Foreign Exchange Investment Department
Bangladesh Bank
Head Office
Dhaka
www.bb.org.bd
FEID Circular Letter No. 02 Date: 19/09/2019
Head Offices/Principal Offices of all
Authorized Dealers in Bangladesh
Dear Sirs,
R epatriation of residual balance or refund of borrowing from head office of b ranch office ,
liaison office or representative office or any other place s of business operating in Bangladesh
In terms of paragraph 28, chapter 10 of the Guidelines for Foreign Exchange Transactions-2018
(GFET), Vol-1 Authorized Dealers (ADs) are permitted to remit profits of branches of foreign firms and
companies operating in Bangladesh.
2. It has been decided that henceforth all entities including branches of foreign firms and companies
established in Bangladesh with permission from competent authorities for business/profit motive and
operating in compliance with reporting formalities under Section 18B(1) of the Foreign Exchange
Regulation Act, 1947 are allowed to remit profits to their head offices abroad through their nominated
ADs without prior approval of Bangladesh Bank in terms of paragraph 28, chapter 10 of GFET. ADs are
required to submit applications for post - facto checking w ithin 30 days of profit remittance along with
relevant documents to Foreign Exchange Investment Department , Bangladesh Bank, Head Office, Dhaka .
3. Bangladesh Bank considers applications submitted by ADs for outward remittances of residual
balances after closing branch office, liaison office or representative office or any other places of business
operating in Bangladesh and for refund of borrowing availed from their head offices. But it is observed
that in most of such cases applications are submitted without proper supporting, resulting in unavoidable
delays in disposing of the issues. To bring ease in approval process for such outward remittances, ADs are
advised to apply to Foreign Exchange Investment Department of Bangladesh Bank, Head Office with all
relevant documents, mutatis mutandis, as mentioned in Annexure-A .
Please bring the instructions of this circular letter to the notice of all concerned.
Yours Faithfully,
(Abu Saleh Mohammed Shahab Uddin)
Deputy General Manager
Phone: 02-9530488
Annexure - A
Applicable documents of the b ranch, liaison or r epresentative o ffice
or any other place s of business to be submitted along with application
for repatriation of residual amount or borrowing from Head Office
1. Approval letter from competent authorities for closing office in Bangladesh;
2. Approval of competent authorities waiving restrictions (if any) on outward remittance by
local operation of foreign companies;
3. Board resolution of the head office regarding the decision to close office in Bangladesh;
4. Audited Financial Statements for the last 03 (three) years;
5. Auditor's certificate:
i) indicating the calculation procedure through which the remittable amount has
been arrived at supported by audited financial statements of the applicant, and
indicating the manner of disposal of assets;
ii) confirming that all liabilities in Bangladesh including arrears of gratuity and
other benefits to employees etc., of the office have been either fully met or
adequately provided for; and
iii) confirming that no income accruing from sources outside Bangladesh
(including proceeds of exports) has remained un-repatriated to Bangladesh.
6. Income tax clearance certificate of the office;
7. Confirmation from the applicant/Head Office that no legal proceedings in any Court in
Bangladesh are pending and there is no legal impediment to the remittance;
8. Work permit cancellation and income tax clearance certificate of the foreign expatriate(s)
working in the office (if any);
9. Encashment certificates for the funds received from head office abroad;
10. Public notice for office closing;
11. Document in support of final office rent settlement;
12. Bank statement of the office (last one year);
13. If the branch/liaison /representative offices availed any local loan, then CIB certificate;
14. For project work, Award/Bills from work order giver;
15. Approval letter from competent authorities for borrowing from Head Office abroad;
16. Any other document(s), specified by Bangladesh Bank while granting approval.