Dogecoin is a joke − so what’s behind its rally?Corruption, embezzlement, and money laundering have been endemic in Bangladesh but reached new heights during the last 15 years of the now-toppled regime led by the Awami League. The recently published "White Paper on the State of the Bangladesh Economy" reported that $234 billion was syphoned off from Bangladesh between 2009 and 2023. The interim government has promised to work tirelessly to identify the perpetrators of this massive mayhem—to loot and plunder the country and its poor people—and bring back some of the ill-gotten resources. Tax havens around the globe, particularly in the Middle East, Malaysia, the UK, Canada, the US, Hong Kong, Malaysia, and Singapore, provided a golden opportunity for businesses, bureaucrats, and politicians to use a well-crafted system of patronage and crony capitalism to take advantage of the country's incompetent leaders and financial regulators to launder an average of $16 billion a year. The White Paper documented the mechanism used for money laundering (ML)—these tricks have been well-known for a long time. The then foreign minister of Bangladesh stated during an interview with The Daily Star in 2020 that the AL government had information that politicians, businessmen, and government officials, including some "serving officials," had pilfered and whitewashed money by buying properties in Canada. It is no secret that Bangladesh Bank and the Bangladesh Financial Intelligence Unit (BFIU) were fully aware of the scale of ML and the role played by the key protagonists! The previous government was, on many occasions, alerted by the World Bank, multilateral financial institutions, UN agencies, and national watchdogs about the scope of illicit financial flows (IIF). In 2011, during negotiations with the World Bank to secure financing for the Padma Bridge, the bank provided "credible evidence of corruption" to the government. These were brushed aside and dismissed as "trumped-up" allegations by the former prime minister. In my brief discussion on this matter with members of the current administration, it is clear that money laundering and its prevention are among its highest priorities. Last week, the BB governor publicly reiterated his intention to bring back stolen assets from other countries. He chairs a nine-member taskforce with representatives from important state agencies, which has been assigned to track down stolen assets abroad and support investigations aimed at their recovery. The taskforce seeks to expedite legal proceedings for asset recovery, identify and address barriers to recovery, manage frozen or recovered assets abroad, and strengthen communication with relevant domestic and international bodies to gather essential information while enhancing internal coordination and capabilities. While asset recovery is a tough and time-consuming process, it needs to be done, and for many reasons. The money looted from the coffers is now being used to undermine the present government. If we reverse the resource outflow and turn back the tide, that would rejuvenate our economic development. For example, the ML activities of the owners of the S Alam Group have resulted in the bankruptcy of the various businesses they own. If their overseas resources are liquidated and the proceeds repatriated and invested in their domestic enterprises, the local economy will receive a shot in the arm. Also, we need to send a message to the culprits. In the language of criminal justice system, the purpose would be "deterrence, retribution, and restoration." The asset recovery stage encompasses several steps that need to be pursued diligently. To begin, a special sub-unit comprising legal and financial experts could freeze, without delay and much fanfare, the funds or other assets of designated persons or entities. Fortunately, Bangladesh can leverage the goodwill earned by the interim administration and seek assistance from three powerful international bodies: i) The World Bank's Stolen Asset Recovery Initiative (STAR); ii) The Financial Action Task Force (FATF), based in Paris; and iii) The US Department of Justice's Money Laundering and Asset recovery Section (MLARS). Going forward, the taskforce must initiate and hire staff to undertake and strengthen legal action in the following areas: identifying stolen assets, including non-performing bank loans; collecting intelligence and evidence and tracing overseas assets; determining the beneficiaries of ML and ownership transparency; initiating international cooperation between involved jurisdictions; coordination between agencies participating in the taskforce; and legal actions, domestic and international. Why is international collaboration so important? Most of the stolen money is invested overseas or stashed away in foreign banks. The process of identifying these investments and recovering them will be slow and involve tackling the lawyers, trust experts, real estate agents, accountants, and financial institutions representing the individuals—the Saifuzzamans and the Benazirs—who might have already been identified and tipped in advance. The money, once taken out of the country, is most likely to have been invested in real estate or businesses through a process known as "layering," where the ownership is completely fuzzy. We need to hire the best global investigators to trace the money since the beneficial owner may be hidden behind multiple layers of shell companies or a nominee company director. Since the US, Canada, Singapore, and the UK have some of the strictest anti-money-laundering (AML) legislation and enforcement mechanisms, our