A circular issued yesterday made the advice to do it as per FATCA of the United States

Bangladesh Bank has advised the bank companies which have accounts of US taxpayers to report to the country’s internal revenue service (IRS).

A circular issued yesterday made the advice to do it as per Foreign Account Tax Compliance Act (FATCA) of the United States.

As Bangladesh government has not yet decided to execute an intergovernmental agreement with the US, the obligation can alternatively be discharged at individual bank level by registering and signing ‘Participation Agreements’ with the IRS, it said.

National Board of Revenue also consented on registering with the IRS if a bank has US taxpayer accounts in its books.

FATCA enacted in 2010 requires a foreign financial institution (FFI) to report to the IRS information about certain accounts held by US taxpayers or by foreign entities in which US taxpayers hold a substantial ownership interest.

According to the definition of FFI, all banks as defined in the Bank Company Act, 1991 have come within the provisions of FATCA. 

Banks said FATCA may have implications for their customers and operations should register themselves with the IRS and put in place appropriate processes and controls to ensure compliance with the law.

The concerned banks are advised to visit the IRS’s website,for necessary guidance in this regard.

Banks should communicate with the existing customers well in advance of executing “Participation Agreement” with the IRS enabling the accountholders to comply with reasonable requests for information or to provide acceptable documentation to meet the FATCA obligations, according to the circular.

Bangladesh Bank said because the agreement requires disclosures which would normally be breaches of the banker’s general duty of confidentiality under prevalent Bangladeshi

laws including the Bankers’ Books Evidence Act 1891, banks are to obtain written consents from their customers before reporting the requested information to IRS. 

Md. Habibur Rahman, Managing Director, Al-Arafah Islami Bank, inaugurates the 35th ATM booth of the bank at Nandipara in the city on Thursday.

Al-Arafah Islami Bank Limited opened an ATM booth at Nandipara in the city on Thursday.

Md. Habibur Rahman, Managing Director of the bank inaugurated the new booth as chief guest, said a press release.

SM Morshed, Managing Director of Sicily Garments, Syed Masodul Bari, EVP, Md. Nazmus Saadat, SVP, Engr. Md. Habib Ullah, SVP, Jalal Ahmed, AVP and Mohammad Shakhawat Ullah, First Assistant Vice President were present.

Md. Alamgir Khan Menu, former Secretary, Tangail Chamber of Commerce and Industries, inaugurates 93rd branch of Mutual Trust Bank Limited at Noor Tower, in Tangail recently.

Mutual Trust Bank Limited (MTB) recently opened its 93rd branch at Noor Tower, in Tangail.

Md. Alamgir Khan Menu, former Secretary, Tangail Chamber of Commerce and Industries inaugurated the branch as the chief guest, said a press release.

Amulya Kumar Debnath, Director General, CPTU, Planning Commission, and AMM Farhad, Deputy Managing Director of SIBL, exchange documents after signing an MoU for e-GP payment service in Dhaka recently.

Social Islami Bank Limited signed a Memorandum of Understanding (MoU) with Central Procurement Technical Unit (CPTU), Ministry of Planning recently for e-GP payment service.

Amulya Kumar Debnath, Director General, CPTU, Planning Commission and AMM Farhad, Deputy Managing Director of SIBL signed the MoU on behalf of their respective organizations, said a press release.

Among others, Md. Aziz Taher Khan, Director, CPTU, Ministry Planning and Md. Sultan Badsha, Senior Vice President and Head of IT of SIBl were present.

Plastic goods manufacturers would get soft loans at low interest rate to develop products having potentials at home and abroad.

SME Foundation, an independent and non-profit organisation, will provide 177 clusters of small and medium enterprises in the city and its adjacent areas with collateral-free loans of Tk3 crore at 9% interest under a programme styled “Cluster Mapping.”

Managing director of the foundation Engr Syed Md Ihsanul Karim and IDLC Finance Ltd Managing Director Selim RF Hussain signed an agreement on the lending programme for their respective organisations in Dhaka yesterday.

Lalbag, Chalkbazar, Islambag and adjacent areas of Dhaka district will come under the cluster. After a need assessment programnme, the foundation found access to finance is the main bottleneck for the micro and small entrepreneurs of these areas.

There are around 3,000 small, medium and large entrepreneurs who provide more than one lakh jobs.  Over 150 types of plastic products like household goods, toys, raw materials for different industries and bottles are being manufactured in the country.

Plastic products currently represent a sizeable sub-sector in the chemical industry.

But most of the manufacturers are suffering from lack of infrastructure support; waste management and recycling facility; and skilled manpower.

According to the Economic and Social Commission for Asia and the Pacific (ESCAP) of the United Nations launched in 2012, the market size of plastic products is around US$1bn - $714m in the domestic market and the remaining in the global market.

Local producers exported plastic products worth US$38m in the first six months of the current fiscal year, according to Export Promotion Bureau.

Plastic products are used in different purposes such as packaging, construction, pharmaceutical and consumer products.

Garbage bags, toothbrushes, artificial flowers, ballpoint pens, PVC (polyvinyl chloride) pipes, polythene sheets, electric switches and computer accessories are also being made up of plastic.

News:Dhaka Tribun/14-Jan-2014