FEPD Circular Letter No. 24: Service payments by subsidiaries of foreign companies

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular Letter No. 24 Date: June 24, 2025 Head offices/principal offices of all Authorized Dealers in Bangladesh Dear Sirs, Service payments by subsidiaries of foreign companies Please refer to FE Circular No. 12 of February 19, 2025 in terms of which Authorized Dealers (ADs) are allowed to effect remittances upto the permissible limit on behalf of local subsidiaries against services from or through parent/group companies or their associates provided that the subsidiaries are controlled by parent/group companies by holding shares exceeding 50 percent, among others. 02. This is to clarify that parent/group controlled subsidiaries shall mean those foreign owned/controlled companies as defined at paragraph 4(A), chapter 16 of the Guidelines for Foreign Exchange Transactions-2018, Vol.1. In addition, the remittance facilities of FE Circular No. 12/2025 will be applicable for companies with shares held by foreign companies/investors less than 50 percent (i) as per relevant regulatory requirements, if any, in Bangladesh, and/or (ii) in case of business activities of respective companies dependent on foreign investor-companies. Other relevant instructions shall remain unchanged. Please inform the above clarification to your relevant customers accordingly. Yours faithfully, (Md. Harun-Ar-Rashid) Director (FEPD) Phone: 9530123