Consolidated Foreign Exchange Regulations on Non-Trade Transactions

October 12, 1984 CBP CIRCULAR NO. 1028-84 CONSOLIDATED FOREIGN EXCHANGE REGULATIONS ON NON-TRADE TRANSACTIONS Pursuant to Resolution No. 1301 dated October 12, 1984, the Monetary Board hereby adopts and promulgates the following Consolidated Foreign Exchange Regulations on Non-Trade Transactions: CHAPTER I Foreign Exchange Receipts and Acquisitions A. Mandatory Inward Remittance and Sale of Exchange SECTION 1. Foreign Exchange Earnings of Residents . All Foreign exchange earned or acquired by residents shall be sold to an Authorized Agent Bank (AAB) for pesos within three (3) business days from the date of their receipt in the Philippines. If received abroad, a resident shall cause the inward remittance in full value within fifteen (15) calendar days from the date ownership accrues, and the sale for pesos with an AAB within three (3) business days from receipt in the Philippines. SECTION 2. Sale of Foreign Exchange . It shall be unlawful for any person to sell foreign exchange to unauthorized persons. No person shall engage in the purchase and sale of foreign exchange except AABs. SECTION 3. Authorized Agent Banks . Only commercial banks are, by virtue of their incorporation and license, considered as AABs of the Central Bank. They may deal in foreign exchange, purchase and sell foreign exchange for pesos from the general public, subject to the provisions of this Circular and other specific Central Bank rules and regulations on foreign exchange positions, external trade transactions. SECTION 4. Authorized Foreign Exchange Agents . a. Thrift and rural banks may qualify as Authorized Foreign Exchange Agents (AFXA) upon application and authorization by the Central Bank through the Foreign Exchange Department I (FED I). As such, they may purchase foreign exchange for pesos, but shall not sell foreign exchange to the general public. They shall not take foreign exchange positions and shall sell all their foreign currency acquisitions to AABs or to the Central Bank not later than three (3) business days from acquisition. b. Hotels in the three-star to five-star categories, Resorts in the double "AA" to Triple "AAA" categories as classified by the Ministry of Tourism, Duty-Free Shops, Supermarkets, Department Stores, and other Tourist-oriented Establishments accredited as such by the Ministry of Tourism may qualify, and upon application may be issued Certificates of Authority as AFXAS of the Central Bank. Applications shall be filed with the Central Bank through FED I. As AFXA, they may purchase foreign exchange in pesos in addition to accepting payment in foreign exchange for goods sold, services rendered or facilities made available to tourists. They shall not, however, sell foreign exchange for pesos to the general public. All their foreign exchange acquisitions/receipts shall be sold to AABs not later than three (3) business days from acquisition/receipt. SECTION 5. Overseas Filipino Earners . Filipino citizens employed and earning foreign exchange abroad shall remit inwardly a portion of their basic salaries through an AAB and shall sell the same to AABs for pesos, in accordance with the following percentages. Seamen/Mariners 80% of basic salary Landbased employees/ 70% of basic salary professionals with free board and lodging Others without board and 50% of basic salary lodging The following, however, are exempted from this requirement: 1. A contract worker whose immediate family members, dependents and beneficiaries are residing with him abroad, except if the dependents themselves are contract workers. 2. Filipino servicemen working in U.S. military installations. 3. Immigrants and Filipino professionals and employees working with the United Nations or its specialized agencies. Remittance of foreign exchange shall be in accordance with Letter of instructions No. 1219 and its implementing "Guidelines and Mechanisms to Facilitate the Remittance of Salaries of Filipino Overseas Workers", Executive Order No. 857 dated December 13, 1982 and its implementing rules and regulations, and Resolution No. 1-33 dated February 9, 1983 of the Inter-Agency Committee of the Central Bank, Ministry of Labor and Employment, and the Ministry of Foreign Affairs. SECTION 6. Foreign Exchange Earnings of Philippine Service Exporters . Residents of the Philippines engaged in technical, professional and other services rendered abroad and/or in U.S. military bases in the Philippines, and are paid for in foreign exchange, shall sell for pesos their net foreign exchange receipts not later than three (3) business days following the day of receipt in the Philippines. Service exporters include, but need not be limited to, the following: 1. Shipowners and operators engaged in overseas operations; 2. Airline owners and operators engaged in international flight operations; 3. Crewing/manning agents for foreign principals; 4. Travel agencies and tour operators contracting and/or arranging inbound tours; 5. Those engaged in port operations, marine services, medical and dental services, catering services, hauling services and other related services abroad; 6. Those rendering management, engineering, planning and other services abroad, whether as prime contractors or sub-contractors; 7. Those winning construction or supply contractors on foreign-assisted projects as provided under Executive Order No. 765; 8. Those engaged in cultural presentation and/or exhibition abroad of television/cinematographic film and musical recordings made or produced in the Philippines. SECTION 7. Foreign Exchange Earnings of Recruitment, Placement, Manning and Crewing Agencies . Corporations, partnerships, single proprietorships authorized by the Ministry of Labor and Employment to recruit Filipino workers for overseas employment shall remit inward and shall sell to AABs the net foreign exchange payments from foreign employees for mobilization expenses, air fares and other incidentals, not later than (3) business days following the day of receipt in the Philippines. SECTION 8. Foreign Exchange Earnings of Philippine Contractors . Corporations, partnerships registered with the Philippine Overseas Construction Board and those registered with the Ministry of Labor and Employment, with overseas contracts, shall remit inward their net foreign exchange receipts and shall sell the same for pesos with AABs not later than three (3) business days following the day of receipt in the Philippines. SECTION 9. Foreign Exchange Receipts of Philippine Carriers : Local Agent of Foreign Carriers . Airline or shipping companies incorporated under Philippine laws owners/operators of Philippine flag vessels or owners of vessels of foreign registry and resident agents of foreign airlines or shipping companies engaged in regular or chartered flights/trips outside the Philippines, shall remit inward and sell to AABs their net