chapter 03 remittance

CHAPTER THREE: REMITTANCE

Chapter-3

3.1 Remittance & Remittance Arrangement

3.2 Remittance Process of NCCBL

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Chapter Three: Remittance


3.1 Remittance & Remittance Arrangement

Remittance

Remittance is the process of sending money to remove an obligation. This is most often

done through an electronic network, wire transfer or mail. The term also refers to the

amount of money being sent to remove the obligation. When a person sends a check to the

government to pay for a tax bill, the check is remittance to remove the tax obligation. If

you were to send money to a friend in Europe through a wire-transfer service, the sum of

the payment is the remittance or foreign Remittance. Remittances are transfers of money

by foreign workers to their home countries. Online Remittance is the process of sending

money or transferring using the Internet, and is usually done by an expert back to his/her

home country. According to the World Bank, remittances are an important source of

income for the receiving country, usually developing and emerging market countries.

Remittance Arrangement:

Bangladesh Bank permits banks in Bangladesh to establish drawing arrangements with

foreign banks and Exchange houses for facilitating remittance by Bangladeshi nationals

living abroad. Persons willing to remit their earnings through official channels can buy

either Taka draft or US dollar draft from these foreign banks and Exchange houses having

drawing arrangements with different banks in Bangladesh. Bangladeshi nationals living

abroad can send Foreign Exchange very easily and directly to their own bank accounts

maintained in Bangladesh or to their nominated person's / relative's bank accounts in

Bangladesh.

Furthermore, recently banks have taken some major steps towards crediting the proceeds

of remittances to the beneficiary's account promptly, maximum by 3 (three) days.

The following Foreign Banks, Exchange Houses and Subsidiaries / Overseas Branches

of Bangladeshi Scheduled Banks have drawing arrangements / remittance facilities with

different banks in Bangladesh. Remittance comes from the following countries through

different bank:

Australia, Bahrain, Brunei, Canada, France, Greece, Hongkong, Italy, K.S.A., Kuwait,

Malaysia, Oman, Qatar, South.Korea, Singapore, Spain, Srilanka, Switzerland, U.A.E,

U.K, U.S.A.

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3.2 Remittance Process of NCCBL

Foreign exchange remittance takes place in NCCBL, as in other commercial banks, in two

forms:

1. Outward Remittance and

2. Inward Remittance.

1. Outward Remittance

Outward Remittances may be offered under open general permission or under specific

sanction from Bangladesh Bank. Application is required for this remittance to the

Bangladesh Bank’s IMP, TM forms. Application for remittances against import is to be

made on IMP form, for travel on TM form and for miscellaneous changes on TM form. As

per Exchange Control Regulation a traveler can’t take a draft along with him under official

rate of exchange. An Outward Remittances can be affected either under Wage Earner’s

Scheme or at rate depending on the kind of sanction. The procedures of Outward

Remittances of NCCBL are as follows:

1) Most outward remittances are approved by the Ads, on behalf of the Bangladesh

Bank following declaration of Taka as convertible for current accounts payments

from March 1994. Only a few remittances of special nature require Bangladesh

Bank's prior approval.

2) All remittances from Bangladesh to a foreign country or local Currency credited to

on resident Taka accounts of foreign banks or Convertible Taka account constitute

outward remittances of foreign Exchange. Ads must exercise utmost caution to

ensure that foreign currencies remitted or released by them are used only for the

purposes for which they are released; they should also maintain proper records for

submission of returns to Bangladesh Bank as also for the latter’s inspection from

time to time.

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3) In all cases of purchase of foreign currency an application must be made to an AD

and, wherever necessary to Bangladesh Bank. For Payments against imports into

Bangladesh, the prescribed application form is form IMP and for other types of

remittances form is TM. TM form must be used for reporting by the Ads even

when remittance is approved by Bangladesh Bank in any other manner, for

instance by issuing a special permit. On receipt of the application in the prescribed

form, the Ads may affect the sale of foreign exchange if they are empowered to

approve the application. If the transaction requires prior approval of the

Bangladesh Bank, the form should be forwarded by the AD to the Bangladesh

Bank for Consideration.

