Law Summary
Sale of Foreign Exchange to Non-Residents
- AABs may sell foreign exchange up to USD 60,000 per day for certain peso deposit account balances without prior BSP approval, with application submission.
- Peso deposits funded by inward remittance are primarily for investment and require prior BSP approval unless properly registered.
- For non-resident issuers of PSE-listed equity securities, sales of foreign exchange require:
- BSP letter-authority to purchase foreign exchange.
- Submission of application to purchase foreign exchange (Annex A).
- Reporting remittances to BSP's International Operations Department (IOD) within two banking days (Annex Y).
- Compliance with repatriation procedures (Appendix 1.2).
- Non-resident tourists and balikbayan may reconvert unspent pesos up to USD 10,000 at ports of exit without proof of previous purchase.
Registration with Custodian Banks
- Certain investments must be registered with a custodian bank on behalf of BSP:
- Inward foreign investments in peso-denominated government securities.
- Investments in PSE-listed securities issued by residents.
- Peso time deposits.
- Investments in PSE-listed equity securities issued by non-residents.
- Custodian banks may be AABs or Offshore Banking Units (OBUs) appointed by investors.
- Custodian banks hold investments and represent investors in necessary transactions.
Reportorial Requirements
- AABs, OBUs, and AAB-forex corps must submit reports to BSP's IOD as applicable:
- Report on Registered Portfolio Investments within two banking days from transaction date via email, with hard copies of supporting documents.
- Report on transactions involving PSE-listed equity securities issued by non-residents (Annex Y) within two banking days from remittance date.
Amendments to Appendices in the Foreign Exchange Manual
- New appendices added include:
- Appendix 1.2: Procedures for repatriation of proceeds from onshore sale of PSE-listed equity securities by non-resident issuers.
- Appendix 11.1A and 11.1B: Guidelines and manual for reporting registered portfolio investments.
- Annex Y: Report on transactions involving PSE-listed equity securities issued by non-residents.
- Existing appendices revised to update documentary requirements, procedures for registration of investments, and procedures for repatriation and remittance.
Repealing Clause and Effectivity
- Circular supersedes and amends any inconsistent previous regulations and circulars.
- Takes effect 15 calendar days after publication in the Official Gazette or a newspaper of general circulation in the Philippines.