May 22, 2023 - Phnom Penh, Cambodia
Myanmar: Offshore Repatriation of Foreign Currency by DICA Companies
by Ramandeep Singh Bhamra
The Directorate of Investment and Company Administration (“DICA”) has issued an undated notice where it has listed the documents that all DICA registered companies are required to submit to DICA to obtain its approval to repatriate foreign currencies out of Myanmar (the “Notice”). We understand from the Notice that it applies only to DICA registered companies.
The Notice states that the applicant requires to submit, among other things, a cover letter in the company letterhead and attach to it, bank statement, income tax statement, company extract, export/import license (for trading companies). The applicant is also required to fill in a form containing placeholders for the company name, foreign currency transfer amount, the details of the remitting and beneficiary bank accounts and so on. We understand from DICA that this form is available on request only. Further, we understand from the Notice that the applicants in the freight forwarding sector are also required to provide a copy of the certificate issued by the Myanmar International Freight Forwarding Association as part of their application package to DICA.
The rationale for this Notice is unclear at this stage. We understand that there may be an interpretation that DICA will appraise the application package submitted to it and thereafter forward that with their comments to the Foreign Exchange Supervisory Committee for further process. However, given the lack of clarity in the Notice regarding this, at this time it is uncertain if this is indeed the case.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
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