Regulatory Alerts2024-04-03
Added
DFIM Circular No. 04: Identification and Finalization of Willful Defaulters and Measures to be Taken Against Them
The circular mandates financial companies to establish a dedicated unit by April 30, 2024, to identify willful defaulters within 30 days of default, allowing a 30-day extension with approval. It establishes a finalization process requiring a 14-day representation period, with final decisions requiring Management Director approval or Board approval for large, medium, or other sectors exceeding 750 million, 300 million, and 100 million BDT respectively. Defaulters face restrictions on foreign travel, trade licenses, and company registration, while directors of listed entities are declared vacant. Financial companies must report willful defaulters to the Credit Information Bureau as 'Willful Defaulter' and submit quarterly reports to the Financial Institutions and Markets Department by the 10th of the following month. Non-compliance incurs fines of 500,000 to 10,000,000 BDT, plus 100,000 BDT per day for continued violations.