Regulatory Alerts2024-08-27
Added · Updated
DFIM Circular Letter No. 26: Appointment and Responsibilities of Managing Director/Chief Executive Officer of a Finance Company
The circular amends paragraph 13 of DFIM Circular No. 03 (dated March 25, 2024) to allow the Managing Director or Chief Executive Officer of a finance company to travel abroad without prior Bangladesh Bank approval if such travel is essential and authorized by the Board of Directors in accordance with the company's own overseas travel policy. The MD/CEO must provide written notice to the Official Institution and Market Department at least ten days before departure, including the name, designation, official phone, mobile number, and email address of the officer designated to assume responsibilities during their absence. This directive is issued under Section 41 of the Finance Company Act, 2023, and takes effect immediately.
Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh. Ref No.: DFIM Circular Letter No. 26 Chairman, Board of Directors and Managing Director/Chief Executive Officer of all Finance Companies operating in Bangladesh.
Dear Sir,
Regarding the policy on the appointment/engagement of the Managing Director or Chief Executive Officer of a Finance Company and their responsibilities.
Attention is drawn to Paragraph 13 of DFIM Circular No. 03, dated: 25 March 2024, on the subject above.
- Through Paragraph 13 of DFIM Circular No. 03/2024, it was instructed that if the Managing Director/Chief Executive Officer of a Finance Company needs to travel abroad for essential purposes, an application must be made to Bangladesh Bank for prior approval 10 (ten) days before departing the country. Now, Paragraph 13 of the said circular is replaced as follows:
"In case of essential overseas travel by the Managing Director/Chief Executive Officer, they may travel abroad without prior approval from Bangladesh Bank in accordance with the Finance Company's own overseas travel policy, subject to the approval of the Board of Directors. In this regard, the Managing Director/Chief Executive Officer must inform the Official Institution and Market Department in writing about the name, designation, official phone, mobile number, and email address of the officer who will assume responsibilities in their absence, at least 10 (ten) days before leaving the country."
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Apart from the aforementioned instructions, other instructions contained in DFIM Circular No. 03, dated: 25 March 2024, shall remain unchanged.
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This instruction is issued under the powers conferred by Section 41 of the Finance Company Act, 2023, and shall take effect immediately.
Yours faithfully,
(Md. Asaduzzaman Khan) Director (DFIM) Phone: 9530178. Date: 12 Bhadra 1431 27 August 2024 Official Institution and Market Department