Submission of weekly report on the foreign exchange (FX) transactions of FOREX Corporations that are affiliates/subsidiaries of banks

MEMORANDUM Series of 2001

To     :      All Universal and Commercial Banks with Forex Corporations as  Affiliates/Subsidiaries

Relative to BSP Circular-Letter dated 27 June 2001 requiring submission of a weekly report on the foreign exchange (FX) transactions of FOREX Corporations that are affiliates/ subsidiaries of banks, the following clarifications/additional guidelines shall be observed in accomplishing the report:

1.  Transactions below US$10,000.00 shall be reported in aggregate indicating the number of transactions and the word “various” under the name and address of the counterparty.  However, the requirement of the Supervision and Examination Sector (SES) under Circular-Letter dated 20 June 2000 to report the name and address of the counterparty per transaction shall be followed for purposes of reporting to SES.

2.  Transactions below US$10,000.00 that are denominated in foreign currencies other than the US dollars and are reported in aggregate shall indicate an average exchange rate in the “exchange rate” column.

3.   The clients’ underlying transaction or purpose shall be indicated in the following transactions:

a.   FX purchases of US$250,000.00 and above b.   FX sales exceeding US$10,000.00.

4.   The following codes for currency source under purchases shall be applicable only to counterparty III-Clients:

Code 1 - From abroad Code 2 - From other FCDU account Code 3 - From other residents

5.   The following codes for currency destination under sales, shall be applicable only to counterparty III-Clients.

a.      Code 1-for outward remittance b.      Code 2-Others (specify)

6.      FX purchases and FX sales other than US dollars shall be reported in original currency with the US dollar equivalent indicated in parenthesis under the original currency amount.   The total US$ equivalent of all FX purchases and sales under each category of counterparty shall be indicated.

7.      To allow the FOREX Corporations more time to consolidate all transactions of their branches, the deadline for submission of reports (Annex 1) shall be moved as follows:

a.   July 31, 2001- Monthly reports for January to June b.   July 20, 2001-Reports for the first and second week of July; and c.   Succeeding reports to follow the weekly submission as prescribed.

Please be guided accordingly.

AMANDO M. TETANGCO, JR. Deputy Governor