On Apr. 11, BNG CB issued rules on remittance to foreign persons.
BNG CB issued circular letter on the payment of royalty, fees for technical knowledge or technical assistance, and franchise fees to foreign persons or institutions.
Fee Payments
Bangladesh investment development authority (BIDA) issued guidelines for outward remittances, with permissible amount of fees to be remitted without BIDA’s approval.
Transactions under authorization shall be executed by one authorized dealer (AD) bank branch nominated by remitter; changes to be transferred direct to the new AD branch.
ADs shall, before effecting the transactions, have been ensured of deductions and payments of source taxes, VAT and other levies applicable against the remittances.
Must observe due diligence with regards to KYC and AML/CFT standards, reporting routine to BNG CB under forex regulations, and preserve customer-wise documents.
Nov. 2024 Hotel Businesses
On Nov. 20, 2024, BNG CB said that after consideration it has decided to simplify the procedure for remittances abroad against services essential for running hotel business.
ADs must submit applications to BNG CB for registering the contracts to be entered with international service providers instead of applying only for remittance permission.
Applications must include detailed documents, such as draft agreements, justification for foreign services, tax declarations, financial statements, and company certificates.
ADs must ensure agreements are registered with BNG CB before remittance execution, validate compliance with BNG CB registration letters, and adhere strictly to terms.
New, amended, or renewed agreements must follow these instructions, and existing agreements must be registered by Jan. 31, 2025.
