Bangladesh Bank (BB) has relaxed regulations governing power-import payments, allowing authorized dealer banks to make outward remittances for electricity purchases under government-approved cross-border arrangements without obtaining prior approval for each case from the central bank.
In a circular issued recently, the central bank said the move aims to streamline and facilitate smooth payment settlements for power imports transmitted through the national grid under bilateral agreements approved by the government.
Under the new directive, banks are permitted to remit funds to foreign beneficiaries for electricity purchases from abroad, subject to several conditions.
The circular also stressed that banks must comply with all foreign exchange regulations, including Know Your Customer (KYC) requirements and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards, along with routine reporting to Bangladesh Bank.
Additionally, in cases where power purchase transactions require customs formalities, payments will be allowed following the standard import procedures, the circular added.
