Regulatory Alerts2025-06-18
Added
FE Circular No. 22: Outward remittances on account of project related expenses
Designated Authorized Dealers are granted general authorization to effect outward remittances for consultancy fees, management fees, and other current service fees related to Government projects. This authorization requires that projects be approved by competent authorities, include agreements with foreign beneficiaries, and be supported by invoices and service receipt certificates. Remittances must be executed by branches designated by project authorities, who must intimate Bangladesh Bank prior to execution, while ensuring compliance with tax regulations and KYC/AML standards.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No.22 Date: June 18, 2025 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Outward remittances on account of project related expenses In terms of paragraph 1, chapter 5 of Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1, Bangladesh Bank accommodates bonafide requests, beyond the indicative authorization, for payment transfer under current international transactions. Accordingly, applications from Authorized Dealers (ADs) on account of current transfers relating to Government projects are considered by Bangladesh Bank on case to case basis in exercise of powers vested under Section 5(1)(a) of the FER Act, 1947 (amended up to 2015). 02. To facilitate transactions for implementation of the Government projects, general authorization is hereby accorded to designated ADs for effecting remittances on account of consultancy fees, management fees and other relevant current service fees; subject to observance of the following instructions: (a) The concerned projects shall have duly been approved by the competent authorities of the Government, including financial authorization; (b) There shall have agreements with the beneficiaries abroad; (c) Every request for remittance shall be supported by invoices from the beneficiaries abroad and certificate from the project authorities regarding receipt of concerned services; (d) Taxes regulations regarding payment of tax at source, value added taxes and other levies applicable on bill value need to be complied with. 03. Outward remittances in accordance with the above authorizations shall be effected by AD branches designated by the project authorities/project implementing entities. AD branches shall, being designated, intimate it to Bangladesh Bank before execution of remittances. 04. Remittances on account of royalty, fees for technical knowledge or technical assistance and franchise fees to foreign persons or institutes are subject to compliance with the Guidelines (cf. FE Circular Letter No. 07 dated April 11, 2021) issued by Bangladesh Investment Development Authority. 05. As usual, ADs shall comply with Section 3(4) of FER Act, 1947, including observance of due diligence of KYC, AML/CFT standards, reporting routine to Bangladesh Bank and so on. Please bring the contents of this circular, effective immediately, to the notice of your concerned clientele. Yours faithfully,
(Md. Harun-Ar-Rashid) Director (FEPD) Phone: 9530123