Regulatory Alerts2020-06-30
Added · Updated
FEPD Circular No. 25: Guidelines on International Factoring for Export under Open Account Credit Terms
Authorized Dealers in Foreign Exchange in Bangladesh may allow exporters to ship goods under open account credit terms if payment undertaking or risk coverage is arranged with designated institutions abroad. The circular permits early payment on a non-recourse basis, subject to a cost cap of 6-month USD LIBOR plus 3.50 percent annually, and requires that export documents be sent abroad within 14 days of shipment. Authorized Dealers must ensure compliance with KYC and AML/CFT standards and verify that the funds used for early payment are not committed for other uses.