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Bangladesh Bank has issued a set of new guidelines aimed at making international transactions easier, more transparent and more convenient for freelancers and individual exporters of ICT and professional services.
Under the new policy, foreign currency earnings from online services can now be received in Bangladesh on the basis of digital proof, reducing the need for cumbersome paper-based procedures.
The detailed circular was issued on Wednesday by the central bank’s Foreign Exchange Policy Department (FEPD-1) and sent to the chief executives of all authorised dealer (AD) banks.
According to the circular, the requirement to submit the traditional EXP form has been withdrawn for exports of ICT services, business process outsourcing (BPO) services and other non-physical online services. However, existing rules regarding repatriation of export earnings and reporting to Bangladesh Bank will remain unchanged.
Many freelancers do not possess conventional invoices or shipping documents. Under the revised rules, banks will be allowed to credit foreign earnings directly to customers’ accounts after verifying electronic evidence such as emails, online contracts, international freelancing platform statements, digital invoices and remittance messages.
The central bank has also relaxed documentation requirements for smaller transactions. Remittances of up to US$20,000 can now be received without submitting Form-C. For amounts exceeding US$20,000, exporters will be able to submit an online Form-C (ICT) through a designated secure digital platform.
The circular further clarifies the Exporters’ Retention Quota (ERQ) facility for service exporters. Exporters in software, ICT services and data processing will be allowed to retain up to 50 percent of their net foreign currency earnings in ERQ accounts. Other eligible service exporters may retain up to 30 percent.
The remaining earnings must be converted into Bangladeshi taka and deposited with local banks. Funds retained in ERQ accounts may be used for overseas travel, international software registration, domain and hosting fees, server expenses, import of necessary equipment and other legitimate personal or business purposes.
The existing facility for receiving smaller payments through Online Payment Gateway Service Providers (OPGSPs) will continue, with the maximum limit remaining US$10,000 per transaction.
Bangladesh Bank also said eligible freelancers may receive dual-currency freelancer cards for international use. In addition, arrangements will be made with international payment partners to allow direct credit of earnings to digital wallets through mobile financial services (MFS) and payment service providers (PSPs).
The central bank emphasised that foreign currency earnings cannot be kept in notional overseas accounts and must be repatriated to Bangladesh within the prescribed time. Keeping funds abroad through unauthorised channels or converting them into virtual assets will be treated as a serious offence under the Foreign Exchange Regulation Act.
Banks have also been instructed to strictly comply with KYC, anti-money laundering (AML/CFT) and tax deduction requirements where applicable.
Insiders said the move would significantly benefit Bangladesh’s growing freelance and ICT export sector by simplifying cross-border payments and reducing administrative hurdles for individual service exporters.