RULES AND REGULATIONS TO GOVERN THE ACCREDITATION OF FOREIGN EXCHANGE DEALERS

Pursuant to the Provisions of Executive Order No 120 dated January
30, 1987, the Following Rules and Regulations Are Hereby Promulgated to
Govern the Accreditation of Foreign Exchange Dealers.

CHAPTER I
Definition of Terms

SECTION 1.       Definition of terms — When used in these rules, the following terms shall, unless the context otherwise indicates, have the following meaning:

A. FOREIGN EXCHANGE — refers to currency notes/coins issued by
foreign governments; instruments of payment of funds, held in foreign
banks abroad and denominated in foreign currency.

B. FOREIGN EXCHANGE DEALER — any establishment engaged in buying and selling foreign currency to foreign or local tourists.

C. DEPARTMENT — the Department of Tourism

D. ACCREDITATION — a certification issued by the Department that
the holder is recognized by the Department as having complied with its
minimum standards in the operation of the establishment concerned.

CHAPTER II
Minimum Requirements for the Accreditation of Foreign Exchange Dealers

SECTION 1.       Minimum Requirements — For purpose of
accreditation, the following are the minimum office requirements for the
establishment, operation and maintenance of Foreign Exchange Dealers.

A. The Foreign Exchange establishment shall be located in a commercial district with pleasant and decent atmosphere;

B. It shall be located at the ground floor of a building;

C. It shall be easily indentifiable with a signage and shall be used exclusively for foreign exchange business;

D. It shall conspicuously display the foreign currency exchange rates and its business hours of operation;

E. It shall be presentable and air-conditioned except in areas which are at least 3,000 feet above sea level;

F. It shall be provided with a lounging area with adequate seating and telephone facilities;

G. It shall be manned by well-groomed and courteous staff with clean uniform at all times;

H. It shall be properly maintained, kept clean and secured at all times;

I.   It shall provided with fire-fighting facilities in accordance with the Fire Code of the Philippines; and

J.  Such other requirements as may be imposed by the Department or other concerned agencies.

CHAPTER III
Application for Accreditation

SECTION 1.       Who May Apply — The following may apply for accreditation as Foreign Exchange Dealer.

A. A resident Filipino citizen registered as a single proprietorship;

B. A partnership organized under the laws of the Philippines, at least 60% of its capital is owned by Filipino citizens; and

C. A corporation organized under the laws of the Philippines, at
least 60% of the subscribed common or voting shares of stock of which is
owned by Filipino citizens and the composition of its Board of
Directors being at least 60% Filipinos.

SECTION 2.       Filing of Application — Any person,
partnership or corporation desiring to operate and/or engage in the
business of Foreign Exchange shall accomplish and file with the
Department, the application for accreditation prescribed for such
purpose.

SECTION 3.       Documents Required to Support Application for Accreditation of Foreign Exchange Dealer — The application shall be accompanied by the following documents:

A. In the case of single proprietorship, a certified true copy of
its business name certificate and all amendments thereto duly registered
with the Bureau of Trade Regulation and Consumer Protection, Department
of Trade and Industry. In the case of corporation or partnership, a
certified true copy of the articles of incorporation/partnership and its
by-laws and all amendments thereto, duly registered with the Securities
and Exchange Commission;

B. Appropriate mayor’s permit and/or municipal license;

C. Certificate of registration from the Bureau of Internal Revenue as a foreign exchange dealer;

D. Resolution of the Board of Directors of the corporation
authorizing the filing of the application and designating the person
authorized to sign and transact business with the Department. If single
proprietorship or partnership, a letter of authority from the
owner/partners;

E. Complete list of all of its officers and employees indicating
therein their nationality, home address and position, certified correct
under oath by the General Manager/Owner;

F. A copy of the police and NBI clearance of the proprietor and manager;

G. For alien officers and employees, valid visa from the Bureau of
Immigration and the proper permit from the Department of Labor and
Employment;

H. Latest Income Tax Return and Audited Financial Statements;

I.   Proof of ownership or contract of lease or contract to lease
the office space intended for the use of Foreign Exchange Dealership;
and

J.  Such other documents as may be required from time to time by the Department.

CHAPTER IV
Issuance of Accreditation

SECTION 1.       Issuance of Certificate of Accreditation —
If the applicant has satisfactorily complied with the minimum standards
and the prescribed requirements, the Department shall issue the
Certificate of Accreditation in favor of the applicant.

SECTION 2.       Validity of Accreditation — The
Accreditation duly issued to any Foreign Exchange Dealer shall be valid
for a period of one (1) year from its date of issue, unless sooner
revoked or cancelled for cause by the Department.

SECTION 3.       Accreditation Fee — An annual
accreditation fee of Five Hundred (P500.00) shall be collected from the
applicant that have complied with the requirements for accreditation.

SECTION 4.       Display of Certificate of Accreditation — The Certificate of Accreditation shall be displayed in a conspicuous place of the establishment.

SECTION 5.       Non-transferability of Certificate of Accreditation — The rights and privileges granted under accreditation shall be non-transferable.

