Dhaka, Bangladesh (BBN)- The central bank of Bangladesh has relaxed the foreign exchange regime by allowing the banks to encash inward remittances against agency services on one-off basis without its permission.
“The central bank has relaxed the foreign exchange regulation to facilitate business activities, particularly in the information and communications technology sector,” a senior Bangladesh Bank (BB) official told BBN in Dhaka.
The BB official also said such a facility would be available for one time only, while receiving inward remittances from the overseas principal. “Continuous agency service entailing earning of commission will require BB permission under Section 18A of the Foreign Exchange Regulation Act, 1947 as usual.”
The central bank issued a circular in this connection on Thursday and asked the commercial banks to follow such relaxation on providing inward remittance against agency services on one-off basis.
In order to benefit the customers by offering liberalisation in foreign exchange regime, it has been decided that authorised dealers (ADs) may encash inward remittances against agency services on one-off basis without permission of the central bank after satisfying themselves with the genuineness and bona fide status of the requests from their customers by way of relevant documents such as invoices, agreements and after deducting all applicable taxes, the BB said in its circular.
In the terms of Section 18A of the Foreign Exchange Regulation Act, 1947, permission of BB is required for any person to work as an agent of anyone residing outside Bangladesh.
The circular also said this permission enables the local agents to encash foreign exchanges repatriated on account of commission/service charges from foreign principals.
“Encashment of inward remittance repatriated against agency services on one‐off basis by local agents having no permission under this Section is subject to prior approval from BB,” it noted.
BBN/SSR/AD-21Feb14-4:50 pm (BST)