Developed and Developing Countries must have a Political Commitment to Stop Illicit Financial Flow


Index_photo_18Dhaka, 15th November 2013: Today a right based civil society group in a press conference in Dhaka said, both developed and developing countries political leaders to act with commitment to stop illicit financial flow from poor countries. EquityBD, a network of right-based civil societies, organizes the press conference to lunch the Financial Secrecy Index (FSI) 2013 recently published by Tax Justice Network (TJN) in London.
Rezaul Karim Chowdhury of EquityBD moderates the press conference titled “Top Jurisdictions giving Financial Secrecy and Bangladesh” while the keynote paper is read out by Ahsanul Kairm of EquityBD. Asjadul Kibria of Bangladesh Economic Association (BEA) comments as an expert in this regard. Other speakers of the press conference are Mostafa Kamal Akanda of EquityBD, Shopon Bhyian a Journalist and Mainul Islam from Bangladesh Krishok Federation.
In his keynote presentation Ahasanul Karim gives summary on the TJN’s Financial Secrecy Index 2013. TJN has been presenting such report since 2009. In the current report they have used 15 indicators and ranked Switzerland, Hong Kong, Jersey (UK), Bahrain, Panama, Mauritius, Malaysia, Dubai, Bermuda and Lebanon are in top ranking. Citing from the reference Ahsanul mentioned that only $1 is coming to the poor countries as the foreign aid in exchange of $10 of illicit financial flow to the developed countries. Africa alone lost around $1 trillion while the whole continent debt burden is of $190 billion, he added.
Ahsanul also mentioned that, according to the TJN research findings during the period 1976 to 2010 Bangladesh lost $ 24.7 billion. He also mentioned that there are around 48 to 84% of black money in Bangladesh as said by present Finance Minister. Most this money is being used in election campaign.
Ahsanul also suggested to take examples from Indian government to stop illicit financial flow and its recovery. India published white paper on black money and illicit financial flow and recovered around $4.43 billion alone in FY 2011-2012. In the last ten years India has Double Taxation Avoidance Agreement (DTAA) with 88 countries . They have also reformed there tax administration.
Asjadul Kibria has given different example of illicit financial flow from Bangladesh where asset swap, second home and citizenship offer of different neighboring countries, especially of Malaysia, Latvia, Morisus. Although Switzerland was one of the most prominent in secrecy jurisdiction but due to the pressure from US and EU now they are relaxing in this regard and accepting tax transparency.
Rezaul Karim Chowdhury of EquityBD has mentioned that civil society must raise voice that both developed and developing countries especially of poor countries’ political leaders must be committed to stop this illicit financial flow so that in future developing countries especially poor countries hardly need of aid dependency.

Please Download [Bangla press] [English Press] [FSI – Press Release] [Summary of Methodology] [John Christensen] [Letter to HM The Queen ] [Position Paper]

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