Bangladesh is one of the 10 emerging markets of the future and the second-fastest growing economy in the world. Its strategic geographic location and natural resources provide the potential to develop strong commercial ties with the rest of Asia. Bangladesh is also one of the world’s most densely populated countries, offering ready access to a large consumer base. The International Monetary Fund has projected around 7% Gross Domestic Product growth for Bangladesh in the financial year FY18.
Key growth sectors in Bangladesh
Key fraud risks factors
Counterfeit and grey market products
Conflict of interest (e.g., employee and vendor)
Vendor favoritism and kickbacks
Employee fraud (misrepresentation or misappropriation)
Data security, cybercrime and insider threats
Workplace safety and prevention of sexual harassment at the workplace
Internal controls not commensurate with business growth
Balancing monetary pressure and company profitability
Toward leading industry practices
As Bangladesh strives to capitalize on business growth opportunities and cultivate a positive commercial environment, combating fraud risks is a priority for companies operating in the region.
EY’s Forensic & Integrity Services practice conducted a survey with business professionals in the region to understand their perception of fraud and corporate misconduct in Bangladesh.
89% of the respondents believe companies should self-report cases of fraud, bribery and corruption to the appropriate authorities
58% consider paying bribes as unethical but necessary to conduct business
25% believe it is not a company’s responsibility to monitor activities managed by its vendors or third parties
Global businesses know that robust internal controls and anti-fraud frameworks help mitigate threats at an early stage. With a growing number of multinationals looking to expand their presence in the country, companies operating in Bangladesh need to take a cue from more mature economies and apply leading global practices to help deter fraud.