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Welcome to the Session

Different Types of Foreign Currency
Accounts- Foreign Remittances-
Inward and Outward
Types of FC Accounts
Private Foreign Currency Accounts.
Non-Resident Foreign Currency
Deposit (NFCD) Accounts.
Resident Foreign Currency Deposit
(RFCD) Accounts.
Who Can Open PFCA
Bangladesh Nationals residing abroad
Foreign nationals residing abroad or in
Foreign firms registered abroad and operating in
Bangladesh or abroad
Accounts of Expatriate staff of diplomatic
missions and international development
FC Accounts of local and joint venture
contracting firms
Foreign currency accounts for Public Offerings

Who Can Open PFCA

Non-Resident Investor's Taka Account (NITA)
Bangladeshi nationals working with the
foreign/international organizations operating in
Bangladesh provided their salary is paid in
foreign currency.
Diplomatic Bonded Warehouse (Duty free shops)
licensed by the Custom Authorities.
Exporter to keep his foreign exchange retention
quota in this account.
Export processing zone (EPZs).
Opening of FC A/C by Bangladeshi Nationals

Account can be opened without initial
Remains operative even if operation is not
made for a particular time.
Both the account holder and the nominee
can operate the account.
Wage earners can remit fund from abroad.
Opening of FC A/C by Bangladeshi Nationals

First transaction normally takes place
when remittance deposited.
Wage earners may also deposit currency
notes, travelers cheques, drafts brought
into Bangladesh.
Entire remittance from abroad is free from
income tax.
Documents Required

Account opening form duly filled in and
Photographs of the account holder.
Photocopy of the employment contract.
Photocopy of passport of the account
holder (first 7 pages) and visa.
Documents Required

Photographs of the nominee duly attested
by the account holder.
Letter of authority (for nominee).
Specimen signature card, which is used
both for the account holder and the
Any other pertinent information
/documents if required.
FC A/C of Bangladeshis employed by DM/IA

Only salary can be deposited for
Bangladeshi nationals employed by
diplomatic missions and international
Consultancy fees/honoraria received in
foreign currency may also be credited to
these accounts.
Documents Required

Account opening form and signature card.
Photographs of the account holder.
Photocopy of passport of the account
Introduction letter from employer i.e.,
diplomatic missions/international agencies.
A/C: DM, NGOs, and IA, Foreign Firms Registered Abroad

Account opening form and signature card.
Board resolution
Photographs of the signatories.
Photocopies of the passport of the
Accounts of Expatriate Staff of DM and IDO

Account opening form and signature card.
Photographs of the account holder.
Photocopies of the passport of the account
Introduction letter from the employer.
Accounts of Foreign Nationals Residing in Bangladesh

Account opening form and signature card.
Photographs of the account holder
Photocopies of the passport of the account
Six months valid visa for Bangladesh.
Accounts of Diplomatic Bonded Warehouse

Convertible foreign currency received only on account of
sale of merchandise may be credited to these account.
For the purpose of import of merchandise by the bonded
For meeting local expenses

Monthly statement of purchase, sale and foreign
exchange transactions related thereto along with bank
certificate concerning encashment in taka shall be
submitted to the Bangladesh Bank in prescribed form.
Exporters Foreign Currency Account

An exporter may open a foreign currency account with
an authorized dealer in order to keep his foreign
exchange retention quota in that account.
On realization of export proceeds in foreign exchange the
concerned authorized dealer will credit the exporters
quota as allowed from time to time to his foreign
currency account.
The balance of such FC account can be used by the
exporter for bonafied business purpose only, such as
business visit abroad, participation in export fairs and
seminars, import of raw materials, machinerys spares etc.
FC A/C Opened by Industrial Units in EPZ

100% of repatriated export proceeds of a Type A
industrial unit in EPZ may be retained in FC account to
meet all foreign payment obligations and balances from
the account is also freely encashable for local
disbursements or for crediting taka account maintained
with an AD for meeting Taka payment obligations like
wages, rents taxes etc.
Up to 80% of the repatriated export proceeds of Type B
and Type C units other than those in the garments sector
may be retained in FC accounts maintained in the names
of the units with their ADs.
Non-Resident FC Deposit A/C (NFCD)

