Remittance saw positive inflow in all six months of the 2004-05 fiscal. Non-resident Bangladeshis (NRBs) sent $1578.06 million in the first half of the last fiscal, according to Bangladesh Bank statistics.

NRBs sent $316.8 million in October and $267.9 million in November and $380.18 million in December, 2004. Remittance flow in the first quarter of this fiscal was $836.48 million.

With increase in remittance flow, foreign exchange reserves rose to US$ 3.22 billion as on Monday and the current account balance improved substantially.

The current account balance was $ 200 million in last July, which was $158 million in the 2003-04 financial year. "The balance is on further rise after July as a result of increased remittance inflow," a central bank official said.

Bangladesh Bank officials attributed remittance growth mainly to strict money laundering act. However, manpower export did not increase substantially in the recent months.

Since money-laundering act is being implemented in different countries to check illegal transactions, some people who are involved in hundi, an illegal way to transfer money, have been arrested in Saudi Arabia, sources said.

Finance Ministry has strengthened its monitoring for remittance flow. "If there is any allegation, banks concerned are being asked to take immediate action. The ministry is also following up what actions the banks are taking about specific allegation," said a finance ministry official.

The nationalised commercial banks (NCBs) are also opening exchange houses in important foreign cities to encourage non-resident Bangladeshis to send money through banking channels.

NRBs sent $3371.97 million in last fiscal, which was 10.12 percent higher than the previous fiscal.