Regulatory Alerts2024-03-18
Added
Offshore Banking Act, 2024 (Act No. 2 of 2024)
The Offshore Banking Act, 2024 prohibits scheduled banks in Bangladesh from conducting offshore banking business without a license issued by Bangladesh Bank and establishes the legal framework for licensing, operational conduct, and supervision of offshore units. It authorizes licensed offshore units to accept deposits and provide loans exclusively in foreign currency to non-resident Bangladeshis, foreigners, and entities in special economic zones or tax holidays, while prohibiting them from accepting domestic taka deposits or providing loans to residents. The Act imposes strict penalties for non-compliance, including fines up to USD 5,000 for individuals and USD 2,000 for willful defaulters, and mandates that all transactions be conducted in foreign currency with specific reporting and audit requirements overseen by Bangladesh Bank.