FE Circular No. 07: Purchase of foreign currency from digital wallets of incoming tourists/passengers

Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka www.bb.org.bd
FE Circular No. 07 Date: February 10, 2021
All Authorized Dealers in
Foreign Exchange in Bangladesh
Dear Sirs,
Purchase of foreign currency from digital wallets of incoming tourists/passengers Incoming tourists/passengers can use their international cards brought in with them in Points of Sales (POS) for shopping. ATM booths facilitate them to draw cash in Taka by use of their cards. Authorized Dealers (ADs) execute the transactions in association with global card transaction settlement platforms with linkage arrangement to credit in nostro accounts by equivalent foreign currency against the payment in Taka. In addition to cards, payment through digital wallets as cashless medium are found growing worldwide.
02. To facilitate the transactions for incoming tourists/passengers bringing money through digital
wallets, it has been decided that ADs may provide acquiring services to facilitate their transactions while visiting Bangladesh. With regards to arrangement of counterparties abroad for the settlement of payment against transactions to be captured from digital wallets, ADs shall observe the following instructions:
(a) ADs shall have standing arrangements with internationally recognized digital wallet service providers/Online Payment Gateway Service Providers (OPGSPs) and/or aggregators having operation in multiple countries (hereinafter referred to as foreign payment service providers, PSPs) (b) Under the arrangement with foreign PSPs, ADs shall maintain foreign currency accounts or Taka accounts in terms of paragraph 1(i), chapter 13 and paragraph 8(b), chapter 14 of the Guidelines for Foreign Exchange Transactions-2018, Vol-1. (c) ADs shall realize payments by debit the accounts maintained as per (b) above and arrange transaction facilities to incoming tourists/passengers for which ADs shall have adequate technological supports. (d) Overdraft facilities will be allowed for the accounts so maintained in Bangladesh provided that ADs shall have payment guarantees, from banks acceptable to them, for the adequate amounts based on the transaction flows.
03. In accordance with the above arrangement, ADs shall purchase foreign currency from wallets
of incoming tourists/passengers by (i) making payments in equivalent Taka in cash and/or (ii) issuance of one time prepaid cards in Taka during their stay in Bangladesh. In addition, ADs shall arrange local transactions through POS under merchant arrangements with concerned vendors. Reconversion facility in terms of paragraph 9, chapter 12 of GFET can be made through credit to the respective accounts of foreign PSPs so maintained.
04. ADs shall exercise due diligence in respect of the transactions with foreign PSPs and comply
with the foreign exchange regulations, AML/CFT regulations and relevant laws/regulations in force. As usual, ADs shall observe reporting routine to Bangladesh Bank. In this context, debit to accounts maintained as per 2(b) above shall be treated as inward remittance on account of travel related receipts and vice versa. Please bring the contents of this circular to the notice of all your concerned constituents. Yours faithfully,

(Md. Ali Akbar Faraji)
General Manager
Phone: 9530123