A significant number of Bangladeshis are liquidating their offshore assets in Dubai, advertising properties through online real estate platforms, according to an investigation by the Bangladesh Financial Intelligence Unit (BFIU).
The agency has recently informed the National Board of Revenue’s (NBR) Central Intelligence Cell (CIC) of these developments, urging swift action.
Multiple NBR sources confirmed the trend, attributing the surge in property sales to fears that undeclared foreign assets may face increased risks amid Bangladesh’s shifting political climate.
Some individuals are also approaching the NBR to regularise these holdings in their tax filings.
BFIU head AFM Shahinul Islam stated, “A joint investigation team is actively probing undisclosed assets held by Bangladeshis both domestically and abroad. Many domestic assets are already under scrutiny, and the process to investigate foreign holdings is underway through systematic procedures.”
Bangladesh’s income tax laws mandate the declaration of foreign assets by resident taxpayers. Failure to comply can trigger investigations, both domestically and internationally, and result in penalties equivalent to the asset’s value.
Following reports of undisclosed Bangladeshi assets in Dubai, two CIC teams visited the UAE in January.
An NBR official commented, “Our investigations are ongoing, and we will disclose detailed findings upon conclusion.”
Preliminary inquiries have identified several properties, not just in Dubai but also in the UK, Canada, and Singapore.
Addressing the rationale behind the asset sales, an NBR official explained, “Owners are liquidating these properties to safeguard themselves. However, this does not exempt them from tax obligations. Properties are traceable through holding numbers, and income tax will be collected retrospectively. Capital gains from sales must also be declared.”
Authorities emphasise that beyond tax collection, money laundering investigations are imperative.
Former director general of the Anti-Corruption Commission’s Legal and Prosecution Wing, Moeedul Islam, noted, “The potential for money laundering must be scrutinised. If proven, these assets can be frozen and confiscated before tax recovery. Premature transfers may complicate legal proceedings.”
According to data from the US-based Centre for Advanced Defence Studies (C4ADS), 461 Bangladeshis own 929 registered properties in Dubai, with an estimated market value of around Tk5,000 crore.
The actual value is presumed higher, with owners including politicians, prominent business figures, bankers, and bureaucrats. Allegations suggest many of these assets were acquired through illicit capital flight.
The introduction of the UAE’s Golden Visa in 2019 significantly boosted property purchases by Bangladeshis.
Applicants require assets equivalent to $2 million, with simplified conditions and streamlined visa processes.
This has attracted affluent Bangladeshis, including bank directors, politicians, garment exporters, and major contractors, facilitating substantial capital outflows.
Regarding efforts to repatriate laundered funds, Bangladesh Bank spokesperson Arif Hossain Khan stated, “Recovering such funds is challenging and time-consuming, but efforts persist with both local and foreign experts involved. Given the cross-border nature, coordination with the foreign ministry and other government bodies is essential.”
However, he noted that Bangladesh Bank has no specific data on the reported asset sales in Dubai, adding, “This is a new issue, and we will initiate work on it.”
