Regulatory Alerts2024-10-03
Added · Updated
FEPD Circular No. 19: Issuance of payment commitments as collaterals against surplus earnings payable to airlines/shipping companies abroad
Authorized Dealers in Foreign Exchange in Bangladesh are permitted to issue payment commitments on behalf of agent-customers in favor of airlines or shipping companies. Before issuance, Authorized Dealers must ensure compliance with credit norms and prudential parameters, including single borrower exposure limits, and obtain Board or management approval. Payment commitments must be supported by documentary evidence of eligible collateral, and Authorized Dealers must verify document authenticity. Encashment is limited to surplus earnings as determined under the Guidelines for Foreign Exchange Transactions-2018, and Authorized Dealers must report transactions to Bangladesh Bank upon remittance.