DHAKA — A major financial investigation has been launched in Bangladesh targeting a firm with deep links to the globally exposed Panama Papers. Authorities are probing allegations that more than Tk220 billion (approximately $1.85 billion) was illicitly siphoned out of the country through a distributor connected to bKash, the nation’s largest mobile financial services (MFS) provider.
At the heart of the investigation is Gen International, a bKash distributor. Bangladesh’s Criminal Investigation Department (CID) and the Financial Intelligence Unit (BFIU) are examining the firm’s relationship with its parent entity, Jetlight Investment Limited, a British Virgin Islands-registered company identified in the landmark 2016 Panama Papers leak.
Regulatory Breaches and “Shell” Allegations
The probe centers on claims that Gen International operated within Bangladesh’s fast-growing digital finance sector without mandatory regulatory approvals. Under current law, foreign-owned or joint-venture entities must secure clearance from both Bangladesh Bank and the Bangladesh Investment Development Authority (BIDA) before commencing operations.
- The Repatriation Gap: Investigators allege that Gen International failed to obtain these approvals, making any repatriation of profits abroad an illegal act under the Money Laundering Prevention Act 2012.
- Offshore Secrecy: Jetlight Investment Limited is reportedly linked to an address in the British Virgin Islands shared by over 100 other entities, a hallmark of “shell company” structures used to mask beneficial ownership.
- The “Hundi” Connection: Financial intelligence shared by Malaysian authorities suggests that large cash deposits were made into accounts held by the firm’s owners, often disguised as “gifts”—a pattern consistent with hundi, the informal and illegal cross-border remittance system.
Corporate Accountability in Focus
The case has placed a spotlight on corporate oversight within the MFS sector. A spokesperson for bKash stated that the company had verified Gen International’s legal documentation during the initial distributorship agreement, adding that the distributor’s subsequent profit-transfer methods were not bKash’s direct responsibility.
However, senior investigators told reporters that the evidence of “suspicious transactions” totaling Tk220 billion is “fully substantiated.” The BFIU has categorized the case as a critical breach of the national financial system, with formal criminal charges expected to be filed in the coming weeks.
As Bangladesh moves to tighten its fiscal controls in 2026, the bKash-affiliate probe serves as a stark reminder of the ongoing challenge in emerging markets of embezzlement of public funds while the general populace lacks vital infrastructure.
Paltan- Segunbagicha Skyline, Dhaka Picture by ASaber91
