Is Citizenship by Investment a Reason Behind Money Laundering? An Empirical Study

Mossammat Kamrun Nahar, Md. Mahofuzur Rahman

Abstract


Citizenship by investment is the way by which one person can hold citizenship status in more than one country by investing a certain amount of money. More and more people are going after multiple citizenships to enjoy the benefits which are not available in their country of origin. This motive cannot be criticized as this is the usual right that people will vie for the better living standard. However, the reality is different in many cases. It is conjectured that for all the persons who are leaving this country for better living standard is not the sole reason. Some transfer their resources behind the mask of multiple citizenships. Different countries provide passports in return for payments or investments. Hence, money is transferred from one country to another country. It is the matter of concern that is money laundered under the dual-citizenship scheme. This paper shows present scenario of investment from Bangladesh in different countries under citizenship scheme. The article is based on both the primary and secondary data. We have prepared a questionnaire under 5-point Likert scale and placed to the employees of anti-money laundering department of Bangladesh Bank and the university teachers in the area of Business Administration and Economics. Collected data have been analyzed through the use of Statistical Package for the Social Science. The initial reliability of the items was verified by Cronbach’s alpha. The findings show that there is a positive relationship between citizenship by investment and money laundering from Bangladesh.

Aus. J. Acc. Eco. Fin. Vol 3(2), October 2017, P 58-67

 


Keywords


Money Laundering; Multiple Citizenship; Investment

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