Regulatory Alerts2019-11-17
Added · Updated
FEPD Circular Letter No. 28: Operations of foreign currency accounts and taka accounts for enterprizes of Export Processing Zones (EPZs), Economic Zones (EZs) and Hi-Tech Parks (HTPs)
Authorized Dealers are permitted to credit legitimate receipts against short weight claims, quality claims, freight charges for samples, insurance claims, and reimbursements of expenses for samples from buyers or parents to foreign currency or local currency accounts of enterprises operating in Export Processing Zones, Economic Zones, and Hi-Tech Parks. This expansion applies to inward remittances other than foreign equity, authorized foreign loans, and export proceeds. Authorized Dealers must observe due diligence in compliance with KYC and AML/CFT standards while crediting accounts under these grounds based on documentary evidence.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular Letter No. 28 Date: 17/11/2019 Head offices/principal offices of All Authorized Dealers in Bangladesh Dear Sirs, Operations of foreign currency accounts and taka accounts for enterprizes of Export Processing Zones (EPZs), Economic Zones (EZs) and Hi-Tech Parks (HTPs). In terms of paragraph 30, chapter 13 & paragraph 4, chapter 20 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Volume-1 and FE Circular No. 21 dated 16 May 2019 Authorized Dealers (AD) are allowed to credit foreign equity, authorized foreign loan & export proceeds in foreign currency accounts; taka accounts may also be credited with inward remittance & encashments of funds from foreign currency accounts, receipt from taka sales of factory refuses and unusable portion of raw materials on behalf of enterprises (Type A, B & C) operating in specialized economic zones like Export Processing Zones (EPZs), Economic Zones (EZs) and Hi-Tech Parks (HTPs). 02. It is observed that eligible enterprises operating in different specialized economic zones receive inward remittances other than foreign equity, authorized foreign loan and export proceeds. In order to enhance scope of operation, it has now been decided that ADs may credit legitimate receipts against short weight claim, quality claim, freight charge of sample, insurance claims, reimbursement of expenses for samples from buyers or parents etc. received in foreign currency or local currency accounts of the enterprises. ADs shall observe due diligence in compliance with KYC, AML/CFT standards while crediting accounts under the above mentioned grounds based on documentary evidences.
Please bring the above instructions to the notice of all your concerned constituents. Yours Faithfully, (Mohammad khurshid Wahab) General Manager Phone: 9530123