DHAKA, June 18 — Funds linked to Bangladeshi nationals and institutions in Swiss banks rose sharply in 2025, reaching the second-highest level ever recorded, according to newly released data from the Swiss National Bank (SNB), reigniting debate over financial transparency, capital flight, and the effectiveness of Bangladesh’s efforts to combat illicit financial flows.
Annual banking statistics published by Switzerland’s central bank on Thursday showed that deposits associated with Bangladeshi clients climbed 41 percent year-on-year to 834.2 million Swiss francs (CHF), equivalent to roughly Tk 12,763 crore. The figure stands just below the record CHF 871.1 million registered in 2021.
The latest increase marks a significant reversal from the dramatic declines recorded in 2022 and 2023, when Bangladesh-linked funds in Swiss banks fell amid heightened international scrutiny of offshore wealth and greater global efforts to improve financial transparency.
Data released by the SNB indicate that the overwhelming majority of the increase came from deposits held by Bangladeshi banks rather than individual account holders. Deposits attributed to Bangladeshi banking institutions rose 43 percent to CHF 822.7 million in 2025 from CHF 576.6 million a year earlier.
As a result, banks accounted for 98.6 percent of all Bangladesh-linked deposits held in Swiss banks during the year, compared with 97.8 percent in 2024. By contrast, funds held through individual customer accounts declined nearly 10 percent, falling from CHF 12.6 million to CHF 11.4 million.
The composition of the deposits has become increasingly important because Swiss banking statistics do not directly identify the beneficial owners of funds and do not provide evidence of illicit or undeclared wealth. Economists and banking experts have repeatedly cautioned that the annual figures often reflect a combination of interbank transactions, institutional placements, fiduciary deposits, and customer accounts.
Syed Mahbubur Rahman, managing director of Mutual Trust Bank, said the surge in deposits held by Bangladeshi banks should not automatically be interpreted as evidence of wrongdoing.
“Banks regularly place funds in different countries and financial institutions depending on where they can earn the best returns,” Rahman said while explaining the latest SNB data.
He added that movements of institutional funds between jurisdictions are common in international banking.
“The destination of these funds can vary over time as banks move money between different countries based on investment opportunities and prevailing returns. As a result, a larger amount being held in Switzerland in a particular year does not necessarily indicate anything out of the ordinary,” he said.
Nevertheless, the sharp rise comes at a politically sensitive moment for Bangladesh, where concerns over capital flight, corruption, weak financial governance, and declining investor confidence have increasingly become subjects of public debate.
For years, Swiss bank deposits have occupied a prominent place in Bangladesh’s political discourse. Successive governments have faced criticism over their inability to identify and recover undeclared offshore assets allegedly linked to Bangladeshi individuals. Opposition groups, civil society organizations, and anti-corruption advocates have repeatedly demanded stronger measures to trace illicit financial flows and improve accountability.
The issue has gained additional significance amid continuing economic pressures, including foreign exchange constraints, rising public debt obligations, inflationary pressures, and concerns about the health of the banking sector.
Although Swiss banks were historically associated with strict client secrecy, Switzerland has substantially transformed its regulatory framework during the past decade under international pressure.
The country now participates in the Automatic Exchange of Information (AEOI) system, a global framework developed by the Organisation for Economic Co-operation and Development (OECD) to combat tax evasion and improve transparency in cross-border financial holdings. Through the system, participating jurisdictions automatically exchange information regarding foreign-owned financial accounts.
According to the Swiss Federal Tax Administration, Switzerland exchanged information on approximately 3.4 million financial accounts with 101 partner jurisdictions in 2025 under the AEOI framework. The information exchanged includes account balances, identifying details, tax identification numbers, and information concerning the financial institutions maintaining the accounts.
However, Bangladesh remains outside that network.
The OECD Global Forum on Transparency and Exchange of Information for Tax Purposes reported in its latest update that Bangladesh has not yet committed to implementing the AEOI standard, unlike neighboring India and Pakistan, both of which participate in international information exchanges.
Transparency advocates argue that the absence of Bangladesh from the global information-sharing framework limits the country’s ability to obtain systematic data about offshore financial assets held by its residents.
The OECD describes the AEOI system as a mechanism that enables the annual exchange of information concerning offshore financial accounts and related income, helping tax authorities verify whether taxpayers have accurately declared their foreign assets.
The government’s critics say Bangladesh’s slow progress in joining such international transparency initiatives raises questions about the seriousness of official efforts to detect undeclared offshore wealth and recover illicitly transferred funds.
Those concerns have become more pronounced following repeated public pledges by authorities to crack down on money laundering and strengthen financial accountability. Despite those promises, analysts note that Bangladesh continues to face significant challenges in recovering assets transferred abroad and in securing information from foreign jurisdictions.
The latest Swiss data are also notable in a regional context.
India remained South Asia’s largest source of Swiss bank deposits in 2025, with funds totaling approximately CHF 3.2 billion. However, Indian holdings declined by more than 8 percent during the year. Bangladesh ranked second in the region with CHF 834.2 million and was among the few South Asian countries to record substantial growth.
Afghanistan recorded the fastest percentage growth, although its total holdings remained comparatively small. Sri Lanka and the Maldives also registered increases, while India, Pakistan, Nepal, and Bhutan saw declines.
The regional comparison is likely to intensify scrutiny within Bangladesh, particularly as authorities seek foreign investment and international financial support while simultaneously confronting persistent concerns about governance and accountability.
The renewed attention on Swiss bank deposits follows years of fluctuations. Bangladesh-linked funds reached a historic peak of CHF 871.1 million in 2021 before plunging sharply in subsequent years and then rebounding dramatically in 2024 and 2025. Analysts say these swings demonstrate the complexity of interpreting Swiss banking statistics and the importance of distinguishing between institutional banking funds and private wealth.
Still, the political significance of the figures remains considerable.
As economic hardship continues to affect many households and the government seeks to reassure citizens about financial governance, the latest surge in Bangladesh-linked Swiss deposits is likely to fuel renewed calls for greater transparency regarding offshore assets, stronger anti-money laundering enforcement, and faster integration into international financial information-sharing systems.
Whether the increase primarily reflects routine banking operations or deeper structural issues within Bangladesh’s financial system, the new data underscore a reality that policymakers have struggled to address for years: substantial Bangladesh-linked funds continue to be held abroad, while public confidence in financial oversight remains under pressure.
The challenge for authorities now is not merely explaining the numbers, but demonstrating that the institutions responsible for financial governance possess both the tools and the political will to ensure transparency, accountability, and public trust.
