BB allows banks to open temporary accounts to facilitate FDI

The central bank has allowed banks to open temporary non-resident taka accounts and temporary foreign currency accounts in the name of proposed companies of foreign investors to facilitate foreign direct investment (FDI) in Bangladesh.

"We've allowed the authorised dealer (AD) banks to open such accounts to help boost the inflow of FDI in Bangladesh," a senior official of Bangladesh Bank (BB) told the FE while replying to a query.

The move aligns with the goal of easing doing business in the country, he added.

According to a circular issued by the central bank on Monday, designated banks shall observe simplified due diligence in opening these temporary accounts and the regular customer due diligence (CDD) procedures before transferring balances held in these temporary accounts to the regular accounts immediately after incorporation of the companies/enterprises along with other relevant instructions.

Earlier, the scheduled banks have been allowed to open accounts through online application received via website/web portal/app of banks or government service providing entities like Bangladesh Investment Development Authority, Bangladesh Economic Zones Authority, Bangladesh Export Processing Zones Authority and Bangladesh Hi-Tech Park Authority under their one-stop service facilities.

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