All non-resident Bangladesh nationals and persons of
Bangladesh origin including those having dual nationality
and ordinarily residing abroad, may maintain interest
bearing time deposit accounts namely Non- Resident
Foreign Currency Deposit (NFCD) Account with the
authorized dealers.
NFCD Accounts are in the nature of term deposits
maturing after one month, three months, six months and
one year. The bank will pay interest on such deposit at
the Eurocurrency deposit rates.
These accounts may be maintained in US Dollar, Pound
Sterling, Japanese Yen and Euro with minimum amount
of USD 1000 or Pound Sterling 500 or equivalent.
Accounts may be opened against remittances of other
convertible currencies after conversion of those into above
Non-Resident FC Deposit A/C (NFCD)

Application in prescribed form may be sent by the eligible
Bangladesh nationals along with a set of specimen
signatures of the opener duly verified by Bangladesh
mission abroad or authorized dealers foreign
These accounts may be maintained as long as the
account holders desire. Eligible persons are also allowed
to open such accounts within six months of their return to
The account holder can freely repatriate the balance and
the interest accrued thereon, in foreign exchange to the
country of his residence or anywhere in the world.
Resident FC A/C (RFCD)

Persons ordinarily resident in Bangladesh may
open and maintain Resident Foreign Currency
Deposit (RFCD) Accounts with foreign exchange
brought in at the time of their return from travel
These accounts may be opened by any amount
of foreign exchange brought in with declaration
to customs authorities in form FMJ and up to USD
5000 brought in without any declaration.
RFCD Accounts may be opened in US Dollar,
Pound Sterling, Japanese Yen and may be
maintained as long as the account holder desires.
Foreign Remittances-Inward and
Foreign Remittances
Foreign Remittance means remittances
in foreign currency that are received in
and made out abroad.
In broad sense, foreign remittances
include all sale and purchase of foreign
currencies on account of Import,
Export, Travel and other purposes.
Foreign Remittances
However, specifically Foreign Remittance
means sale and purchase of foreign
currencies for the purposes other than
export and import.
All foreign remittance transactions are
grouped into two broad categories:
Inward remittance
Outward remittance.
Inward Remittance
As per Guidelines for Foreign Exchange
Transactions of Bangladesh Bank, the term
Inward Remittances includes not only
remittance by T.T., M.T., Drafts etc., but also
purchase of bills, drafts, Traveler's cheques and
foreign currency notes and coins, Cheques
issued on foreign banks in favour of beneficiaries
in Bangladesh etc.

Purposes of Inward Remittances

Family maintenance
Indenting commission
Recruiting Agents commission
Realization of export proceeds
Donation /Gift etc.

Inward remittances-No Restrictions

The ADs may freely purchase foreign currencies.

Remittances equivalent to US$ 5000 and above should
be reported on Form C attached to the appropriate

However, declaration on Form C by the beneficiary is not
required against remittances sent by Bangladesh
nationals working abroad.

The purpose of remittances should be clearly stated on
the Form C.
Disposal of Foreign Currency Notes, Coins etc. by
Incoming Passengers
Incoming passengers may bring in any amount of foreign
exchange with declaration in FMJ at the time of arrival.

No declaration is necessary for amounts up to US$ 5000.

For non-resident, the entire amount brought in with
declaration or up to US$ 5000 brought in without
declaration may be freely taken out at the time of
departure or may deposit the amount in F.C Account or
NFCD Account subject to submission of Form FMJ for
excess of US$ 5000 or equivalent.

Disposal of Foreign Currency Notes, Coins etc. by the

The ADs are permitted to dispose of foreign currency
notes etc. by way of sale to other ADs and general public
in accordance with the instructions of the Bangladesh

They may also dispatch to agents or correspondents
abroad for credit to their Foreign Currency Accounts with
the approval of the Bangladesh Bank. Application for
Bangladesh Banks permission should be made in
duplicate; Bangladesh Banks permission will be given in
the duplicate copy.

