Reporting by EKBs, KBs and OBUs Under the Foreign Portfolio Investment Monitoring System

CIRCULAR LETTER Series of 2003 TO    :   All Expanded Commercial Banks (EKBs), Commercial Banks (KBs) and Offshore Banking Units (OBUs) SUBJECT  :   Reporting by EKBs, KBs and OBUs Under the Foreign Portfolio Investment Monitoring System

In line with the thrust to further simplify bank reports submitted to the Bangko Sentral ng Pilipinas (BSP) and to improve the monitoring of foreign portfolio investment transactions, all EKBs, KBs and OBUs shall report to the BSP International Operations Department (IOD) both electronically thru Lotus Notes (soft copy) and in hard copy all foreign portfolio investment transactions using the attached consolidated report formats under the Foreign Portfolio Investment Monitoring System (Annexes 1a, 1b and 1c).

The consolidated report, which shall be called the Consolidated Daily Foreign Portfolio Investment Registration and Outward Remittance Report, supersedes the following existing reports on foreign portfolio investment transactions:

1.   Report on New Issuances of Bangko Sentral Registration Documents (BSRDs) for Foreign Portfolio Investments;

2.  Annex 1 – Daily Report on Additional FX Inward Remittances Under Existing BSRDs;

3.   Annex II – Weekly Report on Changes in Investments Under Existing BSRDs (Other than those funded by additional FX inward remittances);

4.   Report on Outstanding Monthly Balances of Foreign Portfolio Investments Registered in behalf of BSP; and

5.   Statement of Capital Repatriation and Remittance of Dividends, Profits and Earnings Accruing to Registered Foreign Portfolio Investments.

The following are the implementing guidelines to be observed in accomplishing the report:

1.   Effective 5 May 2003, EKBs, KBs and OBUs shall report using the attached consolidated report formats, both electronically thru Lotus Notes and in hard copy, foreign portfolio investment transactions within two (2) banking days from transaction date. In accomplishing the report, banks shall be guided by the Manual of Instructions in Annex 2. In reporting the registration of transactions funded by inward remittances of foreign exchange (FX), the soft copy report shall be supported by a soft copy Certificate of Inward Remittance (CIR) Report using the CIR Report Format in Annex 3. Should there be a failure in the electronic transmission system, the soft copy reports shall be submitted in diskette.

2.   The hard copy reports shall be accompanied by the required supporting documents prescribed under existing rules for validation/verification purposes.

3.   An officer of the EKB, KB or OBU with the rank of Assistant Vice-President or equivalent rank shall certify the veracity and accuracy of the report.

4.   EKBs, KBs and OBUs shall be given two (2) months from start of full implementation to familiarize themselves with the system. After said period, non-submission, delayed, erroneous or incomplete reporting shall be subject to appropriate penalties and sanctions prescribed under existing BSP regulations.

5.   BSP-IOD will accept no responsibility for electronic messages/reports/information that may be hacked or cracked, intercepted, copied or disclosed outside BSP’s information system.

Prior to system implementation, BSP thru the Information Systems and Technology Department (ISTD) shall provide banks with the report templates in MS Excel format both for the CIR Report and the Consolidated Daily Foreign Portfolio Investment Registration and Outward Remittance Report. If there are revisions/enhancements in the system, ISTD shall correspondingly revise the report templates and subsequently deploy the revised templates electronically to all banks.

This Circular-Letter repeals or amends all existing BSP issuances inconsistent herewith.

AMANDO M. TETANGCO, JR. Officer-In-Charge