The Bangko Sentral ng Pilipinas (BSP) is reminding the public that effective19 April 2015, applications for registration of foreign direct investments (FDIs) should be filed with the BSP not later than one (1) year from the date of actual inward remittance of funds/transfer of assets to the Philippines.
The prescriptive period is contained in BSP Circular No. 645 (series of 2009), as amended by BSP Circular No. 818 (series of 2013). The change intends to strengthen the ability of the BSP to capture current data on FDIs. A two (2)-year transition/grace period (which ends on 18 April 2015) was allowed under the Circular, where applications for registration of existing unregistered FDIs may be filed with the BSP, regardless of the time when the funds/assets were transferred to the Philippines. After said date or starting 19 April 2015, the one (1)-year prescriptive period shall apply.
Foreign investors or their duly authorized representatives are, therefore, enjoined to file requests for registration of FDIs soonest, as applications are processed on a first-come first-served basis, based on full compliance with standard requirements. The checklist of requirements is found in Appendix 10 of the Manual of Regulations on Foreign Exchange Transactions (FX Manual) which may be downloaded from the BSP website at: http://www.bsp.gov.ph/downloads/Regulations/MORFXT/MORFXT.pdf.
The BSP also wishes to clarify that registration of foreign investments is optional and is required only if the foreign exchange for repatriation of capital and the remittance of earnings will be sourced from authorized agent banks or their affiliate foreign exchange corporations.