Different ways of Inward Remittance:
Foreign Telegraphic Transfer (FTT)
Foreign Demand Draft (FDD)/ Mail Transfer (MT)
Taka Drafts issued by different Exchange Houses/
Electronic Fund Transfer (EFT)
Remittance by SWIFT
Cash Over Counter (COC)/ Spot Cash/Instant Cash.
Purchase/Encashment of TCs
Purchase of foreign currency notes and coins.

Application for Remittance

Bank in Remitters End
Bank in Beneficiarys
Cash Delivery or Account
Credit to Beneficiary
Exchange House in
Remitters End

MTO in Remitters End

Beneficiarys Bank

MFIs in Beneficiarys
Cash Delivery to
Account Credit to

Remitter /Applicant
Residing in Foreign
Reporting to Bangladesh Bank

All the foreign exchange transactions of
each month on inward remittances have
to be reported to Bangladesh Bank
through statements along with schedules
before a stipulated date.

Foreign Outward Remittance

In all cases of purchases of foreign currency
an application on prescribed form must be
made to an AD and, wherever necessary to
Bangladesh Bank.

For payments against imports in to
Bangladesh, the prescribed application form is
Form IMP and for other types of remittances
Form TM.

Types of Outward Remittance

Private Remittance
Official and Business Travel Related
Commercial Remittance

Private Remittance

Family remittance facility
Membership fee and registration fee
Remittance of consular fees
Foreign nationals
Remittance for Hajj

Official and Business Travel
Official visit
Business travel for new exporters
Business travel quota for importers
and non-exporters
Exporters retention quota
Commercial Remittance
Opening of branches or subsidiary
companies abroad
Remittance by shipping companies,
airlines, and courier service
Remittance of royalty, technical fees
Remittance of profits/dividend of foreign
Transfer of assets of foreign nationals
retiring from Bangladesh
Foreign nationals leaving Bangladesh
permanently after expiry of period of service
in terms of relevant employment contracts,
may transfer abroad their genuine savings out
of salaries/benefits clearly stated in the
employment contracts duly approved by the
Board of Investment (BOI). They shall also be
eligible to transfer abroad the retirement
benefits such as provident fund, pension
gratuity due as per employment contracts
approved by the BOI.

The ADs may, without prior approval of
Bangladesh Bank, effect remittance of
retirement benefits and savings including sale
proceeds of investments in government
securities (but not including sale proceeds of
real assets such as household articles, real
estates and other real assets, requests if any
for remittance of such sale proceeds should be
forwarded to Bangladesh Bank); as per
instructions in the following:
Application and supporting documentation.
Application as per proforma at Appendix 5/62 duly filled in by
the applicant and his employer should be accompanied by :
(I) TM Form duly filled in and signed by the applicant.
II) (a) A certificate from the employer showing:
(i) Net salary and allowances for each year,
(ii) Provident Fund and leave salary paid on retirement,
(iii) Bonus and other gratuitous payments for each year,
(iv) Whether the cost of passage for self and family is
being paid by the employer.

A certified true copy of the employment contract
approved by BOI/the appropriate Department of
the Govt. of Bangladesh should be produced in
support of the above.
Where any of the above payments are not covered
by the original service contract, a certified copy of
the resolution of the board of directors of the
employer company allowing the payment and
approval thereof from the Govt. Department
which originally approved the employment of the
foreign national should be submitted.

