Foreign Exchange Policy Department
Instructions as of July 31, 2010 issued to Authorised Dealers and
Money Changers regarding submission of Returns and
Statements on all foreign exchange transactions.
To be read in conjunction with other instructions,
subsequent amendments and modifications issued from time to time.
This second volume of the publication title 'Guidelines for Foreign Exchange Transactions' contains instructions to be followed by Authorised Dealers and Money Changers in their reporting of foreign exchange transactions to Bangladesh Bank, and includes the proformas of returns, statements, schedules to be used for such reporting. This volume includes instructions in force as on July 31, 2010, and should be read with subsequent FE Circulars/Circular Letters advising modifications/alterations, if any.
Foreign Exchange Policy Department Bangladesh Bank
Head Office, Dhaka.
1. Authorised Dealers being responsible for dealings in foreign exchange are required to keep proper records. It is also a requirement that they submit to the Bangladesh Bank prescribed periodic returns and statements of all foreign exchange transactions concluded by them.
2. It should be noted that besides the returns/schedules/ statements prescribed in this volume, certain other statements regarding different types of transactions are also required to be submitted in terms of the relevant instructions in volume-1 of this publication.
1. Authorised Dealers must maintain proper records of all dealings in foreign exchange including transactions on non-resident Taka accounts in their books.
2. Authorised Dealers must submit returns and statements to the Bangladesh Bank as prescribed in this chapter. Where there is no transaction to report during a particular period, a NIL return/statement should be submitted. The returns/statements must be submitted to the Bangladesh Bank within the prescribed dates. These returns/statements are of great importance to the Bangladesh Bank. Therefore, care should be taken by the Authorised Dealers to ensure that all transactions are correctly reported and the relative forms are properly filled in. The Bangladesh Bank will take a serious view of the failure of any branch of an Authorised Dealer to furnish returns regularly or promptly as well as of irregularities, if any, detected in the operations of any branch and where it deems fit, it may direct the Authorised Dealer concerned to refrain from transacting foreign exchange business by the branch concerned.
3. The system of reporting transactions is designed to compile figures on the basis of actual entries in the currency accounts so that there are no suspense items.
Authorised Dealers should report transactions as per following procedure:
(i) Negotiation of export bills :
Transactions in respect of export bills negotiated by Authorised Dealers should be reported as purchases only at the time entries are made in the currency account duly supported by EXP Form (Appendix 5/19, Vol.1) and Schedule A.
(ii) Export bills drawn on collection basis :
Sometimes Authorised Dealers also purchase export bills drawn on collection/CAD basis. Transactions relating to such export bills should be reported as outright purchases against ''Exports'' in the summary statement after the transactions are put through the currency account on receipt of advice of realisation of the export proceeds.
(b) Other Receipts :
The procedure indicated in subpara (a) (i) above should also be followed with regard to DDs and MTs etc.; In other words, purchases in respect of DDs and MTs etc. shall be reported only when the transactions are put through the currency accounts.
(c) Imports :
(i) Sales on account of import bills under LCs/contracts shall be reported when the transactions are put through the currency account on receipt of import documents and not on the basis of retirement of bills by the importers.
(ii) All sales on account of imports are required to be supported by the original copy of the IMP Form (Appendix 5/11, Vol.1). In view of the time lag between the date of receipt of the import bills and the date of their retirement by the importers it may not be possible to submit original copy of the IMP Form duly signed by the importers. In such cases, Authorised Dealers should fill in the quadruplicate copy of the IMP Form and submit it along with the relevant schedule and the summary statement. The original copy of the IMP Form should be suubmitted after it has been signed by the importer.
(iii) With regard to import bills received on collection/CAD basis, the transactions will be reported on Schedule E-2 supported by original IMP Form.
(d) Other Payments :
Transactions relating to DDs and MTs issued by the Authorised Dealers should also be reported only at the time entries are made in the currency accounts.
Coding of Transactions
Transactions in non-resident Taka accounts of foreign banks and correspondents including barter accounts shall also be reported by Authorised Dealers in the manner indicated in this paragraph.
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