Bangladesh Country Summary

FATF Status

Bangladesh is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Bangladesh was undertaken in 2020. According to that Evaluation, Bangladesh was deemed Compliant for 8 and Largely Compliant for 27 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 3 of the Effectiveness & Technical Compliance ratings.

Crime and corruption in Bangladesh are pervasive issues that significantly hinder investment and economic growth. Despite having laws to combat corruption, enforcement remains inconsistent, with public procurement and regulatory authorities often marred by bribery and extortion, while organized crime networks exploit vulnerabilities in the judicial and law enforcement systems.

Bangladesh, with a population of approximately 170 million, is the most densely populated non-city-state globally and is strategically located between emerging South and Southeast Asian markets. The economy has shown resilience with an average GDP growth of 6.5% from 2013 to 2022, although growth is projected to slow to 5.78% for FY2023-2024 due to external shocks like the pandemic and geopolitical tensions, leading to a widening current account deficit and a significant decline in foreign currency reserves. Despite efforts to attract foreign direct investment through various incentives and the establishment of economic zones, challenges such as inadequate infrastructure, bureaucratic inefficiencies, and a lack of enforcement of labor and environmental regulations continue to hinder the investment climate, alongside a backdrop of political instability and corruption that affects judicial independence and contract enforcement.