The cabinet committee is set to approve the proposed amendment to Foreign Exchange Regulation Act, 1947 empowering Bangladesh Bank (BB) to fine forex dealers, and to enquire abut the wealth of non-resident Bangladeshis, officials said.
Prime Minister Sheikh Hasina is expected to preside over the meeting today (Monday) which is also scheduled to make the Act time- befitting for attracting and easing foreign investment, and to prevent money laundering and terror financing, they added.
A senior official at the ministry of finance (MoF) told the FE Sunday that the amendment will also clarify some definition which will further widen the jurisdiction of the Act.
He said presently the word 'resident' is used to mention about Bangladeshi citizens. "After the amendment 'resident' will also cover foreign nationals who are residing in Bangladesh in various capacities except for tourism means they will also have to follow the rules and regulations of the Act."
According to the proposed amendment, the central bank will be given administrative power to penalise foreign exchange dealers for violating rules. "Presently, the BB can't impose fine on any forex dealer for violation of the Act," said the official.
Under the present Act the central bank cannot ask non-resident Bangladeshis to submit statement about their moveable and immoveable properties. "Once the amendment is approved, the BB will be able to ask both the resident and non-resident Bangladeshis to furnish their wealth statement," the official added.
He said the amendment will also help attract and ease foreign investment in the country.
"After the amendment foreign companies will be waived of taking approval from central bank for appointing agent, representatives, branch or liaison office in Bangladesh. An approval from board of investment will be good enough for them."
Another senior MoF official said the amendment was felt necessary to make the Act time- befitting considering the present needs.
"In the recent years terror financing and money laundering said to have increased creating concern at home and abroad. The amendment is very much necessary for prevention of illegal handling of money," he said.
Referring to another move the official said the government is planning to empower several law enforcement agencies including National Board of Revenue (NBR), Bangladesh Bank, Police, and Department of Narcotics Control to independently investigate offences under the money laundering prevention act-2012 to combat the menace.
He also said Bangladesh is also under immense global pressure to combat money laundering and terror financing inline with the recommendations of the Financial Action Task Force (FATF), the inter-governmental body which promotes effective implementation of legal, regulatory and operational measures for combating money laundering and terror financing.
syful-islam@outlook.com
Cabinet set to approve amendment to forex act
Syful Islam | Published: January 12, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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