Bangladesh Bank (BB) has relaxed the rules governing outward remittances for royalty, technical know-how, and technical assistance fees for businesses operating in the country's Economic Zones (EZs). Authorized Dealers (ADs) are now allowed to remit these payments abroad beyond the limits set under existing foreign exchange regulations, according to a BB circular issued on Monday. The facility will apply to enterprises operating in the Domestic Processing Areas (DPAs) of Economic Zones.
Prior Approval Requirement
However, remittances exceeding the prescribed limits will require prior approval from the Bangladesh Economic Zones Authority (BEZA). The circular also mandates prior approval from BEZA for outward remittances against other similar legitimate expenses, irrespective of the amount involved.
Background and Context
The new directive follows a review of the provisions contained in a Bangladesh Bank circular issued in September 2025. All other existing provisions relating to such outward remittances will remain unchanged. This move is expected to facilitate smoother financial operations for businesses in the Economic Zones, potentially encouraging more foreign investment and technological collaboration.
