Bangladesh Bank Issues Strict New Rules for Foreign Exchange Transactions

Bangladesh Bank has issued a comprehensive set of new guidelines to streamline foreign exchange transactions across international travel, aviation, shipping, and tourism sectors. The move aims to increase transparency and curb unauthorized capital flight.

The Foreign Exchange Policy Department released the notification on Thursday (May 7), detailing new protocols for ticket sales, freight charges, profit remittances, and the operations of foreign liaison offices.

Strict Rules for Ticket Issuance

Under the new rules, airlines and travel agents are prohibited from issuing tickets to government officials without an official No Objection Certificate (NOC) from their respective ministries. For migrant workers, agents must verify valid passports, visas, and BMET (Bureau of Manpower, Employment and Training) clearance before selling tickets.

For foreign nationals and diplomats, tickets can be purchased using foreign currency accounts or funds sent from abroad. Notably, the central bank clarified that encashment certificates from money changers will no longer be accepted for ticket purchases.

Shipping and Logistics Oversight

The guidelines impose new conditions on seafarers, requiring valid Seaman’s ID cards and Shipping Master’s clearance for travel. International tickets purchased in Bangladeshi Taka are now strictly non-refundable outside of Bangladesh.

Foreign airlines and shipping companies must now submit regular income and expenditure statements to the central bank. Profits can only be remitted abroad after adjusting for local expenses, taxes, commissions, and potential refunds. Additionally, companies must maintain a 10% reserve against unused tickets.

Reporting and Remittances

Airlines: Must submit monthly reports on sales, freight, and bank statements.

Shipping Lines: Must provide quarterly statements. Freight charges, demurrage, and detention fees are classified as income, which can be remitted after tax and commission deductions.

Biman & BSC: Bangladesh Biman and Bangladesh Shipping Corporation can now meet foreign operating expenses without prior permission, provided they submit regular accounts.

Tourism and Courier Services

Tour operators face new limits; travelers may only use up to 90% of their annual travel quota for tour packages. Furthermore, 25% of an operator's total sales must now consist of domestic travel packages to promote local tourism.

Courier services and foreign agencies can remit surplus funds only after a mandatory audit by a chartered accountant. For logistics providers, freight for exports can be paid in Taka, but all foreign earnings must be brought into the country via legitimate banking channels.

Liaison Offices

Foreign organizations opening branches or liaison offices in Bangladesh must notify the central bank within 30 days of receiving BIDA (Bangladesh Investment Development Authority) approval. All their transactions must be conducted through authorized dealer banks.

The central bank expects these measures to bring much-needed accountability to the transport and tourism sectors while stabilizing the country's foreign exchange reserves.