The government is going to formulate a policy on investment abroad encompassing strict measures to prevent money laundering.
Under this policy, it will be decided what percentages of the total capital of a company is eligible for investment, and in return, what percentages of money will come to the country as profit.
Besides, there will be a system to monitor which companies are investing abroad, and whether the invested money is being used for industrialization purposes. In addition, importance will be given so that the foreign exchange reserves are not affected.
According to sources, the new policy for investment abroad, however, would not be open to all. Each applicant company will at first be reviewed individually and then given the opportunity to invest abroad on a case-by-case basis.
Experts opined that opening up investment opportunities abroad to all could put pressure on the foreign exchange reserves, and drive money out of the country.
Government sources said the government is thinking of giving opportunities to Bangladeshi companies to invest abroad. In this regard, the Prime Minister's Office has formed a committee to formulate a policy. The body has already held a meeting, and also discussed it in detail. President of the Committee to Formulate the Policy of Bangladeshi Investment Abroad, Navas Chandra Mandal, also a member of Bangladesh Investment Development Authority (BIDA), said it is better to have a policy. However, the government will decide when it becomes effective.
“There are a lot of incidents or allegations of money laundering in the country. If this policy is formulated, an account would be available about who is taking how much money abroad, and how much profit is coming from there. Besides, money laundering will also come down”, said Navas Chandra Mandal.
He also said that at present, the condition of the foreign exchange reserves are in a good state. It would not create much pressure. Because, money will not only go abroad through investment, profit will also come in return to the country.
An advisor to the Financial Intelligence Unit (BFIU) of Bangladesh Bank, Dev Prasad Debnath, who is working on money laundering, said, “It would be better to have a policy that will allow Bangladeshi companies to invest abroad on a case-by-case basis. Because, Bangladeshis are more prone to going abroad. That is why it will not be right to have provisions for mass investment until the country's economy comes under control.
“Only those organisations or companies that will really be using money for industrialisation purposes, and not for smuggling, should be given permission for investments abroad,” said Dev Prasad Debnath.
According to official sources, the country's economic growth rate is increasing. Except for the COVID-19 situation, the GDP growth rate is much higher than it was before. “When the growth rate increases, it is assumed that industrialisation is increasing in the country, trade is increasing and other indicators are also doing well.
They said a section of people have enough money in their possession. They now want to invest abroad as entrepreneurs. Besides, India, Singapore and other countries have opened up the policy for investment abroad since long ago.
Under the current law, Bangladeshi companies cannot invest abroad even if they want to do so. In this regard Bangladesh Bank approval is required. However, banking sources say that many people have continued investment to different countries illegally or without permission.
BIDA Executive Chairman Sirajul Islam said, “The opportunity for Bangladeshis to invest abroad also holds a risk of money laundering. However, there will be all kinds of measures in the new policy to prevent it.”
“It is not that anybody will be able to take as much money as they want abroad in the name of investment. The policy formulation committee is working on it”, said the BIDA Executive Chairman.