Hotels, resorts can retain 15pc forex earnings from foreigners

The Bangladesh Bank has introduced a new facility allowing hotels, resorts, restaurants, shopping malls, retail outlets and other businesses to retain a portion of foreign currency earnings from sales to foreign visitors made through internationally issued cards and other admissible payment instruments.

Authorised Dealer (AD) banks are allowed the concerned merchants to retain up to 15 per cent of foreign currency receipts realised through acquiring services in Foreign Currency (FC) accounts maintained in their names, according to a notification issued by the Bangladesh Bank (BB) on Sunday.

The remaining 85 per cent shall be converted into the local currency, Bangladesh Taka, it added.

The initiative aims to encourage sales of goods and services to foreign visitors by facilitating international payments while providing businesses with access to foreign currency to meet their legitimate foreign exchange requirements.

The circular also instructed authorised dealers to ensure the deduction and payment of applicable taxes and value-added tax (VAT).

Banks must ensure that the concerned merchants have appropriate arrangements to accept payments through internationally issued cards and other admissible payment instruments.

The central bank further directed authorised dealers to comply with customer identification (KYC), anti-money laundering and combating the financing of terrorism (AML/CFT) standards, as well as reporting requirements to Bangladesh Bank.