Transfer of remunerations to Foreign Currency accounts for foreign nationals in Bangladesh

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 24 Date: 23/06/2020 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Transfer of remunerations to Foreign Currency (FC) accounts in the names of foreign nationals employed in admissible companies in Bangladesh Please refer to FE Circular No. 47, dated 05 December 2019 and FE Circular No. 10, dated 11 March 2020 in terms of which net permissible income of foreign nationals employed in branch offices/liaison offices of foreign companies operating in Bangladesh and in EPZ/EZ/HTP companies may be credited to their FC accounts maintained and operated in terms of paragraph 1, chapter 13 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1. 02. To bring flexibility in executing transactions from FC accounts, it has been decided that up to 75 percent of net monthly income in equivalent foreign currency may be credited to FC accounts of the expatriate employees maintained and operated in terms of paragraph 1, chapter 13 of GFET from FC accounts of their employers. In respect of transactions from such FC accounts, ADs shall observe the following instructions: (a) While crediting FC accounts, the transactions shall be treated as outward remittances and accordingly instructions contained at chapter 11 of GFET, including TM Form procedures need to be followed. (b) ADs may, out of the balances held in this accounts, allow debit/prepaid cards to the FC account holders for permissible transactions including travel related expenses. (d) Encashment of balances held in FC accounts shall be treated as inward remittances for bonafide local disbursements, including purchase of air ticket locally in terms of paragraph 11(vi), chapter 12 of GFET. 03. In accordance with revised instructions as stated above, FE Circular Nos. 47/2019 and 10/2020 shall stand repealed. Please bring the above instructions to the notice of concerned constituents. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123