Presenting the estimate at a discussion in Dhaka yesterday, he said smuggling topped the list with 52.6 per cent of the total transactions in the monetary underworld in Bangladesh.

"The transactions on the black market would be to the tune of Tk 20,000 crore in the fiscal year 2002-03, and Tk 18,000 crore of the amount was transferred through money laundering," said the BEA general secretary.

Explaining the method of estimation Barkat, also a professor of economics at Dhaka University, said it is impossible to measure the actual amount of laundered money as the flow is unregulated, untaxed, unmeasured and undocumented.

"I have estimated the amount by talking to persons dealing with related maters," Barkat said speaking at the discussion meeting on "Money Laundering: Bangladesh Perspective and Differences in Views" at the BIAM auditorium.

Bangladesh Young Economists Association (BYEA) and Bangladesh Institute of Administration and Management (BIAM) organised the meeting.

Dr Toufiq Rahman Chowdhury, chairman of Metropolitan University in Sylhet, and Mazharul Hasan Mazumdar, teacher of Business Administration of Shahjalal University of Science and Technology, jointly presented the keynote paper.

Quazi Kholiquzzaman Ahmad, president of Bangladesh Economic Association, Matiur Rahman, editor of The Prothom Alo, CM Koyes Sami, managing director of The Oriental Bank Ltd and Zahiduzzaman Faruq, editor of The Daily Arthaniti also spoke.

According to Prof Barkat, foreign remittance worth about Tk 7,200 crore, or 21 per cent of the total money laundered, were transferred through illegal channels.

Tax evasion through over- and under-invoicing accounted for Tk 1,155 crore while individual and corporate tax evaders laundered Tk 450 crore.

Roughly Tk 2,400 crore of bribed money was also laundered, which was seven per cent of the total amount.

Some 80 per cent of the Tk 1,200 crore spent abroad for treatment was transferred through hundi, which is also the best means of taking currencies out for education, pleasure trips and other overseas expenditures, Barkat said.

According to the keynote paper, Anti-Money Laundering Act 2002 passed last year is not enough to check illegal transactions. "Stringent law and its effective implementation are required for it," Dr Toufiq Rahman Chowdhury said.

Prothom Alo Editor Matiur Rahman said the government has so far failed to ensure punishment to those behind the 1996 share scam, which gives a message to people, related with black business that the act is beyond punishment.