@DHAKA UNIVERSITY JOURNAL OF MANAGEMENT
Volume 16, No. 1, January 2024 – December 2025
https://www.doi.org/10.57240/DUJM.V16N1A3
PP. 69-92, ISSN: 2221-2523
Towards a Proactive Approach for Combating Financial Crimes in
Bangladesh: Lessons from RCEP Strategies
Md. Rezaul Karim Shohag1
Qazi Moinuddin Mahmud, PhD2

Received on 10th Nov 2024, Accepted on 23th Feb 2025, Published on Abstract: Financial crimes like corruption and money laundering are a real threat to economic stability, governance and the trust necessary for a smooth financial environment. Their existence distorts market dynamics, debilitates business competitiveness, and dissuades foreign investment. The paper examines the proactive measures in combating financial crimes in Bangladesh based on the experience of the Regional Comprehensive Economic Partnership (RCEP) countries. This research utilizes deterrence theory for strict enforcement of regulations to prevent financial crimes and network theory for interconnected systems to combat transnational financial crimes. The findings demonstrate that, despite some initial hurdles such as divergent legal frameworks and meager cooperation, RCEP countries have come a long way toward addressing financial crimes. But member states have been able to detect and reduce financial criminal activities more effectively by providing enhanced regional cooperation and building specialized financial intelligence units. The study recommends that Bangladesh can learn from the same strategies to reinforce its financial crime prevention mechanisms.

Keywords: Anti-Money Laundering, Risk Based Compliance, Informal Financial
Channels, Cross-Border Cooperation, Artificial Intelligence.

Introduction:
Financial crimes directly lead to economic losses, disrupt financial and market dynamics (Iordache, 2024). For example, corruption and money laundering distort business decisions, augment risks for financial institutions and distort government policies (Mcdowell & Novis, 2001). Such activities erode trust needed for smooth financial operations, deteriorating the competitiveness of genuine businesses and the reputation of a country and discourages foreign investors (Akay Ünvan, 2020). Unchecked financial crimes can establish long term, negative feedback loops where increased crimes decrease economic stability and increase unemployment, inverse reiterating financial crimes (Araujo & Shikida, 2010). One of the core functions of regional and international financial institutions is to foster the harmonization of 1Assistant Professor, Department of Criminology, University of Dhaka 2Associate Professor, Department of Management, University of Dhaka