foreign exchange receipts not later than three (3) business days following the day of receipt in the Philippines. SECTION 10. Foreign Exchange Receipts of Insurance Companies . a. Insurance companies or agents organized under Philippine laws shall remit inward and sell for pesos all insurance and reinsurance premia received in foreign exchange and other receipts through AABs, not later than three (3) business days following the day of receipt in the Philippines. b. Non-resident foreign insurers/brokers shall likewise remit inward foreign exchange and may open and maintain peso deposit accounts in their names with AABs; provided that said accounts shall be credited only with peso proceeds of inward remittances and reinsurance premia received from local ceding companies; Provided, further , That the deposit is supported by a certification of the Insurance Commissioner. There shall be no restriction on withdrawals from such deposits. However, withdrawals for remittance abroad against such deposits may be allowed only upon submission of a certification of remittability from the Insurance Commissioner. SECTION 11. Exchange Receipts of Telecommunication Companies . Companies organized in accordance with Philippine laws engaged in the telegraph, telegram, cable, radio and other medium of communication shall sell to AABs for pesos their foreign exchange receipts arising from their billings of counterparties abroad, not later than three (3) business days following the day of receipt in the Philippines. SECTION 12. For Exchange Receipts of Tourist-Oriented Establishments . Only corporations, partnerships or single proprietorships registered and accredited by the Ministry of Tourism may accept foreign exchange in payment of goods sold, services rendered and/or facilities made available, and they shall be subject to the following rules: a. The conversion rate shall be based on the Daily Bulletin of Buying Rates for acceptable currencies published by the Central Bank. b. They shall issue Central Bank Official Receipts for every foreign received, and observe the rules on the use of Central Bank Official Receipts. All foreign exchange acquisitions shall be sold for pesos to AABs not later than three (3) business days following the day of receipt or acquisition in the Philippines. SECTION 13. Foreign Exchange Receipts of Tour Operators and Travel Agents . Any corporation, partnership or single proprietorship organized in accordance with Philippine laws, organizing and arranging domestic tours for tourists and foreign visitors, or selling travel tickets for foreign air lines/shipping companies shall sell their foreign exchange commissions and other receipts for pesos to AABs not later than three (3) business days following the day of receipt in the Philippines. If received abroad, such firms shall cause the inward remittance of the full value of the foreign exchange within fifteen (15) calendar days from receipt abroad. The issuance and refund of passage tickets by tour operators and travel agencies shall be governed by Sections 36 to 39 of this Circular. SECTION 14. Foreign Exchange Receipts of Foreign Firms . A foreign-owned/controlled firm organized under Philippine laws or licensed to do business in the Philippines shall sell to AABs any foreign exchange receipt for pesos not later than three (3) business days following receipt of the funds in the Philippines. Executives of foreign firms who receive part or all of their compensation in the Philippines in foreign currency shall sell only to AABs their foreign exchange receipts. SECTION 15. Operating Funds of Multinational Area Headquarters . A multinational area headquarter in the Philippines under P. D. No. 218 shall remit into the Philippines amounts necessary for its operations in the Philippines, which shall not be less than US$50,000 or its equivalent in acceptable foreign exchange per annum. Executives of multinational area headquarters shall convert a minimum of US$1,000 or its equivalent of their salary per month into pesos through AABs. A certificate of inward remittance and conversion to pesos of at least US$50,000 or its equivalent for the company and at least US$1,000 or its equivalent for the executives shall be submitted to FED I within thirty (30) calendar days after issuance of a certificate of registration with the Securities and Exchange Commission (SEC) and every year thereafter. SECTION 16. Foreign Exchange Brought in by Transients . Visitors, tourists and temporary residents shall sell their foreign exchange for pesos only with an AAB or an Authorized Foreign Exchange Agent, or may pay for services, goods and/or facilities with foreign exchange only with entities accredited as tourist-oriented establishments by the Ministry of Tourism and, therefore, authorized to accept payments for goods, services and facilities in foreign exchange. SECTION 17. School Expenses of Foreign Students . Foreign exchange which the Ministry of Education requires foreigners accepted for enrollment in Philippine colleges and universities to bring into the Philippines for the purpose of paying for their tuition fees, other school expenses, board and lodging shall be sold for pesos only with an AAB. The following procedures shall be observed by AABs in the issuance of the certification to evidence the sale of foreign exchange as above required: a. The certification shall be made out in the letterhead of the issuing bank; b. The name and position title of the authorized signing officer of the issuing bank shall be typewritten/printed beneath the signature of said authorized officer; c. The certification shall be authenticated by a validating machine indicating the amount of foreign exchange sold for pesos; d. The certification shall clearly indicate the serial number and date of the receipt issued to the foreign student concerned. B. Reports Required SECTION 18. Reports of Earnings . All residents who regularly earn, acquire, or receive foreign exchange locally or from abroad shall submit reports of such earnings, acquisitions or receipts from operations and other sources, and foreign exchange disbursements to the Central Bank through the Foreign Exchange Department I, in the prescribed form attached as Annex I hereof, within ten (10) calendar days following the end of every month. Sample report forms may be obtained from said Department. This Section specifically refers, although not necessarily limited, to the following: a. Authorized Foreign Exchange Agents. b. Builders, repairers, handlers providing supplies or rendering services to foreign-owned/operated vessels/aircrafts. c Carriers organized under Philippine laws, agents, branch offices/agents of foreign owners of vessels of Philippine registry or operators of foreign registered vessels. d. Clubs, associations and other aggrupations for whatever purpose (civic, political, etc.) earning or receiving foreign exchange from any