4) Applications for Bangladesh Bank's prior approval for outward Remittances,

wherever required, should be submitted to Bangladesh Bank only through the Ads

and not by their customers directly; all such applications should be forwarded by

the Ads to Bangladesh Bank by their own messengers or by post.

5) In respect of the forms or permits etc. approved from the Bangladesh Bank, the

Ads should see that these have been approved by duly authorized officers and that

they bear the Bangladesh Bank's embossing seal. In case an official of Bangladesh

Bank whose specimen signature may not be available with them signs the

authorization such authorization should be resend to the nearest office of the

foreign Exchange Policy Department and the signatures authenticated. It is most

important that, once forms have been approved by or on behalf of the Bangladesh

Bank, the Ads carry out the transactions only on behalf of the original applicants

for whom the forms were approved.

6) Permits issued (where applicable) by the Bangladesh Bank must be utilized within

the period of its validity indicated in the permits. The amount released must not

exceed the authorized limit. Also, the instructions, if any, given in the permits with

regard to the amounts to be released periodically e.g. monthly or quarterly must be

strictly adhered to.

7) Remittances made against permits or approval letters of Bangladesh Bank should

be reported on TM form. The AD must state on the TM form the number of the

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permit against which the remittance has been made by him and must certify that

the remittance has been endorsed by him on the permit. The remittance must be

endorsed on the back of the permit giving the date of the remittance under the

stamp and signature of the AD. When the permit is exhausted or no longer

required, it should be returned to the Bangladesh Bank by the AD along with the

TM form on which the last remittance is reported.

8) All authorizations excepting TM forms approved by the Bangladesh Bank or by

the Ads on behalf of the Bangladesh Bank remain valid for a period not exceeding

30 days from the date of approval unless they are expressly stated as valid for a

specified longer period or unless they have been revalidated for a further period.

TM form approved by the Bangladesh Bank will, however, remain valid for a

period of three calendar months from the date of approval by the Bangladesh Bank.

Permits issued by the Bangladesh Bank are also valid for specified periods as

stated on the permits. The Ads should not affect any remittance against approved

Forms or Permits, which have lapsed unless they have been duly revalidated.

9) Original copies of all IMP forms, TM forms covering remittances affected by the

Ads must be submitted to the Bangladesh Bank along with the appropriate returns

for the disposal of the remaining copies of the IMP forms.

In the event of any remittance, which has already been reported to the Bangladesh

Bank on the prescribed return being subsequently cancelled either in full or in part, the

Ads must report the cancellation of the outward remittance as an inward remittance.

The return in which the reversal of the transaction is reported should be supported by a

letter giving the following particulars:

The date of the return in which the outward remittance was reported.

The name and address of the applicant.

The amount of the sale effected originally.

The amount cancelled.

Reasons for cancellation.

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2. Inward Remittance

Inward remittances may be affected in the above-mentioned process. All such inward

remittances are to be reported to Bangladesh Bank on form if the amount is above $2000

and no “IRV”. In case of Wage Earners Scheme the remittance is to be reported on

schedules WSR 1 to 4 and WSP 1 to 10. The procedures of Inward Remittances of

NCCBL are as follows:

1) The term "Inward Remittances" includes not only remittance by T.T., M.T.,

Drafts etc., but also purchases of bills, purchases of drafts under Travelers'

Letters of Credit and purchases of Travelers’ Checks.

2) The Ads may freely purchase foreign currencies or raise debits to non-

resident Taka Accounts of the respective bank branches and

correspondents. Remittances equivalent to US$ 2000 and above should be

reported oil Form C attached to the appropriate schedule however,

declaration on Form C by the beneficiary is not required against

remittances sent by Bangladesh nationals working abroad. The purpose of

remittances should be clearly stated on the Form C. Where the country of

origin of funds and currency in which remittances received are the same,

the Ads may submit a consolidated Form C in respect of those remittances

attaching therewith a separate list showing details of remittances

comprising the amount reported on Form C. Remittances received against

exports should be certified and reported on EXP Forms. In case of

remittance received in advance for exports the AD should obtain a signed

declaration from the beneficiary on the back of the "Advance Receipt

Voucher” certifying the purpose of remittance.

