BSP further amends foreign exchange regulations

The Monetary Board has approved the amendments to Foreign Exchange (FX) regulations covering foreign investments in line with the Bangko Sentral ng Pilipinas’ (BSP) commitment to further facilitate access to FX resources of authorized agent banks or their subsidiary/affiliate FX corporations for legitimate transactions and streamline documentary requirements, procedures and reporting.

This is part of the continuing efforts of the BSP to review the FX regulatory framework and support the country’s thrust to promote a policy environment conducive to sustained inflow of investments to help foster economic development and growth.

The major amendments include:

(1) allowing foreign investments registerable with registering authorized agent banks (e.g., non-resident investments in government securities, securities listed at the Philippine Stock Exchange) to be registered upon reporting by the registering authorized agent bank to the BSP, subject to compliance with the applicable guidelines under Appendices 10.B and 10.C of the Manual of Regulations on Foreign Exchange Transactions, as amended;

(2) dispensing with the issuance of Bangko Sentral Registration Documents for the aforesaid foreign investments registered with the BSP through the registering authorized agent banks; and

(3) streamlining the reporting forms/procedures pertaining to these foreign investments.

A transitory period until 30 September 2024 will be provided to allow registering authorized agent banks to make the necessary preparations and adjustments to their systems and processes to ensure compliance with the new reporting guidelines.

The implementing Circular will take effect 15 banking days after publication thereof either in the Official Gazette or in a newspaper of general circulation in the Philippines.