embassies or high commissions in these countries must be notified of the business entities or persons of interest. Several newspaper accounts of Bangladeshi residents in Singapore, New York, Toronto, and London have surfaced over the last few years. The taskforce can forward the list of suspects to MLARS and target the three most corrupt sectors identified by the White Paper: financial, ICT, and power. The ultimate goal of the current administration is to lay the foundation of an anti-ML programme that will prevent future occurrences. A comprehensive ML programme will include investment in employee education, stricter internal controls, accountability, and early detection. We need to build stronger defences against corruption, money laundering, and fraudulent trading practices. Key sectors like banking should have guardrails against the "bad influence of party politics," to quote Dr Wahiduddin Mahmud. Various policy measures and actions recommended by the Farashuddin Commission, set up after the Bangladesh Bank heist, need to be implemented. A whistleblower programme to reward individuals who provide helpful information on illegal financial activities must be established. Finally, this most recent money laundering and kleptocracy saga underscores the pressing need for unwavering diligence and proactive implementation of a comprehensive AML compliance framework in Bangladesh to safeguard the financial system. Dr Abdullah Shibli is an economist and works for Change Healthcare, Inc., an information technology company. He also serves as senior research fellow at the US-based International Sustainable Development Institute (ISDI). Views expressed in this article are the author's own. Follow The Daily Star Opinion on Facebook for the latest opinions, commentaries and analyses by experts and professionals. To contribute your article or letter to The Daily Star Opinion, see our guidelines for submission. Corruption, embezzlement, and money laundering have been endemic in Bangladesh but reached new heights during the last 15 years of the now-toppled regime led by the Awami League. The recently published "White Paper on the State of the Bangladesh Economy" reported that $234 billion was syphoned off from Bangladesh between 2009 and 2023. The interim government has promised to work tirelessly to identify the perpetrators of this massive mayhem—to loot and plunder the country and its poor people—and bring back some of the ill-gotten resources. Tax havens around the globe, particularly in the Middle East, Malaysia, the UK, Canada, the US, Hong Kong, Malaysia, and Singapore, provided a golden opportunity for businesses, bureaucrats, and politicians to use a well-crafted system of patronage and crony capitalism to take advantage of the country's incompetent leaders and financial regulators to launder an average of $16 billion a year. The White Paper documented the mechanism used for money laundering (ML)—these tricks have been well-known for a long time. The then foreign minister of Bangladesh stated during an interview with The Daily Star in 2020 that the AL government had information that politicians, businessmen, and government officials, including some "serving officials," had pilfered and whitewashed money by buying properties in Canada. It is no secret that Bangladesh Bank and the Bangladesh Financial Intelligence Unit (BFIU) were fully aware of the scale of ML and the role played by the key protagonists! The previous government was, on many occasions, alerted by the World Bank, multilateral financial institutions, UN agencies, and national watchdogs about the scope of illicit financial flows (IIF). In 2011, during negotiations with the World Bank to secure financing for the Padma Bridge, the bank provided "credible evidence of corruption" to the government. These were brushed aside and dismissed as "trumped-up" allegations by the former prime minister. In my brief discussion on this matter with members of the current administration, it is clear that money laundering and its prevention are among its highest priorities. Last week, the BB governor publicly reiterated his intention to bring back stolen assets from other countries. He chairs a nine-member taskforce with representatives from important state agencies, which has been assigned to track down stolen assets abroad and support investigations aimed at their recovery. The taskforce seeks to expedite legal proceedings for asset recovery, identify and address barriers to recovery, manage frozen or recovered assets abroad, and strengthen communication with relevant domestic and international bodies to gather essential information while enhancing internal coordination and capabilities. While asset recovery is a tough and time-consuming process, it needs to be done, and for many reasons. The money looted from the coffers is now being used to undermine the present government. If we reverse the resource outflow and turn back the tide, that would rejuvenate our economic development. For example, the ML activities of the owners of the S Alam Group have resulted in the bankruptcy of the various businesses they own. If their overseas resources are liquidated and the proceeds repatriated and invested in their domestic enterprises, the local economy will receive a shot in the arm. Also, we need to send a message to the culprits. In the language of criminal justice system, the purpose would be "deterrence, retribution, and restoration." The asset recovery stage encompasses several steps that need to be pursued diligently. To begin, a special sub-unit comprising legal and financial experts could freeze, without delay and much