Economy
New Visa Policy will Lessen Money Laundering says Foreign Minister
Foreign Minister Dr. AK Abdul Momen expressed optimism on Saturday (May 27) regarding the potential of the new US visa policy to effectively combat the detrimental practice of money laundering to the United States.
Speaking to the media after attending an event at the International Mother Language Institute, he highlighted that US visas are commonly sought by affluent individuals such as government employees, politicians, businessmen, and certain members of civil society. He pointed out that those who possess the financial means to secure foreign education for their children and own assets are typically the ones involved in money laundering activities.
Dr. AK Abdul Momen underscored that these individuals engage in illicit practices to transfer funds from the country and invest in foreign assets. Implementing restrictions on such individuals, he noted, would help safeguard the country from financial losses caused by money laundering. While the government does not possess specific data on the exact amount of money laundered abroad annually, a US-based think-tank, Global Financial Integrity, estimated that Bangladesh incurred a substantial loss of $49.65 billion or approximately Tk 4,71,675 crore on average between 2009 and 2015 (excluding 2014). This loss primarily resulted from trade misinvoicing and under-invoicing, with an average of Tk 84,475 crore being siphoned off from the country each year during that period.
Addressing any concerns about the government’s reaction to the new visa policy, the foreign minister clarified that the issuance of US visas is solely the concern of the United States, not Bangladesh. He emphasized that the country would not engage in any clamor or fuss demanding US visas.
Regarding the return of special security protocols for the Indian and Saudi ambassadors, Dr. AK Abdul Momen stated that there is no lack of security in the country. He indicated that no ambassador has requested additional security measures thus far, and no foreign country has engaged in any wrongdoing that would make them potential targets for attacks. Therefore, he expressed confidence and reassured that there is no cause for concern in this regard.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
