Bank branches, booths, hotels, and gift shops are now formally allowed to apply to the central bank for a limited money changer licence by paying a Tk 50,000 fee.

In detailed guidelines on the matter issued yesterday, the central bank stated that it has permitted certain entities to operate as Limited Money Changers (LMCs) under the Foreign Exchange Regulation Act, 1947 (as amended in 2015).

This initiative allows the aforementioned organisations to deal with the buying and selling of foreign currency in a limited capacity for certain defined purposes with a valid licence.

As per the Bangladesh Bank guidelines, the eligible organisations must operate via designated hotel counters, airports, or specific exchange booths approved by the central bank.

The concerned organisations must also meet institutional legal requirements, demonstrate financial soundness, and have strong internal control and compliance systems to get the licence.

Eligible non-financial institutions in this regard may include entities such as travel agencies, Hajj/Umrah service providers, and international ticketing or logistics companies.

The entities must apply using prescribed formats available at the Foreign Exchange Policy Department (FEPD) of the Bangladesh Bank, state the guidelines, adding that the applications must be supported by relevant legal and registration documents, proof of business operations, etc.

The application fee will be Tk 50,000, and the renewal fee every two years will be Tk 10,000, the guidelines further state.

The entities must maintain foreign exchange transaction records, comply with AML/CFT obligations, submit periodic reports to the Bangladesh Bank, and keep updated KYC for all customers.

The BB licence is non-transferable and cannot be sublicensed; entities cannot operate beyond approved premises or engage in unauthorised forex trading or investment services.