SECTION 6.       DOT Stickers — DOT stickers shall be
issued to all accredited foreign exchange dealer upon payment of Eighty
(P80.00) Pesos which validity shall be co-terminous with the
establishment’s accreditation.

SECTION 7.       Request for Department Identification Cards
— The Department Identification Cards shall be issued to officers or
employees of Foreign Exchange Dealer upon request subject to payment of a
nominal fee; Provided, that said employees or officers are included in
the list of personnel of the operator concerned.

SECTION 8.       Surrender of ID Card — The proprietor or
manager shall, within seven (7) days notify the Department of officers
and employees who have ceased to be employed from their firm and shall
surrender said officers’/employees’ ID cards.

CHAPTER V
Inspection

SECTION 1.       Creation of an Inspection Team — The
Department shall create an inspection team composed of at least two (2)
members from the Department to conduct inspection of the establishment
to determine whether it meets the minimum standards set by the
Department.

SECTION 2.       Inspection Checklist to be Accomplished During Ocular Inspection of the Foreign Exchange Establishment —
The DOT inspection team shall provide itself with a set of inspection
checklist of minimum standard requirements. All deficiencies found as
well as the requirements duly complied with shall be noted in the
checklist.

SECTION 3.       All Observations of the Applicant to be Entered in the Inspection Checklist
— Any observation of the applicant or its duly authorized
representative present at the time of the inspection on any adverse
findings of the team shall be entered in the inspection checklist. The
applicant shall then be furnished with a copy of the accomplished
inspection checklist.

SECTION 4.       Report of the Team — Within five (5) days
from the date of the inspection of the establishment, the team shall
render a report of its findings and recommendations.

SECTION 5.       Defects and Deficiencies Found During Inspection
— Where certain defects and deficiencies have been found in the course
of the inspection, the Department shall serve notice and give direction
to the proprietor or manager to rectify the defects or deficiencies
within a reasonable period of time.

SECTION 6.       Periodic Inspection — When necessary or
when the public interest and safety dictates, the Department may send an
inspection team, for the purpose of finding out whether the
establishment is being kept and/or managed in a manner conformable to
the standards set by the Department. The inspection shall be conducted
at a reasonable time of the day with due regard and respect to the right
of privacy of parties concerned.

SECTION 7.       Penalty for Failure to Remedy the Defects, etc
. — If the management fails to remedy the defects or deficiencies noted
in the inspection report, the Department may upon due notice cancel the
certificate of accreditation of the establishment and require it to
surrender the Department’s accreditation certificate and sticker issued
or deny its application for accreditation, as the case may be.

SECTION 8.       Service — Foreign Exchange Dealers shall provide service that is safe, comfortable and convenient as possible.

CHAPTER VI
Grounds for Cancellation of Accreditation

SECTION 1.       Grounds for Cancellation of Accreditation — Any of the following acts or omissions shall be sufficient ground for the cancellation of accreditation:

A. Making any false declaration or statement or making use of any
such declaration or statement or any document containing the same or
committing fraud or any act of misrepresentation for the purpose of
obtaining the grant of accreditation:

B. Failure to maintain the standards and requirements for accreditation as prescribed in these rules;

C. Violation of or non-compliance with any of the provisions of
these rules, promulgated orders, decisions and circulars issued by the
Department or any other concerned government agencies;

D. Promoting, facilitating or conducting activities constituting prostitution or other illegal undertakings;

E. Gross and evident bad faith in dealing with clients or fraudulent solicitation of business;

F. Failure to specify in the print media advertisements the DOT accreditation number;

G. Tolerance of gross misconduct, discourtesy, dishonesty, or
misrepresentation committed by any of the operator’s officers or
employees against its clients to the deterrent of the tourism industry.

H. Any other act or omission that works against the interest of the tourism industry.

CHAPTER VII
Grounds for Disqualifications of Application for Accreditation

SECTION 1.       Grounds for Disqualification of Application for Accreditation
— Any person/partnership/corporation/partners/stockholder who has been
previously declared bankrupt or has been convicted of a criminal offense
or whose accreditation has been cancelled shall be disqualified to
apply for accreditation.

CHAPTER VIII
Miscellaneous Provisions

SECTION 1.       Confidential Character of Data —
Information and documents received or filed with the Department in
pursuance of the requirements of these Rules shall be treated as
confidential and shall not be divulged to any private party without the
consent of the establishment concerned.

SECTION 2.       Separability Clause — The provisions of
these rules are hereby declared separable, and in the event that said
provisions or any part thereof are declared invalid, the validity of all
the other provisions shall not be affected thereby.

SECTION 3.       Repealing Clause — All existing rules and
regulations or circulars issued by the Department of Tourism which are
inconsistent with the provisions of these Rules are hereby repealed
and/or modified accordingly.

SECTION 4.       Effectivity — These Rules and Regulations shall take effect immediately.

Adopted: 10 Nov. 1999

(SGD.) GEMMA CRUZ-ARANETA
Secretary

Attested by:

(SGD.) ORESTES R. RICAFORTE
Undersecretary
Tourism Services and Regional Offices