Money exchange business or currency exchange business is a profitable field nowadays. Many people in Bangladesh trade different currencies every day. Sometimes they exchange foreign currencies to collect Bangladeshi money and sometimes they exchange Bangladeshi money for other countries’ currencies.

For this kind of work, we have to go to a money exchange-related business institution. If you have a good amount of capital, that is, money, then you can also start a money exchange in Bangladesh. Before that, read the entire article and know all the details about it.

What is a money exchange business?

We know that every country has its currency. Currency transactions are required to complete transactions with any country. Suppose you want to buy a product from America. Now since the currency of America is dollars, you have to pay in dollars. As a result, you have to collect dollars first in exchange for the money you have in your hand.

Banking or financial institutions also provide such money exchange facilities. For example, we can buy dollars from our account from the bank. Then we can use them to make purchases in foreign countries, etc.

Even for international trade, traveling to different countries, traveling abroad for higher education, traveling for medical treatment, etc., you may need money exchange. I hope you have some idea about currency exchange.

In short, when one currency is traded or bought for another currency, we call it money exchange.

Currently, there are about 235 approved money exchange institutions in Bangladesh. Many also do this type of business without approval, that is, unofficially.

What are the rules for doing money exchange business?

Before starting any type of business, you first need a valid license. You can get a money exchange business license from Bangladesh Bank. Along with this, you have to follow specific rules and policies given by the government.

Below is a discussion of how you can start a money exchange business.

1. First of all, get a license

I have already mentioned once that you can collect this license from the central bank. Doing such businesses without a license is a legal offense. To start this type of business activity, you must meet some conditions and qualifications. They are mentioned below:

• The person applying for the license must be a citizen of Bangladesh and the organization must also be under Bangladesh.

• To start such a business organization, you must first have a capital of at least 50 lakh taka.

• The company name must include the words Exchange, Remittance, Money Transfer, etc.

In addition, other documents will be required as per the instructions of the authorities.

Amount of initial business capital:

To start this type of business, you need to invest at least 50 lakh taka initially.

Opening a bank account:

You need to open a bank account to conduct all the transaction activities of your organization. For this, you can use it yourself by opening an account in any bank. Since this is done to conduct business demonstrations, you can open an account in government banks.

Collecting a copy of the board resolution at the beginning of the business:

After completing all the documents, you have to get permission from the central bank again to start. If the bank does not permit you, you will not be able to start your activities in any way. So collect your resolution copy from the Central Bank Board.

Other rules for doing money exchange business

• After getting a valid business license, set up your office in a specific place. Along with this, it is mandatory to keep all the documents regularly as per the government’s instructions. The Central Bank can verify such documents at any time.

• Each license has a specific period. After the expiry of the period, it has to be renewed again. Many people delay in this regard. But this new work should be completed as soon as possible. A specific fee must be paid to renew.

• KY is important to ensure the identity of all the customers you will have. This means verifying the address and identity of the customer.

• Regularly following anti-money laundering is very important in any type of business related to money transactions. In this case, if you can identify any suspicious transaction, you must report it to the authorities.

• Preparing regular reports

One of the most important things for any type of organization is to monitor the pace of business by preparing annual and monthly reports. Reports are prepared on what type of transaction is being made, how many transactions are being made, customer information, etc.

• Currency exchange rates are very important in the money exchange business. You must know that the value of dollars and other currencies changes with the rupee at different times. This happens regularly. So, you have to be aware of this and exchange the specified rate according to the instructions of the bank.

What is required to do money exchange business

• Business license

• Business registration certificate

• Copy of applicant’s passport and visa

• Business trade license and tax certificate

• Bank statement

• Police clearance certificate.

Thanks All.