source. e. Crewing/manning agencies of foreign-owned/operated vessels/aircrafts. f. Firms issuing/servicing international credit cards. g. Hotels, pension houses, inns. condominiums, tourist shops, restaurants, nightclubs, cocktail lounges, sauna baths and other similar tourist-oriented establishments which are receiving foreign exchange from any source. h. Indentors, commission agents, or Philippine representatives of foreign firms. i. Insurance companies or insurance agencies. j. Migrants with real or financial capital brought into the Philippines. k. Oil companies engaged in selling aviation gasoline, bunker oil, and/or other oil products to aircrafts of foreign airline companies or vessels of foreign shipping companies. l. Philippine Government agencies abroad collecting taxes and fees. m. Private institutions, missionaries, educational and benevolent institutions receiving contributions, donations, compensation, pension or other payments. n. Publication, advertising, communication and telecommunication companies receiving payment in foreign exchange. o. Real estate dealers, brokers, operators, owners, lessors receiving rentals, commissions, payments in foreign currencies. p. Recipients of foreign exchange from non-residents pursuant to Contracts of services. q. Recruitment agencies, construction firms, engineering firms, architectural firms, and labor contractors undertaking jobs at U.S. military, naval or air bases, or other United States establishments in the Philippines, or undertaking projects abroad. r. Regional headquarters, representative offices, subsidiaries and/or affiliates of foreign companies. s. Recipients of foreign exchange payment of royalties, film, television and other rentals. t. Tour operators, travel agencies, brokerage firms, transportation companies which are receiving foreign exchange from any source. SECTION 19. Verification of Reports . Verification of the foregoing reports against books of accounts and related records shall be made by the FED I of the Central Bank. C. Incentives SECTION 20. Qualification . Whenever the net foreign exchange receipts of invisible earners amount to at least US$100,000 or its equivalent in other currencies for the calendar year immediately preceding, the firm may, upon application, be certified by the Central Bank as export-oriented and shall be entitled to retain a portion of their earnings in a special foreign currency deposit account with AABs for their operating expenses abroad and other contingencies, equivalent to their average expenses incurred during the preceding three months plus ten percent of the gross foreign exchange receipts during the immediately preceding 12 months. SECTION 21. Certification . The application for certification shall be in letter form filed with the Central Bank through FED I. The following documents shall support the application: a. Articles of incorporation/partnership/registration of business name, including attachments thereto. b. Copy of certificate or registration with or license by the appropriate government agency. c. Latest audited financial statements showing the gross foreign exchange earnings during the year immediately preceding the date of filing of the application; and d. Proof of foreign exchange inwardly remitted and sold to AABs. Upon verification of the receipts, the minimum qualifying amount sold to AABs, and compliance with the periodic reports required by the Central Bank, the certification may be issued by the Central Bank through FED I. D. Sanctions SECTION 22. Central Bank Action on Non-Compliance . Non-compliance with the mandatory remittance requirements by foreign exchange earners shall have the following effects: a. In the case of a Philippine contractor, recruitment, placement, manning crewing agency, non-compliance shall be referred by the Central Bank to the Ministry of Labor and Employment for appropriate sanction. b. In the case of Philippine carriers, resident agents of foreign carriers, the non-compliance shall be referred by the Central Bank to the Maritime Industry Authority for appropriate sanction. c. In the case of Philippine insurance companies, non-compliance shall be referred by the Central Bank to the Insurance Commissioner for appropriate sanction. d. Tourist-oriented establishments shall be referred by the Central Bank to the Ministry of Tourism for appropriate sanction. e. In the case of multinational area headquarters and in the case of its officers, non-compliance shall be referred by the Central Bank to the Securities and Exchange Commission and the Immigration and Deportation Commission, respectively, for appropriate sanction. E. Operating Guidelines of Authorized Foreign Exchange Agents SECTION 23. Use of Appropriate Signboard/Notice . Establishments authorized by the Central Bank as Foreign Exchange Agents shall install lighted plastic signboards in front of their establishments with the following inscriptions: Authorized Foreign Exchange Agent of the Central Bank For facility and uniformity, the Central Bank shall provide the signboard at cost. The establishment shall, in addition to the above-required signboard, display conspicuously inside their place of business, another signboard with the following inscriptions: THIS ESTABLISHMENT IS AN AUTHORIZED FOREIGN EXCHANGE AGENT OF THE CENTRAL BANK OF THE PHILIPPINES FOR EVERY SALE OR CONVERSION OF FOREIGN EXCHANGE, TOURISTS AND OTHER NON-RESIDENTS SHALL REQUEST FOR CENTRAL BANK OFFICIAL RECEIPTS SECTION 24. Exchange Rates for Authorized Foreign Exchange Agents . Authorized Foreign Exchange Agents shall purchase acceptable foreign currency notes, coins and checks at rates in accordance with the "Daily Bulletin on Buying Rates for Acceptable Currencies" published by the Central Bank and available at the Ground Floor Lobby of the 5-Storey Central Bank Building or from the Public Relations Office of the Central Bank, Telephone No. 59-73-55. SECTION 25. Issuance of Receipts . AABs shall cover the purchases of foreign exchange with their own Bank Official Receipts. Authorized Foreign Exchange Agent's receipt/acquisition of foreign exchange shall be covered by Central Bank Official Receipt, copies of which shall be attached to their periodic reports to the Central Bank in the prescribed form (See Annex 2, 2-a, 2-b) a. Receipts shall be issued immediately upon each and every purchase of foreign exchange, in numerical order. b. As many booklets as are necessary may be used simultaneously; provided, that each cashier shall use only one booklet at a time. c. Spoiled receipts shall be marked and stamped "CANCELLED". The monthly report of foreign exchange transactions shall be supported by the valid and cancelled Central Bank Official Receipts. A monthly inventory of unissued Central Bank Official Receipts shall be submitted to the Central Bank duly certified by an accountable officer of the reporting Agent. The non-issuance of a