Relevant Acts on
Banking
Banking Company Act, 1991
(Amended
2023)
Chapter 1: Preliminary
• The provisions of this Act shall be in addition to the Companies Act,
1994 and any other Act for the time being in force [Section 02].
• Nothing in this Act shall apply to a co-operative bank or any other
financial institution registered under the Co-operative Societies
Ordinance, 1985 [Section 03]
• The Government may by notification in the official Gazette suspend for
at most 60 days the operation of all or any of the provisions of this Act
[Section 04].
Banking Company Act, 1991
(Amended 2023)
Chapter 2: Business of Banking Companies
• A banking company may engage in all or any of the following forms of
business, namely:- borrowing, lending or advancing, the drawing,
making, accepting, discounting, buying, selling, collecting and dealing in
bills of exchange, granting and issuing of letters of credit etc. [Section
07]
• Every company carrying on the business of banking in Bangladesh shall
use the word "bank" or any of its derivatives as part of its name [Section
08].
• No banking company shall directly or indirectly deal in the buying,
selling or bartering of goods [Section 09].
• No banking company shall hold any immovable property howsoever
acquired, except such as is required for its own use, for any period
exceeding 7 years from the acquisition thereof [Section 10].
Banking Company Act, 1991
(Amended
2023)
Chapter
2: Business
of Banking Companies
• No banking company shall remove from its head-office or any of its branches,
whether they are at the time being functioning or not [Section 12].
• The paid up capital of new commercial bank shall not be less than Taka 500.00
Crore as required under Bank Company Act 1991 as per June 2023
Amendment. The share capital will be formed with ordinary shares only
[Section 13].
• No banking company shall pay any dividend on its shares if all its capitalized
expenses and other expenses have not been completely written off; or if it fails
maintain paid-up capital and reserve fund or if there is provision shortfall
[Section 22].
• Every banking company, not being a scheduled bank, shall maintain in
Bangladesh by way of cash reserve in cash with itself, or with the Bangladesh
Bank or its agent, or both banks in equal parts, a sum equivalent to not less
than five per cent [Section 25].
Banking Company Act, 1991
(Amended
2023)
Chapter 03: Illegal banking of companies etc.
• Where the Bangladesh Bank believes that any
banking company or any other person is violating
through a banking business, it may within the
prescribed time require that company or person to
submit all information, documents or records
[Section 51].
• Where the Bangladesh Bank thinks it reasonable to
Believe that any banking company or any person is violating in the
course of a banking business, it may make a public announcement to this
effect [Section 52].
• No banking company or person regarding which an announcement has
been made, shall continue its activities and transactions [Section 53].
Banking Company Act, 1991
(Amended
2023)
Chapter 04: Prohibition of certain activities in
relation to banking companies
• No person shall obstruct any person from carrying on any business there;
or be held within the office or place of business of any banking company
[Section 57].
• Whoever violates any provision of subsection (1) without any reasonable
excuse shall be punishable with imprisonment of no more than two years
or a fine of no more than twenty thousand Takas or both [Section 57].
Banking Company Act, 1991
(Amended
2023)
Chapter 05: Acquisition of the undertakings of
banking companies
• If the Government is satisfied that a banking company has failed to
comply with the directions given to it, or is being managed in a manner
detrimental to the interests of its depositors or in the interest of banking
policy, the Government may acquire the undertaking of such company
[Section 58].
• Every shareholders in the acquired bank shall be given by the
Government compensation in respect of the transfer of the undertaking
of the acquired bank as is determined in accordance with the prescribed
principles [Section 60].
Banking Company Act, 1991
(Amended
2023)
Chapter 06: Suspension of business and winding up
of banking companies
• The High Court Division may, on the application
of a banking company which is temporarily unable
to meet its obligations, make an order staying
for a fixed period on such conditions [Section
64].
• High Court Division shall order the winding up of
a banking company, if the banking company is
unable to pay its debts or the Bangladesh Bank
makes an application for its winding up [Section
65].
• In every proceeding for the winding-up of a
banking company where a winding-up order has been
Banking Company Act, 1991
(Amended
2023)
Chapter 07: Speedy disposal of winding up
proceedings
• The High Court Division shall decide any claims
made by or against a banking company [Section
79].
