Regulatory Alerts2025-01-12
Added
Remittances for Banking Services, Capital Market Intermediaries, and Lounge Facilities
Authorized Dealers may remit fees for recurring international transaction services, including Reuters monitor, SWIFT, Bloomberg, and credit rating services, extending previous allowances for specific tools. Authorized Dealers are permitted to remit fees for lounge visit facilities for customers holding international cards, capped at 500 US Dollars or equivalent per cardholder per calendar year. Authorized Dealers may also remit fees abroad for financial data and communication services to capital market intermediaries, provided these entities are licensed by the Bangladesh Securities Exchange Commission. In all cases, Authorized Dealers must obtain invoices, comply with tax and VAT regulations, follow reporting routines, and conduct customer due diligence under AML/CFT standards.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No.03 Date: January 12, 2025 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sir, Remittances on account of fees for banking services and capital market intermediaries. Please refer to paragraphs 32(b) and 32(c), chapter 10 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1 in terms of which Authorized Dealers (ADs) are allowed to make remittances on account of their own subscription for services related to Reuters monitor and SWIFT. This is to clarify that the above facility will also be applicable to ADs for availing recurring services required for day-to-day international transactions, without limiting to Reuters monitor, SWIFT, Bloomberg, bankers almanac, due diligence repository services, credit rating services, price verification services and so on. It has also been decided that ADs may allow remittances on account of payments related to lounge visit facilities availed by their customers-travelers holding international cards, subject to the ceiling in aggregate not exceeding 500 US Dollar or equivalent per cardholder in a calendar year. 02. To facilitate smooth functioning of capital market transactions, it has been decided that ADs may remit fees abroad on account of services relating to financial data and communication services such as Reuters monitor, Bloomberg etc. In this context, ADs need to be ensured that applicants - brokerage firms, merchant banks, asset management company, etc. are duly licensed by Bangladesh Securities Exchange Commission. 03. In all cases of effecting remittances, ADs shall obtain invoices and other relevant documents and comply with regulations relating to payments of applicable taxes, VAT, etc. 04. As usual, AD shall follow reporting routine to Bangladesh Bank and conduct customer’s due diligence with regards to AML/CFT standards. Please bring the contents of this circular to the notice of your concerned constituents. Yours faithfully,
(Md. Harun-Ar-Rashid) Director (FEPD) Phone: 9530123