Locals, foreigners to disclose forex, securities assets

Locals or foreigners living in Bangladesh have to disclose information about their foreign exchange or securities and immovable or other assets abroad under provision of an amended law, meant for checking various financial evasions.
The cabinet approved in principle Monday 'The Foreign Exchange Regulations (Amendment) Act 2015' incorporating such provisions to make the law "more effective and time-befitting".
Evidently, the tightening of legal loopholes came in the wake of reports on growing financial offences-the much-discussed one being siphoning.  
According to the new provisions in the amended law, locals or foreign residents must come up with information about such holdings of their abroad.
"The proposed law vets authority in government to ask any local or foreign resident for information about their foreign exchange or securities and immovable or other assets abroad," Cabinet Secretary Muhammad Musharraf Hossain Bhuiyan told the media after a regular meeting of the cabinet.
Prime Minister Sheikh Hasina presided over the meeting held at the cabinet division at Bangladesh Secretariat.
Mr Bhuiyan said the law proposes waiving the existing mandatory provision of taking Bangladesh Bank's (BB) prior permission in the case of taking licence by a foreign-exchange agency and opening a branch or liaison office by any foreign organisation.
The Board of Investment (BoI) will issue the permission, and BB will be informed thereof within 30 days so that the central bank can monitor the transaction of foreign exchange and securities of the organisation concerned.
The purchase and sale of foreign currencies and bullion (gold and other precious metal bar) are now regulated under the 'Foreign Exchange Regulation Act 1947' which was amended in 1976 and 2003.
Mr Bhuiyan noted that the size of transaction of foreign exchange has expanded to a large extent in the wake of expansion of foreign investment and volume of the international trade, underlining the necessity of amending the existing law.
He said a committee, headed by an Executive Director of BB, prepared the proposed law after reviewing the existing laws of other countries, including the neighbouring ones.
Different ministries and stakeholders have given their opinions before preparation of the draft law.
Besides, the draft updated and widened definitions of many terminologies in keeping with the time, he said.
Non-physical concept of transactions was included in the definitions of currency, export, import, goods etc aimed at covering the electronic transactions in the wake of development of the information and communication technologies.
The law has also proposed empowering BB to impose fines on the foreign-exchange dealers in case of violation of the law.
It has also proposes waiving the mandatory provision of taking prior permission from BB for taking licence by any foreign-exchange agency. In this case, BoI or the authorities concerned can issue the permission to work as agent.
In case of opening a branch or liaison office by any foreign organisation, the law has also proposed waiving the provision of taking permission from BB, giving the task over to only the BoI, "to save time and ensure an investment-friendly atmosphere".
During an unscheduled discussion at the cabinet meeting, the PM gave directives to the cabinet division to take necessary steps for establishing Mymensingh as Administrative Division.
"The PM has given directives to the cabinet division to start working towards the formation of Mymensingh Administrative Division," a cabinet member, preferring not to be named, told the media.
The country has now seven divisions -- Dhaka, Chittagong, Khulna, Rajshahi, Barisal, Sylhet and Rangpur. Mymensingh will be the 8th one.
The cabinet has given its nod to a proposal for ratification of the "Agreement between Bangladesh and Malaysia on Partial Abolition of Visa Requirement for Diplomats and Official Passports."
The two countries inked the agreement during Prime Minister Sheikh Hasina's Kuala Lumpur visit in December 2014.
The Council of Ministers also discussed the country's political situation, sources said.  
    talhabinhabib@yahoo.com