Guidelines for Offshore Banking Businesses – Expanded Scope of Services

This circular expands the scope of services for offshore banking units (“OBUs”). It augments FE Circular No. 11 dated 30 January 2025 on Guidelines for the Offshore Banking Business of Scheduled Commercial Banks in Bangladesh, which provides operational instructions for OBUs, among other directives. The key highlights are provided below.

Expansion of services for non-resident customers: To broaden the scope of operations, OBUs are now permitted to provide services to non-resident customers holding accounts with them. These services include, but are not limited to, trade-related activities such as advising, collection, and settlements, subject to the following:

• OBUs must ensure the legitimacy of the services offered to non-resident clients.
• OBUs are prohibited from undertaking any exposure or financial commitments on behalf of such clients.
• Proper due diligence must be conducted before processing any transaction.

Repatriation of inward remittances: OBUs may facilitate inward remittance services for credit to customers’ accounts through internationally recognized entities such as money transfer operators, online payment gateway service providers, digital wallets, card schemes, or other authorized payment service providers abroad. Suitable foreign currency arrangements must be in place with such operators. Under these arrangements, only fund repatriation is permitted for crediting customer accounts.

In cases where repatriated funds are intended for customers maintaining accounts with other OBUs or domestic banking units, OBUs must immediately transfer the funds in foreign currency to the beneficiary’s bank using the BD-RTGS system.