How to Register Foreign Investment with the BSP for Capital Repatriation

A non-resident investor who wants to pull capital out of the Philippines and remit earnings abroad generally needs the investment registered with the Bangko Sentral ng Pilipinas (BSP). Registration is what allows the investor to buy foreign exchange from an authorized agent bank (AAB) or an AAB forex corporation using Philippine pesos, and the Bangko Sentral Registration Document (BSRD) is the document that proves it. Without registration, an AAB has no basis to sell FX for repatriation. The steps below follow the FX Manual as amended by BSP Circular No. 1192.

Why BSP registration matters for repatriation

The FX Manual's Glossary of Terms defines the BSRD as a document evidencing registration of foreign investments and loans. The same definition states that registration allows the transacting party to access the FX resources of, or purchase FX from, AABs and AAB forex corporations against Philippine pesos for servicing or settling these transactions.

In practice, this means registration is the gateway to repatriation. The BSRD is issued as evidence of BSP registration, except for investments covered by of the FX Manual, for which a BSRD is no longer issued.

Which investments need registration, and where

The FX Manual splits inward investments into two registration tracks.

Registration with the BSP under. Certain investments are registered directly with the Bangko Sentral. These include debt securities issued onshore by private sector residents that are not listed at an onshore exchange and are not covered by the loans and borrowings provisions of the FX Manual, as well as instruments issued by residents and non-residents that fall outside Sections 33 and 34 and the loans and borrowings provisions, provided they are not contrary to applicable laws, rules, and regulations.

Registration with the BSP through AABs under. Other investments are registered when the registering AAB reports them to the BSP, provided the registration and reporting guidelines and supporting documents are complied with. This covers instruments such as debt securities issued onshore by the National Government and other public sector entities, equity securities issued onshore by residents and listed at an onshore exchange, listed debt securities of private sector residents, exchange-traded funds, Philippine Depositary Receipts listed at an onshore exchange, and peso time deposits with an AAB with a maturity of at least 90 days.

A registering AAB is a bank authorized to operate a foreign currency deposit unit that the non-resident investor has designated to report and monitor the investment. It reports all transactions, including new or additional investments, using the prescribed forms within the prescribed deadlines.

The registration process step by step

1. Determine the correct track. Identify whether the instrument falls under (registration with the BSP) or (registration through an AAB). The instrument type controls the process.
2. Inwardly remit the funding. For investments under, FX inwardly remitted to fund the investment must be converted to pesos with AABs or AAB forex corporations, unless the investment is required to be funded in foreign currency.
3. Submit the supporting documents. For investments, the non-resident investor or a duly authorized representative submits the applicable supporting documents — proof of funding and proof of the investment — to the registering AAB, together with a duly accomplished Authority to Disclose Information form.
4. Let the AAB report. The investment is registered once the registering AAB reports it to the BSP using the prescribed report form and the BSP confirms receipt of that report. A single BSP Reference Number is issued to the non-resident investor for all investments under, except for equity securities issued onshore or offshore by non-residents that are listed at an onshore exchange.
5. Keep the BSRD or proof of registration. For investments, the BSRD is the evidence of registration. For investments, the relevant proof is the BSP's confirmation of receipt of the registering AAB's report.

Applications for approval or registration of inward investments filed with the BSP are free of charge under the FX Manual.

How to actually repatriate capital and remit earnings

Once the investment is registered, the non-resident investor or an authorized representative — resident or non-resident — may ask an AAB or AAB forex corporation to sell the equivalent FX of the peso sales or divestment proceeds and related earnings.

The applicant submits a duly accomplished and signed Application to Purchase FX, together with the documents listed in Appendix 1.4 of the FX Manual.

For investments registered with the BSP under, the BSRD is required. For investments registered through AABs under, the requirement is either proof of receipt of the registering AAB's report, if the FX selling AAB is also the registering AAB, or a Letter Advice from the registering AAB if it is not.

FX sold for repatriation of capital and remittance of related earnings is directly remitted to the account of the non-resident investor or the intended beneficiary on the date of the FX sale. For investments in foreign direct investment and in equity securities not listed at an onshore exchange, the FX sold may instead be credited to the FCDU account of the investor's resident agent or authorized representative for future onshore reinvestment or eventual remittance, subject to the certifications required by the FX Manual.

Reporting and penalties

The FX Manual imposes reportorial requirements on AABs. Under, the Report on Foreign Investments Registered with the BSP through AABs, including the Report on Funding for Foreign Investments Registered with the BSP through AABs, must be submitted within two banking days from the actual settlement date or the date of compliance with the supporting document requirements. For the repatriation sheet, the deadline is two banking days from the actual remittance date.

BSP Circular No. 1197 sets out reporting standards and penalties. Reports must be complete, accurate, consistent, reliable, and timely, and reports with incomplete schedules or attachments are considered non-compliant. The Circular classifies violations as erroneous, delayed, or unsubmitted, and prescribes monetary penalties for each. For banks, the prescribed fine for a primary report is PHP3,000, while a secondary report carries PHP600. Penalties for delayed reports are computed per calendar day of delay.

The BSP may also conduct post-verification of FX transactions and reports. A violation of the FX Manual or of any condition imposed on a registration may be a ground for cancellation or revocation.

Frequently asked questions

Can I repatriate my capital if my investment was never registered with the BSP? Registration is what allows an AAB to sell FX for repatriation. Without a BSRD or proof of registration, the bank generally has no basis to sell foreign exchange for that purpose. The FX Manual ties access to FX resources to registration.

Do I need a BSRD for every investment? No. A BSRD is no longer issued for investments registered through AABs under of the FX Manual. For those, the proof of registration is the BSP's confirmation of receipt of the registering AAB's report, or a Letter Advice from the registering AAB if a different bank is selling the FX.

How long does the AAB have to report my investment to the BSP? Under of the FX Manual, the report on foreign investments registered through AABs, including the funding report, is due within two banking days from the actual settlement date or the date of compliance with the supporting document requirements.

Practical takeaways

• Registration with the BSP is the legal basis for buying FX to repatriate capital and remit earnings.
• Identify whether the investment is registered with the BSP under or through an AAB under, because the proof of registration differs.
• For investments, inward FX must generally be converted to pesos unless the investment must be funded in FX.
• Repatriation requires an Application to Purchase FX and the Appendix 1.4 documents, plus the BSRD or proof of registration.
• Reporting deadlines are short — two banking days for the relevant reports — and late or erroneous reports carry monetary penalties under BSP Circular No. 1197.

Primary sources

The rules discussed above are drawn from the following issuances, embedded here in full for your reference.

Amendments to foreign exchange regulations covering foreign investmentsOpen in Law LibraryDownload PDF

Amendments to foreign exchange regulations covering reporting guidelines and penalty provisionsOpen in Law LibraryDownload PDF

Guidelines on the Issuance of Certificate of Registration and Other Applications Requiring Prior ApprovalOpen in Law LibraryDownload PDF

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.