Offshore Banking refers to the practice of establishing and operating a bank account or financial institution in a foreign jurisdiction with favorable financial regulations and tax benefits. Offshore banking has been historically associated with certain tax advantages, privacy, asset protection, and international business transactions.
Basically, an offshore bank is a bank located outside
the country of residence of the depositor, typically in a low tax jurisdiction or
tax haven that provides financial and legal advantages.
In Bangladesh, the use of offshore banking services is governed by various laws and regulations, including foreign exchange regulations, anti-money laundering laws, and tax laws. The Bangladesh Bank is responsible for overseeing and regulating offshore banking activities carried out by residents of Bangladesh.
The regulations in Bangladesh Place restrictions on residents’ ability to open and maintain offshore bank accounts without proper authorization or disclosure. Residents of Bangladesh are generally required to obtain prior approval from the Bangladesh Bank to open and operate offshore bank accounts.
Offshore banking in Bangladesh is primarily aimed at facilitating international trade and investment activities, remittances, and other foreign currency transactions. It provides a means for business and individuals to engage in cross-border transactions, access foreign currency transactions and manage international financial activities.
Offshore banking acts as a unique solution for banks across the globe to carry out international banking business involving foreign currency denominated assets and liabilities taking the advantages of low or non-existent taxes/levies and higher return on investment.
It is important to note that the specific rules,
regulations and requirements related to offshore banking in Bangladesh may be
subject to change over time. Therefore, individuals and businesses interested
in offshore banking should consult with the relevant authorities, such as the
Bangladesh Bank and seek professional advice to ensure compliance with the
latest regulations and requirements.