BB Eases Reporting Rules to Attract Foreign Investment

Bangladesh Bank (BB) has relaxed the reporting requirements for temporary Non-resident Taka Accounts (NRTAs) and temporary Foreign Currency (FC) accounts to facilitate foreign investment in the country. To this end, the central bank today issued a circular saying it is no longer required to report the opening of NRTAs and temporary FC accounts to the Foreign Exchange Investment Department (FEID) of Bangladesh Bank.  Instead, Authorised Dealers (ADs) must notify FEID within 14 days with all relevant documents, including encashment certificates, online transaction ID, NRTA and/or temporary FC account statement, and statement of the permanent account reflecting the corresponding debit and credit entries, it added.

Under the new rules, funds may be encashed into local currency (taka) or retained in foreign currency for up to one year. The circular said that if the foreign investment fund is encashed, investors may submit Form-C electronically, with the company authority required to sign the printed copy within 14 days after the incorporation of the company.

"If, for any reason, the proposed investment/incorporation does not take place, the balance of the account, after meeting the required expenses, may be repatriated without prior approval from Bangladesh Bank," it added. In such cases, ADs must report account closures within 14 days, along with copies of Form-C, TM forms, transaction records, and NRTA or temporary FC account statements.