FE Circular No. 40: Outward remittances on account of power purchase

Foreign Exchange Policy Department Bangladesh Bank Head office Dhaka www.bb.org.bd FE Circular No. 40 Date: October 28, 2025 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Outward remittances on account of power purchase In terms of paragraph 1(1) of FE Circular No. 37, dated September 30, 2025, Bangladesh Bank considers applications for bonafide current international transactions, beyond the indicative limits, on a case-to-case basis under the authority vested in Section 5(1)(a) of the Foreign Exchange Regulation (FER) Act, 1947. 02. To facilitate outward remittances on account of power purchase under the Government￾approved cross-border arrangements, it has been decided that Authorized Dealers (ADs) may effect remittances to foreign beneficiaries against the transmission of power through the national grid, subject to compliance with the following instructions: (a) The underlying power purchase arrangements including financial authorization shall be duly approved by the Government; (b) There shall be valid agreements or power purchase contracts between the relevant Government entities/agencies and the foreign suppliers/entities; (c) Each remittance request shall be supported by authenticated invoices issued by the foreign supplier, along with a certificate from the relevant Government entity/agency confirming receipt of electricity as per the terms of the agreement; (d) The remittance is subject to compliance with taxes regulations like deduction and payment of applicable source tax, VAT and other relevant duties/levies. (e) ADs shall comply with the provisions of Section 3(4) of the FER Act, 1947, including adherence to KYC norms, AML/CFT standards, and routine reporting to Bangladesh Bank and so on. 03. In cases where power purchases are required to fulfill customs formalities, payments thereof shall be permissible, subject to observance of the IMP Form procedure as laid down in FE Circular No. 33, dated August 14, 2025. Please bring the contents of this circular, effective immediately, to the notice of all respective clientele. Yours Faithfully,

(Md. Harun-Ar-Rashid) Director(FEPD) Phone: 9530123