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 present significant challenges to governance and economic growth, with widespread issues such as human trafficking, extortion, and the illicit trade of goods. Despite the existence of laws and institutions aimed at combating these problems, enforcement remains inconsistent, and political interference often undermines the effectiveness of anti-corruption efforts, leaving the judicial system and law enforcement capabilities compromised.

Bangladesh's economy is characterized by a rapidly growing GDP, averaging 6.4% annual growth from 2013 to 2023, although projections for FY2024-2025 indicate a slowdown to 3.3%. The country has recently faced significant challenges, including a balance of payments deficit and a decline in foreign currency reserves, prompting the government to seek assistance from the International Monetary Fund (IMF) for economic reforms. While Bangladesh aims to attract foreign investment through various incentives and has sectors like textiles and agribusiness drawing interest, issues such as inadequate infrastructure, bureaucratic delays, and a complex regulatory environment continue to hinder the investment climate.