fanfare, the funds or other assets of designated persons or entities. Fortunately, Bangladesh can leverage the goodwill earned by the interim administration and seek assistance from three powerful international bodies: i) The World Bank's Stolen Asset Recovery Initiative (STAR); ii) The Financial Action Task Force (FATF), based in Paris; and iii) The US Department of Justice's Money Laundering and Asset recovery Section (MLARS). Going forward, the taskforce must initiate and hire staff to undertake and strengthen legal action in the following areas: identifying stolen assets, including non-performing bank loans; collecting intelligence and evidence and tracing overseas assets; determining the beneficiaries of ML and ownership transparency; initiating international cooperation between involved jurisdictions; coordination between agencies participating in the taskforce; and legal actions, domestic and international. Why is international collaboration so important? Most of the stolen money is invested overseas or stashed away in foreign banks. The process of identifying these investments and recovering them will be slow and involve tackling the lawyers, trust experts, real estate agents, accountants, and financial institutions representing the individuals—the Saifuzzamans and the Benazirs—who might have already been identified and tipped in advance. The money, once taken out of the country, is most likely to have been invested in real estate or businesses through a process known as "layering," where the ownership is completely fuzzy. We need to hire the best global investigators to trace the money since the beneficial owner may be hidden behind multiple layers of shell companies or a nominee company director. Since the US, Canada, Singapore, and the UK have some of the strictest anti-money-laundering (AML) legislation and enforcement mechanisms, our embassies or high commissions in these countries must be notified of the business entities or persons of interest. Several newspaper accounts of Bangladeshi residents in Singapore, New York, Toronto, and London have surfaced over the last few years. The taskforce can forward the list of suspects to MLARS and target the three most corrupt sectors identified by the White Paper: financial, ICT, and power. The ultimate goal of the current administration is to lay the foundation of an anti-ML programme that will prevent future occurrences. A comprehensive ML programme will include investment in employee education, stricter internal controls, accountability, and early detection. We need to build stronger defences against corruption, money laundering, and fraudulent trading practices. Key sectors like banking should have guardrails against the "bad influence of party politics," to quote Dr Wahiduddin Mahmud. Various policy measures and actions recommended by the Farashuddin Commission, set up after the Bangladesh Bank heist, need to be implemented. A whistleblower programme to reward individuals who provide helpful information on illegal financial activities must be established. Finally, this most recent money laundering and kleptocracy saga underscores the pressing need for unwavering diligence and proactive implementation of a comprehensive AML compliance framework in Bangladesh to safeguard the financial system. Dr Abdullah Shibli is an economist and works for Change Healthcare, Inc., an information technology company. He also serves as senior research fellow at the US-based International Sustainable Development Institute (ISDI). Views expressed in this article are the author's own. Follow The Daily Star Opinion on Facebook for the latest opinions, commentaries and analyses by experts and professionals. To contribute your article or letter to The Daily Star Opinion, see our guidelines for submission.
WASHINGTON (AP) — A tax break for millionaires, and almost everyone else. An end to the COVID-19-era government subsidies that some Americans have used to purchase health insurance. Limits to food stamps, including for women and children, and other safety net programs. Rollbacks to Biden-era green energy programs . Mass deportations . Government job cuts to “drain the swamp.” Having won the election and sweeping to power, Republicans are planning an ambitious 100-day agenda with President-elect Donald Trump in the White House and GOP lawmakers in a congressional majority to accomplish their policy goals. Atop the list is the plan to renew some $4 trillion in expiring GOP tax cuts , a signature domestic achievement of Trump's first term and an issue that may define his return to the White House. “What we’re focused on right now is being ready, Day 1,” said House Majority Leader Steve Scalise, R-La., after meeting recently with GOP colleagues to map out the road ahead. The policies emerging will revive long-running debates about America's priorities , its gaping income inequities and the proper size and scope of its government, especially in the face of mounting federal deficits now approaching $2 trillion a year . The discussions will test whether Trump and his Republican allies can achieve the kinds of real-world outcomes wanted, needed or supported when voters gave the party control of Congress and the White House . “The past is really prologue here,” said Lindsay Owens, executive director of the Groundwork Collaborative, recalling the 2017 tax debate. Trump’s first term became defined by those tax cuts, which were approved by Republicans in Congress and signed into law only after their initial campaign promise to “repeal and replace” Democratic President Barack Obama's health care law sputtered, failing with the famous