3) There is no objection to the Ads obtaining reimbursement from non-

resident banks in freely convertible foreign currency in respect of Taka bills

and drafts purchased by them under instructions from such a non-resident

bank whether under Letters of Credit or under other arrangements.

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4) If an inward remittance already reported to the Bangladesh Bank is

cancelled, either in full or in part, because of non-availability of

beneficiary, the Ads must report the cancellation of the inward remittance

as an outward remittance on TM form. The return in which the reversal of

the transaction is reported should be supported by a letter giving the (a)

reference of the return in which the inward remittance was reported (b)

name and address of the beneficiary (c) amount and the reason for

cancellation and (d) amount of the purchase as effected originally.

3.2.1 Types of remittance

Remittances are basically two types:

3.2.1.1 Local Remittance.

3.2.1.2 Foreign Remittance.

3.2.1.1. Local Remittance

Remittance is significant part of the general banking. The bank receives and transfers

various types of bills through the remittance within the country. Obviously the bank

charges commission on the basis of bills amount. NCCBL remittances are safe, swift,

inexpensive and simple. The types of local remittance are:

1) Pay Order (PO).

2) Demand Draft (DD).

3) Telegraphic Transfer (TT).

4) Mail Transfer (MT).

1) Pay Order (PO):

Pay Order is an instrument that contains an order for payment to the payee only in case of

local payment whether on behalf of the bank or its constitution. Unlike check there is

possibility of dishonoring Pay Order. NCCBL charges different amount of commission on

the basis of Pay Order amount.

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2) Demand Draft:

By DD any person can send money from one branch to another branch of NCCBL. To

send the money he/she must fill up the NCCBL prescribed form of DD and paid

charge/commission and receives DD block. The following information included in the DD

block:

Name of the sender branch.

Name and account of the party who receives the money.

For security purpose a confidential test number are included in the DD block.

Amount of money to be transferred.

Name of receiver branch.

The sender sends this block to the receiver branch of DD. When the receiver branch

receives this DD block, the authorized officer of the receiver branch tests the DD

confidential number and if the test number is proofed then s/he gives the money to the

payee.

3) Telegraphic Transfer:

To send money urgently NCCBL may be requested for TT on payment of a nominal

charge and telegram charge. Any person urgently sends money from one branch to another

branch within NCCBL through TT. When a message of TT sends through phone from one

branch to another branch; in that time the message received by the authorized officer who

has a right of power of attorney. After that, s/he fills up the TT form. Following things are

included in the TT form:

1 TT number.

2 TT test number.

3 Name and account number of the payee.

4 Power of attorney number of the sender and receiver of TT.

5 The amount to be transferred.

After fill up the TT form, officer tests the test number of TT. If officer ensures through

testing the test number then the officer credits the account of the payee. On the other hand,

if the test number is not proved then s/he calls back to the sending branch of TT and

request to send a new TT.

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4) Mail Transfer:

Money can be sent through mail transfer to anybody who has an account in any other

branch of the same bank for this purpose the sender shall have to furnish the details like:

The name of the beneficiary and his account number.

The amount to be transferred.

The name of the branch where the account is maintained.

3.2.1.2. Foreign Remittance

NCCBL is the member of MoneyGram and SWIFT networks. Using the services of this

global network, non-resident Bangladesh nationals can send money from abroad to their

home country within a few minutes without any risk. NCCBL has also arrangement with

foreign money exchange companies like UAE Exchange Co., Redha-Al-Ansari Co. etc.

The operation of the foreign remittance took different forms through the following

organization through NCCBL.

3.2.2 Exchange Companies and Remittance Process

3.2.2.1 MoneyGram:

Introduction

National Credit and Commerce Bank Limited is very happy to announce to have joined

hands with MoneyGram Payment Systems Inc to serve expatriates to send money back

home quickly from anywhere in the word. Moreover, money can also be sent quickly

through MoneyGram from Bangladesh to other parts of the World as is done through the

banking channel. At the moment we are concentrating on home remittances being sent by

the expatriates.

MoneyGram Payment system Inc is a non-back provider of electronic money transfer

service. MoneyGram is providing its customers a service of an unsurpassed quality and

superior value. MoneyGram has over 25,000 Agent locations throughout the world.

