Extending the purview of offshore banking operations

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 24 Date: June 25, 2025 All Offshore Banking Units and Managing Director/Chief Executive Officer All Scheduled Commercial Banks in Bangladesh Dear Sirs, Extending the purview of offshore banking operations Please refer to FE Circular No. 11 of January 30, 2025 regarding the Guidelines for Offshore Banking Business of Scheduled Commercial Banks in Bangladesh. The guidelines outline operations of Offshore Banking Units (OBUs), among others. 02. To widen the scope of operations, it has been decided that OBUs may extend services to non-resident customers maintaining accounts with them, including but not limited to trade related services like advising, collection, settlements, etc., subject to the observance of the following points: (a) OBUs shall satisfy themselves about the legitimacy of the relevant services to be provided to non-resident customers; (b) No exposure/financial commitment can be undertaken on behalf of respective customers; (c) Appropriate due diligence needs to be executed before effecting transactions. 03. OBUs are allowed to arrange repatriation of inward remittances for credit in customers’ accounts through internationally recognized money transfer operators, online payment gateway service providers (OPGSPs), digital wallets/card schemes or other payment service providers licensed by competent authorities abroad. Accordingly, OBUs should have suitable arrangements in foreign currency with operators abroad. Under the arrangements, only funds need to be repatriated to credit in customers’ accounts. OBUs shall, however, immediately transfer foreign currency to beneficiaries’ banks through BD-RTGS system in case of repatriated funds belonging to customers maintaining accounts with other OBUs/DBUs. 04. This directive has been issued by Bangladesh Bank in exercise of the powers conferred on it under Section 11(7) and Section 25(2) of the Offshore Banking Act, 2024. Please bring the contents of this circular to the notice of all concerned. Yours faithfully,

(Md. Harun-Ar-Rashid) Director (FEPD) Phone: 9530123