thumbs-down vote by then-Sen. John McCain, R-Ariz. The GOP majority in Congress quickly pivoted to tax cuts, assembling and approving the multitrillion-dollar package by year’s end. In the time since Trump signed those cuts into law, the big benefits have accrued to higher-income households. The top 1 percent — those making nearly $1 million and above — received about a $60,000 income tax cut, while those with lower incomes got as little as a few hundred dollars, according to the Tax Policy Center and other groups. Some people ended up paying about the same. “The big economic story in the U.S. is soaring income inequality,” said Owens. “And that is actually, interestingly, a tax story.” In preparation for Trump’s return, Republicans in Congress have been meeting privately for months and with the president-elect to go over proposals to extend and enhance those tax breaks, some of which would otherwise expire in 2025. That means keeping in place various tax brackets and a standardized deduction for individual earners, along with the existing rates for so-called pass-through entities such as law firms, doctors' offices or businesses that take their earnings as individual income. Typically, the price tag for the tax cuts would be prohibitive. The Congressional Budget Office estimates that keeping the expiring provisions in place would add some $4 trillion to deficits over a decade. Adding to that, Trump wants to include his own priorities in the tax package, including lowering the corporate rate, now at 21% from the 2017 law, to 15%, and doing away with individual taxes on tips and overtime pay. But Avik Roy, president of the Foundation for Research on Equal Opportunity, said blaming the tax cuts for the nation's income inequality is “just nonsense” because tax filers up and down the income ladder benefited. He instead points to other factors, including the Federal Reserve's historically low interest rates that enable borrowing, including for the wealthy, on the cheap. “Americans don’t care if Elon Musk is rich,” Roy said. “What they care about is, what are you doing to make their lives better?” Typically, lawmakers want the cost of a policy change to be offset by budget revenue or reductions elsewhere. But in this case, there's almost no agreed-upon revenue raisers or spending cuts in the annual $6 trillion budget that could cover such a whopping price tag. Instead, some Republicans have argued that the tax breaks will pay for themselves, with the trickle-down revenue from potential economic growth. Trump’s tariffs floated this past week could provide another source of offsetting revenue. Some Republicans argue there's precedent for simply extending the tax cuts without offsetting the costs because they are not new changes but existing federal policy. “If you’re just extending current law, we’re not raising taxes or lowering taxes," said Sen. Mike Crapo, R-Idaho, the incoming chairman of the Senate Finance Committee, on Fox News. He said the criticism that tax cuts would add to the deficit is “ridiculous.” There is a difference between taxes and spending, he said, "and we just have to get that message out to America.” At the same time, the new Congress will also be considering spending reductions, particularly to food stamps and health care programs, goals long sought by conservatives as part of the annual appropriations process. One cut is almost certain to fall on the COVID-19-era subsidy that helps defray the cost of health insurance for people who buy their own policies via the Affordable Care Act exchange. The extra health care subsidies were extended through 2025 in Democratic President Joe Biden's Inflation Reduction Act, which also includes various green energy tax breaks that Republicans want to roll back. The House Democratic leader, Rep. Hakeem Jeffries of New York, scoffed at the Republican claim that they've won “some big, massive mandate” — when in fact, the House Democrats and Republicans essentially fought to a draw in the November election, with the GOP eking out a narrow majority. “This notion about some mandate to make massive, far-right extreme policy changes, it doesn't exist — it doesn't exist,” Jeffries said. Republicans are planning to use a budgetary process, called reconciliation, that allows majority passage in Congress, essentially along party lines, without the threat of a filibuster in the Senate that can stall out a bill’s advance unless 60 of the 100 senators agree. It’s the same process Democrats have used when they had the power in Washington to approve the Inflation Reduction Act and Obama's health care law over GOP objections. Republicans have been here before with Trump and control of Congress, which is no guarantee they will be able to accomplish their goals, particularly in the face of resistance from Democrats. Still, House Speaker Mike Johnson, R-La., who has been working closely with Trump on the agenda, has promised a “breakneck” pace in the first 100 days “because we have a lot to fix.” The story has been corrected to reflect that Lindsay Owens of the Groundwork Collaborative spoke of ‘income inequality,' not ‘income equality.’
