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(NAR) VOL.8 NO. 3 / JULY - SEPTEMBER 1997
[ BSP CIRCULAR NO. 138, July 31, 1997 ]
FURTHER AMENDMENT OF SECTION 2 OF CB CIRCULAR NO. 1389, AS AMENDED
Pursuant to Monetary Board Resolution No. 995 dated July 30, 1997, Section 2 of Central Bank Circular No. 1389, as amended, is further to read as follows:
"Section 2. Sales of Foreign Exchange by AABs. — AABs may sell foreign exchange to residents (including the Government, its political subdivisions/instrumentalities and government-owned and controlled corporations), for any non-trade purpose, without need of prior Bangko Sentral ng Pilipinas (BSP) approval, provided that:
a) for sales of foreign exchange exceeding US$25,000.00, the AAB shall require a written notarized application and supporting documents from the purchaser of the foreign exchange; and
b) for sales of foreign exchange not exceeding US$25,000.00, the AAB shall require a written application only.
The written application required under b) shall be in accordance with the attached format*.
AABs shall see to it that this limit on the safe of foreign exchange for a non-trade purpose is not breached by the splitting of a foreign exchange purchase into smaller amounts so as to make it appear that the purchase does not violate the prescribed limit.
There is deemed to be a splitting of a foreign exchange purchase within the prohibition of this Circular if a Bank sells foreign exchange for a non-trade purpose to any one purchaser, within a fifteen banking day period, in such individual amounts which, when combined, exceed $25,000.00.
The AAB shall report all sales covered by this section under FED I using the appropriate transaction codes.
For sales of foreign exchange for payment of obligations that are foreign loan- or foreign investment-related, the AAB shall require purchaser's presentation of proof of BSP approval and/or registration for each loan or investment, whenever required by existing rules."
This Circular shall take effect immediately.
Adopted: 31 July 1997
"Section 2. Sales of Foreign Exchange by AABs. — AABs may sell foreign exchange to residents (including the Government, its political subdivisions/instrumentalities and government-owned and controlled corporations), for any non-trade purpose, without need of prior Bangko Sentral ng Pilipinas (BSP) approval, provided that:
a) for sales of foreign exchange exceeding US$25,000.00, the AAB shall require a written notarized application and supporting documents from the purchaser of the foreign exchange; and
b) for sales of foreign exchange not exceeding US$25,000.00, the AAB shall require a written application only.
The written application required under b) shall be in accordance with the attached format*.
AABs shall see to it that this limit on the safe of foreign exchange for a non-trade purpose is not breached by the splitting of a foreign exchange purchase into smaller amounts so as to make it appear that the purchase does not violate the prescribed limit.
There is deemed to be a splitting of a foreign exchange purchase within the prohibition of this Circular if a Bank sells foreign exchange for a non-trade purpose to any one purchaser, within a fifteen banking day period, in such individual amounts which, when combined, exceed $25,000.00.
The AAB shall report all sales covered by this section under FED I using the appropriate transaction codes.
For sales of foreign exchange for payment of obligations that are foreign loan- or foreign investment-related, the AAB shall require purchaser's presentation of proof of BSP approval and/or registration for each loan or investment, whenever required by existing rules."
This Circular shall take effect immediately.
Adopted: 31 July 1997
(SGD.) GABRIEL C. SINGSON
Governor
Governor
Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.