Persons anywhere require transferring cash quickly, reliably, conveniently and at attractive

prices to more than 115 countries can depend on MoneyGram agents for the service.

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History

MoneyGram, Originally a money-transfer service of American Express Company provides

the expertise and reliability you expect from years of experience in the payment system

industry. American Express Travel related Service Company launched a new consumer

money-transfer service named MoneyGram in 1988. Until December 11, 1996

MoneyGram was a wholly- owned subsidiary of First Data Corporation. In 1996

MoneyGram was taken public and listed on the New York stock exchange. MoneyGram is

now a part of Travelers Express Company, the US’s largest money order company through

a merger in end 1998. In March 1998 MoneyGram became fully licensed to provide

money transfer service under its own name.

Our Mission

In our continuous commitment to serve the country’s economy in a better way we have

made agreement with MoneyGram Payment Services Company to facilitate transfer flow

money from abroad. Our expatriates who are living in many countries of the world can

derive the best benefit of the service.

The major problem being faced by our expatriated in many countries is not having bank

accounts. Many banks do not entertain customers for remitting money without having

accounts. A big part of our expatriates’ income is channeled through clandestine means.

Moreover many of our expatriates cannot get acquainted with banking formalities

immediately on reaching abroad. It is not necessary to have a bank account to use Money

Gram Service. Our expatriates can visit any Money Gram agent when they want to send

money, which gives very easy and convenient transfer.

Money Gram is represented in over 115 countries and is available at more then 25,000

locations worldwide. In the USA alone Money Gram is available at more than 15,000

locations. Besides in the UK MoneyGram is available through 1700 Postal Branches and

500 Thomas Cook travel shops making it the UK’s largest money transfer network.

Finally using the MoneyGram Service could not be simpler. All one has to do is to visit a

conveniently situated MoneyGram agent anywhere in the world and hand over the money

they want to send their relatives or friends along with the one-off transacting fee.

Sender completes a “Send” form and gets a Receipt. MoneyGram Agent gives a Ref. no.

which has to be passed to the Receiver.

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Recipient the goes to NCC Bank Branch in Bangladesh. Fill out a “Receive” form and

show proper identification.

NCC Bank makes an inquiry on the MoneyGram computer network to obtain

authorization to pay Recipient and Recipient receives the fund.

MoneyGram is one of the fastest ways to transfer money. Customers using

MoneyGram can send or receive money usually within 10 minutes from anywhere

in the world.

At NCC Bank we provide the Recipients immediate attention ad due care. We have made

it a point to pay the Recipient within minutes. The Recipients need not require having a

bank account. We do not levy any extra charge. We give a better exchange rate to the

Recipient. The Recipient can approach any for the NCC Bank branches at his convenience

for payment.

The operational procedure of MoneyGram takes the following way:

1) Sender goes to Send Agent

2) Send Agent received Money and enter information into MoneyGram System via

MW Software and give a Reference Number.

3) Sender provides the Reference Number to the Receiver.

4) Receiver comes to Receive Agent (NCCBL) with that Reference Number and fill

up a form supplied by Money Gram.

5) Received Agent gets connected with the MoneyGram System via MW Software

with that Reference Number, if find OK then pay cash on counter.

6) Received Agent (NCCBL) keep copy of valid ID (Valid passport, bank certificate)

from the receiver.

7) Then Cover Fund is credited to NCCBL account with respective bank (i.e.

Standard Chartered Bank, New York) on the following day equivalent to the

payment made by NCCBL branches. NCCBL pay first and next day receive the

fund.

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3.2.2.2 Placid Express NY:

In March 2002, the bank has entered a Taka drawing arrangement with Placid Express

NY, for home remittances of Bangladeshi expatriates in the United States. The beginning

was good and the bank offered ideal customer services but the volume of remittance

through this channel has been reduced very soon because of the several reasons like (a)

removal of one of the top executives for activities that caused huge losses of the bank, (b)

increase in the number of competing companies, (c) longer transaction time in servicing

beneficiaries of remote areas beneficiaries where NCCBL does not have any branches, (d)

lack of liquidity and (e) absence of online mode of payment, which is however sometimes

hazardous for transactions. The operation of Placid Express NY takes following way:

1) Bank receive list of invoices via e-mail at the morning and place for test.

