Consequences of Money Laundering and Persisting Losses of the Country: A Reference of Bangladesh

Money laundering is a multidisciplinary issue that has gained prominence since the late 1980s. The word "laundering" literally means "to wash" or "to remove dirt." It's been characterized as the transformation of illegal proceeds into assets that can't be linked to the original crime. Money is frequently transferred from one sector to another, and the same money is frequently transferred to another sector in such a way that it is challenging to identify the source. As a result, law enforcement is unable to identify the illicit source. This means through the transaction cycle; money laundering is the process of legalizing black money or transferring the amounts as lawful revenue while hiding the source of the money received. The objective of the study is to have a thorough understanding of the money laundering scenario and how it affects the domestic and global economy, assess the money laundering challenges facing financial institutions, and offer strategic methods for financial institutions to mitigate the risks. Bangladesh is a victim of money laundering and other forms of financial crime. In many ways, the competent authority provides additional opportunities to whiten money. This study first identifies the necessity of anti-money laundering for public and private banks and non-bank financial institutions operating in Bangladesh. The major finding is recurrent amnesties harm corruption and money laundering in Bangladesh. Corruption and money laundering in Bangladesh are projected to decrease if this report adopts recommendations. This will ensure fairness in society in many ways, such as prohibiting criminal activity and will help to prepare sustainable development programs and their achievement and allow honest taxpayers to purchase properties on an equal footing. Bangladesh's government should cooperate with other nations to combat money laundering and constantly upgrade its methods for enforcing laws and regulations.