Central Bank Official Receipt for any foreign exchange transaction requiring its use is deemed sufficient ground for revocation of the foreign exchange dealer's Certificate of Authority and imposition of sanctions provided in this Circular. SECTION 26. Liability for Loss of Central Bank Official Receipts . Any Authorized Foreign Exchange Agent who fails to account for each Central Bank Official Receipt found to have been tampered or unlawfully used by another shall be liable for the peso equivalent of the foreign exchange appearing on the face of the unlawfully used receipt. CHAPTER II Foreign Investments A. Registration Requirement SECTION 27. Registration of Foreign Investments a. All foreign investments in equity or in Central Bank-approved securities and reinvestments shall be registered with the Central Bank. Foreign investments already registered with the Central Bank need not be registered anew under these regulations. b. No unregistered foreign investment shall be allowed repatriation or profit remittance privilege. c. Applications for registration of foreign investments in equity shall be filed in the forms prescribed for the purpose, within three (3) business days after receipt of the foreign exchange, through the AAB which received the foreign exchange, which in turn shall file with the Management of External Debt and Investment Accounts Department (MEDIAD) of the Central Bank. Applications for registration of foreign investments in CB-approved securities shall be filed in the forms prescribed for the purpose within three (3) business days after receipt of the foreign exchange by the securities dealer or broker duly licensed by the Securities and Exchange Commission and a bona fide member of the Manila or Makati Stock Exchange, through an AAB which in turn shall file with MEDIAD. SECTION 28. Interim Investments . During the period between the sale of CB-approved securities and the actual repatriation of cash sales, the proceeds may, while awaiting the scheduled repatriation, be placed by the foreign investor in any of the following: a. Government securities. b. Shares of stock in BOI-registered industries. c. Shares of stock in CB-certified export-oriented industries. These interim investments shall be subject to prior approval and registration with the Central Bank through MEDIAD. SECTION 29. Responsibilities of Authorized Securities Dealers/Brokers . Only securities dealers/brokers duly licensed by the SEC which are bona fide members of Philippine Stock Exchange may act as foreign investment agents for CB-approved securities. Such authorized securities dealers/brokers shall: a. Ensure that the foreign exchange investment of a non-resident is immediately remitted and sold for pesos to AABs; if funded by a foreign currency deposit account of the purchaser, ensure the sale for pesos with AABs and obtain an Official Receipt for the purpose. b. Cause the registration of foreign cash investment with the Central Bank immediately upon receipt of the funds in accordance with the procedures outlined in Section 27. Securities acquired under options are not eligible for registration. c. Execute the purchase or sale of securities in accordance with the instructions of non-resident investors. d. Ensure that the purchase or sale price is at the fair market value of the securities at the time of the transaction. c. Ensure the compliance by transfer agents with the requirements of SEC on transfers and issue of securities traded for foreign investors by presenting the physical securities. f. In the sale of securities, ensure that the proceeds are immediately reinvested, or remitted in accordance with the non-resident's instruction, subject to prior Central Bank approval in the case of remittance abroad. g. Keep and maintain complete record of transactions for or with non-residents and shall make them available for inspection/examination by the Central Bank. h. Submit to Central Bank through MEDIAD periodic reports in the forms prescribed by the Central Bank. SECTION 30. Securities Transactions . All exportation of securities on behalf of foreign investors and all importation of securities on behalf of residents shall be subject to prior approval of the Central Bank through MEDIAD. All sales of securities on behalf of foreign investors, whether effected in the Philippines or abroad, shall be reported by the securities dealers/brokers to the Central Bank through MEDIAD in the form prescribed for the purpose which shall be filed monthly. CHAPTER III Foreign Exchange Disbursement and Transfers Abroad A. General Rules SECTION 31. Contract Consideration in Foreign Exchange . No contract shall be entered into by any resident involving payment or outward remittance of foreign exchange, unless specifically authorized by the Central Bank through FED I. No transaction shall be made by any resident where the foreign exchange is paid, retained, delivered or transferred abroad while the corresponding pesos are paid for, or received in the Philippines, unless specifically authorized by the Central Bank through FED I. SECTION 32. Prohibition Against Deposits Abroad of Residents . No resident shall open and maintain foreign exchange deposit accounts abroad involving outward remittance of foreign exchange unless otherwise permitted by law or by Central Bank regulations. SECTION 33. Purchase of Foreign Exchange . It shall be unlawful for any person to buy foreign exchange for pesos unless authorized by the Central Bank as foreign exchange agent in accordance with this Circular. SECTION 34. Sale of Foreign Exchange by AABs . In general, AABs may sell foreign exchange for the purposes indicated in this Chapter without need of prior Central Bank approval, unless explicitly stated. However, the documents to prove the conditions stated in the following sections shall be required by AABs to be presented by applicant buyer of foreign exchange. AABs shall keep these documents on file for examination by the FED I of the Central Bank. Moreover, AABs shall report all foreign exchange sold in the appropriate schedule to the Daily Report of Foreign Exchange Position, to FED I. SECTION 35. Remittance of Invisibles . Commercial banks shall service the remittance covering payment for invisibles by means of telegraphic transfer, mail transfer or demand draft, except that in the case of remittance by demand draft, the selling bank shall mail the demand draft directly to the beneficiary abroad. Only applications to remit foreign exchange which are required under these rules to be subject to prior Central Bank approval, clearance or certification shall be referred to the Central Bank. Commercial banks shall undertake the initial processing of the application in order to determine whether the documents submitted by applicants in support of the applications are complete as required under pertinent Sections of this Circular. Commercial banks shall inform