Regulatory Alerts2023-06-13
Added
DFIM Circular No. 06: Appointment & Management of Human Resources in NBFIs
This circular mandates Non-Banking Financial Institutions (NBFIs) to establish board-approved human resource policies for recruitment, promotion, and management. It requires specific high-level positions, including Heads of Internal Audit and Compliance, Credit Risk Management, Chief Financial Officers, and Company Secretaries, to have defined qualifications and assessment procedures, while prohibiting individuals from holding multiple such roles simultaneously. NBFIs must submit comprehensive background reports for these appointees to the Bangladesh Bank within 15 days of hiring and notify the Bank at least one month prior to their termination. Additionally, institutions must verify and retain educational and national ID documents for all staff, update personal contact information, and regularize existing employees' records within six months of the circular's issuance.