Sending Money to Bangladesh Legally: Remittance Rules, Incentives and Tax for NRBs

• Banks and exchange houses: direct account credit or cash pickup.
• Mobile financial services: bKash, Nagad and others through authorised international partners.
• Digital remittance apps: regulated services that deliver to bank or mobile accounts.
• Bank drafts and cheques: for large amounts, deposited into your account.

This article is general legal information, not legal advice. Fees, forms and procedures change; confirm current requirements with the relevant office or a qualified advocate before acting.

Hundi (hawala) payments avoid the banking system and are illegal. Consequences include seizure of money, criminal charges, the receiver's account being frozen and no legal protection if the agent disappears. Using hundi also means you lose the remittance incentive and may have problems proving the source of funds for investment later.

The government has offered an incentive on legal inward remittances, which has been a few percent of the amount sent, paid through the receiving bank. The rate, the cap and the eligible channels change from time to time. Check the latest circular from Bangladesh Bank or ask your bank.

Remittance sent by a Bangladeshi worker or resident abroad through legal channels is generally not taxed as income in Bangladesh, and the authorities usually do not ask for the source. However, tax and reporting rules change, and if you hold assets in Bangladesh you may have to report them in a return. Keep payslips, tax returns and bank statements from abroad. See a tax lawyer if your situation is complex.

• Property: buy through bank transfer to the seller, and keep the remittance record as proof of source (see land buying checklist).
• Wage earner bonds and NRB accounts: available through banks; check interest and eligibility.
• Business: bring in capital by inward remittance to qualify for registration and later repatriation of profit.
• Shares: NRBs can invest through a dedicated account with a broker, subject to rules.

1. Always send to the account of the intended person, in their own name.
2. Keep the remittance slip or transaction ID.
3. Avoid structured small transfers just to hide amounts.
4. Use the same remitter name for consistent record.
5. For very large transfers, inform the bank in advance and keep documentation.

This article is general legal information, not legal advice. Fees, forms and procedures change; confirm current requirements with the relevant office or a qualified advocate before acting.

Yes. It is prohibited under the Foreign Exchange Regulation Act 1947 and linked laws and can lead to criminal action.

Generally remittance through legal channels is not taxed as income, but check current rules and reporting duties.

A government cash incentive on remittance sent through legal channels; the rate changes so check the current circular.

Yes. Pay through bank channels and keep the remittance proof as the source of funds.

It is restricted and needs bank approval and documentation. Plan before you invest.