2) Each invoice contains information about the beneficiary such as his name, bank &

branch name, account number, phone no, address etc.

3) Then Bank separates the invoices according to the location of beneficiary’s bank

branch and nearest branch and prepares branch-wise statement and fax statement to

the respective branch by 11:30 AM.

4) If beneficiary maintains account with NCCBL than it credited the fund to his

account by noon.

5) If beneficiary maintains account with other bank than issue P/O in favor of him

and sent it by hand/courier service to his bank. Beneficiary’s bank present the P/O

at the clearing house and collect the fund from NCCBL bank for further credit to

the beneficiary’s account. Generally it takes 2-4 days for crediting the fund to the

beneficiary’s account.

6) Then Cover Fund is credited to NCCBL account with respective foreign bank (i.e.

Citibank NA, New York) first then NCCBL pay against that fund.

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3.2.2.3 Xpress Money:

The Xpress Money Services would like to welcome NCCBL to their network. It is a

worldwide money transfer agency but NCCBL focus on U.A.E to collect remittance

because, there are approximately 1.41 million Bangladeshi works in U.A.E. Xpress Money

(XM) is a web-based person-to-person money transfer system that allows an individual to

send/receive money through any of our network agents instantly. All transactions are done

through secure servers using 128-bit encryption technology so as to provide maximum

security. Xpress Money requires following system requirements:

1) PC (Operating system Windows 98 or higher) with connection to Internet and

preferably a LaserJet Printer for taking prints.

2) RAM works well with Internet Explorer version 5.50 (Build 4522.1800) and

above.

3) Flash Player is required (user will be prompted to install when visiting the site, if

it’s not already in the computer).

4) Wingdings 2 and Wingdings 3 fonts should be installed for best viewing the icons.

3.2.2.4 AL FARDAN Exchange:

AL FARDAN Exchange, the pioneer in money exchange and worldwide remittance

services in the U.A.E. established in 1971, is a trusted name for millions of residents and

expatriates. A modern exchange house with advanced infrastructure and courteous staff;

has an extensive network of correspondent banks all over the world to facilitate faster,

completely reliable transactions. AL FARDAN Exchange offers the most competitive

rates on its array of money exchange services and offers need-based services that cover all

transactional needs. Worldwide remittances purchase and sales of foreign currency

banknotes and travelers’ checks, cash advance against credit cards are just a few services

to mention from a wide range of financial services offered.

3.2.2.5 Habib Express:

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Habib Express is another important medium through which wage earner remittance is

accepted by NCCBL. Here head office at first enter in system server and received

necessary information about the amount of remittance, beneficiary who will receive the

amount and any reference number which work as security for Bank as well as beneficiary.

Head office gives information through fax to it respective branch from where receiver will

receive money. Another way, when customer comes to bank than, respective branch where

online system is activate, they enter in terminal to get necessary information to pay

money. The process is as following:

1) Bank receive list of invoices via e-mail at the morning and place for test.

2) Each invoice contains information about the beneficiary such as his name, bank

& branch name, account number, phone/address etc.

3) Then Bank separates the invoices according to the location of beneficiary’s

bank branch and nearest branch and prepares branch-wise statement and fax

statement to the respective branch by 11:30 am.

4) If beneficiary maintains account with NCCBL than it credited the fund to his

account by noon.

5) If beneficiary maintains account with other bank than issue P/O in favor of him

and sent it by hand/courier service to his bank. Beneficiary’s bank present the

P/O at the clearing house and collect the fund from our bank for further credit

to the beneficiary’s account. Generally it takes 2-4 days for crediting the fund

to the beneficiary’s account.

3.2.2.6 Dhaka Janata Exchange:

Dhaka Janata Exchange introduced to provide remittance facilities to emigrant and other

people of Bangladeshi who work as contractual basis in the Italy. Here Dhaka Janata

Exchange also maintains same procedure of getting information from system server

including the name, reference number, amount, Phone number etc. But difference with

other product is that its respective branch cannot get information from using software.

