Attention of the Authorized Dealers (ADs) is invited to Section 8 of Foreign Exchange Regulation (Amendment) Act, 2015 in terms of which Section 18B(1) of Foreign Exchange Regulation (FER) Act, 1947(Act No. VII of 1947) has been modified.
- With the modification of Section 18B(1) of FER Act, 1947 , ADs nominated by branch office or liaison office or representative office or any other place of business in Bangladesh established under 18B(1) of the Foreign Exchange Regulation Act, 1947, shall observe the following instructions with regards to dealing with such offices:
- a) ADs shall prepare and maintain a list of its clients of branch, representative, liaison offices, etc nominated by them.
- b) Permission from Board of Investment (BOI) or similar competent authority for setting up branch/representative/liaison offices etc. shall have to be reported within 30(thirty) days of obtaining such permission to Foreign Exchange Investment Department, Head Office, Bangladesh Bank (BB) with copy to Foreign Exchange Operation Department, Head Office, BB or other offices of Bangladesh Bank (in applicable case) through the nominated ADs of the concerned office with other necessary documents including encashment certificate, etc. Moreover, renewals of permissions (if any) shall have to be reported to the above mentioned departments/offices of BB within same time period including of those office that have already obtained similar permission from BB or BOI.
- c) In case of change of nominated ADs, branch, representative, liaison offices, etc. shall collect a no objection certificate from the current nominated bank for onward submission to new nominated bank.
Information related to change of nominated bank shall have to be intimated to Foreign Exchange Investment Department, Foreign Exchange Operation Department and concerned office (in applicable case) of BB.
The instructions have been issued under Section 20(3) of the Foreign Exchange Regulation Act, 1947 and are without prejudice to permissions, approvals etc. (if any) required under any other law. Please bring the above instructions to the notice of your concerned constituents.