FEPD Circular Letter No. 43: Refrain from providing banking services to illegal money changers /exchange activities

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Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh.

Foreign Exchange Policy Department

FEP Circular Letter No. 43

Date: November 28, 2022

Managing Director / Chief Executive Officer All Scheduled Banks and MFS Institutions operating in Bangladesh

Dear Sir,

Regarding the prohibition of illegal money changer/exchange activities.

It has recently been observed that some scheduled banks and MFS accounts are being used by illegal money changers/exchange operators to conduct foreign currency purchase and sale activities through their websites. Similarly, illegal money changers/exchange operators are conducting purchase, sale, exchange, transfer, and trading activities of virtual or crypto assets/currencies on their websites using scheduled bank accounts and MFS accounts. Operating money changer/exchange activities without obtaining a license from Bangladesh Bank under Section 3 of the Foreign Exchange Regulation Act, 1947 is illegal and constitutes a punishable offense under Section 23(1) of the said Act. Furthermore, the Foreign Exchange Policy Department has issued instructions in FEP Circular No. 24 dated September 15, 2022, directing institutions to refrain from providing assistance to businesses related to transactions of virtual assets (Virtual asset) and virtual currency (Virtual currency) and their Exchange/Transfer/Trading, and any related activities.

2. Now, in order to avoid potential financial loss and legal risks due to illegal money changer/exchange activities, the following instructions are provided:

a) Any kind of illegal money changer/exchange activity conducted using scheduled bank accounts and MFS accounts, or providing any kind of assistance in such activities, must be stopped immediately. Alongside this, monitoring activities must be increased with due caution in this regard;

b) In light of the instructions in this circular letter, to inform the general public, including cryptocurrency users, to refrain from transacting with illegal money changer/exchange operators, necessary arrangements must be made to display notices on the notice boards and visible places at the Head Office, all branches, sub-branches, and agent banking outlets of banks, as well as at the Head Office and all agent points of MFS. Additionally, publications must be ensured on the home pages of bank and MFS websites.

Yours faithfully,

(Signature) (Mohammad Sarowar Hossain) Director (FEPD) Phone- 9530123

Phone: 88-02-9550448, 9554896, IP: 88-02-55665001-6, Fax: 88-02-9530499, www.bb.org.bd