‘It will foster more money laundering’

Opposition Jatiyo Party lawmakers yesterday in parliament feared that money laundering from the country will increase through offshore banking following the passage of “Offshore Banking Bill, 2024.”

Finance Minister Abul Hasan Mahmud Ali placed the bill in the House, which was passed by voice vote.

Participating in a discussion before passage of the bill, four JP MPs — Opposition Chief Whip Mujibul Haque Chunnu, Hafiz Uddin Ahmed, Masud Uddin Chowdhury, and Ruhul Amin Hawlader — demanded the bill be sent to a committee to elicit public opinion on it. The proposal was rejected by a voice vote.

This is the first time the government is making offshore banking law in the country.

“Big thieves, big fishes, state leaders, and smugglers use offshore banking in island nations like the Bahamas to make their black money legal and to launder money abroad,” said Chunnu.

“Names of some people from Bangladesh have appeared in newspapers. They laundered money through offshore banking and built houses and hotels abroad,” he said.

Chunnu fears increasing money laundering from the country through offshore banking.

The other JP lawmakers echoed him.

As per the proposed law, non-resident individuals or foreign firms can open offshore bank accounts in Bangladesh to invest here, with a license from Bangladesh Bank using any of five currencies — US Dollar, Pound, Euro, Japanese Yen, and Chinese Yuan.

No one will ask about the sources of the money.

Any relative of a Bangladeshi living abroad can open an account and manage the account as a supporter.

Foreigners who deposit money under the internal banking system of Bangladesh now need permission to remit the money from the country. But with offshore banking, they can do it freely.

The move for offshore banking is to increase reserves and gain other financial benefits.

Asset Liability Management guidelines of respective banks shall be applicable for offshore banking activities.

Funds can be transferred from domestic banking units to offshore banking units with special approval from Bangladesh Bank while complying with the limits prescribed by it.

The bill proposed that interest or profits payable by the depositors or foreign lenders shall be exempt from direct and indirect taxes, while their accounts shall be exempt from any duty or levy.