Prior approval a must to run any forex business, Bangladesh Bank tells banks

Bangladesh Bank has asked banks not to operate any foreign exchange related businesses by setting up central trade processing centre (CTPC) without prior approval from the banking regulator.

The central bank issued a notice today following allegations of operating foreign exchange related businesses by some banks without permission.

Bangladesh Bank recently found allegations that some banks, which have managed licence from the central bank to run foreign trades including exports and imports, have set up CTPC, a BB official said.

"Some departments of the banks' head office are now operating the CTPC to run the business. But, lenders have to take prior permission to do so," he added.

CTPC is an operation centre of banks for trade services where various processes, including verification and scrutiny of documents and making an entry in the system, are undertaken.