Regulatory Alerts2010-09-05
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BRPD Circular No. 28: Discounting/purchasing of accepted bills at Offshore Banking Units
Offshore Banking Units (OBUs) are authorized to discount bills accepted by Authorized Dealers (ADs) in Bangladesh against import Letters of Credit opened on a deferred or usance basis, provided due diligence is applied. This clarification treats OBUs as non-resident entities for exchange control purposes and updates guidelines previously issued by the Banking Control Department in 1985.
Banking Regulation & Policy Department Bangladesh Bank Head Office Dhaka. Web site: www.bangladeshbank.org.bd BRPD Circular No.28 Date: 05 September, 2010 Chief Executives All Scheduled Banks in Bangladesh Dear Sirs, Discounting/purchasing of accepted bills at Offshore Banking Units Please refer to the letter No. BCD(P)744(27)/1416 , dated December 17, 1985 issued by the then Banking Control Department of Bangladesh Bank, Head Office, Dhaka regarding guidelines on establishment of Offshore Banking Units (OBUs) in Bangladesh. Since OBUs are treated as nonresident entities for exchange control purposes, it is hereby clarified that the OBUs may discount bills accepted by ADs in Bangladesh against import L/Cs opened on deferred/usance basis applying due diligence. Please acknowledge receipt. Yours faithfully, (Md. Sohrawardy) General Manager Phone: 7117825
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