In case of persons employed in the private sector, certified true copies
of the relative permission letters for employment issued by the
appropriate Govt. Department should be attached,
Bank's encashment certificate in support of receipt of funds, if any, from
AD's certificate in regard to the applicant's investment in Govt. securities
made for availing of the income tax relief showing also the amount
realised from the sale proceeds and income accrued on the investments,
Bank's certificate showing:
(i) Total amount of remittances made on account of family
(ii) Total amount of remittances made on account of leave salary.
In case where the period of stay exceeds 10 years, the bank's
certificate should cover the period of last 10 years.
Statements of transactions in bank account for the last one year prior to
the date of the application with explanation of sources of credit entries of
Tk. 500 or more other than those relating to receipt of salaries
and allowances.
Application for transfer of actuarial reserve and relative insurance record
in respect of insurance policy, if any, is required to be submitted through
the insurance company concerned. The statements/certificates mentioned
in the above sub-paras are to be prepared by the ADs themselves on the
basis of their own records.
Clearance certificate in respect of income tax and other taxes payable.
For remittance of pension/ provident fund/gratuity on account of an
employee retiring from a foreign-owned/foreign controlled organisation, a
certificate signed jointly by the employer organisation and its nominated
AD that the relevant pension fund/retirement fund out of which the
retirement benefits are payable Bangladesh and that no remittance
towards contribution to any retirement fund maintained abroad has been
made in respect of the applicant employee.

Investment by foreign nationals in
certificates/securities etc.

Before effecting remittance of funds representing savings, the
ADs shall carefully examine the applications and supporting
documents to satisfy themselves that the amount applied for
remittance are the genuine savings out of the applicant's own
legitimate earnings in Bangladesh. For this purpose they will
look into the information on earnings of the applicant such as
approved salary, allowance, bonus etc., debits for the
applicant's local expenses out of such earnings, outward
remittances already made or to be made; and inward
remittances received from abroad, if any.
Details of credits to bank account of the applicant during the
preceding one year at least should be scrutinised to ascertain that
only the items of the applicant's own legitimate earnings have been
included in arriving at the amount of savings applied for
If on the basis of the above examination there emerges sufficient
grounds to believe that the amount applied for remittance is in
excess of the applicant's possible genuine savings, the AD shall
effect remittance only to the extent of its own estimate of the
applicant's genuine savings and thereafter refer the case to Foreign
Exchange Operation Department, Bangladesh Bank for further
consideration regarding the excess amount, with such additional
explanation /representation as the applicant may wish to furnish.
Pension payments: In cases where pension is
payable at regular intervals after the initial
lump sum payment of retirement benefits, the
ADs shall effect remittances of regular pension
payments provided that life certificate in
respect of the pensioner issued by the paying
banker abroad is produced and the AD is
satisfied on the basis of documentary evidence
that the relative pension fund is maintained
Remittance of sale proceed of real
Application for remittance of legacies and other distributions from
estates of deceased persons due to beneficiaries resident
outside Bangladesh should be forwarded to the Bangladesh Bank.
Such applications should contain the following information and
supporting documents:
(i) Name, nationality and place of residence of the deceased at the
time of his death. If the deceased person was resident of
Bangladesh the period of such residence should be stated.
(ii) A copy of the relative clauses in the Will after probate has been
granted or if the deceased died intestate, in the Letters of
Administration; in both cases authenticated by a Notary Public,
any Court, Judge or Magistrate in Bangladesh or in the country of
residence of the deceased if he died abroad.

Bangladesh Perspectives
In million US dollar In million Taka
2010-2011 11650.32 829928.90
2009-2010 10987.40 760109.59
2008-2009 9689.26 666758.50
2007-2008 7914.78 542951.40
2006-2007 5998.47 412985.29
2005-2006 4802.41 322756.80
2004-2005 3848.29 236469.70
2003-2004 3371.97 198698.00
2002-2003 3061.97 177288.20
2001-2002 2501.13 143770.30
Workers Remittances

Fig -7: Workers Remittances as a Percentage of GDP
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Period over 1993-2009


Fig 8: Workers' Remittances in Months of Imports
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Period over 1993 - 2009

Figure 4: Destination of Bangladeshi Migrant Worker
UAE, 24%
Libya, 1%
Others, 4%
Qatar, 2%
Bahrain, 3%
Singapore, 4%
Oman, 5%
Kuwait, 7%
Malaysia, 10%
Saudi Arabia, 40%
Fig-1: Top 10 Banks in Foreign Remittance
Fig-2: Share of Remittance by Bank Group

Thank You