Bangladesh Bank conducted a training workshop at its headquarters on Tuesday to enhance officials’ ability to prevent money laundering linked to transfer pricing by multinational companies.
The workshop focused on the misuse of transfer pricing, where multinational companies illegally shift profits across borders, undermining national revenue and putting pressure on foreign currency reserves. Md Kamruzzaman FCA, Managing Partner of M Rashid Zaman & Co, led the session, covering essential topics such as “arm’s length price,” affiliated entities, and international transactions.
The workshop was divided into two sessions. The first addressed transfer pricing’s background, its application in Bangladesh, and the record-keeping and reporting requirements for international transactions. The second session focused on reporting obligations for branch offices, tax-exempt companies, and companies in export processing zones (EPZs), while also covering the Base Erosion and Profit Shifting (BEPS) framework and challenges related to digital economies.
In his opening remarks, Bangladesh Bank Deputy Governor Dr Md Kabir Ahmed highlighted the risks of transfer pricing abuse, urging officials to stay vigilant. He stressed how multinational companies exploit such practices, harming the country’s tax base and foreign currency reserves.
Bangladesh Bank Executive Director Md Rofiqul Islam emphasized the importance of such training for improving the bank’s ability to monitor foreign currency transactions and combat financial crimes.
Director Mahbubul Alam of the Foreign Exchange Inspection Department underscored the department’s role in fighting trade-based money laundering and hundi, calling for continued efforts to address new financial challenges.
This workshop is part of Bangladesh Bank’s ongoing initiative to equip its officials with the necessary tools to enhance transparency in foreign currency transactions and prevent financial crimes.
