Bangladesh Bank Governor Dr. Ahsan H Mansur on Saturday announced that the interim government will hire foreign lawyers to recover funds siphoned abroad, offering commissions as incentives for retrieving large amounts.

"Money had been siphoned abroad, and we are now working with foreign entities to retrieve it. We are hiring international lawyers to recover the (stolen) funds, he said. The governor added that compliance with global laws is crucial in these efforts.
 
The governor made these remarks during the inaugural session of the year-long "Branding Bangladesh" World Conference Series-2025, organised by the Center for Non-Resident Bangladeshis, the event also included the launch of the Bank Remittance Award ceremony at a city hotel.

Dr. Mansur revealed a major case of money laundering involving US$20 billion siphoned abroad by a Chattogram-based entity, describing it as one of the largest instances in the country's history.

"We are collaborating with international authorities, including the FBI, to recover these funds. Foreign organisations have expressed their willingness to assist," he said, stressing the importance of global cooperation.

The governor highlighted recent improvements in the banking sector, noting that remittance inflows have grown by an average of 26 percent over the past six months, amounting to 3 billion US dollars.

Besides, he said, exports have reached US$2.5 billion during the same period. 
He emphasized ongoing efforts to create a favorable environment for economic growth.

Dr. Mansur pointed out that money laundering has been significantly curbed due to better governance.
 
"Previously, funds were laundered even from Dubai. Now, with improved 
governance, we have managed to prevent such incidents. Incentives are being provided to expatriates for sending remittances," he said.

However, he cautioned that bureaucratic hurdles must be minimized to ensure steady growth in remittances.
 
He also underscored the need for direct remittance channels, noting that funds from Saudi Arabia often pass through Dubai before reaching Bangladesh. "If people have confidence in banks, the sector will recover," Dr. Mansur added.

He commended the 2.5 percent incentive on remittances sent through banking channels, which has bolstered inflows despite political uncertainties.
 
The BB governor reiterated the importance of transparency in financial systems and combating money laundering to ensure sustainable economic growth.

He further stressed the need to enhance workforce skills to maximize 
remittance inflows, expressing optimism that proper governance and 
international collaboration could help achieve these goals.

Foreign Affairs Adviser Md. Touhid Hossain attended the event as the chief guest while the Chairperson of the Center for NRBs MS Shekil Chowdhury presided over the session.

MSH

Companies and organisations will be required to file tax returns on the income generated by employee welfare funds from the current fiscal year and pay a 27.5 percent tax on the earnings. 

The Income Tax Act 2023 incorporates the provision, lifting the tax exemption and amnesty on the compulsion to file returns for funds such as provident funds, gratuity funds and workers' profit participation funds maintained by the private sector.

The law, however, has exempted government-managed provident funds from taxation, raising questions.

TIM Nurul Kabir, executive director of the Foreign Investors' Chamber of Commerce & Industry, said there were many other avenues to collect tax.

"Employees benefit from provident funds after their retirement. So, the authority should not slap taxes on retirement benefit."

He said while levying the tax, the government has not treated provident funds of the private and public sectors equally.

"It is discriminatory," he said, adding that they would appeal to the tax authority for the withdrawal of the tax on income from provident funds.

Debabrata Roy Chowdhury, director for legal, regulatory and corporate affairs at Nestlé Bangladesh PLC, said the introduction of income tax on trust funds would lower the overall income from such schemes.

"This will have an adverse long-term impact on retired employees of private organisations."

Chowdhury urged the authority to address the issue in line with the spirit of the government's initiatives aimed at ensuring social security for private sector employees.

"The recent introduction of the universal pension scheme for private sector employees is a good example of that."

A senior official of the NBR, on condition of anonymity, said the income of government-managed provident funds was exempted in line with the Provident Fund Act 1925.

He said provident funds under the private sector had been historically exempted and there was no requirement to submit tax returns. As a result, it was unclear whether the funds were properly utilised.

"From now onwards, we will see proper disclosure."

The tax official said the contribution of payroll tax is about 3 percent of the total income tax although it should increase as the economy is growing.

Md Shahadat Hossain, a former president of the Institute of Chartered Accountants of Bangladesh, said income from investment in savings certificates, where people invest as a source of future earnings, is already taxed.

"From that perspective, the imposition of tax on provident and other employee welfare funds seems okay."

However, Towfiqul Islam Khan, senior research fellow at the Centre for Policy Dialogue, said social protection for private sector employees was low.

"Provident and other workers' welfare-related funds provide little social protection. The imposition of tax will increase inequality. But there can't be any discrimination in taxation between private and government provident funds."

Khan, citing the latest income tax law that replaced the Income Tax Ordinance 1984, said the NBR tried to find new avenues to increase tax collection and improve the nation's revenue-gross domestic product ratio, which is one of the lowest in the world.

"We can see the desperation of the tax authority to boost collection. This ultimately reveals the inability of the NBR to catch the tax evaders and illicit money makers."