FER_Act

N AB, 1947G D KT f |

N AB DK YN N N regulate N AB gh Foreign Exchange Regulation(FER) Act 1947 | ABu X G D N DX h L To provide for the regulation of -Certain payments;Dealings in foreign exchange and securities; and The import and export of currency

N Foreign Currency Foreign currency means any currency other than Bangladesh Currency. However, currency includes - all coins, currency notes, bank notes, postal notes, money orders, cheques, drafts, Travellers cheques, letters of credit, bills of exchange and promissory nots. [ Section 2, FER Act, 1947]

Foreign Exchange TransactionsTransactions that have any one of the following features Involves any currency other than local currency i.e. cross currency transactions. Involves at least one country other than own country i.e. cross border transactions.

Foreign Exchange Regulation in Bangladesh In Bangladesh foreign exchange transactions are managed and administered under the Provisions of Foreign Exchange Regulation Act, 1947 adapted in Bangladesh. This Act confers upon Bangladesh Bank the necessary powers to control the foreign exchange transactions of the country and to permit payment for authorised purposes.

Other Regulations for Foreign Exchange Transactions in Bangladesh Guidelines For Foreign Exchange Transactions, 2009Import Policy Order, Export Policy ,FE CircularsCircular LettersPractices(ICC Rules)

G ABu Foreign Exchange Regulation Act, 1947 A | Gu Y K, K YN GK j N N. j T YY | Section -1 : Short title, extent and commencement

Section -2 : Interpretation

G Agh N term G Km/X N h | , authorised dealer, foreign exchange , currency, foreign currency B |

(a) "authorised dealer" means a person for the time being authorised under section 3 to deal in foreign exchange;

"currency" includes all coins, currency notes, bank notes, postal notes, money orders, cheques, drafts, traveller's cheques, letters of credit, bills of exchange and promissory notes;

(c) "foreign currency" means any currency other than Bangladesh currency;

(d) "foreign exchange" means foreign currency and includes any instrument drawn, accepted, made or issued under clause (13) of Article 16 of the Bangladesh Bank Order, 1972, all deposits, credits and balances payable in any foreign currency and any draft, traveller's cheque, letter of credit and bill of exchange expressed or drawn in Bangladesh currency but payable in any foreign currency;

Section -3 : Authorized Dealer in Foreign Exchange G A T K KN N /N N j B N _N | G TB K KN jN KNN N j Gx B N _N | B G N

G A/N/B

N N j N N j

N N A N N f j

j A

j N |

Section -3 : Authorized Dealer in Foreign Exchange B T

K KN jL D B I N | B

GNj A x N K N Nj K KN NN jN f GK K KN G KY KY G N N Nj |

Section -3 : Authorized Dealer in Foreign Exchange N A x B

B G N N N N N Nj N Authorised Dealer License (AD License) KN XN G B N N | N A N , A- N, , T, fN B X N , Y Nu N , N f B| Gx B N KN /KN X N N G AB 3 Ka f | fs B fs X gf 1000 N x /u , Y Nu (/) N N | K KN NN BN fsK B NDB fsK G AB 3 Ka f | fs B u , K , S, xuN x IDj B | / YN Nu N /u N | K KN A N N N-f N G AB 3 Ka |

Section 4 : Restrictions on dealing in foreign exchange Gx'

N A x K KN A A N A N K B N N /Nj Y, /Nj N | A x A N N N | N K KN NN B Gx KN/ fs A NI N - N N, A AB 4 Ka f | Y Y K KN NN B Gx KN/ fs G Nu N N | AN, A j N j N K KN NN B Gx KN/ fs G Nu N | G A AB DX 4 Ka f |

Section 4 : Restrictions on dealing in foreign exchange K KN N

K KN NN A/ N | G AB A T K KN f j Nh | D hzN N H D , T hzN N T

N N D (particular purpose) N N AN Aj N N A T N N N AN N N, H D A D H N | N H D N N A H A N N N Gx Nu N |

Section 5 : Restrictions on payments G u A AB A DXY f N | G K KN Foreign Exchange Transactions N I GK A regulate N ABY AN Nh | G , K KN NN A A/A N L(a) AN A / - K B / N N A /A N | G A gh A j N A / N , A, T, | (b) N / N /A AN AN -G N Bill of Exchange/ Promissory Note B Yu N A G N debt acknowledge N N K B N N Y/ N N AN |

Section 5 : Restrictions on payments (c) A T K / K B N N A T N N A /A N |

(d) K B A j X -K B N Nu A B NI Nu N A j X ( place any sum to the credit of any person resident outside Bangladesh)| T , K KN NN A/A KN uN j X G AB Ka | AN X Aj A KN j N GK G u A I f X |

(e) Aj D A -N A / N (1) D A B N Aj N K N A D A Aj N A A N A /u Y N K N (2) D u A N T K B u Y Aj N/ AN / |

Section 5 : Restrictions on payments T N gh , K KN A uN , KN uN I jN, Aj, BN xu Nx Y I B G AB 5 Ka |

