PFC accounts can be used to make import payment

The central bank has allowed Private Foreign Currency (PFC) account-holders to use their accounts' balance for making import payment obligations, officials said.

"….funds from PFC accounts may be used for payment of admissible imports in terms of Import Policy Order in force," the central bank said in a clarification on Wednesday.

Talking to the FE, a senior official of the Bangladesh Bank (BB) said the central bank issued the clarification to eliminate confusion over use of balance of PFC accounts.

The central bank has noticed that there is confusion in the market regarding trade payment from PFC accounts. Foreign contractors of different projects are mainly operating such accounts in Bangladesh, he added.

Payment for legitimate services is also admissible, subject to compliance of regulations on deduction of taxes, according to the BB clarification.

"Balances held in these accounts may also be used for payment in advance against import of legitimate goods and services."

Currently, the authorised dealer (AD) banks are allowed to open and maintain such accounts in the name of eligible persons/firms. Funds from these accounts are freely remittable abroad.

"The clarification as stated herein will be in force provided that no restrictions are imposed by other authorities," it added.

However, the ADs will have to maintain due diligence as well as Know Your Customer (KYC), Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) standards.

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