(a) Submission of "Application to Purchase Foreign Echange" Form (b) Retention period for supporting documents covering sale of FX for payables under intercompany netting arrangements (c) Resident investments in offshore foreign currency..

Baruoxo SeNrnaL No PrLrPrNAs OFFICE OF THE DEPUTY GOVERNOR M oneta ry Stabil ity Sector crRcuLAR TETTER NO. CL-2015-069 To All Authorized Agent Banks (AABsl and AAB subsidi- ary/affiliate foreign exchange corporations (AAB-forex corps| Subject : (al Submission of "Application to Purchase Foreign Exchange" Form (bt Retention period for supporting documents covering sale of foreign exchange (FX| for payables under in- tercompany netting arrangements (c) Resident investments in offshore foreign currency denominated mutual funds and unit investment trust funds (UlTFsl The following clarifications are hereby issued relative to the following: 1. On item (al: For purchases of foreign exchonge (FX) from AABs/AAB-forex corps for repotriotion of copital ond/or remittance of earnings occruing on BS P- registe re d fo re i g n i nv estm e nts The foreign investor/client or his duly authorized representative may initially submit the duly accomplished Application Form to Purchase FX, as required under Annex A of the Manual of Regulations on Foreign Exchange Transactions (FX Manual), via facsimile transmission to the FX selling AAB/AAB-forex corp, provided that the FX selling institution shall: (a) ensure that the original copy of the application form is submitted to the FX selling institution within seven (7) calendar days from the sale of FX; and (b) retain such original document for record and audit purposes. 2. On item (b): For supporting documents covering payobles under open occount intercompany netting orrangements (Appendix 6.1 of the FX Manual) As required under ltem 2 of Appendix 6.1 of the FX Manual, a notarized undertaking must be executed by the net importer indicating, among others, that it will make available through the reporting AAB the supporting documents (e.9., shipping documents) upon request by the BSP. For this purpose, importer clients may retain such documents in their files for five (5) years from date of FX purchase except when a case for money laundering has been filed in court, for which the documents must be kept beyond the five (S)-year period until it is confirmed that the case has been finally resolved or terminated by the court. A. MabiniSt., Malate 1004 Manila, Phllippines . (63!7A877Ot. www.bsp.gov.ph . [email protected]

3. On item (c): For outword investments by residents to be funded with FX to be purchased from AABs/AAB-forex corps Investments by residents in offshore foreign currency-denominated mutual funds under ltem b of Section 44.2 of the FX Manual includes offshore foreign currency-denominated funds that are being traded at an exchange (exchange traded funds). For information and guidance. t at(.l.t, DIWA C uty Governor 5 November 201.5