Question & AnswerQ&A (BSP CIRCULAR NO. 388)
Authorized Agent Banks (AABs), Non-Bank BSP-Supervised Entities (NBBSEs), and their subsidiary/affiliate forex corporations are authorized to sell FX for non-trade transactions.
The sale of FX not exceeding US$5,000 requires only an application to purchase FX using the attached format; sales exceeding this amount require a notarized application.
Splitting of FX purchase is when the total sales of FX to any one purchaser within a 20 calendar-day period exceeds US$5,000 by dividing the purchase into smaller amounts to avoid the prescribed limit.
No, NBBSEs and their forex corporations are prohibited from selling FX to non-residents and residents for investment purposes, including capital repatriation and remittance of profits and dividends.
Original documents must be presented to the AAB/NBBSE/Forex Corporation on or before the maturity/delivery date of the spot/forward contract to sell FX, and be stamped 'FX SOLD' indicating the date and amount of FX sold.
A resident is an individual citizen or permanent resident of the Philippines, or a corporation/juridical person organized under Philippine laws or operating units of foreign corporations in the Philippines; a non-resident is any individual or entity not included in the resident definition.
Violations are subject to the penalty provisions under R.A. No. 7653 (The New Central Bank Act) and other existing banking laws and regulations.
Sales require documents listed in Items B and C of Annex B together with the application to purchase FX, regardless of amount.
Applicants must present passport, passenger ticket, copy of Income Tax Return duly stamped, travel authority from the sponsor company/agency, and invitation from foreign sponsor if applicable.
Sales for capital repatriation and dividend remittance require original Bangko Sentral Registration Document (BSRD) and other relevant documentation including clearance from regulatory bodies depending on the investment type.