International NGOs operating in Bangladesh must comply with one of the most detailed regulatory frameworks for foreign non-profits in South Asia. LegalBD guides INGOs through registration, project approval, fund utilisation, and ongoing compliance under the Foreign Donations (Voluntary Activities) Regulation Act 2016.
The Foreign Donations Regulation Act 2016
The Foreign Donations (Voluntary Activities) Regulation Act 2016 (FDA 2016) replaced the earlier 1978 Ordinance and significantly strengthened the regulatory framework. The FDA 2016 requires all NGOs — local and international — to obtain NGOAB registration and project-specific approval before receiving any foreign donation, and imposes detailed obligations on fund utilisation, accounting, banking, and reporting. Penalties for non-compliance include cancellation of registration, financial penalties, and criminal liability for responsible officers.
INGO Registration Process
International NGOs must obtain registration from NGOAB by submitting: prescribed application forms; certified copies of home-country registration documents; a board resolution authorising Bangladesh operations; an appointment letter for the Country Representative; a statement of proposed activities and objectives in Bangladesh; evidence of financial standing and donor relationships; and home-country government endorsement in some cases. The registration process typically takes 3 to 6 months and requires engagement with multiple government ministries and security agencies.
Project Approval (FD-6)
Following registration, each project for which foreign funding will be received requires a separate project approval (FD-6) from NGOAB before funds are received. The FD-6 application must detail project objectives, activities, budget, implementation timeline, target beneficiaries, and the donor identity. NGOAB consults relevant line ministries — health, education, social welfare, women's affairs, etc. — and may impose conditions on implementation. Approval timelines vary significantly by project type and sector.
Banking and Fund Management
All foreign donations must be received and maintained in a dedicated Foreign Donation Account at an authorised dealer bank. Fund utilisation must match the approved project budget, with variances requiring prior NGOAB approval. The AD bank is required to report foreign donation receipts to Bangladesh Bank and NGOAB. LegalBD advises on banking arrangements and fund management procedures that satisfy all regulatory requirements.