The central bank yesterday tightened rules for exchange houses abroad having ‘drawing arrangements’ with local banks to ensure the safety of remittances sent by non-resident Bangladeshis and avert any future remittance scam like the one committed by the UK-based Fast Solution Company.

“This is to stop the repeat of scam over remittance as the one committed by Fast Solution,” Bangladesh Bank (BB) Governor Dr Salehuddin Ahmed told reporters.

The company was charged with a remittance fraudulence of equivalent Tk 161 crore that the non-resident Bangladeshis (NRBs) in the UK sent through it.

Some 38 local banks have 723 drawing arrangements with 258 money exchange houses abroad as of June 30 this year.

The central bank sent new guidelines to the commercial banks yesterday, saying that the new rules are to ensure close and effective monitoring of the drawing arrangements.

According to the guidelines, the local banks will have to ensure that the foreign exchange houses with which they want to make drawing arrangements must obtain approvals or licences from the central banks or the authorities concerned of those countries to operate money transfer business.

The exchange houses will also have to get go-ahead from the appropriate authorities such as commerce ministry, justice ministry, chamber of commerce and industry, registrar of companies and municipality.

The money transferring companies will have to have a name that would identify the nature of their business. For instance, the names will go along with such words as Money Transfer, Exchange and Remittance. They would not be able to use the names or part of the names of local banks like Sonali, Janata, Agrani and Rupali.

Directors of the exchange houses should be the permanent residents of the countries concerned, according to the guidelines.

While considering drawing arrangements, the commercial banks will have to give priority to the exchange houses having three years of experience in money transfer business and sound financial condition.

The commercial banks will also apprise the central bank of any suspicious transactions with the remittance houses like excessive remittance sending against single name, remittance after corporate name, irregularities in quoting exchange rate and sending irregular cover funds.

The new guidelines also gave some instructions to the commercial banks as a means of avoiding risks associated with the remittance transactions.