Written by The Banking Post
In a significant regulatory development, Bangladesh Bank has announced new provisions allowing scheduled bank branches, booths, hotels, and select retail establishments—including gift shops—to apply for limited money changer licences through authorised dealer (AD) banks.
Expanded Access Under Set Conditions
Licensed entities will be allowed to:
- Buy and sell foreign currency
- Endorse dollars in passports of outbound travellers
- Encash foreign currencies
- Conduct other specified foreign exchange transactions
Non-bank institutions may accept foreign cash only from foreign passport holders, strictly in exchange for goods and services.
Application Guidelines
To qualify, applicants must submit:
- Valid trade licence, TIN, BIN, and business registration
- Proof of premises ownership or rental
- For companies: incorporation documents, memorandum and articles of association, prior year’s financial statement
Following preliminary approval, applicants must submit a Tk 50,000 non-refundable pay order to Bangladesh Bank. Licences are non-transferable.
Compliance Framework
Licensed entities must maintain:
- Adequate infrastructure and IT systems
- Trained personnel and robust security measures
- Daily FX reporting to Bangladesh Bank
- Fixed business address, with changes requiring prior approval
End-of-day foreign currency collections must be converted to local currency through AD branches by the next working day. However, up to $1,000 (or its equivalent) may be retained for operational use.
Licence Tenure
- Validity: Maximum of 2 years
- Renewal: Mandatory before expiry
- Licensing authority: Sole discretion of Bangladesh Bank
This move replaces an ad-hoc licensing approach, establishing a clearer framework to expand access to legal FX services while tightening oversight and transparency.
