Foreign Exchange Regulation (FERA) Act, 1947
Section – 1 : Short title, extent :
Act is called as the Foreign Exchange Regulation Act, 1947.
Section – 2 : Some interpretations:
AD- person authorised to deal in foreign exchange.
Currency – coins, notes, bank notes, money order, cheques, TC, LC, Bill of exchange, promissory notes.
FC – other than BD Taka.
Section – 3 : Authorised Dealers:
Bangladesh Bank has authority to authorise any person to deal in Foreign Currency. An authorised dealer shall in all his dealings, in foreign exchange comply with such general or special directions or instructions of Bangladesh Bank.
Section – 4 : Restriction on dealing in FC:
No person, other than an AD, is allowed to deal in FC except B Bank’s special or general permission.
Section – 5 : Restriction on payments:
Without B Bank’s special or general permission no person in or resident in Bangladesh shall
(a) make any payment to or for the credit of any person resident outside Bangladesh;
(b) make any payment to or for the credit of any person as consideration for or in association with¬ (i) the receipt by any person of a payment or the acquisition by any person of property outside Bangladesh; But payment would be where exemption is granted by Bangladesh Bank.
Section – 6 : Blocked Account:
Payment may be made to a ‘Blocked Account’ subject to exemption from provision of Section 5 granted by Bangladesh Bank.
In this section “blocked account” means an account opened as a blocked account at any office or branch in Bangladesh of a bank authorised in this behalf by the Bangladesh Bank.
Section – 7 : Special account:
Payment may be made to “special account” as per direction of B Bank.
Section – 8 : Import & Export of currency:
No person shall, except with the general or special permission of the Bangladesh Bank, bring or send into Bangladesh any gold or silver or any currency notes or bank notes or coins.
Section – 9 : Acquisition by Government of Foreign Currency:
Govt has right to do acquisition of FC from persons in or resident in Bangladesh against price fixed by the Govt.
Section – 10 : Duty of persons entitled to receive foreign exchange etc.
Section – 11 : Govt has power to regulate uses of imported gold/silver.
Section – 12 : Payment for exported goods:
The Government has right to prohibit the export of any goods unless a declaration of exporter in a prescribed manner that full export value will be received.
Section – 13 : Restriction on transferring any security to any place outside Bangladesh.
Section – 14 : Custody of security:
Custody of any security or title to security will be as per Government’s notification
Section – 15 : Restriction on issue of bearer security.
No person without B Bank’s permission can issue bearer security.
Section – 16 : Govt may do acquisition of Foreign Securities:
Section – 17 : Restriction on settlement of property to any person abroad.
Section – 18 : Certain Provisions as to Companies:
No person resident in Bangladesh shall do any act whereby a company, which is controlled by person resident in Bangladesh, ceases to be so controlled.
Section – 18A Restriction on Foreign Agents:
No person shall act as an agent without special or general permission of B Bank.
Section – 18B : Restriction on Foreign Companies:
No foreign company will be established in Bangladesh without special or general permission of B Bank.
Section – 19 : Power to call for information:
The Govt or B Bank has power to authorise anybody to call for information/books/documents from any person.
Section – 19A : Power of inspection:
Government or Bangladesh bank has power to inspect.
Section – 20 : Some supplementary provisions
Section – 21 : Contracts in evasion of this Act:
No person shall enter into any contract or agreement which would directly or indirectly evade the operation of any provision of this Act
Section – 22 : False Statement:
No person shall, when complying with any order or direction, under section 19 or any purpose under this Act, make false information/statement.
Section – 22A : Grant of Immunity in certain cases:
The Govt may grant persons immunity from prosecution under this Act.
Section – 23 : Penalty and procedures:
Whoever Contravenes, attempts to contravene, shall be tried by a Tribunal costituted by Section 23A and shall be punishable with imprisonment for a term which may extend to two years or with fine or with both.
Section – 23A : Tribunal, its powers:
(1) Every Sessions Judge shall, for the areas within the territorial limits of his jurisdiction be a Tribunal for trial of an offence punishable under section 23.
(2) A Tribunal may transfer any case for trial to an Additional Sessions Judge
(3) A Tribunal shall have all the powers of a Magistrate of the First Class in relation to criminal trials.
Section – 24 : Burden of proof in certain cases:
Where any person is tried for contravening any provision of this Act, the burden of proving that he had the requisite permission shall be on him.
Section – 25 : Power of Govt to give general or special directions to B Bank.
Section – 26 : Bar of legal proceedings:
No suit, prosecution shall lie against any person for anything in good faith done or intended to be done under this Act or any rule thereunder
Section – 27 : Powers to make rules:
The Government may, by notification in the official Gazette, make rules for carrying into effect the provisions of this Act.
Foreign Exchange Regulation (FERA) Act, 1947