• The High Court Division may settle in the manner
hereinafter provided a list of the debtors of a
banking company which is being wound up [Section
81].
• The Bangladesh Bank may, at any time by notice in
writing, require the liquidator of a banking
company to provide required information or
reports [Section 94].
Banking Company Act, 1991
(Amended
2023)
Chapter 08: Miscellaneous
• Whoever carries on the business of banking
without holding a license under this Act or
continues to carry on the business of banking
after the annulment of his license shall be
punishable with imprisonment or fine [Section
109].
• No person other than a banking company shall accept deposits
withdrawable by cheque [Section 115].
• The Government may, after consultation with the Bangladesh Bank,
declare, by notification in the official Gazette, that any or all of the
provisions of this Act shall not apply to any banking company or to any
particular banking company [Section 121].
The Money Laundering
Prevention Act, 2012
What is money laundering?
Money laundering is the process of making
illegally obtained money (often referred to as
"dirty money") appear legitimate (or "clean") by
disguising its true source.
Stages of Money Laundering
1.Placement: Illegally obtained money is introduced into the
financial system.
2.Layering: The money is moved through a series of transactions
to obscure its origin.
3.Integration: The "cleaned" money is reintroduced into the
economy as legitimate funds.
The Money Laundering
Prevention Act, 2012
• Any person who commits money laundering shall be
punished with imprisonment for a term of at
least 4(four) years but not exceeding 12(twelve)
years and a fine equivalent to the twice of the
value of the property involved in the offence or
taka 10(ten) lacks, whichever is greater
[Section 04].
• Any person who violates a freezing or attachment
order issued under this Act shall be punished
with imprisonment for a term not exceeding 3
(three) years or with a fine equivalent to the
value of the property subject to freeze or
attachment, or with both [Section 05].
• The offences under this Act shall be considered
as the scheduled offences under the Anti
Corruption Commission Act, 2004 and shall be
The Money Laundering
Prevention Act, 2012
• The court may, on the basis of a written
application by the Anti Corruption
Commission or any person or organization
authorized by it, issue an order to freeze
the property within or outside the country
[Section 14].
• Any person or entity aggrieved by an order
for freezing or attachment of any property,
passed by a court under this Act, may prefer
an appeal against such order before the High
Court Division within 30 (thirty) days
[Section 16].
• If any person or entity is convicted of the
offence of money laundering under this Act,
the court may pass an order for confiscation
The Money Laundering
Prevention Act, 2012
• Powers and responsibilities of
Bangladesh Bank in restraining and
preventing the offence of money
laundering [Section 23]
a) To analyze or review information related to
suspicious
transactions
received
from
any
reporting
organization
and
to
collect
additional information relating thereto
b) To ask for any information or obtain a
report from reporting organizations with regard
to any suspicious transactions
c) To issue an order to any reporting
organization to suspend or freeze transactions
of any account for a period not exceeding 30
The Money Laundering
Prevention
Act,
2012
• Powers and responsibilities of Bangladesh
Bank in restraining and preventing the
offence of money laundering [Section 23]
d) To issue, from time to time, any
directions necessary for the prevention of
money laundering to the reporting
organizations;
e) To monitor whether the reporting
organizations have properly submitted
information and reports requested by
Bangladesh Bank
f) To arrange meetings and seminars
including training for the officers and
staff of any organization or institution,
including the reporting organizations
The Money Laundering
Prevention Act, 2012
• Responsibilities of the reporting organizations
in prevention of money laundering [Section 25]
(a)To maintain complete and correct information with regard to the identity of its
customers during the operation of their accounts;
(b)If any account of a customer is closed, to preserve previous records of transactions of
such account for at least 5(five) years from the date of such closure;
(c)To provide with the information maintained under clauses (a) and (b) to Bangladesh
Bank from time to time, on its demand;
(d)If any doubtful transaction or attempt of such transaction as defined under clause (n) of
section 2 is observed, to report the matter as ‘suspicious transaction report’ to the
Bangladesh Bank immediately on its own accord.