BB eases bringing service sector earnings home

 
Bangladesh Bank (BB) has stated that from now on licensed payment service providers can work on the accounts of freelancers and outsourcers. It has eased bringing home the earnings made through the service sector.

The central bank issued an order to this end to the chief executive officers (CEOs) of the commercial banks that deal with foreign transactions on Monday. Earlier on Bangladesh Bank enabled the authorized dealer banks approved in 2011 to set up connections with overseas online payment gateway service providers. 

According to the new circular issued by Bangladesh Bank, the authorized dealers (AD) of the service providers will be able to work with international marketplace or platforms for monetary transactions.

The AD banks will gather detailed information from the service providing companies and merchants. The money earned through this system can be deposited in the digital wallet of the clients. The applicable portion of the clients' money can be deposited as export retention quota (ERQ).

Bangladesh Bank's circular about this issue also gives instructions about tax payment by such service providers. The earnings of the service sector cannot be preserved abroad.

The earnings of the service sector will have to be brought into Bangladesh within four months.