Curbing import: BB asks dealers to report 24 hrs before opening LCs

Bangladesh Bank on Thursday instructed authorized dealers (ADs) to report all types of their foreign exchange transactions including offshore banking operations to the web portals of BB on a regular basis.

The central bank is tightening policy on spending of foreign exchange by curbing unnecessary imports and trade-based money laundering.

As part of import monitoring, ADs have been instructed to submit import information to the central bank’s online import monitoring system (OIMS) 24 hours prior to opening letters of credit (LCs) based on proforma invoices/purchase contracts, UNB reports.

The reporting requirement for the said transactions will be for import value of USD $5.00 million and above or its equivalent, excluding imports by the government, a BB circular stated.

The dealers shall finalize the report on completion of opening of the relative LCs.

The foreign exchange policy department of BB issued the notification and sent it to head offices/principal offices of all dealers in Bangladesh. The notification will be effective immediately.