The Bangladesh Bank on Monday allowed small and medium enterprises to remit up to $3,000 or its equivalent in foreign currency per year to meet operating expenses abroad.
The BB issued a circular in this regard introducing the new facility to help SMEs engage more easily in international business activities.
The central bank said that the initiative aimed to support the rapidly growing SME sector, which played a crucial role in the country鈥檚 economy.
Remittances can be sent either through regular banking channels or by using international cards.
To avail of the facility, SMEs must be registered with the SME Foundation.
Banks, referred to as Authorised Dealers or ADs, will ensure compliance with this registration requirement before processing transactions.
Under the new policy, banks have also been allowed to issue refillable international cards, branded as 鈥楽ME Cards,鈥� to a designated official of an SME.
Each card can initially be loaded with up to $600 or an equivalent amount in foreign currency to facilitate legitimate online payments.
However, the total combined limit for all remittances and card transactions must not exceed $3,000 per year.
The circular clarified that the new authorisation did not apply to remittances related to royalty, technical know-how fees, technical assistance or franchise payments, which would continue to be governed by Bangladesh Investment Development Authority.
All such transactions must be handled by a single designated branch of the bank and any request to change the branch must be formally submitted by the respective enterprise.
Banks are also required to conduct due diligence, ensure deduction of applicable taxes and VAT, and comply with Know Your Customer, Anti-Money Laundering and Counter Financing of Terrorism standards.
The new provision, effective immediately, is expected to facilitate SMEs鈥� participation in international trade, helping them pay for small-scale operational costs such as online subscriptions, business communications and service charges, thereby strengthening their global competitiveness.