Section 5 : Restrictions on payments Current Account Convertibility

G AN K KN A f X A x KNZN N A Nh | T, , B T Y DX T K KN Y Nh | N Y Nu- K GK N Z j h sN AN 2000 N x N A j sN h AN 5000 N x Y | A (AN 12 ) j N Nu DX AN |

fN/A B GNX uNu K YN Nu N Nu BY N LGNX uNu G A Nu N N ( 500 N x N N sN A A 4,500 N x GNX uNu j N |

Current Account Convertibility

fN N Ym fNN GK fN O N AN 10,000/- N x N A x KN N | G N hz K KN A T | A K AN A N , N , Bu A K A NT NN f , A N , N , Bu A K N A x KN I N |AjN xu Nx B I N Y Nu, NN u Nu , N I N X N Y j j hzY AKN, kj DT n Nu GK N AjN Nx K A x KN KY I N |

Section 6 : Blocked Accounts Blocked Account/A G N o K KN A N GNu KN N A/X Blocked Account/A X h A G GNu GB AB K KN block N h |

G DG AB 5 A N N AN G |

K KN N G N f -

K KN A Blocked Account G N D N |

Section 7 : Special Accounts N D /Zu N j Yju uN G A j N H u N H u K KN, K KN A x f (special account AX) |

Section 8 : Restrictions on import and export of currency and bullion-, N B A I

K KN A N N N u A / A N GK N u A / A K uN/ N |

-, N B A I Yju uN

N/K KN uN j a GK a N N N A jYN A N N |

Section 8 : Restrictions on import and export of currency and bullion jN Yju uN

jN Yju uN K AYN N a N gf 5000 N x A N N A N N KY | KY A N 5000 N x/ G AN Form 'FMJ' (Foreign Money and Jewelry)' a N | a N A N N | a N AN 2000 K uN A N GK YN KY N | KY A K G AN a N | [ A N N Af N ] K AY/K YN N A Y Yj AK N Y AKN KY A/ |

Section 9 : Acquisition by Government of Foreign Exchange N Nu N N N N K KN Nu N N | /A NN N N N N uN G N/K KN jYN A N N | D N Nu 5000 N x G AN N 30 j N, H GB AB da A | DX, N Nu j N 5000 N x G AN N 30 A x G Nu N | I A NN N hold N I hN AYN X |

N a (FOREIGN EXCHANGE DECLARATION FORM )

(1947 N AB G 8(1) A K KN NN ) (Prescribed by Bangladesh Bank Under Section 8(1) of the Foreign Exchange Regulation Act, 1947 )GB u K AYN NN N B (This form is to be filled in by a person entering Bangladesh.

GGj FMJ FORM

LFull Name jLNationality :u K-Passport No. B LPlace of Issue AY X I LDate & time of arrival :B X LDate of Issue : A LDuration of stay in abroad :Bu LFlight No:K wNAddress in Bangladesh:Profession: YY LContact No:

aDECLARATIONKY A N /KN xu/u fNCurrency/Bank Draft/Travelers Cheque brought in:

A TN, G Nh , D wN |I , as named above, hereby solemnly declare that the information given above is correct.aN T LSignature of Declarant :X LDate : NN T LSignature of Customs OfficialXDate :AL L LP.T.O

Name of CurrencyAmountIn words

Information for Declarant(aN j m )

1.An incoming/outgoing passenger may bring in/take out upto Taka 2000 ( two thousand) in Bangladesh currency at the time of arrival into/departure from Bangladesh.K AY/K B YN N K AN 2000/) (B j) uN A/B B |Any amount of foreign currency may be brought in by an incoming passenger with declaration to the customs authorities in Form FMJ. No declaration, however, is necessary for amounts brought in upto US$ 5000/= or equivalent. For a foreigner, the entire amount brought in with declaration or upto US$ 5000/= brought in without declaration may be taken out freely at the time of departure. Upto US$ 5000/= brought in without declaration by a Bangladeshi may also be retained and taken out freely while proceeding abroad. Amount in excess of US$ 5000/=, brought in by the resident Bangladeshis, should, however, be encashed or deposited in appropriate foreign currency account within 30 days of arrival. Such amounts brought in by non-resident Bangladeshis can be encashed or deposited in foreign currency account any time after return to Bangladesh.2. NT Nu GGj a N N N K AYN KY A B | A N AN LxL 5000/- B NT Nu a AN B | Y T a N A N GK a N A AN LxL 5000/- K YN A Y B| a N A LxL 5000/- K YNY TI KY TY GK K B YN KY Y B; G N AKN K T K AY 30 uN eB/j N j N B | A K NN A GB AKN K A N uN eB A N j N |

Information for Declarant(aN j m )

3.Encashment of foreign exchange brought in should be done with licensed money changers/ Authorised Dealer bank branches.

3.KY A N uN Y fs/A x KN X N B |

4.An incoming/outgoing adult female passenger may bring in/take out any quantity of personal jewellery worn on her person or as part of her accompanying personal baggage.

