Black money, “white” owners, and “blue” tenants in the Bangladesh housing market

Abstract

Purpose The main purpose of this paper is to critically examine the impact of black money whitening opportunity on the Bangladesh housing market and its ramifications for honest taxpayers and criminal conduct of the people in the country. Design/methodology/approach This paper relies on both primary and secondary materials and carries out an archival analysis of the resources available in libraries and online databases. Findings It demonstrates that black money whitening opportunity has failed to create additional demands for housing property, rather it encourages money laundering, corruption and other criminal activities. Hence, a set of specific recommendations have been submitted to effectively deal with the prevention of generation of black money instead of allowing them to be invested in properties with impunity. Research limitations/implications The discussions are concentrated on the legality of offering amnesty to black money holders and the impact of such indemnities on the housing market in Bangladesh; hence, it does not consider impacts on other economic sectors. It is expected that the publication of this paper will stimulate the government of Bangladesh to discontinue the disputed amnesty in Bangladesh, and other nations having similar problems with black money will be encouraged to follow suit. Practical implications It is anticipated that the implementation of the recommendations furnished in this paper will contribute to significantly decreasing money laundering, corruption and other offences involving money in Bangladesh and in other countries. Social implications Prevention of corruption and other financial crimes. Originality/value This paper represents its originality in its critical analysis of frequent offerings of the opportunity for whitening black money and their unfair impacts on honest taxpayers and resultant stimulation for engaging in money laundering, corruption and other felonies. It evidently justifies the assumption that such amnesties to wrongdoers are contrary to the national constitution, anti-corruption and anti-money laundering legislation and they wound the sense of ethical behaviour of human beings. Moreover, it proves the hypothesis that such opportunities being offered to black money holders have no positive contribution towards creating additional demands in the country’s property markets.