Foreigners to get salary in FC accounts

Staff Correspondent

10 December, 2019 12:00 AM printer

Foreign nationals working in Bangladesh can now get their salaries and benefits credited directly to their foreign currency (FC) accounts.

Foreign nationals earlier had to receive their salaries in their local bank accounts in Bangladeshi Taka, also making the cash only accessible within Bangladesh.

They were, however, allowed to covert the local currency into their preferred currency and remit the amount to their home countries using electronic fund transfer as per rules specified by the central bank.    

Bangladesh Bank (BB) recently relaxed the regulations, allowing foreign nationals, employed in branch offices or liaison offices of foreign companies, to receive remuneration directly in their FC accounts. 

FC accounts give the foreigners living in Bangladesh the flexibility receive and transfer funds in a foreign currency. Such accounts can be maintained by a bank in their home countries or a bank in the country they are located in.

In the latest directive, the central bank has allowed employers to transfer salaries in foreign currency to their foreign employees’ FC account directly.

The directive also said the balances of the FC accounts of foreign nationals working in Bangladesh are freely encashable to Taka to meet local expenses.

The chapter 11 (section 8) of the Foreign Exchange Policy Department’s guidelines for Foreign Exchange Transactions-2018 (Vol-1) permits foreign nationals working in Bangladesh with valid work permits to transfer remittances up to 75 per cent of their net income.

It says the purchase of air ticket shall be permissible out of the limit of the eligible proportion of transferable remittance.