FEPD Circular Letter No. 19: Receipt of Funds by NGOs from Abroad

Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh

Foreign Exchange Policy Department

Ref: Circular Letter No. - FEPD(Import Monitoring)-19/2010-172 Date: 20 Kartik 1417 08 November 2010

To All Approved Dealer Banks Head Office / Principal Office.

Regarding receipt and withdrawal of funds by NGOs in foreign aid projects without the permission of the NGO Affairs Bureau.

Dear Sir,

Reference is invited to Circular Letter No. FEPD(BISE)-19/2004-366 dated 28/06/2004 of this department on the subject cited above.

In this regard, the letter No. NGOAB/SP-2/Profk:(Misc)/25/2010-135 dated 29/09/2010 of the NGO Affairs Bureau is reproduced below in full on the next page. In light of the instructions in the said letter, instructions are given not to make any payment of foreign aid from any Mother Account of an NGO without the permission of the NGO Affairs Bureau.

Yours faithfully,

(Signed) (Md. Humayun Kabir) Deputy General Manager Phone-9512807

PABX No: 880-2-7126101-20, Fax: 880-2-7120660, www.bangladeshbank.org.bd

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(Reprint) Government of the People's Republic of Bangladesh NGO Affairs Bureau Office of the Prime Minister 13 Shahid Captain Mansur Ali Sarani Matsya Bhaban (10th Floor), Ramna, Dhaka.

No.-NGOAB/SP-2/Profk:(Misc)/25/2010-135 Date: 29 September, 2010 AD

Subject: Regarding receipt and withdrawal of funds by NGOs in foreign aid projects without the permission of the NGO Affairs Bureau.

It has recently been observed that several banks are releasing funds for NGO projects without the permission of the NGO Affairs Bureau. According to Section 3(1) of the Foreign Donations Regulations (Voluntary Activities) Ordinance, 1978 and Section 4(1) of the Foreign Contributions (Regulation) Ordinance, 1982, no person or organization can receive or expend any foreign donation or one-time grant for carrying out voluntary activities without prior permission of the Government. Under Sections 6(2) and 5(1) of the aforementioned two Acts respectively, withdrawal/receipt and expenditure of funds without prior permission of the Government is a punishable offense. It has recently come to notice that some NGOs are receiving and expending foreign donations without prior permission of the NGO Affairs Bureau. NGOs cannot receive funds in any way without the cooperation of the concerned banks. It is desirable that the concerned banks release funds after ensuring approval from the NGO Affairs Bureau. The concerned NGOs and banks are equally liable for providing and receiving funds without the approval of the NGO Affairs Bureau. It is noteworthy that the Head Offices of the concerned banks have already been informed about this rule.

In this context, you are requested to issue necessary instructions to the banks under your control not to make any payment of foreign aid from any Mother Account of an NGO without the permission of the NGO Affairs Bureau.

Signed/- (Mushtak Hasan Md. Iftikhar) Director General Phone: 9562837. Email: dg@ngoab.gov.bd

Recipient: Managing Director / CEO

Copy to: Governor, Bangladesh Bank Motijheel, Dhaka. (Attention: Additional Deputy General Manager, Foreign Exchange Policy Department, Bangladesh Bank).