Banks allowed to remit payment for purchase of software

The central bank has relaxed foreign exchange regulations allowing commercial banks to remit payment against purchase of software through eDelivery aiming to facilitate the country's E-commerce, officials said.

Under the scheme, the banks may allow their customers to arrange customs assessment of the software after being satisfied over certificates issued by the Bangladesh Association of Software and Information Services (BASIS) to the effect that the purchase of software was genuine and sourced from reliable suppliers.

    "We've relaxed the regulations to facilitate E-commerce as well as digitisation process of Bangladesh," a senior official of the Bangladesh Bank (BB) told the FE.

He also said the central bank considers the applications for such payments subject to the condition that applicants will arrange customs assessment of the software and make payment of duties and taxes thereon.

"This practice entails the software purchase to approach the central bank twice requiring much time for early disposal of remittance applications," the central banker noted.

The BB issued the circular in this connection Thursday and asked all foreign exchange authorised dealer (AD) banks to comply with the revised regulation on remitting funds against purchase of software through eDelivery.

    On receipt of customs assessment order and documentary evidence of payment of duties and taxes, the ADs may effect payment against the purchase of the software subject to compliance of certification and due diligence, according to the circular.

"The ADs will have to comply with the  Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) regulations in respect of the transactions," another BB official explained.

Earlier, the foreign exchange regulation required prior permission from the BB to remit payment against purchases of software through eDelivery.

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