GUIDELINES FOR FOREIGN
EXCHANGE TRANSACTIONS

Volume - 1

SUMMARISING
Instructions as of November 30, 2017 issued to
Authorised Dealers and Money Changers in Foreign Exchange


To be read in conjunction with other instructions, subsequent
amendments and modifications issued from time to time.

BANGLADESH BANK
Foreign Exchange Policy Department
2018


Preface

This publication, titled 'Guidelines for Foreign Exchange Transactions', is the successor to the last (2009) edition of the same. This is a compilation of the instructions to be followed by the Authorised Dealers & their constituents, Money Changers in transactions relating to foreign exchange. These guidelines come in two volumes. The first volume includes the instructions and the prescribed forms/declarations relating to individual transactions. The second volume delineates the procedure of reporting of foreign exchange transactions by Authorised Dealers to Bangladesh Bank, and includes the proformas for monthly returns, statements, schedules for such reporting. Both volumes include instructions as on November 30, 2017 and should be read with FE Circulars/Circular Letters issued subsequently.


Foreign Exchange Policy Department
Bangladesh Bank
Head Office, Dhaka.
January, 2018.



Acronyms
ACU Asian Clearing Union
AD Authorised Dealer
AML-CFT    
Anti-Money Laundering - Combating the Financing of Terrorism.
AMU Asian Monetary Union
BASIS Bangladesh Association of Software and Information Services
BB  Bangladesh Bank
BEPZA Bangladesh Export Processing Zones Authority
BEZA Bangladesh Economic Zones Authority
BIDA Bangladesh Investment Development Authority
BJA Bangladesh Jute Association
BJMC Bangladesh Jute Mills Corporation
BMET Bureau of Manpower Employment and Training
BO Beneficiary Owner
BSEC Bangladesh Securities and Exchange Commission
BTB Back To Back
CAAB
Civil Aviation Authority of Bangladesh
CCI&E Chief Controller of Imports and Exports
CPT Carriage Paid To
CRF   Cost and Freight
DEDO Duty Exemption and Drawback Office
EDF Export Development Fund
EFT Electronic Fund Transfer
EPB Export Promotion Bureau
EPZ Export Processing Zone
ERD Economic Relations Division
ERQ Exporters' Retention Quota
EZ Economic Zone
FC Foreign Currency
FCA Free Carrier Alongside
FCR Forwarder Cargo Receipt
FEID
Foreign Exchange Investment Department
FEOD Foreign Exchange Operation Department
FEPD Foreign Exchange Policy Department
FERA The Foreign Exchange Regulation Act, 1947
FER Foreign Exchange Regulation
FOB Free On Board
GBP Great Britain Pound
GFET Guidelines For Foreign Exchange Transactions
HAWB House Airway Bill
IC International Card
ICC International Credit Card
IDRA Insurance Development and Regulatory Authority
ITE Information Technology Enabled
LC Letter of Credit
LCAF Letter of Credit Authorisation Form
NBR  
National Board of Revenue
NFCD Non-resident Foreign Currency Deposit
NITA Non-resident Investors' Taka Account
NRBs Non-resident Bangladeshis
NRTA Non-resident Taka Account
OPGSP Online Payment Gateway Service Provider
PRC Proceed Realisation Certificate
PTA Prepaid Ticket Advices
RFCD Resident Foreign Currency Deposit
RJSCF Registrar of the Joint Stock Companies and Firms
RIT Rationalised Input Template
SFCAMS Special Foreign Currency Account Monitoring System
SWIFT Society for Worldwide Interbank Financial Telecommunication
TC Travellers' Cheque
TOAB Tour Operators Association of Bangladesh
 UGC University Grant Commission
 USD   
United States Dollar or US Dollar
 


CONTENTS

1
Introductions and Definitions
2
Authorised Dealers and Money Changers.

Instructions for Money Changers
3
Bangladesh Bank's Transactions with ADs
4
Foreign Currency Accounts of the ADs and Purchase and Sale of Foreign Currency

Forward Dealings in Foreign Exchange

Hedging the Price Risk of Commodities

Non-Resident Taka Accounts of Foreign Bank Branches and Correspondents
5
Outward Remittances

Inward Remittances

Dealings in Foreign Currency Notes and Coins Etc.
6
Import and Export of Currency Notes and Coins, Foreign

Exchange, Gold, Silver, Jewellery and Securities Etc
7
Imports

Letters of Credit and Remittances against Imports

Back to Back LCs

Deposit of Counterpart Fund in respect of Imports under

Non Project Commodity Loans/Credits/Grants
8
Exports

Exports from the Export Processing Zones (EPZs)
9
Foreign Investment in Bangladesh

Operations in Securities
10
Commercial Remittances (Other than for Imports)
11
Private Remittances
12
Travel
13
Private Foreign Currency Accounts

Non Resident Foreign Currency Deposit Accounts

Resident Foreign Currency Deposit Accounts

Exporters' Retention Quota Accounts

Foreign Currency Accounts for the EPZ Companies

Other Foreign Currency Accounts
14
Convertible and Non-convertible Taka Accounts

Private Non-Resident Taka Accounts

Non-Resident Blocked Taka Accounts

Non-Resident Investor's Taka Accounts
15
Borrowing Abroad by Residents
16
Loans, Overdrafts and Guarantees
Credit Facilities to Industries in EPZs

17
Foreign Exchange Transactions for Agency Services.
Transaction with Branch Offices, Liaison Offices, Representative Offices etc.
Foreign Exchange Transactions of Freight Forwarders.

18
Insurance Business
Reinsurance

19
Payment Through International Cards
20
Foreign Exchange Transactions by the Enterprises of Economic Zones in Bangladesh


APPENDICES

APPENDIX
1
Foreign Exchange Regulation Act, 1947 (VII of 1947)
APPENDIX
2
Notifications issued by the Government of the People's Republic of Bangladesh and the erstwhile Government of Pakistan under Foreign Exchange Regulation Act, 1947 (VII of 1947).
APPENDIX
3
Notifications issued by the Bangladesh Bank and the erstwhile State Bank of Pakistan under Foreign Exchange Regulation Act, 1947 (VII of 1947) & Bangladesh Bank Order, 1972 (President's Order No. 127 of 1972).
APPENDIX
4
List of Bangladesh Bank's offices and their jurisdictions.
APPENDIX
5
Specimen forms of applications, declaration, etc. other than periodic returns & schedules.
APPENDIX
6
1. Notification issued by the Board of Investment (presently Bangladesh Investment Development Authority) for obtaining loan from abroad by industrial enterprises in Bangladesh in the private sector;


2. Policy guidelines for establishment of drawing arrangement between the exchange houses abroad and the banks operating in Bangladesh;


3. Procedure for repatriation of sale proceeds of non-resident owned equity in unlisted companies purchased by residents in Bangladesh.