A new report sheds light on the surprising amount of Bangladeshi money tucked away in offshore havens.

According to the European Union Tax Observatory's Atlas of the Offshore World, Bangladeshis held an estimated $5.91 billion in these tax havens in 2022. This sum represents a significant 1.3% of Bangladesh's Gross Domestic Product.

The report further breaks down this offshore wealth by location. A staggering $5 billion is held in Asian tax havens, while the remaining amount is scattered across European and American havens.

While the reasons behind this offshore wealth can't be definitively stated from this data, it raises questions about tax collection and transparency in the global financial system.

Data from 2021 paints an even starker picture.  That year, Bangladeshi offshore wealth reached a staggering $8.145 billion – the highest amount since the year 2000. 

Interestingly, over $7 billion of this wealth was concentrated in Asian tax havens like Singapore, the United Arab Emirates, and Hong Kong.

This trend of offshore wealth accumulation raises concerns about lost tax revenue. The Atlas estimates that Bangladesh loses a significant $0.5 billion annually due to wealth being stashed offshore. 

Furthermore, the report reveals that a portion of this offshore wealth, approximately $0.66 billion, is invested specifically in real estate within tax havens. This translates to 0.18% of Bangladesh's GDP being tied up in these overseas properties.

The report mentions that a significant chunk of this real estate investment is concentrated in just a few hotspots: Singapore and Dubai, followed by London and Paris. This preference for specific locations raises questions about the motivations behind these investments.

The report defines "offshore real estate" as property owned by foreign investors, either directly or through complex structures designed to hide the true owner's identity.

Shedding further light on this trend, a recent investigation by the Organised Crime and Corruption Reporting Project (OCCRP) found that in 2022 alone, 394 Bangladeshis owned a combined 641 residential properties in Dubai, with an estimated value of $225.35 million.

The OCCRP report highlights Dubai's reputation for being less than cooperative with international requests for assistance in arresting or extraditing fugitives, potentially making it an attractive location for certain types of investors.