Bangladesh Bank has issued a comprehensive, unified circular consolidating existing rules and regulations regarding the issuance and renewal of licenses for foreign exchange and gold businesses.
The updated directive covers licensing guidelines for Authorized Dealers (ADs), money changers, limited money changers, Authorized Gold Dealers (AGDs), and importers of gold ore and dore.
The circular released on Saturday (October 17), encompasses a wide range of regulatory parameters—spanning from initial licensing and renewals to foreign exchange transactions, gold import and export, anti-money laundering (AML), combating the financing of terrorism (CFT), and ongoing regulatory oversight.
According to the central bank, gathering previously dispersed instructions into a single updated reference document is intended to simplify compliance, making it easier for relevant institutions to understand regulations and conduct their day-to-day operations smoothly.
Under the new guidelines, when a decision is made to issue new licenses, Authorized Dealer (AD) banks can process license applications on behalf of clients for money changers and authorized gold dealers before submitting them to Bangladesh Bank.
Divided into six distinct sections, the circular outlines-Procedures for license issuance and renewal, foreign exchange transaction protocols, gold import and export regulations, Compliance with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) standards, Submission procedures for periodic reports, Bangladesh Bank's authority regarding institutional inspections and license cancellations.
The circular will remain effective for one year from the date of issuance, during which previously issued instructions on the subject will be considered superseded. However, any subsequent instructions or amendments issued hereafter must be read in conjunction with this circular.
Banking sector insiders believe that housing all scattered directives under one umbrella will improve regulatory clarity, ease adherence to compliance standards, and facilitate smoother administrative workflows for commercial banks and other licensed entities.