Bangladesh Bank has allowed licensed money changers to open foreign currency custodial accounts to ensure the safe handling of cash foreign currencies and reduce risks associated with their transportation.
Under the new guidelines, the accounts can be used exclusively for the safe storage, deposit and withdrawal of foreign currency notes, according to a circular issued today.
No interest will be paid on the balances maintained in these accounts.
Foreign currencies can be deposited into the accounts irrespective of the prescribed limits, provided that the volume and nature of business transactions are properly documented.
To ensure security, money changers must maintain valid Cash-in-Transit (CIT) insurance coverage for the transportation of cash.
When transporting foreign currencies exceeding the limits set by authorised dealer (AD) banks, licensed CIT service providers or secure transportation arrangements accompanied by security guards must be used.
Bangladesh Bank has also advised AD banks to maintain secure counters and temporary vault facilities to facilitate foreign currency deposits towards the end of the business day.
Withdrawals from these accounts will be allowed against cheques or withdrawal slips through authorised representatives. However, the amount withdrawn must not exceed the available balance in the respective account.
No overdraft or credit facilities will be allowed against these accounts.
Besides, fund transfers, remittances and transactions in favour of third parties through these accounts have been strictly prohibited. All transactions must be settled exclusively through foreign currency notes.
The central bank expects the initiative to make foreign currency management by licensed money changers safer and more efficient while reducing operational risks and strengthening regulatory compliance in the sector.
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