Dhaka:Bangladesh Bank (BB) has announced a new policy allowing authorized dealer (AD) banks to offer foreign currency (FC) custodial account services to licensed money changers. This initiative aims to improve cash management, reduce transit risks, and ensure the secure handling of physical foreign currency.
According to Bangladesh Sangbad Sangstha, the central bank issued a circular outlining the guidelines for the establishment and management of these accounts. The accounts are designated solely for the safekeeping, deposit, and withdrawal of physical foreign currency notes and will not function as interest-bearing deposit accounts.
The guidelines permit deposits without a prescribed ceiling, contingent on documented business turnover and transaction profiles. Money changers can deposit surplus foreign currency during banking hours and withdraw it the next business morning or as needed, provided there are sufficient balances.
The circular mandates that money changers must maintain valid Cash-in-Transit (CIT) insurance to cover potential theft, robbery, loss, or damage during transportation to and from designated AD branches, up to a specified single-transit limit. Movements of currency that exceed AD bank limits must be conducted through licensed CIT services or escorted transport. Additionally, banks are advised to offer secure counters and temporary vault storage for late-day deposits.
For withdrawals, AD banks may provide cheque or withdrawal slip facilities, with payments restricted to authorized representatives whose credentials are verified and recorded. Withdrawals are limited to the available account balance, and overdrafts and credit facilities are not permitted. Banks may set reasonable fees for account maintenance and cash handling, based on their relationship with customers.
The circular specifies that transactions through these accounts must solely involve physical foreign currency notes, prohibiting transfers, remittances, and third-party transfers. AD banks are required to maintain up-to-date Know Your Customer (KYC) records, verify the validity of money changers' licenses issued by Bangladesh Bank, and preserve comprehensive audit trails, including transaction details and carrier identification.