The central bank yesterday asked banks to cut down their spending on luxury vehicles and at the same time almost doubled the allowance for these purchases.
Bangladesh Bank's latest notice, which came with the intent to rein in banks' expenses, said a maximum of Tk 50 lakh can now be spent to acquire a car for high officials, including the chairman, and Tk 1 crore for a sport utility vehicle (SUV).
The purchase ceilings, as per the notice issued in July 2012, were Tk 35 lakh and Tk 50 lakh respectively.
“The limit has been increased to make it reasonable. The previous limit was not enough,” SK Sur Chowdhury, deputy governor of Bangladesh Bank, told The Daily Star.
The latest notice also forbade banks from buying motor vehicles with lease financing from other banks or non-bank financial institutions, as some took advantage of the facility and bought expensive cars with the lease money, Chowdhury said.

It also stipulated that cars used by the chairman and chief executive officer of a bank cannot be replaced before five years, and that the expansion of the banks' transport fleet must be proportional to the expansion of branches and recruitment of new employees.
The notice said the BB has observed that some banks have been spending huge sums on decoration of branches in recent months.
Subsequently, the central bank has restricted the banks' spending on new branches to Tk 1,500 per square foot and Tk 1,000 per sq ft for relocation of the existing branches excluding IT infrastructure costs.
It also said a bank shall not use more than 5,000 sq ft of space for establishing an urban branch and 2,000 sq ft for a rural branch.

News:Daily Star/17-Jan-2014

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.

News:Daily Sun/18-Jan-2014

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.