Foreign Investors Can Repatriate Up to Tk 100cr Freely

Bangladesh Bank has eased capital repatriation rules, allowing foreign investors to transfer up to 100 crore taka without prior central bank approval, up from the previous 10 crore taka limit.

The Foreign Direct Investment Division of Bangladesh Bank issued a master circular on Sunday, describing the change as part of efforts to simplify regulations and create a more investor-friendly business environment aligned with global standards.

Under the new guidelines, Authorized Dealer (AD) banks can directly process share transfers and capital repatriation for transactions up to 100 crore taka without seeking prior approval from the central bank.

For transactions under 10 crore taka, no independent valuation is required, and transfers can proceed based on a joint declaration by the buyer and seller. For larger transfers approaching 100 crore taka, AD banks may process repatriations independently if they follow prescribed valuation procedures.

To maintain governance and transparency, each AD bank must form an internal committee to oversee approvals. Smaller transactions will be supervised by the bank’s Chief Financial Officer, while larger transfers near the 100 crore limit will require oversight by the Chief Executive Officer. Committees must include professionals with credentials such as CFA to review valuation reports. Banks may charge reasonable fees for valuation work after consulting clients.

The circular sets strict processing timelines. Audit reports used for valuation must not be older than six months. If outdated, companies must prepare fresh interim audit reports. AD banks are required to complete repatriation within five working days once all documentation is complete. Applications requiring Bangladesh Bank approval must be forwarded within three working days, and the full share transfer process must be completed within 45 days. Banks must report each completed transaction to Bangladesh Bank within 14 days.

Bangladesh Bank said the circular reflects its commitment to a more liberal, investor-friendly regulatory framework. By raising approval limits, empowering banks to make decisions, and simplifying valuation requirements, the reforms aim to reduce time and costs for foreign investors, boost confidence, and attract greater foreign direct investment to the country.