BB lifts restrictions on credit card use

Bangladesh Bank on Sunday withdrew its restriction on buying products online from international market place using credit cards, reports UNB.

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 authorised 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 crypto currencies/lottery ticket, etc.

Earlier, in a circular on 14 November 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 financing of terrorism), follow usual reporting routine to Bangladesh Bank, and ensure compliance of regulations concerning duties/taxes applicable against the transactions.