Bangladesh Bank (BB) has introduced a major facilitation measure allowing the release of foreign currency for visa bonds and refundable security deposits required by embassies and foreign authorities, aiming to simplify overseas visa processing for Bangladeshi applicants.

The Foreign Exchange Policy Department-1 of the central bank today issued the directive through circular, expanding earlier regulations that primarily focused on remittance of visa fees, state media BSS reports. 

The new measure enables Authorized Dealers (ADs) to process payments for refundable security deposits that are often mandatory for visa issuance in several countries.

Under the new provisions, banks will now be allowed to remit funds directly to embassies, high commissions and other competent foreign authorities on behalf of applicants. 

ADs may also issue international or virtual cards in the applicant’s name loaded with the required amount for the visa bond or security deposit. 

In addition, existing international cards issued under travel entitlement facilities may be reloaded with the necessary amount strictly for visa-related purposes.

According to the circular, these facilities will be available through eligible foreign currency accounts subject to compliance with existing regulations. 

The approved sources include Export Retention Quota (ERQ) accounts, Resident Foreign Currency Deposit (RFCD) accounts and international cards backed by balances maintained in such accounts.

To maintain regulatory oversight, banks have been instructed to conduct detailed verification before processing any transaction. 

Applicants will be required to submit a valid passport, official demand letter or invoice from the embassy or competent authority specifying the amount, currency and refund conditions, along with visa application references and any other documents required by the Authorized Dealer.

The circular places strong emphasis on the refundable nature of these deposits and mandates that all released funds must be repatriated to Bangladesh immediately after refund by the foreign transaction.

The applicant and the facilitating bank will share responsibility for ensuring timely repatriation of the funds.

Banks have also been directed to maintain separate registers for these transactions and closely monitor the release and return of deposits.

All transactions will remain subject to regular reporting to Bangladesh Bank and must comply with Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), tax regulations and all prevailing foreign exchange rules.