Central Bank Mandates Valid Work Permits for Expatriate Bank Accounts

Foreign nationals working in Bangladesh will now be required to present valid, up-to-date work permits to open and operate local bank accounts, following new regulatory directives issued by Bangladesh Bank. The central bank emphasised that financial institutions across the nation must stringently enforce existing Know Your Customer (KYC) verification procedures for individuals holding ‘A3’ and other employment-based visa categories before granting access to banking facilities.

The circular was formally released on Tuesday, 18 August, by the Banking Regulation and Policy Department-1 of Bangladesh Bank. Signed by Director Gazi Md. Mahfuzul Islam, the official instruction was issued under powers conferred by Section 45 of the Bank Company Act, 1991, in the explicit interest of safeguarding public financial oversight and regulatory compliance.

Central bank executives instructed managing directors and chief executive officers of all scheduled commercial banks to enforce the directive across their branch networks with immediate effect. Under the newly reiterated framework, financial institutions must thoroughly verify that foreign professionals possess active, legal work permits prior to initiating any account opening procedures. Once the authenticity and validity of the permit are established, banks may proceed with standard KYC protocols.

This policy directive serves as a direct follow-up to a Ministry of Home Affairs circular issued on 29 April 2026, which clarified administrative rules regarding salary disbursements for overseas personnel under the ‘A3’ visa category. Foreign workers entering under this classification are legally required to obtain work permits from the Bangladesh Investment Development Authority (BIDA) and ensure their prompt renewal upon expiration. These permits frequently stipulate that all salaries, allowances, and financial benefits must be processed exclusively through formal banking channels.

The regulatory mandate extends beyond ‘A3’ visa holders to cover all international workers operating under various employment visa schemes who receive local remuneration. Bangladesh Bank noted that allowing foreign nationals to operate accounts without validated work documentation creates significant loopholes in cross-border financial surveillance and tax monitoring.

Tying local bank account access directly to verified work permits issued by BIDA and affiliated regulatory bodies aligns with broader state efforts to track foreign exchange movements, combat income tax evasion, and ensure that foreign workers operate strictly within legal boundaries. Over recent years, expanding infrastructure projects and international trade partnerships have led to a marked influx of expatriate professionals in Bangladesh, rendering systematic banking oversight vital for national economic governance. Scheduled banks have been ordered to ensure immediate compliance across all operations to avoid strict regulatory sanctions.