Bangladeshi deposits in Swiss banks surge to Tk 12,751cr

Swiss Bank

Dhaka, June 18 - The amount of money deposited by Bangladeshi nationals and entities in Swiss banks has jumped 41 percent to 834.16 million Swiss francs, equivalent to about Tk 12,751 crore, according to the latest annual report of Switzerland’s central bank released on Thursday.

The sharp rise comes on the heels of an unpreceded 33-fold spike recorded in 2024 when the amount of Bangladeshi-linked funds deposited in Swiss banks reached 589.5 million Swiss francs, or about Tk 8,800 crore, indicating a continuing trend of capital flight and asset shifting from Bangladesh to European tax havens.

According to financial sector sources and the Swiss National Bank (SNB) data, the accumulated funds are held under both individual and institutional accounts.

Economists and financial experts in Bangladesh note that while a portion of these deposits constitutes legal operational funds of commercial banks and non-resident Bangladeshis living in Europe, a substantial amount is widely suspected to be laundered wealth.

Historically, funds deposited by Bangladeshis in Swiss banks reached an all-time record high of 871.1 million Swiss francs in 2021 before slumping drastically by 94 percent to just 55.3 million Swiss francs in 2022 and further sliding to 17.7 million Swiss francs in 2023, primarily driven by a domestic dollar crunch and changing global regulatory dynamics.

However, the trend reversed drastically in 2024 when deposits surged over 33-fold to approximately 589.5 million Swiss francs, matching the period surrounding major political upheavals in Bangladesh, including the fall of the Awami League government on August 5, 2024 following a mass uprising.

The latest 41 percent increase in Swiss bank holdings highlights the persistent challenges Bangladesh faces regarding capital flight.

The Swiss government has previously expressed its willingness to cooperate with Bangladesh in tracing and repatriating illegally siphoned assets.

In late 2024, Swiss Ambassador in Dhaka Reto Siegfried Renggli assured Bangladesh’s interim administration of full cooperation in identifying and recovering illicit assets held in Switzerland, provided international standards and procedures are strictly adhered to.

Financial analysts estimate that over US$ 16 billion has been laundered out of Bangladesh annually in recent decades. - UNB