SMEs can remit $3,000 annually: BB

Staff Reporter :

In a move to enhance the international competitiveness of small and medium enterprises (SMEs), the Bangladesh Bank (BB) has allowed registered SMEs to remit up to $3,000 per year for legitimate current expenses abroad.

The initiative, outlined in a recent BB circular, aims to facilitate business operations and capacity development for a sector that contributes significantly to employment generation and industrial diversification in Bangladesh. According to the circular, SMEs can utilize this foreign exchange facility through traditional banking channels or via refillable international payment cards—to be branded as “SME Cards”—issued by authorised dealer (AD) banks.

Each card may be refilled with a maximum limit of $600 per transaction, while the total annual remittance, including both card use and bank transfers, must not exceed the $3,000 cap.
To qualify, SMEs must be registered with the SME Foundation, ensuring that only legitimate and compliant enterprises benefit from the facility.

The funds can be used to cover a range of bona fide business expenses such as participation in trade fairs, purchasing software subscriptions, online training fees, or small-scale import-related payments for service improvement and market access.

The circular specifies that remittances related to royalty, technical know-how, consultancy, and franchise fees remain under the jurisdiction of the Bangladesh Investment Development Authority (BIDA) and are therefore excluded from this facility.

BB also directed that all transactions must be routed through a single nominated AD branch, ensuring transparency and proper monitoring.
Any change in the designated branch will require a written application from the SME and direct file transfer authorization from the central bank.
To maintain financial integrity, AD banks must carry out stringent due diligence, including tax deduction at source, Know Your Customer (KYC) verification, and adherence to Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulations.
Routine reporting to the central bank is also mandatory to ensure compliance and prevent misuse.
Economists and business leaders have welcomed the move as a timely policy support for SMEs seeking to expand their global footprint.
They noted that the relaxed remittance rules will help small businesses engage in international procurement, digital marketing, training, and cross-border collaborations, boosting productivity and innovation in the country’s growing SME ecosystem.