Regulatory Alerts2014-12-22
Added · Updated
Indicative Guidelines for CSR Expenditure Allocation and End Use Oversight in the Financial Sector
Bangladesh Bank issues indicative guidelines requiring banks and financial institutions to allocate approximately thirty percent of total CSR expenditure to education and vocational training, and twenty percent to healthcare support for underprivileged populations. The remaining direct budgetary allocations must cover areas such as disaster relief, environmental sustainability, and infrastructure improvement for disadvantaged communities. Institutions must establish dedicated CSR units or foundations to manage these programs, ensuring board approval of budgets derived from post-tax net profits while strictly prohibiting allocations to entities connected with directors or senior management. Furthermore, entities are mandated to monitor the end use of funds through memorandums of understanding or documentation, report any suspected financing of militancy or terrorism to law enforcement, and maintain records for inspection by internal, external, and Bangladesh Bank supervisors.
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