the bounds of accountability.
Second, even those who earn money legally often do not feel safe keeping their wealth in Bangladesh. Political instability, weak rule of law, institutional fragility, and a lack of trust in policymakers together create a climate of insecurity. Consequently, many choose to move assets abroad in an effort to secure their future.
The surge in money transferred to Swiss banks in 2024, for instance, may be strongly linked to the country’s political instability—particularly before and after the controversial 2024 general election. Many individuals tied to the then government or ruling party may have moved their assets abroad in anticipation of an uncertain future.
Capital flight severely harms the national economy. Firstly, since much of this money is earned through corruption, it does not benefit essential sectors like development, education, healthcare, or infrastructure. Instead, it fuels personal luxury and weakens the country's productive investment base, reducing job creation opportunities.
Secondly, it causes serious social and moral decay. When one individual escapes justice by laundering money abroad, others are encouraged to follow the same path. This undermines respect for the rule of law and erodes public trust in justice.
The government’s political will is crucial to addressing this issue. But mere declarations of intent are not enough. There must be strict and impartial enforcement of the law. Whether the offender is a politician, bureaucrat, or businessperson, no one should be exempt from prosecution. The practice of selectively targeting some while sparing others must end.
Above all, we must acknowledge that without ensuring a stable political and economic environment, capital flight cannot be fully halted. When citizens feel secure, confident, and trust in justice, they will be encouraged to keep their wealth within the country.
Author: Executive Director, Center for Policy Dialogue (CPD).
