Senior Correspondent
Deposits held by Bangladeshis in Swiss banks surged by nearly 41 percent in 2025, reaching their highest level in four years and reigniting concerns over capital flight and money laundering despite ongoing efforts to strengthen financial governance.
According to the latest annual report released by the Swiss National Bank (SNB), the amount of money linked to Bangladeshi individuals and institutions in Swiss banks rose to 834.1 million Swiss francs at the end of 2025, up from approximately 590 million Swiss francs a year earlier.
Based on an exchange rate of Tk 152 per Swiss franc, the total amount deposited by Bangladeshis in Swiss banks now stands at approximately Tk 126.78 billion (Tk 12,678 crore). The sharp increase marks the highest level of Bangladeshi deposits in Switzerland since 2021 and the second-highest figure recorded over the past decade.
Economists say the development raises important questions about capital outflows at a time when Bangladesh continues to face pressure on foreign exchange reserves, investment flows, and domestic financial stability.
Deposits Include Both Individuals and Institutions: Financial experts caution against automatically interpreting all Swiss bank deposits as illicitly transferred funds.
The SNB data includes deposits held by Bangladeshi individuals, businesses, financial institutions and commercial banks. It also accounts for funds maintained by Bangladeshi expatriates living abroad and deposits made through overseas branches of Swiss banks. As a result, not all of the reported funds represent money that has been illegally transferred out of Bangladesh.
However, economists note that the substantial increase in deposits warrants closer scrutiny, particularly given Bangladesh's longstanding concerns over illicit financial flows and asset transfers abroad. Speaking to The Daily Industry, economist and former University of Chittagong professor Muinul Islam said the rise in Swiss bank deposits was unexpected following the political transition that took place in August 2024.
“Many expected money laundering from Bangladesh to decline after the fall of the previous government in August 2024. The latest Swiss bank figures suggest that concerns over capital flight have not disappeared,” he told The Daily Industry. According to him, Switzerland represents only one destination among many where Bangladeshi wealth may be held overseas. “Swiss bank data provides only a partial picture. Funds can be transferred and parked in many countries through different channels. The broader challenge is to strengthen monitoring and improve the recovery of assets that have been transferred abroad illegally,” he said.
Sharp Recovery After Two Years of Decline: The latest increase follows a period of significant volatility in Bangladeshi deposits in Swiss banks. According to SNB data, deposits fell dramatically during 2022 and 2023, when balances dropped to just 55 million Swiss francs and 17.5 million Swiss francs, respectively. The rebound in 2024 and the strong growth recorded in 2025 therefore represent a substantial reversal of the previous downward trend.
Analysts believe several factors may have contributed to the increase, including portfolio diversification by institutions, overseas investment activities, and the movement of private wealth into foreign financial centers amid domestic economic uncertainty.
The rise also comes at a time when Bangladesh is attempting to stabilize its economy through reforms aimed at controlling inflation, strengthening foreign exchange reserves and improving governance in the banking sector.
Asset Recovery Remains a Major Challenge: Following the student-led mass uprising in 2024 and the subsequent political transition, authorities intensified investigations into alleged corruption, illicit wealth accumulation and money laundering. A number of former ministers, lawmakers and business figures left the country after the change in government, while assets linked to several individuals were frozen or confiscated as part of ongoing investigations.
Economic observers believe some individuals may have attempted to relocate assets across jurisdictions during that period, contributing to fluctuations in international financial holdings.
The issue gained further prominence after a government-backed white paper on the economy highlighted extensive capital flight during previous administrations. The report suggested that significant sums had been transferred abroad over many years through various legal and illegal mechanisms.
Experts argue that preventing future capital flight and recovering assets already moved overseas should remain a key policy priority.
Switzerland No Longer a Secrecy Haven: Historically, Swiss banks were considered one of the world's most attractive destinations for undeclared wealth because of strict banking secrecy laws. For decades, Switzerland maintained limited information-sharing arrangements with foreign governments, making it difficult for authorities elsewhere to track assets held by their citizens. That environment has changed significantly in recent years.
Switzerland is now a participant in various international frameworks designed to combat money laundering, tax evasion and illicit financial flows. Under these agreements, Swiss authorities can provide banking information to foreign governments upon request and cooperate in financial investigations.
As a result, financial crime experts say individuals seeking to conceal assets increasingly use more complex international structures or alternative jurisdictions rather than relying solely on traditional Swiss banking channels.
Economic Implications: The increase in Bangladeshi-linked deposits in Swiss banks comes at a sensitive time for the country's economy.
Bangladesh has been working to attract foreign investment, strengthen domestic savings, and improve confidence in the financial sector. Large-scale capital outflows can potentially reduce the pool of funds available for productive investment at home, limiting economic growth and job creation.
Economists say the latest figures should encourage policymakers to improve transparency, strengthen anti-money laundering enforcement and create greater confidence in domestic investment opportunities.
While the SNB data does not distinguish between legal and illegal funds, the significant increase in deposits highlights the importance of continued efforts to monitor cross-border financial flows and ensure that wealth generated within Bangladesh contributes to the country's long-term economic development.
