Revised Guidelines for Bandwidth and Service Import Remittances in Bangladesh

Under this circular, authorized dealers (“ADs”) are directed to review their current procedure for remittances related to bandwidth and associated service imports by local businesses, which presently require specific approvals from the Bangladesh Bank on a case-by-case basis. ADs may now facilitate remittances for bandwidth service imports by Bangladeshi-incorporated business entities, provided the following requirements are met:

• The AD has obtained an application that includes:
  • Copies of the valid licenses from the relevant authorities for the specific services.
  • Copies of agreements with the related service providers.
  • Regulatory approvals from the Bangladesh Telecommunication Regulatory Commission (BTRC )or other relevant authorities, as applicable.
  • Copies of related invoices.
  • Documentary evidence of tax payments or an exemption certificate from the tax authority.
  • An undertaking from the applicant company to repatriate any incorrect or excess remittance to Bangladesh immediately if required.
• The AD has ensured the authenticity of the remittance request and source of funds by reviewing the required regulatory approvals, No Objection Certificates ( NOCs,) licenses, financial statements, and other relevant documents. This includes obtaining audited statements detailing earnings, expenses, and the net position (surplus/deficit) for the remittance, along with collections from bandwidth service sales. The AD must have verified that the remittable funds are sourced from the respective business operations and meet all necessary regulatory reporting requirements.
• The AD has separate files for each remitting customer for Bangladesh Bank inspection purposes, meets the Bangladesh Bank routine reporting requirements, and complies with AML/CFT standards.

The remittance is processed through a designated AD branch with notification sent to the Bangladesh Bank’s head office or relevant area office.