On Jul. 12, PHI CB issued circular on amendments to regs on forex.
PHI CB approved further amendments to Manual of regulations on foreign exchange transactions (FX manual) to allow PHI CB to gather more accurate, relevant information.
Provides for more accurate and relevant data on FX transactions to promote and maintain price stability and ensure financial stability, effective supervision of banks.
Document dated Jul. 12, 2024, received from PHI CB Jul. 17, summarized on Jul. 22.
Overview of Major Amendments
Major amendments include defined reports that are non-compliant with PHI CB reporting standards (i.e. erroneous, delayed, unsubmitted) under FX manual.
Revised monetary penalties for reporting violations based on reporting entities as well as classification of report; and set a maximum monetary penalty of PHP 1mn.
Namely, for each transactional violation or PHP 100k per calendar day for violations of a continuing nature pursuant to s37 of Republic act (R.A.) no. 7653, as amended by s 19 of R.A. no. 11211; as well as explicitly provided the process for the below.
Specifically, the process for notifying the concerned PHI CB-supervised FI, their directors/trustees, officers, employees (DTOEs) of FX policy violation along with the corresponding amount of monetary penalty; and appeal or request for reconsideration.
Effectiveness
Circular, of Jul. 12, 2024, will take effect 15 banking days after its publication either in the official gazette or alternatively in a newspaper of general circulation in Philippines.
Therefore, if duly published Jul. 12, amendments would take effect on Aug. 2, 2024.
Meanwhile, reporting entities are provided a transitory period until Dec. 31, 2024 to make the necessary preparations and adjustments to their systems and processes.
Jul. 17, 2024 PHI CB Comments
On Jul. 17, 2024, PHI CB commented regarding the circular of Jul. 12, 2024 above.
Revised guidelines will facilitate timely filing of reports by banks per PHI CB's reporting standards, instill accountability of PHI CB-supervised financial institutions, their DTOEs.
Regs will likewise enable PHI CB to efficiently generate reports being used for policy studies, monitoring economy, financial system, among others; aforesaid amendments align with previous PHI CB issuances on reporting guidelines, and penalty provisions.
Dec. 2024 Full Implementation
On Dec. 18, 2024, PHI CB issued advisory which pertains to the full implementation of Cir. 1197, which amends FX regulations re reporting guidelines and penalty provisions.
Reporting entities are given until Dec. 31, 2024 as a transition period to prepare and adjust their systems and processes to comply with the new guidelines.
The new regulations and penalty provisions will take full effect starting Jan. 1, 2025.
Fines prescribed under section 102 of FX Manual, as amended, will be imposed on entities failing to comply with reporting standards outlined in section 101 of FX manual.
