Regulatory Alerts2021-04-11
Added
FEPD Circular Letter No. 07: Payment of royalty, fees for technical knowledge or technical assistance and franchise fees to foreign persons or institutes
Authorized Dealers in Bangladesh must observe the guidelines issued by the Bangladesh Investment Development Authority for outward remittances of royalty, technical knowledge, technical assistance, and franchise fees. Paragraph 25 of the Guidelines for Foreign Exchange Transactions-2018 is modified to align with these guidelines, while paragraph 26 remains applicable for remittances requiring specific BIDA approval. Industrial enterprises registered with BIDA may remit permissible amounts specified in Schedule 1 without prior BIDA approval for post-service cases, provided the contract is pre-endorsed by BIDA and source taxes are deducted. Authorized Dealers must ensure compliance with these instructions, verify that transactions adhere to the endorsed contract, and maintain due diligence regarding KYC and AML/CFT standards.