Foreign nationals working in Bangladesh will now be required to present a valid and up-to-date work permit to open and operate local bank accounts, according to new directives issued by Bangladesh Bank. The central bank highlighted that financial institutions must stringently enforce existing Know Your Customer (KYC) verification procedures for individuals holding ‘A3’ and other employment-based visa categories before providing access to banking services.
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 instruction was issued under powers conferred by Section 45 of the Bank Company Act, 1991, in the interest of maintaining public financial oversight.
Central bank authorities instructed managing directors and chief executive officers of all scheduled banks operating across the nation to implement the directive immediately. Financial institutions must thoroughly verify that foreign employees possess active work permits prior to processing account applications. Once validity is verified, banks may proceed with standard KYC compliance checks.
The policy directive comes as a follow-up to a Ministry of Home Affairs circular issued on 29 April 2026, which clarified rules regarding salary dispatches for expatriates under the ‘A3’ visa category. Foreign workers entering under this category must secure work permits from the Bangladesh Investment Development Authority (BIDA) and regularly renew them upon expiration. Work permits frequently carry explicit conditions mandating that salaries and allowances be routed through official banking channels.
The regulatory framework applies beyond ‘A3’ visa holders to encompass all foreign personnel working under various employment visa schemes who receive remuneration through local banks. Bangladesh Bank emphasised that permitting foreign staff to open accounts without up-to-date work permits creates regulatory loopholes in cross-border financial oversight.
Requiring strict adherence to work permit validity aligns with broader national efforts to monitor foreign exchange movements, curb tax evasion, and ensure that foreign nationals operate within legal frameworks. In recent years, expanding foreign investment and infrastructure partnerships have brought a noticeable influx of international professionals to Bangladesh, making standardized banking oversight increasingly critical.
By tying bank account access directly to verified work permits issued by BIDA and relevant authorities, Bangladesh Bank aims to streamline formal remittance channels while deterring unauthorized employment and unregistered financial transactions. Scheduled banks must ensure immediate institutional compliance across all branches nationwide.