Foreign Exchange Laws
Bangladesh has very strict foreign exchange control laws. Though Taka, the Bangladeshi currency in freely convertible, transaction of foreign exchange is highly regulated. Remittance of money outside Bangladesh is allowed only for specific circumstances and is required to be supported by appropriate documentation. Foreign Exchange Regulation Act 1947 (“FERA”) is the basic law in this regard and provides the legal basis for regulating certain payments, dealings in foreign exchange as well as securities. Bangladesh Bank, the central bank of Bangladesh is responsible for administering foreign exchange transactions in Bangladesh. Bangladesh Bank time to time issues directives regarding foreign exchange transaction and summaries of the main directives are published by Bangladesh Bank and named as Guideline for Foreign Exchange Transactions (the “Guidelines”). All foreign exchange should be transacted pursuant to the Guideline and FERA, otherwise criminal charges could be brought in.
AUTHORISED DEALER AND THE MONEY CHANGERS:
The authorized dealers (“AD”) are the only entities are allowed to transact and hold foreign exchange both at home and abroad. Bangladesh Bank issues licenses of AD only to scheduled banks. In addition to AD, there are registered moneychangers to buy foreign currencies from tourists and sell them to outgoing Bangladeshi travelers as per entitlement. Some service institutions like hotels and shops have also obtained limited money changing licenses to accept foreign currencies the foreign tourists, but those are to be sold to authorized dealers.
BRINGING IN CASH FROM ABROAD BY A FOREIGN INVESTOR OR ANY PERSON
A foreigner can bring in foreign exchange in any form including cash without limit. But for amounts in excess of US$5,000 a declaration on FMJ form is required to be made to the Customs Authorities at the time of entry. Amounts brought in may also be taken out freely, subject to production of the declaration where applicable.
REPATRIATION OF CAPITAL AND PROFITS
Foreign investors are free to repatriate their invested capital, profits, capital gains, post-tax dividends, and approved royalties and fees through AD provided the appropriate documentation is in order. Foreigners employed in Bangladesh with the approval of the Government may remit 50% of salary/net income, actual savings and admissible retirement benefits through an AD. Net salary of foreign nationals’ payable for the period of leave admissible to them as per their service contract duly approved by the Government will be remittable. Source: ogrlegal.com