applicants that foreign exchange applications shall be filed through AABs and not directly with the Central Bank. Commercial banks shall furnish the Central Bank with the names of their accredited liaison officer for consultations with the Central Bank. B. Travel SECTION 36. Sale of Travel Funds Only . AABs may sell foreign exchange for travel abroad, subject to the following conditions: a. AABs shall sell travel funds only to permanent residents of the Philippines who have paid the travel tax, unless exempt by law. b. AABs shall sell travel funds only at their head office, MIA branch, and five (5) other branches in Metro Manila. In the provinces, only one (1) branch per province may sell travel funds. The designated branches shall be reported to the Supervision and Monitoring Group of FED I of the Central Bank within five (5) banking days from start of operations. c. The sale of travel funds shall not be made earlier than five (5) banking days before departure. d. AABs shall scrutinize applicant's passport to ascertain whether or not applicant had purchased foreign exchange from other banks for the same trip. e. AABs shall scrutinize applicant's passenger ticket to ascertain his destination and thus the amount of foreign exchange to be sold. f. AABs shall stamp the passport and travel tickets of the applicant within the name of the bank, the date and amount of travel funds sold. g. In case of withdrawal from a foreign currency deposit account for travel, the stamp on the passport and passenger ticket shall so indicate. SECTION 37. Ceiling on Travel Funds . The sale by AABs of foreign exchange for travel shall be limited to the following amounts: a. For both business and non-business travel, irrespective of duration, up to a maximum of US$3,000 for Area I (United States of America, Canada, South America, Europe, Australia, the Middle East, Africa, Japan and New Zealand). b. For both business and non-business travel, irrespective of duration, up to a maximum of US$1,000 for Area II (Hongkong, Taiwan, Korea, Singapore, Malaysia, Thailand, and other countries not included in the coverage of Area I). c. For travellers who are less than 21 years of age, up to a maximum of US$500.00 irrespective of duration and destination. d. For overseas contract workers with prearranged employment, up to a maximum of US$100.00. SECTION 38. Sale of Travel Tickets and Charge Orders by Carriers . International carriers selling passenger tickets for travel from and back to the Philippines may accept peso payments from residents, including members of the diplomatic corps, United Nations Organizations with offices in the Philippines, International Agencies to which the Philippines is a member including their relatives within the first degree of consanguinity/affinity, foreign technicians under contract with the Philippine Government. Foreign nationals working with multinational area headquarters and Offshore Banking Units may pay in pesos funded by inward remittance of foreign exchange converted to pesos through AABs. Passenger tickets and miscellaneous charge orders shall be sold to non-residents in foreign exchange only. In no case shall any airline or shipping company or travel agent issue in the Philippines miscellaneous charge/exchange orders payable in pesos for any of the following: a. Any travel which does not involve embarkation or disembarkation in the Philippines. b. Any excess baggage which does not involve embarkation and disembarkation in the Philippines. c. Any freight charge on shipment sent on consignment to the Philippines. SECTION 39. Refund of Travel Documents by Carriers . a. With Central Bank approval through FED I, airline and shipping companies may refund totally or partially unused passenger tickets on the face of which there is proof that the ticket was utilized to purchase travel funds; provided that the refund shall be in pesos and the passenger accounts for and resell the foreign exchange to the AAB which sold the same; and the AAB reports to the Central Bank the repurchase from the passenger concerned. b. Without Central Bank approval, airline and shipping companies may refund in pesos: 1. Unused miscellaneous charge or exchange orders or similar documents issued abroad. 2. Partially or totally unused tickets on the face of which there is no showing that the ticket was used to purchase foreign exchange travel funds. The refunded ticket shall be submitted to the Central Bank together with the company's quarterly report. The particular currency used in purchasing the passage documents must be indicated in the appropriate box in the tickets. C. Foreign Exchange Transfers Abroad by Residents SECTION 40. Expenses for Higher Education . a. Commercial banks may sell without prior approval of the Central Bank foreign exchange to cover the living allowance and educational expenses of residents studying abroad for a bachelor, masteral or doctoral degree, or pursuing high-technology courses, as follows: Area I Area II Living Allowance US$500.00 US$350.00 monthly monthly Books and Supplies US$500.00 US$500.00 per annum per annum Clothing Allowance US$500.00 US$300.00 per annum per annum Miscellaneous School US$500.00 US$300.00 Expenses per annum per annum Areas I and II shall refer to destinations specified under Section 37 of this Circular. b. Procedure . In processing an application for foreign exchange to defray educational expenses abroad, commercial banks shall observe the following: 1. Only students working or about to work for a bachelor's, master's or doctoral degree as well as those pursuing or about to pursue high-technology courses at duly accredited colleges/universities as certified by the institutions where the students are enrolled or to be enrolled shall be entitled to living allowance and educational expenses. In the case of high-technology courses, students must show proof of bachelor's degree upon application for foreign exchange. 2. The living allowance, educational expenses shall be net of scholarship/grant/fellowships/stipends and earnings from employment (if any), and exclusive of tuition and other school fees. Banks may allow the remittance of the living allowance in lump sum or sell foreign exchange to be hand-carried by the students concerned upon departure, in amounts not exceeding the allowances for the quarter or semester during which they are enrolled, as the case may be, on the basis of the rates prescribed in preceding Section. 3. Tuition and other school fees shall be payable directly to the schools where the students are enrolled. c. Documentary Requirements . Applications to purchase foreign exchange for living allowance and educational expenses of students for graduate/post graduate and high-technology courses shall be accompanied by the following documents: 1. Statement of enrollment or acceptance by the school abroad that the student is working or about to work for a degree or taking a high-technology course. 