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Bangladesh Bank eases credit card online use restrictions
Credit card. Photo courtesy

Bangladesh Bank eases credit card online use restrictions

Dhaka, Nov 24 – Bangladesh Bank on Sunday withdrew its restriction on buying products online from the international market place using credit cards. A circular issued by the central bank’s Foreign Exchange Policy Department (FEPD), said that to bring further simplification in online transactions, it has been decided to waive Online Transaction Authorization Form (OTAF) formalities for online payments abroad through international cards (ICs).
However, the circular advised authorized dealers, in this case usually banks, to guard against illegitimate online payments abroad through ICs from Bangladesh like payments for participating in online casino/gambling, trading in forex/stock exchanges, purchase of cryptocurrencies/lottery ticket, etc.
Earlier, in a circular on November 14, the central bank advised the ADs to observe extensive due diligence including OTAF formalities before allowing ICs for online payments abroad through internet from Bangladesh.
The Bangladesh Bank, however, asked ADs to strictly observe KYC (know your clients) and AML/CFT standards (anti-money laundering and combating the financing of terrorism), follow usual reporting routinely to Bangladesh Bank and ensure compliance of regulations concerning duties/taxes applicable against the transactions. – UNB

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