Foreign firms must get BIDA approval for fund transfer

Staff Correspondent | Published: 00:05, Dec 01,2017 | Updated: 23:58, Nov 30,2017

 
 

Bangladesh Bank on Thursday made it mandatory for foreign enterprises to get approval from Bangladesh Investment Development Authority for transferring funds from the country.
To this end, the central bank on the day issued a circular aligning the guidelines on Foreign Exchange Transactions-2009 with the Bangladesh Investment Development Authority (BIDA) Act, 2016.
Under the existing provision of Foreign Exchange Transections-2009, there was no requirement to get approval from the Bangladesh Bank or the now abolished Board of Investment by the foreign companies for remittance of royalty, technical knowhow or technical assistance and operational service fees.
The BB circular issued on Thursday, however, repealed the paragraph 25 and 26 of the chapter 10, Volume-1.
Taking approval from the BIDA was made mandatory for the enterprises for payment of royalty, fees for technical knowledge or technical assistance and franchise fees to foreign persons or institutions in accordance.
After receiving applications for remittance of funds from the country along with BIDA’s approval, authorised dealers were asked to ensure whether they were authoriesed to execute the remittance or not, the BB circular said.
ADs were also asked to ensure whether the applicable taxes payable on remittable amount were duly paid, it said.
The authoriesed dealers were also asked to contact with BIDA in case of any doubt regarding the genuineness of the relevant documents, he said.
The BB circular also asked the ADs to preserve customer-wise documents for eventual examination by Bangladesh Bank inspection team and report transactions to the central bank. 

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