Funds deposited by Bangladeshis in Swiss banks jump by 55% in 2021

The funds deposited by Bangladeshi clients in the banks of Switzerland have increased by nearly 55 percent to 871.11 million Swiss francs year on year in 2021 when the world was trying to recover from the coronavirus pandemic.

In 2020, when the pandemic crushed the global economy, the amount of money parked by Bangladeshis in the Swiss banks dropped by 7 percent to 562.93 million Swiss francs.

The latest annual data from the Swiss National Bank, released on Thursday, is likely to fuel a debate over Finance Minister AHM Mustafa Kamal’s proposal to offer amnesty to money launderers, although it cannot be confirmed if the funds of Bangladeshis in the secretive Swiss banks were smuggled out.

The groups working on good governance and prevention of corruption in Bangladesh allege that most of the money parked in the Swiss banks by Bangladeshis is earned illegally and laundered abroad.

Following its failure to recover laundered money from Swiss banks, the government was dragged to the High Court in 2021.

The court later ordered the authorities to make a list of the Bangladeshis who deposit money in the

Swiss banks, and to report on steps to bring the funds back.

The secrecy preserved by the Swiss banks and their policy of not asking questions draw a huge number of wealthy customers from around the world.

The Swiss National Bank, however, publishes the country-wise data every year. The annual report gives a glimpse into how much the rich have deposited their money into the banks.

In Bangladeshi taka, the Bangladeshis’ deposits in the Swiss banks dropped by Tk 29.7 billion to around Tk 83.9 billion in a year.

The funds deposited by Bangladeshis in the banks of Switzerland crossed 100 million Swiss francs for the first time to 124.3 million Swiss francs in 2006 by the end of the BNP-Jamaat-e-Islami government.

During the 2007-08 military-backed caretaker government, the amount almost doubled to 203 million Swiss francs.

During the current Awami League government, the funds increased gradually to 661.9 million in 2016 from 152.3 million Swiss francs in 2011.

After a drop to 481.3 million Swiss francs in 2017, the funds again rose to 517.7 million Swiss francs in the election year of 2018.

Among Bangladesh’s neighbours, Indians’ deposits in Swiss banks rose to 3.83 billion Swiss francs – a 14-year-high.

Pakistanis’ funds rose to 712 million from 642.2 million Swiss francs.

The United Kingdom tops the charts for foreign clients' money in Swiss banks at 379 billion Swiss francs, followed by the US at 168 billion Swiss francs. They are the only two countries with 100-billion-plus client funds.

Others in the top 10 were West Indies, Germany, France, Singapore, Hong Kong, Luxembourg, Bahamas, the Netherlands, Cayman Islands and Cyprus.