BB to scrutinise airlines\\\' forex transactions

The Bangladesh Bank is seeking details of foreign currency transactions made by airlines that operate flights on international routes.
In a recent meeting with chief executisves of airlines, the central bank said companies will have to provide information about revenue and expenditures in foreign currencies, the amount of foreign exchange brought in to the country and its origin, said a Bangladesh Bank official.
"A circular on the matter will be issued soon," central bank's Executive Director Md Ahsan Ullah told bdnews24.com.  
Top officials of Regent Airways, United Airways, Novo Air, US Bangla Airlines, Bismillah Airlines and GMG Airlines attended the meeting between the airlines bosses and the Bangladesh Bank.
Regent and United fly to international destinations while Bismillah carries cargo on international routes.
The rest operate domestic flights, except GMG, which suspended flight operations more than two years ago.
In line with the foreign exchange laws, the central bank can issue any order for organisations operating passenger and cargo flights on international routes.
 A BB official said the step intended to prevent illegitimate transactions and money laundering. He noted airlines will not be able to issue tickets to foreign nationals in local currency.
 Cargo flight operators will also have to charge in foreign currency if the LC (letter of credit) against the goods is made on an FOB (free-on-board) basis.
Airlines operators say that they would comply with the central bank's order.
"Any regulatory authority can ask for information. Since we do business in the country, there's no second-thought about compliance. We will provide the information that the Bangladesh Bank wants," said United Airways Deputy General Manager Kamrul Islam.