• Sunday, Dec 15, 2019
  • Last Update : 06:42 pm

BB simplifies profit repatriation process for foreign firms

  • Published at 10:40 pm September 19th, 2019
web-Bangladesh bank-bb
The Bangladesh Bank building at Motijheel Mehedi Hasan/ Dhaka Tribune

Under the latest regulations, the foreign companies would no longer require prior approval from Bangladesh Bank for remitting fund to their parent offices outside Bangladesh

Bangladesh Bank (BB) on Thursday simplified the procedures of repatriating incomes and profits of foreign firms operating in the country.

Under the latest regulations, the foreign companies would no longer require prior approval from Bangladesh Bank for remitting fund to their parent offices outside Bangladesh.

In a circular issued by the Foreign Exchange Investment Department (FEID) of the central bank says that authorized dealers (ADs) are now allowed to remit profits of branches, liaison or representative office of foreign firms and companies to their respective head offices without prior approval of Bangladesh Bank.

However, the companies concerned are required to submit post-remit reports to BB in next 30 days, the circular adds.

In such case, branches, liaison or representative office of foreign firms and companies operating in Bangladesh will need to obtain permission from competent authorities they are engaged with, the circular says.  

Take for an example, a foreign firm has opened a branch, liaison or reprehensive office here for implementing a project of Power Development Board's (PDB) from which it makes profit. The foreign firm concerned has to obtain PDB's approval for remitting the fund through AD. 

The AD will report it along with relevant documents to the central bank's FEID for post-facto checking within 30 days of remitting profits,  Abu Saleh Mohammed Shahab Uddin, Deputy General Manager of the FEID has told Dhaka Tribune.