Legal Framework for Foreign Contributions
Under Section 3 of the Act, no person or organization shall receive or utilize foreign donations without registration from the Bureau. Furthermore, Section 4 mandates that specific project approvals must be obtained before the release of any foreign funds.
| Form Type | Purpose | Statutory Timeline |
|---|---|---|
| FD-6 | Standard Project Proposal for long-term development activities. | 45-60 Days |
| FD-7 | Emergency Relief/Disaster Management projects. | 24 Hours - 7 Days |
| FD-2 | Fund Release Authorization (submitted with FD-6/7). | Concurrent |
The Approval Workflow
Key Procedural Requirements
- FD-6 Submission: Requires a detailed project proposal, budget breakdown, and the donor's commitment letter. Under Rule 6 of the Foreign Donations (Voluntary Activities) Regulation Rules 2016, the NGO must ensure the project aligns with the government's development priorities.
- FD-7 for Emergencies: Specifically designed for rapid response. Per Section 5 of the Act, the Bureau provides expedited clearance for relief operations following natural disasters.
- Bank Account Compliance: Under Section 9, all foreign donations must be received through a single 'Mother Account' in a scheduled bank, which must report all transactions to the Bangladesh Bank and NGOAB.
- Audit Obligations: Upon project completion, an audit report by a CA firm enlisted with the NGOAB must be submitted using Form FD-4, as per Section 12.
Consult Barrister Liton Asaduzzaman Sarkar
Ensure your NGO remains compliant with the latest NGOAB circulars and the 2016 Act.
Schedule a Compliance AuditFrequently Asked Questions
Can an NGO receive foreign funds without FD-6 approval?
No. According to Section 4 of the Foreign Donations (Voluntary Activities) Regulation Act 2016, no foreign donation can be utilized without specific project approval from the NGO Affairs Bureau.
What is the penalty for misusing foreign donations?
Under Section 14 of the Foreign Donations (Voluntary Activities) Regulation Act 2016, the Bureau may impose administrative fines, suspend the organization's registration, or initiate criminal proceedings for the misappropriation of funds.
Is Bangladesh Bank approval required for foreign NGO funds?
While NGOAB provides the primary approval, Section 9 of the 2016 Act and the Foreign Exchange Regulation Act 1947 require that all funds enter through a designated scheduled bank which reports to the Foreign Exchange Policy Department of Bangladesh Bank.
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