4.K AY/K B YN N A Y Yj AK N Y AKN KY A/B B |

Section 12 : Payment for exported goods GK h N Nu a N ; A, N uN D m A N | G jN uN N G j Nh , jjN 120 | K KN A N 120 AN N A N |

Section 12 : Payment for exported goods G T N NNN EXP G N a N A 120 | G AI DX h , K KN A G Nh N Kau D AN au A A N A K KN A N AKN A N A au | N N I YB GB AB da AY A |

Section 18.A : Restriction on AgentsK KN A N, K YN G A K incorporated G N N Gju Nj N | K YN G T A K incorporated G N N Gju/NN/D Nj N G AB DX N K KN A Y N | DX, G AB DX N Bu Ix, K Gju, K Gju, BuK Gju BN K KN A Y N |

Section 18.B : Restriction on Foreign CompaniesK G N A K incorporated G N K N D (activity of trading, commercial or industrial nature) N X/A A N N G AB DX N K KN A Y N | DX, K K, jj N, incorporated NN DX K KN A Y N |

Section 19 : Power to call for information N/K KN N N /N NDuj G NN G K u X j uN j N | N , B N KY N f, N Nu A Nu j N N | Section 19A : Power of inspection N A K KN N GN GNN NN N // I A D Nj f GK I A j N A | N NN Nu AI // GK X GK GN GK N |

Section 21 : Contracts in evasion of this Act N G N f N T T G AB N da GK G AB jN N - G da N | Section 22 : False Statement N G AB 19 A N A- ( ) A G AB A N /NT Nu X/a N A A X N |

Section 23 : Penalty and procedures ND G AB N A G AB jN -N A- da N da N f N, Code of Criminal Procedure, 1898 G B NN N, G AB 23(N) Yw uB f N f X gf f N A j A D N | , NDu, D AB da N h, uB Bgh N j N | Code of Criminal Procedure, 1898 G B NN N G A Y N A A Y N N N Yju uN G N |

Section 23 : Penalty and proceduresN K KN NN A N X AY N G AB A Y N A uB Y N | GX DX , A Nj N G AB N -N da Nh G N A N A - X Y H AY N |X A GNu N GNu Nu x X D N/Nu x N fN, N, GK A NN m H A jz I Y f |

Section 23 :A. Tribunal, its powers etc. N jjB Kau G AB 23 N N Y A f N uB | jj j N f j AI GNu A jj Nu N A jjB uB f | uBu j f N f T GNu 1 ju T Y N | G ju N f Nj A I Code of Criminal Procedure, 1898 G A N GK X D Nx T Y N |

Section 23 :A. Tribunal, its powers etc. (N) AN Y N N ;(X) Y j N ;(Y) N A GK N j N N ;(a) N GNj N xu X A N ;(b) AN j N | f KT (K KN A ND) a BNu A N |

Section 26 : Bar of Legal ProceedingsN G AB G AB jN N -N N A N N Nh N N N N N T N ABY | N GB AB NN Y T A Yju N / /f N | Section 27 : Power to make rules

THANKS

Cross Border Fund Movement Banking Window

Banks work as a gateway to move fund across the borders. Typically, there are two types of accounts under which funds move between countries. They are

Capital account; and Current account This accounts form two way traffics. In addition to this accounts, there is another type of transaction which is called as donation/contribution. This is one way traffic.

Cross Border Fund Movement Banking Window

Capital Account:Bangladesh Taka is not freely convertible for capital account transactions. Only investment in Bangladesh is permitted under capital account transactions.Current Account:Bangladesh Taka is freely convertible on current account transactions. However, there is an indicative limit for Authorized Dealers (ADs) to conduct transactions under current account without reference to Bangladesh Bank. Beyond this limit, ADs need to refer the cases to BB for approval.Classification of transactions under current account:Current account transactions are basically classified into two categories such as - Trade and Non-trade.

Cross Border Fund Movement Banking Window

Value of Goods and Services : Business transactions for selling and purchasing of goods and services should be conducted at fair value. Manipulation of price results in illegal movement of fund from one country to another. Price manipulation: Price of goods and services is manipulated on different hidden grounds in conducting business transactions. They are Money laundering;Terrorist financing;Income tax avoidance/evasion;Avoidance of import duty;Capital flight;Availing export subsidy;Concealment of illegal income; etc.

Cross Border Fund Movement Banking Window

Movement of fund into BangladeshIn the following ways, fund may move into Bangladesh illegally through banking window- Under valued import of goods and services, Over valued export of goods and services;Falsely described import/export of goods and services (over stated import/under stated export);Non payment against imported goods and services. Movement of fund out of BangladeshIn the following ways, fund may move out of Bangladesh illegally through banking window-Over valued import of goods and services, Under valued export of goods and services;Falsely described import/export of goods and services (under stated import/over stated export);Non repatriation of export proceeds/service income.

Cross Border Fund Movement Banking Window

Brief Description: Ways of Fund Movement

Over valued of goods and servicesUnder valued of goods and servicesOverstated goods and servicesFalsely described goods and servicesNon-payment of goods and services.