Foreign affiliated entities allowed to remit profits without prior nod from BB

Staff Correspondent | Published: 00:00, Sep 21,2019


All the entities affiliated with foreign companies and firms would be allowed to remit profits abroad without taking any prior approval from Bangladesh Bank.

The BB issued a circular in this regard on Thursday in line with the paragraph 28, chapter 10 of the Guidelines for Foreign Exchange Transactions-2018.

The circular was a clarification as the guidelines did not mention anything about the liaison office, reprehensive office and project office or presence of foreign entities in any other form except branch of foreign firms and companies in Bangladesh.

Although there would be no requirement of taking BB’s prior approval in remitting profits from Bangladesh to their head offices, the authorised dealers of the banks will have to file documents with the BB within 30 days of profit remittance for post-facto checking.

However, the issue of remitting fund by the subsidiaries of any multinational or foreign company would be treated based on the respective guidelines, a BB senior official said.

Besides, the BB also clarified that it would consider applications submitted by authorised dealers for outward remittances of residual balances after closing branch office, liaison office or representative office or any other places of business operating in Bangladesh and for refund of borrowing availed from their head offices.

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