Implementation of BSP Circular No. 220

CIRCULAR LETTER Series of 2000 TO : ALL BANKS WITH FOREIGN CURRENCY DEPOSIT UNITS (FCDUs)

For uniformity in the implementation of BSP Circular No. 220 dated December 7, 1999 regarding the guidelines and the imposition of monetary penalties for willful violation of the foreign currency asset cover and other reporting requirements, it is further clarified that:

1. The effectivity date of Circular No. 220 shall be January 3, 2000.

2. Deadline for submission of the revised monthly report shall be within fifteen (15) banking days after end of reference month, i.e. February 21, 2000 for report as of month ended January 31, 2000.

3. The attached report format, as revised, shall be categorized as “Category A-2” report for purposes of determining fines for willful delay in the submission of reports or erroneous reporting.

4. Marketable foreign currency-denominated debt instruments shall be reported on a net basis and the unrealized gains/losses on Available for Sale Securities (ASS) shall be properly disclosed in the report format as revised. Trading Account Securities (TAS), where the mark-to-market valuation gains or losses are recognized immediately and booked against “Trading Gain/(Loss)” account, shall also be reported on a net basis. However, the computation of asset cover shall be adjusted to compensate for mark-to-market gains or losses.

5. All banks shall provide an audit trail of the daily mark-to-market valuation of the debt instruments.

For immediate implementation.

ALBERTO V. REYES Deputy Governor