The Bangladesh Bank has allowed authorised dealer (AD) banks to provide foreign currency custodial accounts to licensed money changers, aiming to improve cash management and reduce the risks of transporting physical currency.
The central bank issued a circular today (4 November) outlining the rules for the accounts, which will be used exclusively to keep, deposit and withdraw physical foreign currency notes.
The accounts will not earn interest, the circular stated.
Under the guidelines, Deposits may be made without a ceiling, subject to documented business turnover and transaction profiles. Licensed money changers must maintain valid cash-in-transit insurance.
Currency movements exceeding limits set by authorised dealers must be handled by licensed cash-in-transit service providers or through secure, escorted transport.
Banks have also been advised to provide secure counters and temporary vault storage for deposits made late in the day.
Withdrawals may be made by cheque or withdrawal slip through duly authorised representatives, subject to available balances. Overdrafts and credit facilities are prohibited.
The circular also bars transfers, remittances and third-party transactions through these accounts. All transactions must be settled exclusively in physical foreign currency notes.
The initiative is intended to strengthen operational security, improve cash management and enhance regulatory compliance in foreign currency transactions involving licensed money changers.
