Bangladesh Swiss holdings hit the second-highest

Funds held by Bangladeshi nationals and banks in Swiss financial institutions rose by 41 per cent in 2025 to CHF 834.2 million (approximately Tk 12,763 crore), marking the second-highest level on record, according to annual data released on Thursday by Switzerland’s central bank.

The latest figure brings total Bangladeshi-linked holdings in Swiss banks close to the all-time peak of CHF 871.1 million recorded in 2021, based on statistics published by the Swiss National Bank (SNB).

The SNB data, however, reflect only amounts reported by banks operating in Switzerland and do not represent estimates of alleged undisclosed or illicit wealth held abroad.

The overall increase was driven primarily by a 43 per cent rise in deposits placed by Bangladeshi banks, which climbed to CHF 822.7 million in 2025 from CHF 576.6 million in the previous year.

As a result, Bangladeshi banks accounted for 98.6 per cent of total Swiss-linked holdings in 2025, slightly higher than 97.8 per cent in 2024, but significantly above 20 per cent in 2023 and 35 per cent in 2021.

By contrast, deposits held through individual customer accounts declined by nearly 10 per cent, falling to CHF 11.4 million from CHF 12.6 million a year earlier.

Mutual Trust Bank Managing Director Syed Mahbubur Rahman said the rise largely reflects normal banking operations rather than illicit financial flows.

“Banks regularly place funds in different countries and financial institutions depending on where they can earn the best returns,” he said, adding that such reallocations are routine and do not necessarily indicate unusual activity.

He further noted that banks frequently shift funds across jurisdictions in response to changing investment opportunities, and that balances in specific countries may fluctuate year to year without reflecting underlying irregularities.

Swiss banking institutions, once known for strict client confidentiality, have in recent years strengthened transparency measures to combat money laundering, including the Automatic Exchange of Information (AEOI) framework introduced in 2018 to curb tax evasion.

Under this system, Swiss cantonal tax authorities receive detailed financial information from partner jurisdictions, including account balances, income data, and taxpayer identification details, enabling cross-border verification of declared assets.

In 2025, the Swiss Federal Tax Administration exchanged data with 101 countries covering around 3.4 million financial accounts under the AEOI framework.

However, according to the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes (as of May 2026), Bangladesh has not yet joined the AEOI system, while neighbouring India and Pakistan have already become participants.

Within South Asia, India remained the largest holder of Swiss bank deposits in 2025 at CHF 3.2 billion, although its holdings declined by 8 per cent year-on-year.

Bangladesh ranked second with CHF 834.2 million, recording the highest growth rate in the region at 41 per cent.

Afghanistan posted the fastest percentage increase at 48.2 per cent, albeit from a much smaller base of CHF 4.7 million.

Overall regional trends showed mixed movement in 2025, with India, Nepal, Pakistan and Bhutan reporting declines, while Bangladesh, Sri Lanka, Afghanistan and the Maldives recorded increases in Swiss-linked deposits.