Regulatory Alerts2025-06-17
Added
Release of foreign exchange against cost of advertisement
Authorized dealers may now effect remittances on behalf of their advertisement agency-customers circulating advertisements in foreign media for resident entities. To process these transactions, authorized dealers must obtain valid agreements, invoices, statements showing surplus positions after deductions, documentary evidence of tax payments, and an undertaking to repatriate any wrong or excess remittances immediately upon demand. Payments are executed by one nominated bank branch per remitter, with file transfers allowed via written request for changes. Authorized dealers must continue to comply with Section 3(4) of the FER Act, 1947, including KYC, AML/CFT standards, reporting, and document preservation.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No.21 Date: June 17, 2025 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Release of foreign exchange against cost of advertisement Please refer to paragraph 33, chapter 10 of the Guidelines for Foreign Exchange Transactions-2018 (Vol-1), read with FE Circular Letter No. 20, dated September 08, 2015 in terms of which Authorized dealers (ADs) are allowed to effect remittances towards cost of advertisement of Bangladeshi products in foreign media, inter alia. 02. In practice, ADs exercise the authorization for effecting remittances on behalf of resident entities circulating advertisements in foreign media. To facilitate transactions, it has been decided that ADs may effect remittances on behalf of their advertisement agency-customers circulating advertisements in foreign media for resident entities. In this context, ADs shall obtain applications containing the followings: (a) Copy of valid agreements; (b) Copy of invoices; (c) Statements showing surplus position after deduction of (i) remittable amount, (ii) taxes, (iii) other expenses, etc. from gross collection, pertaining to the relevant transactions; (d) Documentary evidences in support of deduction and payment of all applicable taxes; (e) An undertaking from the applicant to the effect that, in case of wrong or excess remittance, the amount remitted will be repatriated to Bangladesh immediately on demand. 03. ADs shall effect payments upon satisfying relevant statements. ADs shall also ensure that remittable fund is arranged from respective collections. 04. Transactions under the authorization shall be executed by one AD bank branch nominated by remitters. For any intended change in this respect, the relevant files shall be transferred direct to the concerned new AD branch on written request by remitters. Cont’d to page -2
-2- 05. As usual, ADs shall comply with Section 3(4) of FER Act, 1947, including observance of due diligence with regards to KYC and AML/CFT standards, reporting routine to Bangladesh Bank, preserve customer-wise documents and so on. Please bring the contents of this circular to the notice of your relevant clientele. Yours faithfully, (Md. Harun-Ar-Rashid) Director (FEPD) Phone: 9530123