The Effect of Tax Amnesty on Anti Money Laundering in Bangladesh

Journal of Money Laundering Control, 2018

Purpose The purpose of this paper is to demonstrate that the recurrent amnesties to black money holders (BMHs) in Bangladesh have not benefited the national economy, rather have increased corruption and money laundering, and that offering further opportunity to whiten back money as recommended by the Anti-Corruption Commission of Bangladesh will do more harm than good. Design/methodology/approach This research relies on both primary and secondary materials adopting an archival analysis of the existing literature. Findings The major findings include the following: the recurrent amnesties to BMHs have damaging impacts on corruption and money laundering in Bangladesh; the Anti-Corruption Commission of Bangladesh’s recommendation to provide further opportunity to legalise black money is flawed, ill thought-out and misjudgement of the futility of the amnesties offered to date; and the black money problem could be better addressed through using educational, preventive and punitive measure...

Canadian Journal of Business and Information Studies, 2020

Money laundering is a system, treated to legitimate illegally earned wealth in a way aiming to conceal the source of the wealth and after the process, the money looks like legal money. Our study aims to identify, analyze, and reveal the reasons that occur the offense and simultaneously, to suggest strategies and a model to control money laundering in Bangladesh. This study conducted based on primary data using a factors-based questionnaire, which responded to by teachers of universities and officers of banks. Findings suggest that reasons behind the offense are to transform black money into white money; to pay bribe and speed money; to hide the source of bribe and speed money; to get higher remittance, the illegal channel being used; to get a higher return from investment in other countries’ securities, stocks, and derivatives; to deposit money safely abroad; to evade import duty for having a higher rate in the specific items like gold, and to build a second home abroad. Findings al...

2012

Money laundering may be defined as the process of cleaning 'dirty money' derived from criminal activities so that it appears t o have originated from legitimate sources. It helps distance criminals from the proceeds of the underlying crimes so that they can enjoy their ill-gotten gains without fear of prosecution and confiscation. As such, money laundering not only encourages crime, but if left unchecked, it can also pose devastating political, social and economic consequences for any countries. The underlying rationale behind anti-money laundering (AML) laws is that if money laundering is criminalized and criminal proceeds are confiscated, crime will no longer pay and there will be less motivation for criminals t o commit crimes. In fulfilling its international obligations and commitment in the war on money laundering, Malaysia passed Anti Money Laundering and Anti-Terrorism Financing Act (AMLATFA) in 2001. AMLATFA is implemented by multi-law enforcement authorities led by Bank Negara Malaysia. AMLATFA also provides more powerful and innovative measures which may facilitate the recovery of illegal proceeds from money laundering and any other serious crimes.This paper will focus on the provisions relating t o the investigation of money laundering and measures for the freezing, seizure and forfeiture of criminal proceeds under AMLATFA. It is hoped that this piece of information will provide a better insight for the law enforcement officialson some legal issues that have arisen in implementing the AML laws in Malaysia.lndeed, the AML laws should be allowed to operate effectively and efficiently to bring criminals t o justice.

2021

Black money is a global concern. However, black money has disproportionately affected Bangladesh. To combat the proliferation of black money in the country, successive governments of Bangladesh have offered amnesties to black money holders (BMHs) in contravention of the national Constitution, legislation, and international conventions. Nonetheless, responses to such incentives have been notably poor, mainly because the wrongdoers do not fear the superficial threat of law enforcement. This article examines the BMHs’ responses to amnesties so far and explains the substantial harm caused by such discriminatory favors, including increases in corruption, the price of real estate, money laundering, deposits by Bangladeshis in Swiss banks, defaulted bank loans, and capital flights. To address these problems, this article makes several recommendations, including discontinuing amnesties, placing checks and controls on corruption, strengthening watchdog and law enforcement agencies, incentivi...

Journal of Financial Crime, 2016

Before the enactment of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA), the fight against financial crime can be found in several statutes such as the Penal Code, Anti-Corruption Act 1997 and Companies Act 1965. It is generally accepted that by freezing and forfeiting the proceeds of crime, it would give significant impact on the fight against financial crime. However, under these legislations there were few shortcomings of the procedures on how the proceeds of crime could be seized and forfeited. As such, the enactment of AMLATFA is considered timely to overcome these problems. AMLATFA provides innovative tools for the law enforcement officials to follow the money trail which will eventually lead to those who committed the financial crime. It also provides authorities with more powerful seizure and forfeiture measures. This is seen as a new law enforcement strategy to combat financial crime. It is believed that this approach is more effective than the traditional approach which only punished the individual criminal but failed to diminish the criminal operations. This paper aims to examine how the anti-money laundering law could be utilized to combat financial crime in Malaysia. To achieve this aim, this paper will focus on the provisions relating to measures for freezing, seizure and forfeiture of proceeds of crime under AMLATFA.