2. School bills/statements of account covering tuition and other school fees. 3. Sworn statement of the student that he does not enjoy any scholarship/grant/fellowship/stipend and/or is not gainfully employed. 4. Proof or certification under oath that the student's scholarship and earnings from employment, if any, are insufficient to cover minimum needs. 5. Certification of completion of a bachelor's degree from the school where he graduated in the case of a student pursuing or about to pursue a high-technology course. SECTION 41. Exchange Programs for High School Students . High school students may be granted foreign exchange for education only under an exchange program and under the following conditions: a. The maximum travel funds per student shall be US$500.00. The maximum clothing allowance and incidental expenses during his stay abroad shall be US$500.00 or US$1,000.00 per calendar year per student. b. The application shall be filed collectively by the local sponsoring organization, with the following documents: 1. List of names, addresses, passport numbers of the students admitted to the program; 2. Names and addresses of Philippine and foreign foster parents; 3. Certification as to the names and number of participating foreign students who will study in the Philippines whose return tickets shall be paid abroad; and 4. An undertaking that the incoming foreign students shall sell a minimum of US$500.00 each to the commercial banking system during the academic year. c. The AAB selling foreign exchange shall stamp on the passport and ticket the amount of foreign exchange sold to resident exchange students. SECTION 42. Correspondence Studies . AABs may sell foreign exchange to cover tuition fees for correspondence studies which shall be directly remitted to the correspondence school. Proof of admission or enrollment in correspondence schools shall be required, including a description of curriculum courses, statement of fees, dues, total cost of the course and schedule of payment, billings from the schools abroad. SECTION 43. Medical Expenses . AABs may sell foreign exchange for health and medical expenses to be incurred abroad not exceeding US$3,000.00 for initial expenses subject to liquidation with the presentation of hospital/doctor's billing. Additional amounts if any shall be remitted directly to the hospital/doctor abroad upon submission of proof of confinement/treatment and submission of statement of account and bills of expenses, and CB-FED I authority to remit. SECTION 44. Support of Dependents Abroad . AABs may sell foreign exchange covering the monthly living allowance abroad of a child not more than 21 years of age, spouse, or parent of a Philippine resident in the following amounts; a, $250.00 per month per dependent in Area I. b. $150.00 per month per dependent in Area II. AABs may sell foreign exchange in lump sum provided it does not exceed the allowances for one quarter. The AAB shall require the following documents which shall accompany the remitter's application to purchase foreign exchange: a. Consular certificate or its equivalent documents that the dependent is in fact residing abroad and that the dependent is not gainfully employed in the country of residence abroad; b. Certified true copy of birth certificate, marriage contract, adoption papers, whichever is applicable, to prove that dependent is the wife, husband, child or parent of the remitter/applicant. c. Proof that remitter is a Philippine resident. SECTION 45. Personal and Institutional Transfers . Donations, gifts, missionary, educational and benevolent contributions made by individuals or private organizations up to US$100.00 to any one beneficiary abroad for any calendar year may be given due course by an AAB, and remitted directly to the beneficiary abroad, provided the application is supported by: a. Acceptance of the donation by the donee, indicating the exact address of the donee; b. Proof of payment of applicable tax. D. Remittance by Non-Residents SECTION 46. Emigrant's Assets . Emigrants may remit initially only up to a maximum of US$5,000.00 of their capital assets to their new country of domicile. Subject to prior Central Bank approval through FED I, the remaining liquid capital assets may be remitted starting one (1) year after the initial remittance, in five (5) equal annual installments. AABs shall require the following documents: a. Permanent residence of emigrant/beneficiary abroad; b. Ownership of the asset/s by emigrant/beneficiary abroad; c. Payment of applicable taxes; d. In case of subsequent remittance of remaining assets, applicant's CB authority to remit; e. In case of income from real properties, a statement of rentals/income earned certified by an independent CPA shall be additionally required by AABs. f. In case of proceeds of sale of capital assets, the AABs shall additionally require: 1. Copy of deed of sale. 2. If the subject of the sale is real estate, proof that the transaction was registered with the Registrar of Deeds. g. In case of capital transfer of testate and intestate inheritance and legacies: 1. Copy of Court Order approving the partition and distribution of estate. 2. Copy of the extrajudicial settlement and partition duly registered with the Register of Deeds. h. Remittances of proceeds of life insurance benefits. Proof of payment of the proceeds of the policy. i. Remittances of proceeds of sales of personal property. Copy of Deed of Sale. j. In case of proceeds of sale of shares of stock, AAB shall also require: 1. Copy of the confirmation of sale of authorized securities dealer/broker or the issuing corporation. 2. Certification of stock transfer agent showing the name of issuing corporation, date of issue, par value, cost of acquisition, and that the shares of stock owned by the beneficiary have been sold at the price indicated. k. In case of retirement benefits, AABs shall, in addition to Items a to d above, require: 1. Evidence of payment of retirement benefits. 