Regulatory Alerts2012-10-23
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BRPD Circular Letter No. 12: Foreign exchange dealing by a Non-AD branch
The document instructs all scheduled banks in Bangladesh to immediately cease foreign exchange transactions, bill purchases, or related activities conducted through branches that do not hold an approved dealer license. It clarifies that while opening a branch requires approval from the Foreign Exchange Policy Department, conducting forex dealings specifically mandates holding a valid dealer license, and operating without one is unacceptable.
Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. BRPD Circular Letter No. 12 October 23, 2012 Kartik 08, 1419
Managing Director/Chief Executive All Scheduled Banks Operating in Bangladesh
Dear Sir,
Regarding the conduct of foreign exchange business by non-Authorized Dealer (Non-AD) branches.
It has been observed recently that some non-Authorized Dealer (Non-AD) branches are engaging in foreign exchange-related activities. In this regard, it is mentioned that although the permission letter for opening a bank branch contains a condition requiring obtaining approval from the Foreign Exchange Policy Department of this Head Office for conducting transactions/dealing in foreign currency, some branches are conducting transactions/dealing in foreign currency/buying bills in foreign currency or related activities without an approved dealer license, which is in no way acceptable.
In view of the above, instructions are issued to refrain from conducting transactions/dealing in foreign currency/bill purchases or any foreign trade-related activities through any bank branch without an approved dealer license.
These instructions shall take immediate effect.
(Khandkar Morshed Milsonat) Deputy General Manager Phone: 9530292 Date:
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