The cabinet on Wednesday gave the final approval to the draft of Offshore Banking Act, 2024 in a bid to enhance the reserve of foreign currency and attract foreign investment.
The approval came from the cabinet meeting chaired by Prime Minister Sheikh Hasina at her office here in the city.
As per the proposed law, non-resident individuals or foreign firms, who will invest here, can open offshore bank accounts, said Cabinet Secretary Mahbub Hossain while briefing reporters at Bangladesh Secretariat.
“A license from Bangladesh Bank is required to do offshore banking. Those who have obtained this license do not need to have a new license,” he said.
The offshore banking operations can be done with the five currencies –US Dollar, Pound, Euro, Japanese Yen and Chinese Yen.
Any relative of a Bangladeshi living abroad can open an account and manage the account as a supporter.
Now foreigners who deposit money under the internal banking system of Bangladesh, need permission to remit the money from the country. But in the case of offshore banking, they can do it freely.
“We hope that those who will benefit from doing business here will be interested in depositing their money here,” said the Cabinet Secretary.
Mahbub Hossain said the move for offshore banking is not only to increase reserves but also to gain financial benefit.
If someone keeps money in that offshore account, no one will ask about the sources of the money, he said.
The individuals or firms who are living abroad or the foreign ones will be allowed to open bank accounts under the proposed law.
Besides, the meeting cleared a proposal to sign a new deal amending the existing agreement between Bangladesh and the Netherlands regarding avoidance of double taxation and prevention of tax evasion.