Here head office sends information through fax to all respective branches. While receivers

arrive at bank, than respective branch check his information with information received

from head office. If the facts match then payment takes places. The operational procedures

are same as the Habib Express.

3.2.2.7 Tele Money (TM) / ANB:

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Tele Money is another important product for remittance services. There are approximately

1.89 million of people of our country works in Saudi Arab. Tele Money helps those people

to send their money within very short moment through Arab National Bank. The

operational procedure of Tele Money is same as other. Through specified software head

office collect the invoice including name, address, secret code etc. People those who have

account with NCCBL, are credited in their account. In Tele Money; bank inform to

beneficiary about their money every day to provide them more facilities. NCCBL have no

branch in all places where beneficiary stay. So Tele Money provides this service through

third party. Here mostly Sonali Bank works as third party and receives commission from

this service.

3.2.2.8 Zenj Exchange Company (Turbocash):

In 2010, NCCBL contracts with Zenj Exchange Company; product name is Turbocash for

foreign remittance collection from Bahrain. Turbocash is instant money transfer. ID

Payment and Bank deposit available with this service. You can send money to GCC

Countries as well as Asian countries. Funds usually arrive within 10 minutes, and there is

no unnecessary paperwork or hassle

3.2.2.9 Export Proceed:

Export Proceed are very vital part in remittance services, as it cover large portion of total

remittance of NCCBL. Most of remittance received from corporate level for their

exporting business. Here several types of Bank are engaged with these services. Payment

is made through Nostro and Vostro Account. Here Nostro account means, NCCBL have

an account with listed foreign bank. Foreign remittances come to NCCBL through those

foreign banks. Foreign importers pay the money to that foreign bank. Foreign bank

credited necessary amount to NCCBL account. All of remittance come in export proceed

as foreign currency. Head office converts this foreign currency into home currency and

pay to his respective branch. Foreign banks those have contract with NCCBL take two

forms; interest bearing and non-interest bearing.

The non-interest bearing banks are:

1 Standard Chartered Bank, Singapore.

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2 Standard Chartered Bank, Japan.

3 American Express Bank, New York

4 Sumitomo Mitsui Banking Corp.

5 Bank of Tokyo Mitsubishi, Japan.

6 Bank of Tokyo Mitsubishi, Kolkata.

7 American Express Bank, Colombo.

The interest bearing banks are:

1 Standard Chartered Bank, New York.

2 Mashreq Bank, New York.

3 Citibank N.A, New York.

4 Standard Chartered Bank, London.

5 Uni Credio Italiano spa.

6 Commerge Bank AG, Frankfurt.

3.2.2.10 SWIFT (Society for Worldwide Inter-bank Financial Telecommunication):

NCCBL is a member of society for inter-bank financial telecommunication. Through this

fast, secure, and global communication NCCBL has gained 24 hours connectivity with

7000 financial institutions in 200 countries for transmission of L/Cs, Guarantees, funds

transfers, payments etc. SWIFT is a bank owned non-profit co-operative based in Belgium

servicing the financial community worldwide. It ensures secure messaging having a global

reach of 6495 Banks and Financial Institutions in 178 countries, 24 hours a day. SWIFT

global network carries an average 4 million message daily and estimated average value of

payment messages is USD 2 trillion. SWIFT is highly secured messaging network enables

Banks to send and receive fund transfer, L/C related and other free format messages to and

from any bank active in the network. Having SWIFT facility, Bank will be able to serve its

customers more profitable by providing L/C, payment and other messages efficiently and

with utmost security.

3.2.2.11 Identification of document used:

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Required documents/Check list for establishment of Remittance Arrangement with

overseas Banks/Exchange Companies:

1. Proposal from the concerned exchange company for establishment of Agency

Arrangement.

2. Resolution of the Board of Director’s of the company regarding establishment of

Agency Arrangement duly attested by the embassy of Bangladesh in applicant’s

country.

3. License from their monetary authority/Central bank duly attested by the embassy

of Bangladesh in applicant’s country.

4. Valid trade license duly attested by the embassy of Bangladesh in applicant’s

country.

5. Memorandum and Articles of Association duly attested by the embassy of

Bangladesh in applicant’s country.

6. Certificate of Incorporation duly attested by the embassy of Bangladesh in

applicant’s country.