2018

DOI: 10.21276/sjhss.2018.3.12.12 Abstract: Money laundering crime has become an essential link in crime. The perpetrators of crime hide the results of corruption in the financial system or various other forms of endeavor. The act of concealing the proceeds of crime or the funds obtained from the offense is intended to obscure the origin of the property. Various reasons to combat money laundering which could adversely impact the economy, either macro and micro, because it is corrosive to the economic fundamentals. At the macro level, either directly or indirectly, money laundering can disrupt various financial systems, social systems, and the political system of a country. All countries agreed that money laundering is a crime that should have confronted and eradicated. Therefore, it takes the role of various parties to introduce, prevent and eradicate money laundering. One of the branches of economics is the Development Economy, which basically questioned how the implementation of de...

2018

Purpose: The purpose of this paper is to demonstrate that the recurrent amnesties to black money holders (BMHs) in Bangladesh have not benefited the national economy, rather have increased corruption and money laundering, and that offering further opportunity to whiten back money as recommended by the Anti-Corruption Commission of Bangladesh will do more harm than good. Design/methodology/approach: This research relies on both primary and secondary materials adopting an archival analysis of the existing literature. Findings: The major findings include the following: the recurrent amnesties to BMHs have damaging impacts on corruption and money laundering in Bangladesh; the Anti-Corruption Commission of Bangladesh\u27s recommendation to provide further opportunity to legalise black money is flawed, ill thought-out and misjudgement of the futility of the amnesties offered to date; and the black money problem could be better addressed through using educational, preventive and punitive m...

Jurnal Indonesia Sosial Sains

Due to its criminal nature, money laundering by transnational organized criminal groups will negatively impact the country's micro and macro economies. These impacts can disrupt the functioning of the market mechanism, create distortions that disrupt economic efficiency and the distribution of income and wealth in society and disrupt national development. The crook demonstration of tax evasion is an interaction or action that expects to stow away or mask the beginning of cash and resources got from criminal demonstrations which are then changed over into resources that seem to start from genuine exercises. Corruption, bribery, goods/labor/immigrant smuggling, banking, narcotics, psychotropic, trafficking, kidnapping, terrorism, theft, embezzlement, and fraud are all criminal acts that can lead to money laundering. The stages in the crime of money laundering are Placement, Layering, and Integration. The legal instrument for money laundering is Article 3 of RI Law No. 8 of 2010 co...

Journal of Money Laundering Control, 2013

Purpose -The purpose of this paper is to give a better insight to the legal society, practitioners and legislators of the working mechanisms of money laundering activities, as well as the functionalities of the Anti-Money Laundering and Anti-terrorism Financing Act 2003 (AMLATFA) in Malaysia, in curbing money laundering and terrorism funding activities. At the same time, the paper provides an overview on the applicability and practicability of the enforcement mechanisms in Malaysia by exploring legislations from different jurisdictions that are more developed. Design/methodology/approach -The paper achieves this by having a cross-sectional analysis onto the legislation in Malaysia such as AMLATFA and also similar legislations found in countries such as the UK. A complete insight is further gained by having interviews with experts in the judiciary, Bank Negara, as well as the experts from the Attorney General's Chamber in Malaysia regarding their insight into the subject matter. Last but not least, the authors also surveyed into the different points of view from journal articles in Malaysia and globally. Findings -Malaysia has a legal framework for curbing money laundering but the current AMLATFA provisions are considered to have failed to be effectively enforced. A more comprehensive, specific and well elaborated legal framework will have to be laid down in order to create a better platform for the prosecutors to bring a good case against these money launderers. Practical implications -This paper will give a deeper insight to the legal society of the capability of AMLATFA and the lack of it, in curbing money laundering in Malaysia and, at the same time, creating awareness among policy makers of the difficulties faced by the enforcement bureaus in prosecuting these money launderers due to the lacunas in the current law. Originality/value -This paper could be useful source of information for practitioners, academics, policymakers and students and a guide for any possible future amendments to the current insufficiency.

International Journal of Science and Research (IJSR), 2019

This article the author analyzes the issues of responsibility for the legalization of income derived from criminal activity (money-laundering) in international legal acts and legislation of foreign countries. The author studied this crime through the prism of Uzbek law. The legalization of proceeds derived from criminal activities is a criminal socially dangerous act representing imparting a lawful type to the origin of money or other property by transferring or exchanging it, non-disclosure or concealment of the true nature, source, location, method disposition, movement, rights with respect to money or other property or its accessories if money or other assets derived from criminal activity.