Parliament passed Sunday two bills aimed at ensuring transparency and accountability in the financial reporting and dealings in foreign currencies.
The bills passed are on 'The Financial Reporting Act 2015' and 'The Foreign Exchange Regulation (Amendment) Act 2015'.
The much-talked-about Financial Reporting Act 2015 is meant for ensuring more transparency and accountability in financial reporting activities.
Finance Minister AMA Muhith moved both the bills which were endorsed by the Jatiya Sangsad (JS) by voice vote.
However, some amendments proposed by some Members of Parliament were all voted out.
The Foreign Exchange Regulation (Amendment) Bill 2015 is aimed at helping the authorities track the overseas assets of Bangladeshis or foreigners living in Bangladesh.
The main purpose of the amendment is to effectively regulate the purchase and sale of foreign currencies and securities.
Besides, some amendments to the bill, which were proposed by some members, were rejected by voice vote.
The 'Foreign Exchange Regulation Act 1947', which was amended in 1976 and 2003, now regulates the purchase and sale of foreign currencies and bullion (gold and other precious metal bar).
Under the FRA a separate regulatory body styled "Financial Reporting Council (FRC)" will be formed to properly regulate the country's financial reporting activities.
The council will monitor the function of auditors and ensure transparency and accountability in accounting and auditing of financial organizations, including various government, autonomous and non-government institutions.
As per the FRA, the 12-member council will be formed with members to be picked by a search committee of financial experts headed by the Comptroller and Auditor General of Bangladesh. Other members will be from various ministries, departments, institutes and bodies as per the proposed law.
The Council will be headquartered in Dhaka and branches will be created in any part of the country through taking prior permission from the government.
Earlier, the Finance Minister placed the bill in the House on January 26, 2015 for its passage. But he sent it back to the parliamentary body on July 7, 2015 for vetting, sensing disputes between the chartered accountants and the cost and management accountants over a few core issues.
The move to introduce the FRA started in 2008 following suggestions of market experts, stakeholders and the securities regulator as the auditors responsible for window-dressed balance sheets cannot be brought under the scanner in the absence of an effective regulatory body.
On August 19, 2013 the cabinet approved the draft of the Financial Reporting Act (FRA) to ensure transparency in audit systems, form a regulatory body for monitoring firms listed with stock markets and financial institutions.
The move triggered debate among the stakeholders.
It also sparked regulatory conflicts between two major stakeholders - the Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and the Management Accountants of Bangladesh (ICMAB).
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