Embassies allowed remit visa fees without Bangladesh Bank approval

The central bank of the country, Bangladesh Bank (BB), announced that foreign missions in Bangladesh will no longer need BB’s special approval to convert visa fees and other service charges collected in taka into foreign currency. 

The central bank announced the decision on Monday adding that the missions can remit the money to their home countries and the facility would apply not only to services provided directly by embassies but also to authorised agencies and visa service centres.

Many countries do not have embassies in Bangladesh but operate through visa centres or approved agencies. 

Under the new rules, these agencies will also be able to remit fees collected for visa and related services without seeking separate approval from BB.

The central bank has instructed authorised dealer, or AD, branches of banks to verify the necessary documents before releasing foreign exchange.

Banks must also deduct all applicable local taxes before allowing the funds to be remitted abroad.

The move follows another decision in May aimed at easing embassy-related transactions.

Under that notification, banks were allowed to allocate foreign currency for refundable deposits or guarantees required by embassies or international authorities as a condition for issuing visas.
Such funds may be kept in foreign currency only if they are refundable or are to be repatriated to Bangladesh after the expiry of the deposit period.

Banks must preserve valid passports and the necessary documents from the relevant authorities for such transactions.

The decision created scope for applicants travelling abroad for study, workshops or other purposes to provide foreign currency guarantees or deposits to foreign missions in Dhaka when required.