Bangladesh Parliament enacts offshore Banking Act, 2024

Finance minister Abul Hassan Mahmood Ali introduced the bill, which was subsequently passed by voice vote during a session chaired by speaker Dr. Shirin Sharmin Chaudhury.

According to the finance minister, the proposed law allows non-resident individuals or foreign firms investing in Bangladesh to open offshore bank accounts, contingent upon obtaining a license from the Bangladesh Bank, which is the central bank of the country.

These offshore accounts will facilitate transactions in five major currencies: US Dollar, Pound, Euro, Japanese Yen, and Chinese Yuan.

Additionally, relatives of Bangladeshi nationals residing abroad are also permitted to open and manage accounts as proxies.

One significant provision of the law is that foreign depositors no longer require permission to remit money deposited in Bangladesh’s internal banking system.

The aim is to encourage businesses benefiting from Bangladesh’s economic environment to deposit funds into these offshore accounts, thereby boosting reserves and fostering financial gains.

The draft legislation highlights the confidentiality aspect of offshore banking, stipulating that inquiries about the sources of funds deposited into these accounts are prohibited. Under the proposed law, individuals residing abroad and firms operating internationally will have the opportunity to establish bank accounts.

However, there has been opposition to the law’s enactment.

Jatiya Party chief whip Mujibul Huq expressed concerns, stating that lawmakers lack sufficient understanding of the law’s implications and called for clarification regarding its benefits and drawbacks.

Despite dissent, the enactment of the Offshore Banking Act-2024 signals Bangladesh’s commitment to fostering a conducive environment for foreign investment and financial growth.

Fibre2Fashion News Desk (DR)