Philippine regulators amend FX regulations, set penalties

A maximum penalty of $17,130 is set for each transactional violation.

The Philippines’ central bank has rolled out new amendments to its foreign exchange (FX) regulations aimed at improving transparency and promoting price stability.

Monetary penalties for reporting violations have been revised, with a maximum penalty set at PHP1m (approximately $17,130) for each transactional violation, the Bangko Sentral ng Pilipinas (BSP) said in a statement posted on its website.

The BSP also set a maximum penalty of PHP100,000 per calendar day for violations of continuing nature.

BSP has also defined reports that are non-compliant with its reporting standards– either erroneous, delayed, or unsubmitted) under the Manual of Regulations of Foreign Exchange Transactions.

The central banks now explicitly stated the process for notifying the concerned financial institutions or its DTOE of the FX policy violations as well as the corresponding amount of monetary policy. 

The amendments also now define the process for appeal or request for reconsideration.

The implementing circular will take effect 15 banking days after its publication on 17 July. 

A transitory period will then last until 31 December 2024.

BSP expects the amended guidelines to facilitate timely submission of reports by banks in accordance with its reporting standards. 

“These regulations will likewise enable the BSP to efficiently generate reports being used for policy studies and monitoring of the economy and financial system, amongst others,” the BSP said in a statement.

(US$1 = PHP 58.38; as of 17 July 2024, 10:29AM)