2. If the remittance will be done in five (5) years or over after receipt of the retirement pay, evidence regarding custody of the funds. SECTION 47. Remittance by Temporary Residents . Foreign nationals with special temporary visa and MOLE alien employment permit, if required by law, employed in the Philippines may remit not more than 50% of their net compensation (salary, excluding fringe benefits, bonuses) after withholding tax, supported by: a. Certification of employer on the amount of compensation paid to the foreign nationals stating whether the same had been paid in foreign exchange or in pesos, and if in foreign exchange, proof that the foreign exchange was sold for pesos to AABs. b. Copy of the withholding tax receipts unless exempt by law. SECTION 48. Remittance by Tourists and Transients . Commercial banks may service the foreign exchange remittance against payment in another acceptable foreign currency brought in by tourists and transients with visas valid for fifty-nine (59) days. Remittance, in excess of US$1,000.00 shall be referred to FED I, Central Bank, for prior clearance. Such Department shall verify from its records the amount of foreign exchange brought in and declared by such tourist at the port of entry. The remittance shall not exceed the foreign exchange brought in. E. Remittance of Profits, Dividends, Earnings SECTION 49. Remittance . With prior Central Bank approval through MEDIAD, remittance of profits, capital gains and dividends accruing to non-residents after October 14, 1984 shall, net of taxes, be allowed in full at the interbank guiding rate prevailing on the date of actual remittance. Earnings from registered interim investments of remittable profits or dividends shall, net of taxes, likewise be fully remittable at the interbank guiding rate prevailing on the date of actual remittance. These remittances shall not be financed by domestic borrowings and the investments and reinvestments generating the profits, capital gains or dividends are registered with the Central Bank, MEDIAD. Application for remittance of profits, capital gains and dividends to non-residents shall be accompanied by: a. Proof of Central Bank registration of investment; b. Copy of the Board Resolution declaring dividends; c. Computation of dividends due resident and non-resident stockholders; d. Evidence of payment of withholding tax and other applicable taxes; e. Sworn statement of remitting company's officer that the remittance shall not be financed by domestic borrowings; f. Audited financial statement as of the end of the year during which the dividends/profits sought to be remitted were earned; g. In the case of foreign firms the capital stock of which is more than 40% owned by non-Filipinos, clearance to declare from the Inter-Agency Committee on Domestic Borrowings of Foreign Firms. In the case of oil companies operating in the Philippines, clearance by the Bureau of Energy Utilization. F. Repatriation of Investment SECTION 50. Investment in CB-Certified Export-Oriented Industries . Investments in CB-certified Export-Oriented industries may be repatriated in full or in annual installments to the extent of the applicant's share in net foreign exchange earnings of the firm for the preceding year. "Net Foreign Exchange Earnings" means the total foreign exchange earnings from export of the products, less total foreign exchange required to finance the production of export sales, operation and servicing of applicant's firm, pro-rated to his share in the total investment. SECTION 51. Investment in BOI-Registered Enterprises . a. Investments in BOI-registered enterprises engaged in the production of import-substitute and/or export items, but not qualified as CB-certified export-oriented industries, may be repatriated in accordance with any of the following alternatives, whichever is less on annual basis: 1. to the extent of the total net foreign exchange earnings starting one (1) year after liquidation of investment; or 2. in three (3) equal installments starting one (1) year after liquidation of investment. b. Investments in BOI-registered enterprises not engaged in production of import substitute items may be repatriated in three (3) equal installments starting one (1) year after liquidation of investment. c. Investments in industries which did not utilize domestic credit resources may be repatriated on the same basis as BOI-registered industries not engaged in production of import-substitute items. SECTION 52. Investments in Other Industries . These investments may be repatriated in accordance with the following schedule: US$250,000 or less Five (5) equal annual installments after liquidation US$250,001 to US$500,000 Seven (7) equal annual installments after liquidation US$500,001 and above Nine (9) equal annual installments after liquidation G. Royalties and Fees or Rentals SECTION 53. Technology Transfers . The remittance of royalties, rentals or fees for the use of patents, copyrights, franchises, brands and/or formula of foreign origin may be allowed, provided the agreements are registered with the Technology Transfer Board. These shall include agreements for the local production, local marketing or exporting of major local products, retainer of foreign firms or individual technicians, management and technical consultancy services in industrial enterprises on a continuing basis. Documents Required . Applications for remittance of royalties, rentals, or fees, shall be accompanied by the following: a. Copy of registration and approval by the Technology Transfer Board or the pertinent agreement. b. In cases of remittance of blocked royalties (unremitted on account of the qualitative restrictions in earlier regulations), the same shall be referred to the Central Bank through MEDIAD, for prior clearance, accompanied by a certification that the remittance shall not be financed by domestic borrowings. c. Proof of payment of withholding tax. d. Computation of royalty/fees, certified by an independent CPA. e. Financial statements audited by an independent CPA. SECTION 54. Film Rentals/Share . Remittance of producer's share in earnings made on the showing of movie/TV films imported without foreign exchange payments may be allowed up to 50% of the earnings during the year. Documents Required . The following documents shall be submitted. a. Central Bank approval of registration of the distributorship agreement; b. Computation on how the share/rental was arrived at; c. Proof of payment of the withholding taxes; d. Audited Balance Sheet and Profit and Loss Statement for the year during which the share/rentals accrued. SECTION 55. Management Fees . Foreign exchange payments for management contracts with foreign firms or individuals not involving technology transfer by residents may be serviced by AABs, provided the application for remittance is supported by. a. Duly registered "Management Agreement Contract" approved by the Central Bank; b Audited financial statement and proof of payment of applicable taxes. SECTION 56. Retainer's Fees . Foreign exchange payment by residents to foreign professionals acting as liaison, counsel, agent or representative abroad may be serviced by AAB, provided the application for remittance is supported by the duly registered retainer contract as approved by the Central Bank. H. Insurance SECTION 57. Resident Insurance Companies or Brokers . Philippine insurance companies or resident insurance companies/brokers may remit reinsurance premium to reinsurers/reinsurance brokers abroad, and claims for losses and other payments upon presentation of a clearance to remit from the Insurance Commissioner. SECTION 58. Non-Resident Insurance Companies . A Philippine agent of a foreign insurance company may remit net profits due to the latter abroad, reinsurance premium and payment of