Regulatory Alerts2024-10-30
Added
Flexibility in Issuance of Guarantees on Behalf of Residents in Favor of Non-Residents
Authorized Dealers in Foreign Exchange in Bangladesh are permitted to issue performance bonds or guarantees on behalf of resident exporters and sub-contractors in favor of overseas buyers or contractors. This authorization applies to transactions supported by letters of credit, purchase-sale contracts, work orders, or advance payments, extending beyond tender-based scenarios to include customary trade practices. Authorized Dealers must conduct due diligence on customers and underlying arrangements, ensuring adherence to credit norms, prudential parameters, and appropriate repatriation of inward remittances for sub-contractor arrangements.
Topics
fx
credit
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