Central Bank Simplifies Rules for Opening Foreign Investment Accounts

The Bangladesh Bank has announced a simplification of procedures for foreign investors to open bank accounts. Under the new rules, Non-Resident Taka Accounts (NRTA) and Foreign Currency Accounts (FC Accounts) no longer need to be reported immediately to Bangladesh Bank. Banks are now allowed to submit the required information within 14 days of account opening.

This decision was communicated through a circular issued by Bangladesh Bank on Tuesday.

Key Details of the New Regulations

• Purpose: To attract foreign investment and simplify account opening procedures.
• Reporting Timeline: Banks must now report foreign investment account openings within 14 days, rather than immediately.
• Currency Flexibility:
  • Investment funds can be converted into local currency.
  • Alternatively, funds may be retained in foreign currency for up to one year.
• Form Submission:
  • Investors converting funds to local currency can submit Form-C online.
  • Signatures on the designated documents must be completed within 14 days of company formation.

Officials at Bangladesh Bank anticipate that this new regulation will:

1. Encourage banks to facilitate foreign investment accounts more actively.
2. Ease investment processes for foreign entrepreneurs.
3. Align with the government’s investment-friendly policy initiatives, promoting a smoother and faster route for foreign capital inflows.

This step is part of a series of measures aimed at enhancing Bangladesh’s appeal as an investment destination and streamlining financial operations for non-resident investors.