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The Foreign Exchange Regulation Act, 1947

( ACT NO. VII OF 1947 )

Restrictions on payment
5. (1) Save as may be provided in and in accordance with any general or special exemption from the provisions of this sub-section which may be granted conditionally or unconditionally by the Bangladesh Bank, no person in, or resident in, Bangladesh shall-
 
 
 
 
(a) make any payment to or for the credit of any person resident outside Bangladesh;
 
 
 
 
(b) draw, issue or negotiate any bill of exchange or promissory note or acknowledge any debt, so that a right (whether actual or contingent) to receive a payment is created or transferred in favour of any person resident outside Bangladesh;
 
 
 
 
(c) make any payment to or for the credit of any person by order or on behalf of any person resident outside Bangladesh;
 
 
 
 
(d) place any sum to the credit of any person resident outside Bangladesh;
 
 
 
 
(e) make any payment to or for the credit of any person as consideration for or in association with-
 
 
 
 
(i) the receipt by any person of a payment or the acquisition by any person of property outside Bangladesh;
 
 
 
 
(ii) the creation or transfer in favour of any person of a right whether actual or contingent to receive a payment or acquire property outside Bangladesh;
 
 
 
 
(f) draw, issue or negotiate any bill of exchange or promissory note, transfer any security or acknowledge any debt, so that a right (whether actual or contingent) to receive a payment is created or transferred in favour of any person as consideration for or in association with any matter referred to in clause (e).
 
 
 
 
(2) Nothing in sub-section (1) shall render unlawful-
 
 
 
 
(a) the making of any payment already authorised, either with foreign exchange obtained from an authorised dealer under section 4 or with foreign exchange retained by a person in pursuance of an authorisation granted by the Bangladesh Bank;
 
 
 
 
(b) the making of any payment with foreign exchange received by way of salary or payment for services not arising from business in, or anything done while in Bangladesh.
 
 
 
 
(3) Nothing in this section shall restrict the doing by any person of anything within the scope of any authorisation or exemption granted under this Act.
 
 
 
 
(4) For the purposes of this section, “security” also includes coupons or warrants representing dividends or interest and life or endowment insurance policies.

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Ministry of Law, Justice and Parliamentary Affairs