STAR BUSINESS REPORT

The Bangladesh Bank (BB) has relaxed regulations for power import payments, allowing authorised dealer banks to remit funds for electricity purchases under government-approved cross-border arrangements without prior approval from the central bank.

In a circular issued yesterday, the central bank said the move aims to streamline and facilitate smooth payments for electricity imports transmitted through the national grid under bilateral agreements approved by the government.

Under the new directive, banks may make remittances to foreign beneficiaries for electricity purchased from abroad, subject to certain conditions.

The circular also stated that banks must comply with foreign exchange regulations, including know-your-customer (KYC) requirements, anti-money laundering and combating the financing of terrorism (AML/CFT) standards, and routine reporting to the Bangladesh Bank.

In cases where power purchase transactions require customs formalities, payments will be allowed following the standard import procedure, it added.