BB eases reporting rules for foreign investment account openings

Highlights:

• No prior reporting needed for NRTA, temporary FC accounts opening
• ADs must notify FEID within 14 days
• Form-C submission allowed in electronic form
• Funds can stay as foreign currency or be converted to Taka
• Encashment or retention allowed up to one year

To facilitate foreign investment, the Bangladesh Bank has relaxed the reporting requirements for non-resident taka accounts (NRTAs) and temporary foreign currency (FC) accounts used for foreign investments.

According to a circular issued by the Foreign Exchange Investment Department (FEID) of the central bank today (30 September), banks no longer need to report the opening of NRTAs and temporary FC accounts to the FEID at the time of opening.

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.

Foreign investors can now keep dollars in bank accounts for 1 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.