Banks can open temporary online accounts for FDI

Staff Correspondent

18 May, 2021 12:00 AM printer

Bangladesh Bank (BB) has instructed banks to open temporary accounts through online arrangement for foreign direct investment (FDI) in Bangladesh.

As per the instructions released on Monday, the designated banks will observe simplified due diligence in opening these temporary accounts and regulate Anti-Money Laundering (AML) and Know Your Customer (KYC) along with other relevant procedures before transferring balance at these temporary accounts. The BB also directive stated that the scheduled banks are allowed to open accounts through online application received via website/web portal/app of banks or some government service providing entities under their one stop service facilities.

The government service providing entities include Bangladesh Investment Development Authority, Bangladesh Economic Zones Authority, Bangladesh Export Processing Zones Authority, and Bangladesh Hi-Tech Park Authority. “Under above arrangement, temporary Non-Resident Taka Accounts and temporary foreign currency accounts may be opened in the name of proposed companies/ enterprises of foreign investors contemplating to invest in Bangladesh in terms of the Guidelines for Foreign Exchange Transactions-2018 (GFET),” the central bank added.