Bangladesh Bank (BB) has laid down detailed procedures for outward foreign exchange remittances, including overseas travel, institutional payments and other current-account transactions, requiring Authorized Dealer (AD) banks to ensure proper documentation, regulatory reporting and audit trails.
Under the foreign exchange regulations, most bona fide current-account outward remittances may be approved by AD banks within the applicable indicative limits, said a BB circular issued today.
Requests beyond such limits, as well as genuine current international transactions not specifically covered by the regulations, may be considered by Bangladesh Bank upon establishing the bona fide nature of the expenses.
For payments other than imports, applicants are required to use Form TM, including where Bangladesh Bank has separately granted approval. Applications requiring prior approval must be submitted to Bangladesh Bank through the concerned AD bank rather than directly by the
applicant.
AD banks are also required to report non-import outward remittances through Bangladesh Bank's online TM monitoring system and mention the system-generated TM ID number on the hard copy of Form TM.
Information on tax and VAT payments relating to such transactions is also required to be submitted through the online system by the 25th day of the following month.
For Bangladesh Sangbad Sangstha (BSS), the framework is particularly relevant to payments for overseas news services, software and digital services, international professional memberships, conference participation and official travel by journalists and officials.
In the case of overseas travel, Bangladesh Bank recently increased the annual foreign exchange entitlement for an adult Bangladeshi resident to US$18,000 from US$12,000 for travel during a calendar year.
The amount that may be released in US dollar notes is capped at US$5,000 per person, while the entitlement for minors below 12 remains 50 percent of the adult entitlement.
The AD banks must check the traveller's previous foreign exchange releases and ensure compliance with the applicable annual entitlement before releasing additional foreign exchange.
Bangladesh Bank's online foreign exchange monitoring system covers outward transactions, including travel and miscellaneous payments.
For BSS's institutional requirements, outward remittances may include payments for foreign news feeds and agency services, software licences and maintenance, web hosting and other digital infrastructure, virtual press or webinar platforms, and membership fees of international media organisations, subject to the applicable regulatory provisions and supporting documentation.
The AD bank is required to establish the bona fide nature of each transaction and maintain adequate records for Bangladesh Bank inspection. Supporting documents may include contracts, invoices, subscription agreements, invitation letters, travel documents, tax and VAT records and other evidence establishing the purpose of the payment.
The regulations also provide that where a bona fide current-account payment exceeds an indicative limit, the transaction may be considered by Bangladesh Bank on a case-by-case basis after verification of the underlying requirement.
