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The government is going to introduce offshore banking services more broadly to increase the reserves and enrich the financial structure of foreign and expatriates interested in direct investment in the country. For this purpose, the cabinet has given principle and final approval to the draft of 'Offshore Banking Act 2024' on Wednesday. Prime Minister Sheikh Hasina presided over the meeting.
Cabinet Secretary Mahbub Hossain briefed the journalists after the meeting.
He said, it is the latest banking system. Different countries of the world have developed their economic system through this banking system.
To facilitate domestic and foreign investment, the government is starting a new banking program called offshore banking. Offshore banking has been legislated for overall economic development,' added the Cabinet Secretary.
He said that those who have already taken the approval of offshore banking from Bangladesh Bank, they do not have to get a new license.
Offshore banking is a system where funds are raised in foreign currency from foreign sources and governed by different laws outside of conventional banking laws.
Offshore banking is sometimes referred to as a different banking system within the bank itself.
Offshore banking started in the country in 1985 on a limited scale. Five types of foreign currencies including US Dollar, Pound, Euro, Japanese Yen can be transacted in offshore banking.
The cabinet secretary said that the government will not impose any tax on the profit that will be made from the investment of this banking system.
Awakening/Economy/KAP
