Written by The Banking Post
Bangladesh Bank has allowed Authorized Dealers (ADs) to provide Foreign Currency (FC) custodial account facilities to licensed Money Changers to facilitate secure cash management and reduce risks associated with physical currency transportation. In this context, Bangladesh Bank issued a circular on November 04, 2026.
Under the guidelines, these accounts will be used exclusively for the safe custody, deposit and withdrawal of physical foreign currency notes and will not carry interest. Deposits may be made irrespective of the ceiling, subject to documented business turnover and transaction profiles.
To ensure security, Money Changers shall maintain valid Cash-in-Transit (CIT) insurance. Currency movements exceeding limits prescribed by ADs shall be handled through licensed CIT service providers or secure, escorted transport. ADs have also been advised to provide secure counters and temporary vault storage for late-day deposits. Withdrawals may be made through cheques or withdrawal slips by duly authorized representatives, subject to available balances. Overdrafts and credit facilities are strictly prohibited.
The central bank has also prohibited transfers, remittances and third-party transactions through these accounts, requiring all transactions to be settled exclusively in physical foreign currency notes.
The initiative aims to strengthen operational security, improve cash management and enhance regulatory compliance in foreign currency transactions involving licensed Money Changers.
