Question & AnswerQ&A (BSP CIRCULAR NO. 645, S. OF 2009)
The circular aims to liberalize and streamline the foreign exchange regulatory framework by issuing the Manual of Regulations on Foreign Exchange Transactions (Manual), which consolidates all existing rules and replaces Central Bank Circular No. 1389.
Only authorized agent banks (AABs) and their subsidiary/affiliate forex corporations (AAB-forex corps) are allowed to sell foreign exchange under the Manual.
No, sales by non-bank BSP-supervised entities (NBBSEs) and their subsidiary/affiliate forex corporations are governed by other applicable BSP regulations and are not covered by the Manual.
Resident companies must submit their annual foreign borrowings plan to BSP-International Department by end-September for the following year if borrowings are at least USD10 million or equivalent.
Prior to signing loan documents and/or drawdown of loan proceeds.
Public sector loans require BSP approval before actual negotiations or mandate issuance with foreign funders/arrangers.
An additional 10% of the applicable processing fee is assessed.
Yes, non-residents must obtain BSP approval before executing issuance of bonds/notes or similar instruments domestically.
Acquisition of non-performing assets/loans of banks and other GFIs, acquisition of government assets approved for privatization, and refinancing of existing loans for eligible projects/costs with foreign exchange sourced from AABs or AAB-forex corps.
Borrowers of short-term loans must register within 10 banking days from drawdown, while medium- and long-term loan borrowers have three months from utilization of proceeds.
Yes, prior BSP approval is required regardless of the remaining days to maturity.
Custodian banks are delegated registration of foreign investments in peso-denominated government securities and peso time deposits with tenor of at least 90 days.
They must obtain written permission from the foreign investor authorizing disclosure of investment registration information to BSP.
Penalties increased to PHP1,200 per day for UBs/KBs, PHP600 for TBs, and PHP180 for RBs/Coop Banks.
No, OBUs are prohibited from depositing such peso equivalents in their peso deposit accounts with AABs.
They must be inwardly remitted and sold for pesos through AABs within seven banking days, unless reinvested abroad within two banking days from receipt.
It takes effect 15 calendar days after publication in the Official Gazette or a newspaper of general circulation.
Yes, all transactions under this circular must comply with the Anti-Money Laundering Act of 2001 as amended.