BSP Governor Amando M. Tetangco, Jr. announced that the Monetary Board approved the adoption of a five (5)-year prescriptive period for the filing of requests for registration of foreign direct investments (or FDIs) with the BSP. The period starts from date of inward remittance/actual transfer of assets to the Philippines and ends 5 years after. The measure is envisioned to strengthen the data gathering capability of the BSP so as to have an updated,comprehensive and current information database on foreign direct investments.
For existing unregistered FDIs that are recorded in the investee firm’s books and whose foreign exchange funding were inwardly remitted or assets were transferred more than five (5) years prior to the date of the implementing circular, a grace period of one (1) year from the date of the circular is allowed during which applications for registration of such investment may be filed with the BSP. After said period, the BSP will no longer register these investments.
The covering BSP Circular will be issued shortly and posted in the BSP website, to take effect 15 calendar days from publication in the Official Gazette or a newspaper of general circulation.
The Governor also reminded the public about existing policies on foreign investments as follows:
a) Inward FDIs may be in cash or in kind. For registration purposes, foreign exchange funding for cash investments must be inwardly remitted but need not be converted to pesos;
b) Registration of foreign investments, including FDIs, is optional provided the foreign exchange that will fund the repatriation of capital and the remittance of dividends, profits and earnings accruing thereon shall not be sourced from authorized agent banks (AABs) and/or AAB-subsidiary/affiliate foreign exchange corporations; and
c) The registration of foreign investments in non-PSE listed firms should be filed with the International Operations Department of the BSP.
View Signed Circular