10/19/2015 AmendmentofSection18Aand18BofForeignExchangeRegulationAct,1947byForeignExchangeRegulation(Amendment)Act,2015|BayezidHasa

AmendmentofSection18Aand18BofForeignExchange
RegulationAct,1947byForeignExchangeRegulation
(Amendment)Act,2015
Sep24,2015

58views
TheForeignExchangeRegulationAct,1947hasbeenamendedbytheParliament
ofBangladeshon9September2015andtheamendmenthasbeennamedasForeign
ExchangeRegulation(Amendment)Act,2015.Alltogetherten(10)sectionshave
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beenamendedincludingthedeletionofsection18Awhichhascomeasareliefto
themultinationalcompanies.Inthispost,thedeletionofsection18Aand
AmendmentofSection18Bwillbediscussed.

Section18AofFERAct,1947(RestrictiononAgents)

18.A(1)Notwithstandinganythingcontainedinanyotherlaw
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forthetimebeinginforce,nopersonshall,exceptwiththegeneralorspecial
permissionoftheBangladeshBank,actoracceptanappointmenttoactasanagent
inthetradingorcommercialtransactions,orasatechnicalormanagementadviser
oranyotheremployee,inBangladesh(whetherornotacitizenofBangladesh)ofa
personresidentinBangladesh(butnotacitizenofBangladesh)orofacompany
(otherthanabankingcompany)notincorporatedunderanylawinforcein
Bangladesh.
(2)Apersonactingorholdinganappointmenttoactasanagentorasanadviser
oranyotheremployeeinBangladeshofapersonorcompanyreferredtoinsub
section(1)immediatelybeforethecommencementoftheForeignExchange
Regulation(Amendment)Ordinance,1976(Ord.No.LXXVIof1976)may
continuetosoactforaperiodnotexceedingsixmonthsfromsuch
commencementunlesstheBangladeshBankhas,uponanapplicationmadeinthis
behalfinsuchformandcontainingsuchparticularsastheBangladeshBankmay
direct,grantedhimpermissiontocontinuetosoactthereafter.
Deletionof18AinFER(Amend.)Act,2015
Section18AhasbeenrepealedinFER(Amendment)Act,2015
Explanation
From9September2015:
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10/19/2015 AmendmentofSection18Aand18BofForeignExchangeRegulationAct,1947byForeignExchangeRegulation(Amendment)Act,2015|BayezidHasa

a)noperson(pleasereadthedefinitionofpersonatApp.1)isrequiredtotakeany
permissionfromBangladeshBanktoactasanagentintradingorcommercial
transactionsofapersonresident(butnotcitizen)inBangladeshorofacompany
(otherthanabankingcompany)notincorporatedunderanylawinforcein
Bangladesh.
b)noperson(pleasereadthedefinitionofpersonatApp.1)isrequiredtotakeany
permissionfromBangladeshBanktoactasatechnicalormanagementadviseror
anyotheremployeeofapersonresident(butnotcitizen)inBangladeshorofa
company(otherthanabankingcompany)notincorporatedunderanylawinforcein
Bangladesh.

Section18BofFERAct,1947(RestrictiononForeignCompanies)
(1)Notwithstandinganythingcontainedinanyotherlawforthetimebeinginforce,
nopersonresidentoutsideBangladesh(whetherornotacitizenofBangladesh)nor
apersonwhoisnotacitizenof,butresidentin,Bangladeshnoracompany(other
thanabankingcompany)notincorporatedunderanylawinforceinBangladesh
shall,exceptwithgeneralorspecialpermissionoftheBangladeshBank,continue
orestablishinBangladeshabranch,officeoranyotherplaceofbusinessfor
carryingonanyactivityofatrading,commercialorindustrialnature.
(2)Anysuchpersonorcompanycarryingonanyactivityofthenaturereferredtoin
subsection(1)immediatelybeforethecommencementoftheForeignExchange
Regulation(Amendment)Ordinance,1976(Ord.No.LXXVIof1976),mayexceptin
thecaseofapersonorcompanycarryingonanyactivityofthenaturereferredtoin
subsection(1)orhavingabranch,officeorotherplaceofbusinessforcarryingon
suchactivityinpursuanceofanypermissionorlicensegrantedbytheGovernment,
continuetosocarryonsuchactivityforaperiodnotexceedingsixmonthsfrom
suchcommencementunlesstheBangladeshBankhas,uponanapplicationmadein
thisbehalf,granted
himpermissiontocontinuetosocarryonsuchactivitythereafter.
(3)Wherenoapplicationundersubsection(2)hasbeenmadebyanysuchperson
orcompanytheBangladeshBank,may,byorder,directsuchpersonorcompanyto
discontinuesuchactivityortoclosedownsuchbranch,officeorplaceofbusiness,
asthecasemaybe,ontheexpiryofsuchperiodasmaybespecifiedinthe
direction.
Amendmentof18BinFER(Amend.)Act,2015
(1)PersonresidentoutsideBangladesh(whetherornotacitizenofBangladesh)or
apersonwhoisnotacitizenof,butresidentin,Bangladeshoracompany(other
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10/19/2015 AmendmentofSection18Aand18BofForeignExchangeRegulationAct,1947byForeignExchangeRegulation(Amendment)Act,2015|BayezidHasa

thanabankingcompany)notincorporatedunderanylawforthetimebeinginforce
inBangladeshshallreporttoBangladeshBankwithin30(thirty)daysofobtaining
permissionfromBoardofInvestmentorsimilarcompetentauthorityinBangladesh
toestablishinBangladeshabranchofficeorliaisonofficeorrepresentativeoffice
oranyotherplaceofbusinessforcarryingonanyactivityofatradingcommercial
orindustrialnature.
(2)and(3)havebeenrepealed.

Explanation
Abranch,officeoranyotherplaceofbusinessforcarryingonanyactivityofa
trading,commercialorindustrialnaturecanbeestablishedwithoutobtainingany
permissionfromBangladeshBankhowever,itmustbereportedtoBangladesh
Bankwithin30daysofobtainingpermissionfromBoardofInvestment(BOI).
Since,thereisnoquestionofpermissionofBangladeshBank,itisimpliedthat
BangladeshBankcannotdisapprovethepermissionofBOI.

Appendix1
"Person"meansanyindividual,andalsoincludes(i)apartnershipfirm(ii)a
company(iii)anassociationofpersonsorbodyofindividuals,whetherincorporated
ornot(iv)everyartificialjuridicalentitynotfallingwithinanyoftheprecedingsub
clausesand(v)anyagency,office,orbranchownedorcontrolledbysuchperson.
ForeignExchangeRegulation(Amendment)Act,2015

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