Send Money To Bangladesh

Ways to Send Money to Bangladesh

The Bangladeshi diaspora has been using both formal and informal methods to send money home. Banks are the dominant players with a 2010 International Organization for Migration (IOM) report showing that 74 per cent of recorded remittances came through the banking system.

Money transfer service providers have also been gaining ground in the different remittance corridors to Bangladesh. In September 2011, the central bank of Bangladesh (Bangladesh Bank) issued guidelines on Mobile Financial Services for Banks. This move added another legal layer to the existing Money Laundering Prevention Act 2002 and the Foreign Exchange Regulation Act of 1947.

As it stands today, the following are the formal ways of sending money to Bangladesh as authorised by the Bangladesh Bank.

Bank Wire Transfers

The banking industry in Bangladesh comprises state-owned banks, private commercial banks and foreign-controlled banks giving a total of 59 scheduled banking institutions. According to the 2017 Global Findex report, 65 per cent of adult males and 35 per cent of adult females have bank accounts. This improvement means that many of them can receive bank transfers directly to their accounts.

Starting in June 2018, banks in Bangladesh were able to transact faster on the internet through online banking.  However, to go down this route, banks have to register on the National Payment Switch Bangladesh (NPSB) managed by the Bangladesh Bank.

The time it takes to send through wire transfers depends on the source country. It can take anywhere between 2 to 7 business days. The cost of sending money through bank-to-bank wire transfers can also be prohibitive because of intermediary banks.

Money Transfer Services

Money transfers from the Gulf Cooperation Council (GCC) countries to Bangladesh have traditionally been through banks. However, money transfer service providers such as MoneyGram, Western Union, Xpress Money, TeeMoney, Xoom, WorldRemit, TransferWise and others, are now becoming dominant.

These providers guarantee fast, cost-effective, and secure transfers to Bangladesh. Signing up for transfer accounts is very simple and fast. You’ll need your name, email address and phone number to register an account. Once set up, you can pay for your transfer using a debit, credit card, bank transfer or bank debit.

Most of the providers allow you to send money through their websites and downloadable mobile apps. You can also deposit money from a store and send your loved ones. Western Union allows you to start the process online and complete it from a store.

The following are the options you have for sending money through money transfer operators (MTOs).

Bank Transfer – You can send money through the MTO-to-bank platform.  This method is the perfect alternative to bank-to-bank transfers. It is faster, more secure and less costly. TransferWise officially launched transfers to Bangladesh Taka (BDT) on May 2016. It takes anywhere from 2 to 3 days for most transfers from providers such as WorldRemit, Xpress Money, Xoom, Western Union and MoneyGram to reach Bangladesh.

Cash Pickup – This is one of the most preferred ways of sending money to Bangladesh. Every provider has a payout-network that brings together agents you can send money for collection. For instance, Worldremit works with Bangladesh banks such as Dutch Bangla Bank, Brac Bank, Social Islami Bank, Agrani Bank, Bank Asia and many others. Xoom has 6,100 locations all over the country you can send your loved ones money for pick up. The money gets delivered in minutes or under an hour.

Mobile Money – The convenience that comes with transfers directly to mobile phones is unbeatable. Even people in rural Bangladesh with no access to formal banking services can receive money on their mobiles. WorldRemit is connected with mobile financial services such as bKash and Rocket to help you send money swiftly to your family back at home.

In July 2019, Padma Bank signed an agreement with Transfast to allow Bangladeshis abroad to send money home through the bank’s 57  branches. If you are a first-timer, some providers may give you discounts or cost-free sending offers.

What’s Needed to Send Money to Bangladesh

With the various ways of sending money as seen above, each provider has its requirements. There is some information you will be requested to provide to ensure a smooth transfer to your loved ones.

• Your government-issued I.D. If you are sending from the United States, a social security card or passport can suffice
• The amount you want to send
• The name of the recipient as it appears on their official documents
• The phone number of the recipient and their address
• If you are transferring money directly to the recipient’s account, you’ll have to provide the banking details: bank name, branch name, account number, and SWIFT or BIC code.

You may be asked to provide more information if the amount you are sending or the frequency proves suspicious to the authorities. However, this is very rare.