Play store
DHAKA: Bangladesh Bank has issued a consolidated circular bringing together existing rules and instructions on issuing and renewing licences for foreign exchange and gold businesses, aiming to simplify regulatory compliance for banks and other authorised entities.
The circular covers authorised dealer (AD) banks, money changers, limited money changers, authorised gold dealers (AGDs), and importers of gold ores and doré.
Issued on Saturday (October 17), the circular consolidates instructions issued at different times, incorporating necessary amendments and updates into a single document. It covers licensing and renewal procedures, foreign exchange transactions, gold imports and exports, anti-money laundering measures, reporting requirements and regulatory supervision.
Banking sector insiders believe the consolidated guidelines will make it easier for banks and businesses to follow the applicable rules without having to consult multiple circulars and instructions issued separately over the years.
The circular is divided into six sections covering licence issuance and renewal, foreign exchange transactions, gold imports and exports, compliance with anti-money laundering and countering the financing of terrorism (AML/CFT) requirements, reporting obligations, and Bangladesh Bank’s powers to inspect licensed entities and cancel licences.
Under the new guidelines, AD banks will be able to process and forward applications to Bangladesh Bank on behalf of applicants seeking licences as money changers and authorised gold dealers when a decision is made to issue new licences.
The provision clarifies the role of AD banks in the application process and establishes a framework for submitting relevant applications to the central bank.
AD banks, money changers and limited money changers play important roles in foreign exchange transactions. Meanwhile, authorised gold dealers and importers of gold ores and doré are involved in the legitimate import and trade of gold.
By bringing licensing and renewal requirements for these entities under one framework, the circular is expected to make the relevant regulatory obligations easier to identify and follow.
The guidelines also address compliance with anti-money laundering and counter-terrorism financing rules, submission of required reports and inspections of licensed businesses. This means the consolidated framework covers not only the issuance and renewal of licences but also the obligations that businesses must meet after obtaining authorisation.
Bangladesh Bank said the circular would remain effective for one year from the date of issuance. Previous instructions covering the matters addressed in the circular will be treated as repealed in the relevant areas. Any subsequent instructions or amendments issued by the central bank will also have to be read alongside the circular.
Banking sector insiders said clear regulatory guidance was particularly important in closely supervised businesses such as foreign exchange and gold trading, where compliance with licensing, transaction and reporting requirements is essential.
They said the consolidated circular could serve as a common reference for regulated institutions and support Bangladesh Bank’s supervisory and regulatory activities. Its effectiveness, however, will depend on how consistently banks and other licensed entities comply with the requirements.