The policy includes a definition of offshore banking, approval for conducting offshore banking in Bangladesh, limitation on activities, prudential regulations, and termination and amendment of the approval for offshore banking. Source of funds for offshore banking operation will be limited only from deposits and borrowings received by the unit. Previously, there was no limit in transferring or mobilizing funds to an offshore banking unit from the onshore banking units. Approval for conducting offshore banking in BangladeshAccording to the policy, a bank willing to operate offshore banking units has to apply to the Banking Regulation and Policy Department (BRPD) of Bangladesh Bank, along with the necessary information and documents. Date of commencement of offshore banking operation of a bank or of an OBU (Offshore Banking Unit) shall be notified in writing to all concerned parties and the central bank within seven days of commencement.

Source: Dhaka Tribune February 25, 2019 16:18 UTC