Handling of Shipping Documents When Selling Foreign Exchange by Non-Booking/Remitting Banks
- Banks other than the booking/remitting bank may accept photocopies of shipping documents to support foreign exchange sales.
- Conditions for such acceptance include:
- Importer-client must annotate the commercial invoice with a breakdown of foreign exchange purchases, including:
- Name of selling bank/entity
- Date of purchase
- Amount purchased
- Remaining balance
- For D/A or O/A arrangements, the Record of Goods Imported (RGI) Number and BSP Registration Number
- The information must be certified by the treasurer or higher-ranking company officer.
- Importer-client must annotate the commercial invoice with a breakdown of foreign exchange purchases, including:
- The selling/servicing bank must remit the foreign exchange sold to the booking/remitting bank.
- Remittance instructions must specify the invoice number, corresponding RGI number, and BSP registration number.
Sale of Foreign Exchange for Payment of Foreign Currency Loans by Banks Other than the Lending Bank
- Selling bank must require the client-importer’s application letter to include:
- Name of the lending bank
- Original loan amount
- Due date
- Outstanding loan balance
- Purpose of the loan
- Invoice number and amount of import bill liquidated by the loan proceeds
- The data must be certified as correct by the treasurer or higher company officer.
- Foreign exchange sold must be remitted to the lending bank with appropriate loan account information included in the remittance instructions.
Certification by Senior Officers of Banks
- A senior officer at the booking/remitting bank or lending bank must certify measures have been taken to ensure the importer-client has not purchased foreign exchange in excess of:
- The amount indicated in the commercial invoice (for import payments), or
- The outstanding loan balance plus financing charges (for loan-related transactions).
Warning on Over-Purchase of Foreign Exchange
- Selling banks must inform importer-clients of the possibility of being watchlisted by the BSP if they are found to have purchased foreign exchange exceeding the amount shown in the commercial invoice or the outstanding loan balance plus financing charges.
Documentation and Verification
- All documents supporting foreign exchange sales and payment of loans/importations must be made available for verification by BSP Bank Officers.
Effectivity
- The Circular Letter takes effect immediately upon adoption on March 31, 1998.