This article deals with financing of Islamist terror in Bangladesh, which on occasions becomes jihadi in nature, especially when it is directed towards India. The exercise undertaken studies developments in the area of terrorist finance in Bangladesh post-9/11, but does not claim to fully estimate the volume of terror financing in that country. The attempt has been made to throw some light on an area where little research has been done. The article argues that the Government of Bangladesh has shown a half-hearted approach towards checking the finance of terrorism.

The rise and growth of Islamist political parties in Bangladesh has been a cause of concern as these parties have the establishment of an Islamic state as their ultimate objective. Though some of these parties, especially the Jamaat-e-Islami Bangladesh, have tried to project themselves as 'moderate forces' and have participated in democratic elections, this article argues that the Jamaat is not a moderate force and has as its ultimate objective the establishment of an Islamic state, which does not go together with democracy.

The ascendancy of Jamaat Islami to power in a country that was born on the basis of secularism indicates the changing political dynamics in Bangladesh. Its syncretic tradition rooted in its language and culture limited Jamaat's success. Nevertheless, given the role the party played during the liberation war, its political ascendancy speaks of the changing political landscape. This article argues that though the party has exhibited some political success, it faces challenges from the secularists in the socio-cultural sphere, thereby limiting its growth and expansion.