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. Attempts to obfuscate the issue, together with a lack of adequate machinery and competent staff, has made the existing law ineffective.