Dhaka: The Bangladesh Bank (BB) has issued a new directive permitting local subsidiaries with less than 50 percent foreign shareholding to remit payments abroad for services received from or through their parent, group, or associated companies, provided that certain conditions are met.
According to Bangladesh Sangbad Sangstha, the central bank clarified this policy in a circular released today. The circular states that this clarification broadens the scope of eligibility for subsidiaries to remit service payments. It specifies that companies with less than 50 percent foreign ownership may qualify to remit payments if there are relevant regulatory provisions in Bangladesh that permit such remittances. Additionally, the business operations of the local company must be reliant on its foreign investor or affiliated entities.