Consolidated Report on Compliance with FCDU Cover Requirement

CIRCULAR LETTER Series of 2002

TO    :   All Commercial Banks with Foreign Currency Deposit Units (FCDU)

For purposes of reporting the FCDU Cover Requirement prescribed under Circular No. 220 dated December 7,1999 and Circular Letter dated February 15, 2000, the Consolidated Report on Compliance with FCDU Cover Requirement (SRSO Form No. 1) is integrated to SCHAD.DBF file of the monthly Consolidated Statement of Condition by including therein the FCDU accounts disclosed under SRSO Form 1 that do not appear in the monthly GL file (CSOC) transmitted electronically by banks. The revised SCHAD.DBF report format and the database file structure are attached for your ready reference.

The following guidelines shall be observed:

1.   The live implementation of the expanded SCHAD.DBF file shall commence as of report ended July 31, 2002. Thenceforth, banks shall no longer be required to submit the Consolidated Report on Compliance with FCDU Cover Requirement (SRSO Form No.1) in hard copy form. Commercial banks shall run a parallel testing for reports as of June 30, 2002 wherein banks shall submit the report in the revised report format and in hard copy.

BSP-SRSO shall advise banks on the results of the parallel run and exceptions/ errors noted, if any, during the run for correction thereof.

2.   BSP-SRSO shall provide each commercial bank with the computation of its compliance with FCDU Cover Requirement based on the format prescribed under Circular Letter dated February 15, 2000, which shall be transmitted electronically to the bank concerned after five (5) banking days after the report, has been received, processed and validated.

3.   Banks’ concerned shall be required to explain in writing within 24 hours after receipt of BSP-SRSO’s computation of any deficiency noted in the FCDU Cover Requirement. For deficiency noted as a result of erroneous reporting of the GL file, bank concerned shall be required to submit an amended report in order to rectify the error, subject to the penalties imposed for delayed/erroneous reporting under the Manual of Regulations for Banks.

For strict implementation.

ALBERTO V. REYES Deputy Governor