Strict verification of product price before opening LC
Dhaka, Sept 19: Money laundering has increased in foreign countries through imports. The government is losing revenue. The central bank is concerned about the matter. In such a situation, Bangladesh Bank has become active in checking the price of imported goods to control money laundering. Henceforth the importer or his domestic agent has been asked to provide several details including full details of the product, value, brand, date of manufacture, packaging information and grade.
In a circular to the commercial banks on Monday, September 18, Bangladesh Bank has informed that information about imported goods should be given in such a way that the quality of the goods can be distinguished and the price and quantity per unit can be verified. Earlier, Bangladesh Bank had announced in a circular in October that commercial banks will be responsible for verifying the price of imported goods. Before opening LC (Letter of Credit) on imports, Bangladesh Bank has directed the banks to verify the price of the product as well as see the supplier's credit report.
Apart from this, the banks have also been asked to ensure that the price is paid in accordance with the import policy. The allegation of money laundering through over-invoicing of imports and under-invoicing of exports is a very old one. The central bank has directed to provide more detailed information on imported products to take a stronger stand against money laundering.
According to the circular, in order to facilitate verification of the price of the imported goods correctly in accordance with the international market rates, the information regarding the imported goods should be given to the bank in the PI (Proforma Invoice) sent by the exporter or in the indent provided by their local agent.
In case of import of multiple products through one PI, the description of each product, value, brand, date of manufacture, packaging information and grade (if any) by which the quality of the product can be distinguished and price and quantity per unit should be mentioned.