Regulatory Alerts2025-06-19
Added
FEPD Circular No. 23: Remittances against current account transactions
The authorization for outward remittances up to 1 percent of annual sales or USD 100,000, whichever is higher, is extended to all sectors under the prevailing Industrial Policy, excluding banks and financial institutions. Authorized Dealers must verify that cases are not covered by specific authorizations and ensure any required consent from competent authorities is obtained before processing. Requests for remittances related to royalty, technical knowledge fees, technical assistance, and franchise fees continue to be handled under the Bangladesh Investment Development Authority guidelines.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 23 Date: June 19, 2025 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Remittances against current account transactions Please refer to paragraph 27, chapter 10 of the Guidelines for Foreign Exchange Transactions-2018 (Vol-1), FE Circular No. 50 of November 19, 2020 and FE Circular No. 01 of January 04, 2021 regarding outward remittances up to 1(one) percent of annual sales as declared in the previous year's income tax return of the respective remitter-companies or USD 100,000 whichever is higher. In terms of this framework, ADs may effect legitimate remittances on behalf of industrial enterprises and service sector industries as per Industrial Policy in force. 02. It has been decided that the above-mentioned authorization shall be applicable for bonafide current payments by all sectors under the prevailing Industrial Policy, excluding banks and financial institutions such as finance companies, insurance companies, capital market intermediaries, micro finance institutions, etc. 03. While processing remittances, ADs shall satisfy themselves that the cases are not remittable under specific authorization. The authority as per 2 above does not waive the requirements of consent, if any, from competent authorities. Accordingly, ADs shall ensure before effecting remittances that such consent has duly been issued in favor of respective remitters. As usual, ADs shall dispose requests for remittances on account of royalty, technical knowledge/technical know-how fee, technical assistance fee and franchise fee under the Guidelines of the Bangladesh Investment Development Authority circulated through FE Circular Letter No. 07 of April 11, 2021. Other applicable instructions shall remain unchanged. Please bring the contents of this circular to the notice of relevant clientele. Yours faithfully, (Md. Harun-Ar-Rashid) Director (FEPD) Phone: 9530123