Attention of the Authorized Dealers (ADs) is invited to Section 7 of Foreign Exchange Regulation (Amendment) Act, 2015 in terms of which Section 18A of Foreign Exchange Regulation Act, 1947 was deleted.
- With the deletion of Section 18A of Foreign Exchange Regulation Act, 1947, permission from Bangladesh Bank is no longer required for resident persons/firms to work as agents on behalf of foreign principals. Accordingly no permission is required for encashment of inward remittances repatriated by local agents on account of commission, remuneration, fee, service charges, etc. Designated ADs, while conducting foreign exchange transactions on behalf of their agent-customers, shall adhere to following instructions:
(a) ADs shall maintain customer-wise files with updated agency agreements and copies of licenses/permissions, if applicable, issued by the competent authorities.
(b) ADs shall be satisfied that agents have necessary arrangements with foreign principals to repatriate their monthly payments. In case of commission, remuneration, fee, service charges, etc. to be receivable by agents on transaction basis as per agreements, the payment shall be repatriated immediately on financial settlement between foreign principals and concerned persons/firms in Bangladesh.
(c) ADs shall observe relevant other regulations such as AML/CFT standards, taxes, etc. for executing foreign exchange transactions.
- Foreign exchange transactions on account of agents working in Bangladesh on behalf of foreign shipping companies, airlines, stock brokerage firms, courier services, railway companies, satellite channels, tour operators, freight forwarders shall be guided by instructions contained in the Guidelines for Foreign Exchange Transactions-2009, Vol-1 and its subsequent FE Circulars/Circular Letters.
The instructions have been issued under Section 20(3) of the Foreign Exchange Regulation Act, 1947 and are without prejudice to permissions, approvals etc. (if any) required under any other law. Please bring the above instructions to the notice of your concerned constituents.