7. Membership certificate from Local Chamber of Commerce & Industry duly

attested by the embassy of Bangladesh in applicant’s country.

8. Credit worthiness/Business status /Confidential report of the company to be

collected through embassy of Bangladesh in applicant’s country.

9. Credit report from the Companies Banker.

10. Audited financial statement of the company for the last 3(three) years duly attested

by the embassy in applicant’s country.

11. Money Laundering policies and procedures (guidelines) of the company.

3.2.2.12 Agency Arrangement:

We enter into remittance arrangement with the overseas Exchange Companies/Banks

under the following system:

i) Draft Drawing Arrangement

ii) TT Drawing Arrangement under Electronic Fund Transfer (EFT) System

(Swift/Secured Software/Tested e-mail).

Under Draft Drawing Arrangement remittance will be sent directly to the beneficiary/

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beneficiary’s Bank in the form of DD.

Under EFT system remittance will be sent in the prescribed excel format stating

beneficiary detail.

Under the EFT system the payment will be made

a) Credit to the beneficiary’s account

b) Instant Cash over the counter verifying PIN code and Photo ID.

Pin code for identification of the remittance

Photo ID for the identification of the beneficiary

Major Terms and Conditions of Bangladesh bank for seeking their approval for

establishment of Remittance Arrangement with overseas Exchange Companies :

1. The Exchange Company shall have to provide security deposit/Bank

Guarantee.

2. The Exchange Company shall have to maintain a minimum balance in their

Non-resident Non-Convertible Taka account.

3. The Exchange Company shall have to ensure & confirm the deposit of cover

funds against every remittance in the Nostro A/C and Payment will be

effected to the beneficiary (i.e) as per instruction at our end by debiting NRT

account.

4. Under any circumstances the Account will not be allowed that to be

overdrawn.

5. It is to be mentioned specially that permission given by the Bangladesh Bank

shall be valid till the validity of the license given by the Licensing Authority

of the Company’s Country.

6. In case the validity of the license issued by the Company’s Country is not

renewed /extended the Bank shall also not extend the validity of the

remittance Arrangement with the Company.

7. If any incident of breach of the terms and conditions of the approval letter &

the rules and regulations of the foreign exchange transaction is detected the

approval of the arrangement will be cancelled immediately.

3.2.2.13 Accounts of Exchange Company/Bank:

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The Exchange companies/Banks maintain two types of account with us-

Non- Resident non-convertible Taka Account (NRTA)

Non- Resident Foreign Currency Account

NRT Account for Taka remittance

Non- Resident Foreign Currency Account for foreign currency remittance.

3.2.2.14 Cover Fund:

The company/Bank shall provide the Cover Fund against Payment Instructions/total

remitted amount to the designated NOSTRO Account of NCCBL.

3.2.2.15 Accounting procedures:

Upon receipt of the cover fund, i.e. when cover fund of the remittance will be credited to

our Nostro account, NCCBL will debit the Nostro account and credit the equivalent

amount to the respective account of the company/bank.

Upon receipt of the Payment Instructions, NCCBL will credit the amount to the respective

beneficiary’s account after debiting the company/bank US Dollar and/or local currency

account.

Voucher pass:

Debit: Nostro Account

Credit: NRT Account/NRFC Account

Debit: NRT Account/NRFC Account

Credit: Beneficiary account through IBCA

3.2.2.16 Customer Identification:

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Correct Beneficiary Identification:

Cash payouts shall be made upon proper identification of the beneficiary of the

remittances based on the any of the following types of ID of the Beneficiary which should

be current and contain a photo where applicable: -

1. National ID / Voter ID Card or Chairman's certificate with photograph of the

Beneficiary.

2. Copy of Passport.

3. Driving License.

4. TIN Registration Certificate

5. ID issued by the employer with photo.

6. Introduction from a bonafide person whose identity has been duly verified.

7. Any other ID document to the satisfaction of our Bank Branch Managers

concerned.

8. Letter of Introduction from the Banker of the Beneficiary.

39

chapter 03 remittance

Documents

wage earners

bank financial

beneficiarys

bank receive

interest bearing

convertible

beneficiarys

beneficiary