Muhith vows steps to reduce money laundering in July

The government will adopt some new measures in July against money laundering, Finance Minister Abul Maal Abdul Muhith has said.

He made the remarks during discussions for the 2016-17 supplementary budget in parliament on Tuesday.

"There is no way to completely stop money laundering. But what we can do is reduce the ways for the crime. This means to make sure black money doesn’t generate within the country.

"We are taking some necessary steps. You'll see them before next month."

In the past few years there has not been any proposal from him about amnesty for black money, the finance minister said. But the law has a provision for 'whitening' back money.

The provision for legalising black money in exchange of a 20 percent fine has been around for two years, he said.

Illicit fund outflows cost Bangladesh $8.97 billion in 2014, according to a recent report by the Global Financial Integrity or GFI.

More than $75 billion was lost between 2005 and 2014 due to trade misinvoicing and other unrecorded outflows.

In a comment on raising excise duty, he said, "This is nothing new. You've been paying this for years. I just raised the rates a bit."

Muhith plans to lower interest rates on savings certificates, which are usually higher than bank rates.

"But it shouldn't be too much."

"My understanding is that it should be at least 2 percentage points higher than the bank rates. That's how we will fix the rates. But this will take some time." 

About remittance, he said every country except some African nations is suffering a drop in receipts. "There are enough reasons for the slump. Many remitters are setting up homes abroad. So they keep their wealth there."