FOREX CORPORATIONS
2000, approved the following guidelines on foreign exchange
corporations/corporations engaged in foreign exchange trading activities
that are subsidiaries or affiliates of banks, quasi-banks and non-bank
financial intermediaries:
1. For sales of foreign exchange of $10,000 or more to
residents for trade and non-trade purposes, the Forex corporation shall
require a written notarized application and supporting documents from
the purchaser of the foreign exchange;2. The Forex corporation shall see to it that this limit
on the sale of foreign exchange for trade and non-trade purposes 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;3. There is deemed to be a splitting of foreign exchange
if the Forex corporation sells foreign exchange to any one purchaser,
within a fifteen (15) banking day period, in such individual amounts
which, when combined, amount to $10,000 or more; and4. Forex corporations shall be required to increase their
paid-up capital to at least P50.0 million within a period of six (6)
months from issuance date of this Circular.
This Circular shall take effect immediately.
Adopted: 27 Oct. 2000
(SGD.) RAFAEL B. BUENAVENTURA
Governor