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The Foreign Exchange Regulation Act, 1947

( ACT NO. VII OF 1947 )

Special accounts
7. (1) Where in the opinion of the Government it is necessary or expedient to regulate payments due to persons resident in any territory, the Government may, by notification in the official Gazette, direct that such payments or any class of such payments shall be made only into an account (hereinafter referred to as a special account) to be maintained for the purpose by the Bangladesh Bank or an authorised dealer specially authorised by the Bangladesh Bank in this behalf.
(2) The credit of a sum to a special account shall, to the extent of the sum credited, be a good discharge to the person making the payment:
Provided that where the liability of the person making the payment is to make the payment in foreign currency, the extent of the discharge shall be ascertained by converting the amount paid into that currency at such rate of exchange as is for the time being fixed or authorised by the Bangladesh Bank.
(3) The sum standing to the credit of any special account shall from time to time be applied-
(a) where any agreement is entered into between the Government and the Government of the territory to which the aforesaid notification relates for the regulation of payments between persons resident in Bangladesh and in that territory, in such manner as the Bangladesh Bank, having regard to the provisions of such agreement, may direct, or
(b) where no such agreement is entered into, for the purpose of paying wholly or partly, and in such order of preference and at such times as the Government may direct, debts due from the persons resident in the said territory to persons resident in Bangladesh or in such other territories as the Government may by order specify in this behalf.

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Ministry of Law, Justice and Parliamentary Affairs