Foreign aircraft rentals, cloud fee payments won't need Cenbank nod
Previously, banks were required to obtain approval from the Bangladesh Bank on a case-by-case basis to process these payments
Approval from the central bank is no longer required for paying rentals for foreign aircraft taken on lease by airlines in Bangladesh and for cloud and related service usage fees by corporate offices.
Previously, banks were required to obtain approval from the Bangladesh Bank on a case-by-case basis to process these payments.
In a circular issued today (17 October), the money market regulator stated that banks must review several documents before clearing fees for aircraft leases.
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The documents include a permission letter from the competent authority allowing the operation of the rental aircraft in favour of the applicant company, a copy of the valid agreement, copies of invoices, and an audited statement showing the opening balance, earnings, expenditures, and net amount (surplus/deficit) related to the operation of the rental aircraft.
Additionally, the Bangladesh Bank noted that proof of challans for the payment of all applicable taxes, or a certificate of exemption issued by the relevant tax authority, must be provided. The central bank instructed all authorised dealers of foreign exchange in Bangladesh to comply with this directive.
The circular further reads, "An undertaking from the applicant company to the effect that, in case of wrong or excess remittance, the amount remitted will be repatriated to Bangladesh immediately on demand."
"Authorised Dealers (Ads) shall maintain separate files for each company for verification by the Bangladesh Bank inspection team and report the transactions to the concerned area office of the Bangladesh Bank."
