A.    Inward Investments

1.    Only foreign investments registered with BSP are entitled to capital repatriation or dividend/profit remittances using foreign exchange sourced/purchased from the local banking system.

2.    For portfolio investments (such as in PSE-listed or government securities), BSP registration may be made thru a local custodian bank (an AAB or an OBU).

3.    A Bangko Sentral Registration Document (BSRD) is issued for each investment registered but only one BSRD shall be issued by a local custodian bank per investor.

4.    Capital repatriation and dividend/profit remittances on BSP-registered investments to be paid in foreign exchange purchased from the Philippine banking system are allowed without prior BSP approval upon presentation of BSRD and proof of sale/dividend declaration.

5.    Supporting documents required for BSP registration.

a.     For cash investments, AAB certification/credit advice of inward remittance and conversion to pesos and investee’s certification of receipt of the investment (or broker’s invoice, in case of PSE-listed securities) shall be submitted to BSP.

b.     For investments in kind, proof of transfer of asset to the Philippines/shipping documents, SGS-CRF/appraisal by BSP, and investee-firm’s certification of receipt of the investment, shall be submitted to BSP.

c.     SEC or Bureau of Trade Regulations and Consumer Protection (BTCRP)-endorsed investments need not submit any supporting documents to BSP.

B.    Outward Foreign Investments by Residents

1.    Only outward investments exceeding US$6 million per investor per year sourced from the local banking system are required to be approved and registered by BSP.

2.    Applications to purchase foreign exchange from the local banking system for this purpose shall submit as supporting documents:

a. copy of the applicant’s income tax return;

b. project feasibility study, investment proposal/subscription  agreement and other documents showing the nature and place of the investment; and       

c. written undertaking to inwardly remit and sell for pesos to AABs the dividends/earnings/divestment proceeds from the investments.

3. Investments funded by withdrawals from FCDU accounts of residents or sourced outside the local banking system need not be approved/registered by BSP.

4. Foreign exchange received as dividends/divestment proceeds from outward investments funded by foreign exchange purchased from AABs shall be inwradly remitted within 15 banking days from receipt and sold for pesos to AABs within 3 banking days from receipt in the Philippines.