Bangladesh Bank has introduced a set of new guidelines aimed at regulating foreign exchange transactions in various sectors, including travel, aviation, shipping, and tourism. These measures, announced on May 7, 2023, seek to enhance transparency and prevent unauthorized capital flight.
Overview of New Foreign Exchange Guidelines
The guidelines cover multiple aspects of ticket sales, shipping logistics, profit remittances, and operations of foreign liaison offices. The new protocols reflect the central bank’s commitment to improving financial integrity within these industries.
Ticket Issuance Regulations
- Government officials require an official No Objection Certificate (NOC) from their ministries to purchase tickets.
- Migrant workers must have verified passports, visas, and Bureau of Manpower, Employment and Training (BMET) clearance to buy tickets.
- Foreign nationals and diplomats can purchase tickets using foreign currency accounts or funds from abroad.
- Encashment certificates from money changers are no longer valid for ticket purchases.
Shipping and Logistics Guidelines
- Seafarers must possess valid Seaman’s ID cards and Shipping Master’s clearance for travel.
- International tickets purchased in Bangladeshi Taka are non-refundable outside Bangladesh.
- Foreign shipping companies are required to submit regular income and expenditure reports to the central bank.
- Companies must maintain a 10% reserve for unused tickets before remitting profits abroad.
Reporting and Remittance Requirements
Different sectors have distinct reporting obligations:
- Airlines: Must provide monthly reports on sales, freight, and bank statements.
- Shipping Lines: Required to submit quarterly statements on shipping activities.
- Biman & BSC: Bangladesh Biman and Bangladesh Shipping Corporation can manage foreign operating costs without prior approval, given they provide regular accounts.
Tourism and Courier Sector Regulations
- Tour operators can utilize a maximum of 90% of their annual travel quota for tour packages.
- A minimum of 25% of total sales for tour operators must come from domestic travel packages.
- Courier services must complete an audit by a chartered accountant before remitting surplus funds.
Liaison Offices Regulations
Foreign organizations wishing to establish branches or liaison offices in Bangladesh are required to:
- Notify the central bank within 30 days of receiving approval from the Bangladesh Investment Development Authority (BIDA).
- Conduct all transactions through authorized dealer banks.
Bangladesh Bank expects these newly introduced guidelines to bring increased accountability to the transport and tourism sectors, thereby stabilizing the country’s foreign exchange reserves. The central bank aims to ensure compliance and transparency to protect the economic integrity of these essential industries.