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Shah Khursheed* Located 85 kilometers from Srinagar, the remote village of Jundinambal in Baramulla district, North Kashmir, is home to about 800 residents, who face daily struggles with poverty. The local economy relies on dairy farming, horticulture, and agriculture. While men are the main earners, women manage the household. Men work to provide for their families for seven months, but the seasonal slowdown during winter disrupts their income. During this time, freezing temperatures and impassable roads halt most agricultural activities, leaving many villagers without work. Additionally, limited healthcare facilities and poor connectivity make accessing even basic medical care difficult and costly. Amid these challenges, 29-year-old Rafiqa Begum, an Accredited Social Health Activist (ASHA) from Limber Tehsil, Boniyar, Baramulla, has become a vital figure in her community. After moving to Jundinambal following her marriage, Rafiqa, a postgraduate degree in Political Science, began working as the village’s only ASHA worker in 2019. She provides essential services to the community, especially to women, including healthcare, maternal and infant care, nutrition, hygiene education, and vaccinations. Rafiqa’s work has been particularly impactful in educating women about menstrual hygiene, a topic that remains stigmatized in many parts of Kashmir. Masrat Bano, a local woman, recalls how Rafiqa introduced sanitary pads in 2019, explaining their use and benefits. Previously, Masrat, like many others, used cloth for menstrual hygiene, which was challenging and uncomfortable to maintain. “Sanitary pads seemed like a luxury,” she admits, adding that using cloth made it difficult to manage hygiene, especially during school hours, leading some girls to miss school altogether. Rafiqa explains that financial constraints and social stigma often prevent girls from accessing menstrual products. “Many women can’t afford sanitary pads, and even if they can, they are often too shy to buy them from male-run stores,” she shares. To address this, Rafiqa distributes subsidized pads and holds educational sessions for young girls and the broader community. Her efforts have helped normalize menstruation and reduce the shame around it, allowing women to manage their periods with dignity. The challenge of accessing menstrual hygiene products is not unique to Jundinambal. In Kupwara, ASHA workers like Asiya Reyaz in Langate are also working to improve women’s health. “We’ve helped reduce urinary infections to zero,” she says. Yet, even in Kupwara, challenges remain. Jabeena Begum, President of the ASHA Union in Kupwara, highlights an urgent issue: “Since July 23, there has been a shortage of supplies, which affects the health and dignity of girls in our community.” Reyaz adds that a lack of supplies forces women to buy pads from male-run stores, which is uncomfortable and often humiliating. “These are personal needs, and no woman should feel ashamed just to take care of herself,” she explains. This struggle resonates with women like Zahida Ahanger, who recalls her first experience with menstruation in eighth grade. “I didn’t know what was happening to me,” she remembers. When she asked a friend for help, she received an old cloth, which led to rashes and pain. For years, Zahida continued using rags, enduring discomfort and shame. Determined to change this, Zahida and 37 other women started a women’s wing in their community to break the silence around menstruation and fight the stigma. In areas like Haril in Langate, ASHA workers such as Asha Begum create safe spaces for girls at Anganwadi centers. “These centers aren’t just for food and supplies—they’re places of hope,” says Asha. Here, girls receive not only food but also support, guidance, and education about menstrual health. Despite challenges in accessing resources, ASHA workers in remote parts of Jammu and Kashmir are making a difference. In Kupwara, girls often pay 6-7 rupees for a single sanitary pad packet, while in Baramulla, it’s slightly cheaper at 5 Rupees. Yet, these costs remain unaffordable for many families, especially those struggling financially. Jabeena Begum highlights the financial struggles of ASHA workers. “We earn only 600 rupees per delivery at a government hospital and 300 rupees for private deliveries,” she says. “It’s degrading, but the work remains the same.” Recently, ASHA workers gathered in Srinagar to demand fair pay and better working conditions. “We are the frontline of healthcare in rural areas, but the government needs to acknowledge our work and provide respect and fair compensation,” Jabeena asserts. Local stores sometimes step in to help fill gaps. Abdul Ahad, who runs a small grocery store in Jundinambal, stocks sanitary pads for emergencies. “While most women get pads from ASHA workers, I keep them for those who need them urgently,” he says. Zainab Wani from Delina, Baramulla, points out issues with the sanitary pads distributed by ASHA workers. “The government must improve their quality,” she says, explaining that low-quality pads can cause rashes and anxiety, especially among teenagers. Through grassroots efforts, ASHA workers like Rafiqa Begum are helping the next generation of girls in Kashmir overcome menstrual stigma. “More young girls, especially from marginalized backgrounds, are now enrolling in schools,” Rafiqa says proudly. “We’re working to ensure menstrual hygiene doesn’t hinder their progress.” Mohammad Ramiz, a health supervisor at the Sub-District Hospital in Baramulla, emphasizes the role of ASHA workers in improving rural health outcomes. “ASHA workers are vital for promoting menstrual hygiene, immunization, maternal care, and nutrition,” he says. In remote Kashmir, ASHA workers are not only providing essential supplies but also empowering women to take control of their health and dignity. Their work is a crucial step toward a future where no woman or girl has to face these challenges in silence and where menstruation is recognized as a natural part of life. (The author is a freelance writer from Kashmir) —–