Banking Digest

Mortgage fraud is not just a financial irregularity—it’s a serious criminal offense that erodes trust in the banking system and distorts the real estate market. In Bangladesh, such frauds are prosecuted primarily under the Penal Code, 1860 . This article breaks down the key legal provisions commonly used in mortgage fraud cases, helping bankers, legal professionals, and exam candidates understand the practical framework. 🔍 1. General Fraud & Cheating (Core Charges) At the heart of most mortgage fraud cases lies cheating and deception . ➤ Section 415 – Definition of Cheating This section defines cheating as: Deceiving someone fraudulently or dishonestly Inducing them to deliver property Causing harm to body, mind, reputation, or property 👉 In practice: Mortgage fraud often involves: False income statements Fake ownership claims Misleading loan applications ➤ Section 420 – Cheating and Dishonestly Inducing Delivery of Property This is the most commonly applied section...

Global trade is the backbone of modern economies. But behind every international transaction lies a complex system of agreements, payment methods, and risk management tools. Understanding how money and goods move across borders is essential for bankers, businesses, and finance professionals alike. 🔑 The Foundation: The Sales Contract Every successful international trade transaction begins with a Sales Contract . This is the formal agreement between the exporter and importer that defines: Product specifications Price and currency Delivery terms (Incoterms) Payment method Documentation requirements 👉 In simple terms, this contract is the blueprint of the entire transaction . Any dispute or confusion later often traces back to unclear contract terms. 💳 A Spectrum of Payment Methods Trade payments exist on a risk spectrum , balancing trust between exporter and importer. 🔒 Cash in Advance Payment is made before shipment ✅ Safest for exporter ❌ Risky for importer 🤝 Open Acc...

🔍 Understanding TFFE in Bangladesh In Bangladesh, the Trade & Foreign Exchange Framework (TFFE) is not a single standalone policy but a structured combination of regulatory guidelines issued by Bangladesh Bank . These include various FE Circulars and the widely used Guidelines for Foreign Exchange Transactions (GFET) , which together govern how banks process international trade transactions. From import payments to export proceeds and foreign currency dealings, TFFE ensures that every transaction is compliant, transparent, and properly documented. 💱 Exchange Rate Application in Practice One of the most critical aspects of TFFE is the correct application of exchange rates. For import payments, banks must apply the BC Selling Rate, especially during L/C settlement or PAD adjustment. On the other hand, export transactions require the application of OD Buying Rate, depending on whether the bill is sight or usance. In real banking operations, even a small mistake in rate applicat...