Bangladesh Bank consolidates licensing rules for forex and gold businesses

Bangladesh Bank has compiled existing guidelines on issuing and renewing licences for institutions involved in foreign exchange transactions and the gold business into a single circular. The central bank said the move aims to make the rules easier for those concerned to understand and comply with.

The circular brings together licensing guidelines for authorised dealers, money changers, limited money changers, authorised gold dealers and gold importers.

Alongside licence issuance and renewal, it includes conditions for foreign exchange transactions and gold imports and exports. It also sets out restrictions to prevent money laundering and terrorist financing, as well as requirements for the institutions concerned to provide information.

The circular also covers Bangladesh Bank’s powers to inspect institutions and cancel licences. It sets eligibility criteria and application procedures for importers of gold ore and bars.

Under the guidelines, authorised dealers can submit applications to Bangladesh Bank on behalf of clients seeking money changer and authorised gold dealer licences. The central bank, however, will make the final decision on approving licences.

The circular will remain valid for one year. Previous guidelines on the matters it covers will be deemed repealed, subject to necessary revisions. Related directives and amendments issued by Bangladesh Bank will also remain in force.