Up to P1 million fine set for faulty reporting on forex trades – BSP

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has implemented new reporting guidelines and penalty provisions for foreign exchange transactions, which include imposing a penalty of P1 million for each violation.

The amendments will “allow the BSP to gather more accurate and relevant information on foreign exchange transactions to promote and maintain price stability and ensure financial stability and effective supervision of banks,” the central bank said.

In a circular signed by BSP Governor Eli Remolona Jr. on July 12, the central bank amended the provisions of the Manual of Regulations on Foreign Exchange Transactions to facilitate timely submission of reports by banks and instill accountability among BSP-Supervised Financial Institutions (BSFI).

“These regulations will likewise enable the BSP to efficiently generate reports being used for policy studies and monitoring of the economy and financial system, among others,” it said.

Banks are given until Dec. 31 to make the necessary preparations and adjustments to their systems and processes.

Under the new guidelines, the BSP defined reports that are non-compliant with BSP reporting standards as erroneous, delayed and unsubmitted.

Monetary penalties may be imposed against BSFI for any violation, delay in the submission of reports or publications, refusal to permit examination into the affairs of the institutions, false or misleading statements to the BSP or failure to comply with regulations.

“BSFI may be imposed a maximum monetary penalty of P1 million for each transactional violation or P100,000 per calendar day for violations of a continuing nature as provided under Section 37 of RA 7653, as amended,” the BSP said.

“Further, in case profit is gained or loss is avoided as a result of the violation, the BSP may impose a fine of no more than three times the profit gained or loss avoided on top of the monetary penalty,” it said.