---

Dhaka, July 2:
Bangladesh Bank has issued a new policy guideline regarding the issuance, operation, and renewal of licenses for entities conducting limited foreign currency exchange activities. The directive was released today through a circular by the Foreign Exchange Policy Department of the central bank.

Application Process for License

According to the new policy, both bank branches/booths and other eligible institutions must apply to Bangladesh Bank with the required documents to obtain approval as a limited money changer. Banks are required to apply through their head offices, while non-bank entities (such as hotels and gift shops) must submit their applications via Authorized Dealer (AD) banks.

Required documents for banks:

• Approval copy of the concerned branch or booth
• Information on trained personnel for forex operations
• Security arrangements

Required documents for non-bank institutions:

• Updated trade license
• TIN and BIN certificates
• Proof of business experience and operational capacity

Upon receiving preliminary approval, applicants must deposit a pay order or bank draft of BDT 50,000 in favor of Bangladesh Bank.

Scope of Operations and Limitations

Licensed bank branches or booths will be allowed to endorse foreign currency on passports, encash foreign currency, and perform general forex transactions for outbound travelers.
On the other hand, non-bank institutions will only be allowed to accept foreign currency in cash from foreign passport holders. These funds must be converted into local currency through AD banks on the next working day.

To facilitate transactions, non-bank entities may retain a maximum of USD 1,000 or its equivalent in foreign currency.

Renewal Policy

Banks are exempt from the license renewal requirement. However, licenses issued to non-bank entities will be valid for two years and must be renewed at least two months before expiration.

The renewal application must include:

• Updated trade license
• Income tax certificate
• VAT payment documents
• Transaction records
• Proof of BDT 10,000 renewal fee payment through EFT

Inspection and Cancellation Authority

Bangladesh Bank reserves the right to conduct on-site inspections of licensees or applicants. The central bank also holds the authority to cancel any license without prior notice in cases of misconduct, non-compliance, or involvement in anti-state activities.

Measures Against Money Laundering

As part of the directive, licensed entities must comply with local anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, as well as the instructions of the Bangladesh Financial Intelligence Unit (BFIU).

Additionally, all license holders must install visible notice boards in both Bangla and English displaying updated foreign exchange rates for public awareness.

Final Approval at Central Bank’s Discretion

Bangladesh Bank has clarified that the ultimate authority to grant or reject limited money changer licenses rests solely with the central bank.