BB allows MFS to bring remittance

BB allows MFS to bring remittance

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Bangladesh Bank (BB) has allowed Mobile Financial Service Providers (MFSPs) to fetch remittances of wage earners in Bangladesh.

“To bring in greater flexibility, licensed MFSPs shall be permitted to provide payment gateway services to wage earners in association with internationally recognized online payment gateway service providers (OPGSPs) or banks or digital wallet or card schemes and/or aggregators abroad (hereinafter approved or referred to) Licensed Foreign Payment Service Providers, Foreign PSPs),” according to the BB circular issued today.

In this context, Bibi said, MFSPs will have standing arrangements with foreign PSPs to receive foreign exchange in their account and equivalent taka value will be credited to the MFS accounts of the wage earners.

Later, the foreign PSP will provide credit to the Nostro account of the designated AD. After receiving the amount in Taka, the salaried person can use the MFS account from abroad to do all transactions in Taka.

Salaried individuals can open an MFS account in Taka through proper e-KYC with valid proof of departure from Bangladesh (page of passport bearing date of arrival or departure). On return to Bangladesh, such account can be converted into a local MFS account. This account can be converted back to MFS account of salaried individuals with proof of departure. It is important that the MFS accounts of salaried individuals can be credited only in exchange for foreign currency.

ADs are advised to provide settlement account services to MFSPs. The operational procedures in this regard are as follows:
(a) Authorized Dealers, on receipt in their Nostro accounts, shall transfer funds to settlement accounts in Taka equivalent of MFSP.

(b) As an alternative to (a) above, in accordance with paragraph 1(i), Chapter 13 and paragraph 8(b), Chapter 14, Authorized Dealers may maintain accounts in foreign currency/Taka of their choice in the name of overseas PSPs. Huh. Guidelines for Foreign Exchange Transactions-2018, Vol-1 to facilitate the said transfer by debiting the accounts.

Due diligence is required to be carried out in respect of the Transaction in respect of Foreign Exchange or Payment Systems Regulations, KYC and AML or CFT standards and relevant laws or regulations. Normally, Authorized Dealers shall carry out regular reporting to Bangladesh Bank for the specified purpose.

MFSPs desirous of providing repatriation services shall apply to the Foreign Exchange Policy Department at Bangladesh Bank Head Office by December 31, 2022, detailing the proposed arrangements in accordance with the framework outlined above or similar compliant procedures. Bangladesh Bank will primarily grant permission upon review of arrangements for operationalization of the initiative.

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