BB allows forex custodial accounts for money changers

Bangladesh Bank has authorised dealer (AD) banks to offer foreign currency custodial accounts to licensed money changers in a move aimed at enhancing cash security and minimising the risks of transporting physical foreign currency.
According to a central bank circular issued on Wednesday, the interest-free accounts can be used strictly for depositing, withdrawing, and safeguarding foreign currency notes.
Under the new guidelines, money changers can deposit foreign currency without a fixed ceiling, provided the amounts align with their documented turnover and business profiles.
To manage transit risks, money changers must hold valid Cash-in-Transit (CIT) insurance. Any currency movements above limits specified by AD banks must be handled by licensed CIT providers or via secure, escorted transport.
Additionally, AD banks have been advised to set up dedicated secure counters and temporary vault space for late-day deposits.

Withdrawals can be made through cheques or withdrawal slips by duly authorised representatives, subject to available account balances. Overdrafts and other credit facilities will not be permitted.
The central bank has also prohibited transfers, remittances and third-party transactions through these accounts. 
All transactions must be settled exclusively in physical foreign currency notes.
The initiative aims to strengthen operational security, improve cash management and ensure greater regulatory compliance in foreign currency transactions involving licensed money changers.