DFIM Circular No. 06: Appointment & Management of Human Resources in NBFIs

Financial Institutions and Markets Department
Bangladesh Bank
Head Office
Dhaka.
Ref No.: FIMD.CIRC.06
DFIM Circular No.-06
Managing Directors/Chief Executive Officers
All Financial Institutions operating in Bangladesh.

Dear Sir,

Regarding the appointment of staff/employees and human resource management.

Reference is drawn to your attention to DFIM Circular No. 09, dated: 14 September 2005, DFIM Circular No.-04, dated: 27 June 2013, and DFIM Circular No.-03, dated: 10 October 2019. The aforementioned circulars have issued instructions regarding the prevention of irregular practices in human resource recruitment in financial institutions, the upper age limit for candidates in new recruitment, etc.

2. Now, in order to ensure good governance in financial institutions and to carry out the recruitment and management of qualified, honest, and efficient human resources with transparency, the following instructions are given:

(1) Generally, there must be a clear policy regarding the recruitment, promotion, and overall human resource management of any level of staff/employees in a financial institution, which must be approved by the institution's Board of Directors;

(2) Considering the appropriate importance of the positions such as the Head of Internal Audit and Compliance (IAC), Head of Credit Risk Management (CRM), Chief Financial Officer (CFO), and Company Secretary, there must be an approved policy by the Board of Directors to determine the qualifications and suitability of the aforementioned positions. Additionally, there must be an assessment process approved by the Board of Directors to evaluate applications received for recruitment to these positions;

(3) No person can hold more than one of the aforementioned positions simultaneously;

(4) The duties and responsibilities of the aforementioned positions must be clearly included in the institution's human resource policy;

(5) The complete life biography of staff appointed as Head of Internal Audit and Compliance (IAC), Head of Credit Risk Management (CRM), Chief Financial Officer (CFO), and Company Secretary must be sent to the Financial Institutions and Markets Department of Bangladesh Bank within 15 (fifteen) days of their appointment. If any staff member is relieved from the aforementioned positions, Bangladesh Bank must be informed at least 1 (one) month prior to the relief;

30 Jyestha 1430
Date:
13 June 2023

(6) The educational qualification certificates and national identity cards of all recruited staff/employees must be verified and preserved in the records;

(7) The updated personal contact addresses and mobile phone numbers of all staff/employees must be preserved in the institution's records;

(8) The educational qualification certificates and national identity cards of those staff/employees who are already working in the institution must be verified and the personal records of all staff/employees must be updated within 6 (six) months of the issuance of this policy; and

(9) To comply with this policy, financial institutions will convene Board of Directors meetings and inform this department within 02 (two) months regarding the progress of compliance.

These instructions are issued under the powers conferred by Section 18(c) of the Financial Institutions Act, 1993, and will come into force immediately.

Yours faithfully,

(Md. Amir Uddin)
Director (DFIM)
Phone: 9530178.
-02-