Law Summary
Background and Approval
- The Monetary Board approved amendments to existing regulations concerning foreign exchange-denominated bearer monetary instruments under Resolution No. 1588 on December 16, 2005.
- This Circular amends Circular No. 308 dated November 15, 2001, and clarifies the declaration requirements for individuals transporting foreign currency and other foreign exchange-denominated instruments.
Declaration Requirement
- Any person bringing into or out of the Philippines foreign currency or other foreign exchange-denominated bearer monetary instruments must make a written declaration.
- This declaration must include information regarding the source and purpose of the transport of such currency or instruments.
Definition of Foreign Exchange-Denominated Bearer Monetary Instruments
- The term "foreign exchange-denominated bearer monetary instruments" encompasses various instruments in bearer form, where ownership is transferred through endorsement, assignment, or delivery. These include:
- Traveler's checks
- Other checks
- Drafts
- Notes
- Money orders
- Bonds
- Deposit certificates
- Securities
- Commercial papers
- Trust certificates
- Custodial receipts
- Deposit substitute instruments
- Trading orders
- Transaction tickets
- Confirmation of sale/investment
Declaration Form
- Individuals must utilize the Foreign Currency and Other Foreign Exchange-Denominated Bearer Monetary Instruments (FCOFEDBMI) Declaration Form to fulfill the declaration requirement.
Effective Date
- The Circular will take effect 15 days following its publication in a newspaper of general circulation.
Amendments to Previous Circulars
- This Circular also serves to amend two prior Circular-Letters dated January 22, 2002, and October 28, 2003.
Key Takeaways
- Individuals transporting foreign currency and bearer monetary instruments are required to declare them in writing, detailing the source and purpose of transport.
- A specific definition of foreign exchange-denominated bearer monetary instruments is provided, clarifying the types of instruments covered by this regulation.
- The declaration must be made using a designated form, and the Circular has a clear effective date following publication.
- The amendments to earlier regulations reflect an ongoing effort to regulate foreign currency transport effectively.