BSP Amends the Rules on Cross-Border Transfer of Local and Foreign Currencies

On 26 May 2022, the Bangko Sentral ng Pilipinas (“BSP”) issued Circular No. 1146 amending some provisions of the Manual of Regulations on Foreign Exchange Transactions.

Under BSP Circular No. 1146, no prior authorization for the BSP is needed in case any person intends to import or export or electronically transfer legal tender Philippine notes and coins, checks, money order and other bills of exchange drawn in pesos against banks operating in the Philippines in an amount not exceeding PHP 50,000.

For amounts exceeding the PHP 50,000 threshold limit, prior written authorization from the BSP will be required. In case the transaction involves physical cross-border transfer of Philippine currency, Currencies Declaration Form shall be required.

The said Circular also defines “electronic transfer” as a system where the authority to debit or credit an account is provided by wire, with or without a source document being mailed to evidence the authority.

In case what is to be brought in or taken out of the Philippines is foreign currency or foreign currency-denominated bearer monetary instruments, USD$10,000 or its equivalent shall be the threshold amount. Anything in excess of that would have to submit Currencies Declaration Form.

“Other foreign currency-denominated bearer monetary instrument” was also defined in the said Circular to mean as foreign currency-denominated instruments in bearer form whereby title thereto passes to another by endorsement, assignment, or delivery. It includes 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 and confirmation of sale/investment.