DHAKA, Jan 30, 2025 (BSS)– Bangladesh Bank (BB) has issued guidelines for offshore banking business of scheduled commercial banks.

To this end, the central bank today issued a circular formulating a set of instructions for conducting offshore banking activities in Bangladesh.

As per the circular, no person shall engage in offshore banking business other than a scheduled bank operating in Bangladesh with license issued by Bangladesh Bank.

Offshore banking activities shall be carried out through Offshore Banking Unit (OBU) of scheduled banks operating in Bangladesh. Any scheduled commercial bank willing to operate offshore banking business in Bangladesh shall have to obtain license for OBU from Bangladesh Bank.

Head office or principal office of a scheduled commercial bank having accorded license to operate an OBU shall notify the commencement of its operation in writing to Foreign Exchange Policy Department, Banking Regulation and Policy Department, Department of Off-site Supervision, Foreign Exchange Operation Department, Foreign Exchange Investment Department, Department of Foreign Exchange Inspection, Forex Reserve and Treasury Management Department, Statistics Department, Monetary Policy Department, Payment Systems Department, relevant Departments of Banking Inspection, Motijheel Office and the respective area offices of Bangladesh Bank within 7 days of commencement.

OBUs are allowed to execute transactions in freely convertible currencies declared by Bangladesh Bank in terms of Article 18 of The Bangladesh Bank Order, 1972 (President’s Order No. 127 of 1972).