Zakir Hossain / Dhaka
Funds tied to Bangladeshi nationals and entities in Swiss banks surged to 589.5 million Swiss francs (approx. Tk 8,800 crore) in 2024, reaching a three-year high, according to the Swiss National Bank (SNB). The rise, following two years of decline, coincided with the country’s political upheaval in 2024. Analysts believe the sudden increase reflects capital flight amid the transition of power.
“The secrecy that once defined Swiss banking is no longer what it used to be,” said Zahid Hussain, former lead economist at the World Bank’s Dhaka office. “From Dubai to Ireland, new safe havens are emerging where you can buy properties, open accounts, and move money more discreetly.”
Hussain, who was part of the government panel that authored a white paper on illicit financial flows, added: “A deposit in a Swiss bank coming from the UK may be legal, but that doesn’t mean the money wasn’t laundered earlier through under-invoicing in trade.” The white paper, published in December 2024, revealed that $234 billion was siphoned off from Bangladesh between 2009 and 2023, mostly routed through the UAE, UK, Canada, US, Hong Kong, Malaysia, Singapore, India, and several tax havens.
The 2024 Swiss deposit figure marks a 33-fold increase from 2023, when holdings had plunged to 17.7 million francs, the lowest on record. The SNB data, which includes all currency holdings under “Banks in Switzerland,” does not specify the identity or purpose of the depositors. Though Swiss banking reforms have introduced more transparency, the system remains under global scrutiny for enabling money laundering. Between 2015 and 2020, Bangladeshi deposits typically ranged from 480 million to 660 million francs.
The sudden spike is expected to trigger fresh investigations, especially under Bangladesh’s interim government, which has pledged reforms and asset recovery. “Based on global experience, the recovery rate for illicit outflows is just around 1 percent,” Hussain said. “To get the money back, you have to win legal cases in both countries. It’s not just about knowing the money left illegally— you have to prove it in court, twice.”
(Zakir Hossain is a freelance journalist and political analyst based in Dhaka, Bangladesh)