Bangladesh is losing an estimated $ 16 billion annually through trade-based money laundering (TBML), primarily due to the weak enforcement of existing regulations and fragmented oversight, a new study has found.

The Bangladesh Institute of Bank Management (BIBM) unveiled the findings in a report titled “Enforcement Status of the Standards to Prevent Trade-Based Money Laundering,” presented at a roundtable in Dhaka on Tuesday.

The study reveals that 75% of domestic money laundering cases involve trade channels, with sectors such as textiles, consumer goods, and petroleum imports being the most affected. The annual loss, amounting to 3.4% of the country’s GDP, exceeds its total public health expenditure.

Despite policy alignment with global anti-money laundering standards, BIBM noted significant gaps in implementation. Only half of the 37 banks surveyed use global price-verification systems, while many rely on manual assessments without standardised benchmarks. Public banks often lack dedicated units for verifying prices.

The report shows systemic weaknesses, including limited coordination among the Bangladesh Financial Intelligence Unit (BFIU), the National Board of Revenue, customs, and commercial banks. This disjointed structure hinders the real-time tracking of trade data, thereby enabling invoice manipulation and the concealment of phantom shipments.

TBML is not explicitly classified as a predicate offence under the Money Laundering Prevention Act 2012, further complicating enforcement.

BIBM recommends creating a Trade Transparency Unit, publishing a beneficial ownership register, and improving information-sharing frameworks. Without such measures, the study warns of risks including revenue loss, regulatory blacklisting, and reputational damage in global financial markets.