Regulatory Alerts2022-10-26
Added
FEPD Circular Letter No. 38: Import/Accepted Bill Payment on maturity
The Foreign Exchange Policy and Development Department (FEPD) of Bangladesh Bank directs all approved dealer banks to reissue instructions to their branches ensuring the timely payment of foreign and local accepted bills. The circular warns that failure to comply will result in the cancellation of the relevant Authorized Dealer (AD) license and legal action against responsible officials. This directive reinforces existing guidelines from 2014, 2018, and 2020 to prevent disorder in foreign trade caused by delayed payments.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka Ref. No. FEPD Circular Letter No. 38 Date: 26 October 2022
To: All Approved Dealer Banks engaged in Foreign Exchange Transactions Head Office / Principal Office
Dear Sir,
Reference is drawn to your attention regarding the guidelines for Foreign Exchange Transactions-2018, Chapter 7, Paragraph 34(A), BRPD Circular No. 06 dated 12 March 2014, and FE Circular Letter No. 06 dated 29 January 2020, concerning the timely payment of liabilities for imports/accepted bills.
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The aforementioned instructions impose an obligation to pay liabilities for imports/accepted bills on time. Failure to comply with these obligations appropriately is causing disorder in foreign trade.
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In this context, you are hereby instructed to reissue instructions to all your approved dealer bank branches to ensure strict compliance with the relevant guidelines regarding the timely payment of foreign and local accepted bills. Bangladesh Bank will take necessary action, including the cancellation of the relevant AD license and action against responsible officials, in case of delay in the payment of accepted liabilities on time.
Please kindly inform all concerned parties regarding this matter.
Yours faithfully,
(Md. Sarowar Hossain) Director (FEPD) Phone: 9530123