While Canada has imposed restrictions on foreign nationals purchasing residential properties to address a domestic housing shortage, money laundering from Bangladesh to the country continues unabated, exposing serious vulnerabilities in financial oversight.
The Canadian government first introduced the restriction in 2023, limiting foreign buyers from acquiring urban residential properties. At the end of December 2024, authorities in Ottawa clarified that the prohibition applies only to urban housing, not recreational or summer cottages.
The measure was initially a temporary two-year plan proposed during the 2021 election campaign by Prime Minister Justin Trudeau to curb speculative buying and protect local residents. However, the restriction was later extended through December 2025. The policy emerged from rising concerns that foreign investors and wealthy speculators were driving up property prices, leaving Canadian citizens unable to afford homes.
Bangladeshis Find Loopholes Despite Restrictions: Despite these measures, illicit financial flows from Bangladesh to Canada have continued. According to the Canadian Financial Transactions and Reports Analysis Centre (FINTRAC), between August 2024 and July 2025, approximately Tk 1,380 crore were transferred from Bangladesh to Canada. Only Tk 28 crore of this was legitimate, primarily tuition fees for Bangladeshi students studying in Canada. The remainder consisted of suspicious transactions, often linked to individuals attempting to obscure the origins of substantial sums.
A recent investigation by Bangladesh authorities has highlighted one such case involving A.F.M. Shahinul Islam, the recently dismissed Chief of the Bangladesh Financial Intelligence Unit (BFIU). He faces allegations of money laundering, tax evasion, and asset concealment. An inquiry conducted by the Income Tax Intelligence & Investigation Unit under the National Board of Revenue (NBR) revealed that Shahinul Islam conducted multi-crore transactions through banks, mobile financial services, and credit cards, with many transactions unreported in his income tax returns.
A significant portion of this amount was sent to his daughter, Nova Islam, in Canada, allegedly to cover educational and living expenses. However, evidence shows that the funds transferred far exceeded what was officially documented.
Discrepancies in Bank Transactions: According to NBR sources, an account held by Shahinul Islam at Eastern Bank indicated substantial transfers. While he claimed to have sent only BDT 10 lakh to his daughter, bank records show that BDT 1.11 crore was actually remitted. This discrepancy confirms that BDT 1.80 lakh was concealed and illegally transferred abroad. Authorities also suspect the use of informal channels, including hawala networks, to move funds outside formal banking channels.
Investigations revealed that Shahinul Islam maintained accounts at multiple banks, including Dutch-Bangla Bank, Brac Bank, One Bank, Premier Bank, Rupali Bank, and Eastern Bank, with millions of taka transacted between the fiscal years 2018-19 and 2023-24. Detailed figures include: 2018-19: Tk 32,61,120, 2019-20: Tk 42,69,865, 2020-21: Tk 67,44,957, 2021-22: Tk 1,01,25,467, 2022-23: Tk 73,02,100, 2023-24: Tk 93,16,292. In addition to conventional banks, significant transactions were traced through mobile financial services such as bKash and Rocket, none of which were accurately reported in tax filings.
Suspicious Property Acquisitions: Shahinul Islam’s wife owns a 1,105-square-foot apartment in Siddheswari, Dhaka, valued at only Tk 31.3 lakh in income tax returns, despite its actual market value exceeding Tk 71 lakh. Similarly, a property on Pragati Sarani registered under his father-in-law, Alauddin Khan, is valued at Tk 4 lakh in official records but is worth over Tk 30 lakh. Investigations indicate that the funds used for this property came from Shahinul Islam’s illicit earnings. Investigators also found a BDT 20 lakh fixed deposit in his name, unreported in tax documents, and multiple credit cards with substantial undisclosed transactions, further signaling the use of illicit funds.
A senior income tax officer, speaking on condition of anonymity, explained, “The scale of transactions through bank accounts, credit cards, cash, bKash, and Rocket accounts, when compared to Shahinul Islam’s tax filings, reveals glaring discrepancies. Funds sent to his daughter in Canada, beyond what is declared, are direct evidence of money laundering. There is also likely significant movement through hawala channels, which remains under investigation.”
High-Level Implications: Shahinul Islam’s case highlights a major concern: even senior financial officials, entrusted with safeguarding Bangladesh’s financial system, can exploit their positions for massive personal gain. Experts warn that such practices undermine the integrity of the country’s financial institutions and pose systemic risks.
Money laundering experts note two primary categories of individuals transferring funds to Canada. The first includes those who fled the country after August 5 of the previous year, often political actors relocating wealth abroad in anticipation of regime change. The second comprises extremely wealthy individuals consolidating wealth through legal and illicit channels, often sending large sums to relatives or business associates in Canada.
Expert Commentary: Dr. Sadik Ahmed, Vice Chairman of the Policy Research Institute (PRI), told The Daily Industry, “Cases like this demonstrate the gaps in financial oversight and the need for stricter monitoring of cross-border capital flows. Illicit transfers, even in the presence of restrictions, are indicative of systemic loopholes that must be addressed through stronger enforcement and regulatory measures.” “Money laundering not only erodes public trust but also distorts domestic investment. Funds leaving the country illegally could have been used to develop industries and create jobs, but instead, they enrich a few at the expense of the many”, he added.
Ongoing Investigations and Policy Challenges: Following the revelation of Shahinul Islam’s financial misconduct, Bangladesh Bank initially placed him on leave due to a gender-related controversy, after which the government officially terminated his appointment on September 8. However, broader investigations into his financial irregularities, tax evasion, and money laundering have drawn national attention. Authorities are now examining additional transactions, including possible informal channels, real estate acquisitions, and undisclosed wealth, aiming to map the full extent of illicit flows from Bangladesh to Canada.
Experts argue that the persistence of money laundering, despite regulatory restrictions, underscores the need for coordinated policy responses, including: Strengthened Banking Oversight - Regular audits and monitoring of high-risk accounts. Enhanced Cross-Border Collaboration - Sharing financial intelligence with international authorities, including Canada. Stringent Enforcement of Property Laws - Preventing the purchase of assets through illicitly obtained funds. Transparency in Public Office - Mandating accurate asset disclosure for government officials and regulators.
Bangladesh’s ongoing financial challenges are not limited to domestic policy or economic conditions. High-profile cases like Shahinul Islam’s reveal how loopholes in banking, property regulations, and financial oversight facilitate money laundering. While measures such as Canada’s residential property restrictions aim to limit foreign speculation, they do not fully prevent illicit financial flows. Dr. Sadik Ahmed summarized, “Addressing money laundering is not just about restricting property purchases abroad. It requires a systemic approach-monitoring, enforcement, transparency, and international cooperation. Without these measures, illicit flows will continue to undermine the country’s economic and financial stability.”