claims for losses, upon presentation of a clearance from the insurance Commissioner. I. Carriers SECTION 59. Foreign Airlines and Shipping Company Revenues . Subject to prior CB approval, foreign airlines and shipping companies authorized to do business in the Philippines may remit abroad their peso revenues, net of commissions paid, peso commissions earned, peso freight collections, commissions earned and ticket sales in foreign exchange. Applications for authority to remit shall be filed with AABs which in turn shall file same with FED I, Central Bank, accompanied by the following: a. Statement of revenues and expenses certified by an independent certified public accountant. b. Certification that the net peso revenues sought to be remitted have not yet been remitted. c. Copy of agency agreements with other carriers or with local travel agencies approved by the Central Bank. Agency commissions shall be paid in the currency in which the tickets are sold. d. Copy of the bill of lading in the case of peso freight collections certified as authentic by an authorized official of the local shipping agent or representative of the shipping company concerned. If the shipment is without L/C, copy of Central Bank authority to import under O/A of D/A arrangement or to export the commodities under a non-L/C arrangement shall be submitted. e. When applicable, information as to balance sheet account where the obligation due was lodged. f. List of passenger tickets issued. g. Proof of payment of the corresponding taxes. h. Statement of gross Philippine billing corresponding to the period covered by the remittance, duly certified by an independent CPA. i. Report on tax exemptions given to non-resident passengers. SECTION 60. Charters and Leases of Vessels . Domestic operators or lessees of foreign-owned vessels may remit foreign exchange for charter fees or lease rentals. AABs in servicing these remittances shall require the following: a. Copy of Central Bank approval of the Charter or Lease Contract. b. Copy of clearance/authority from the proper government agency for the chartered trips. c. Latest audited financial statements of charterers. d. Billings/statement of account from the owner or lessor duly certified by an independent CPA. e. Proof that the required reports had been submitted to the Central Bank. f. Proof that proceeds from the operation of the chartered vessel/craft have been remitted inward and sold to AABs. J. Other Remittances SECTION 61. Other Remittances . The following, among others, may be allowed, subject to Central Bank certification that the disbursements are reasonable and necessary; that the services are not available locally; and the requests are duly supported by proof of the veracity of the transactions: a. Disbursements for mail fees, postage and salvage fees. b. Rebates and penalties due to specification deficiencies on exports. c. Income and real property taxes due to foreign governments. d. Payment of foreign advertising; local publication of foreign comic strips, above US$100.00. e. Maintenance of overseas offices. CHAPTER IV Export and Import of Currencies SECTION 62. Foreign Currency . No person shall take out or transmit or attempt to take out foreign exchange in any form out of the Philippines directly, through other persons, through the mails, or through international carriers except with specific authority by the Central Bank or when allowed under-existing international agreements or by these rules. SECTION 63. Tourists/Non-Residents a. Tourists and non-resident visitors may take or send out from the Philippines foreign exchange in amount not exceeding such amounts of foreign exchange brought in by them. For the purpose of establishing the amount of foreign exchange brought in, tourists and nonresidents, or temporary visitors bringing with them more than $3,000.00 or its equivalent in other foreign currencies, shall declare their foreign exchange in the form prescribed by the Central Bank at points of entry upon arrival in the Philippines. b. Only foreign tourists and other non-residents may reconvert their unspent pesos originally converted with AABs. The reconversion may only be serviced by the commercial banks or the Central Bank units situated in the MIA and other ports of exit shortly before departure for abroad. The following procedures for reconversion shall be observed, except where the amount does not exceed US$100.00 or its equivalent in other foreign currencies: 1. Official receipts covering the original conversion of foreign currencies into pesos shall be presented to the AAB or to the Central Bank. 2. The Cashier/Teller shall indicate the corresponding passport number of the tourist/transient on the Central Bank official reconversion receipt and ensure that the signature affixed on the receipt matches the signature on the passport. 3. Receipts surrendered under Item "1" above shall be attached to the copy of the receipt used in Item "2" above. 4. Reconversion shall be allowed only if made within fifty-nine (59) days from date of sale of foreign currencies. 5. The converted amount shall not exceed the peso proceeds of foreign currencies originally sold as indicated in the Central Bank Official Receipt. SECTION 64. Philippine Currency . No person may import or export nor bring with him Philippine notes and coins, checks, money orders and other bills of exchange drawn in pesos against banks operating in the Philippines in an amount exceeding P500.00; provided, that any amount in excess of P500.00 shall require authorization of the Central Bank. SECTION 65. International Agreements . There shall be no restrictions on withdrawals or deposits on peso accounts of foreign central banks and non-resident commercial banks with AABs; provided, that such accounts are funded by inward foreign exchange remittances. Peso accounts with AABs of United Nations agencies and other international institutions of which the Government of the Republic of the Philippines is a member, as well as peso accounts of foreign government agencies and establishments, shall be serviced in accordance with the applicable agreements and the practice followed for such accounts. CHAPTER V General Provisions SECTION 66. Definitions . The following terms used in this Circular shall have the following meaning, unless the context clearly indicates otherwise: "Acceptable Foreign Exchange" refers to foreign exchange acceptable to and readily exchangeable at the Central Bank, consisting of the following: US Dollar Pound Sterling Canadian Dollar Deutsche Mark Australian Dollar Netherlands Guilder Singapore Dollar Japanese Yen Hong Kong Dollar Austrian Schilling Malaysian Dollar Saudi Arabian Rial Swiss Franc Kuwait Dinar French Franc Bahrain Dinar Belgian Franc Italian Lira and such other currencies which the Central Bank may from time to time consider acceptable. " Authorized Agent Bank " refers to a commercial bank. " Authorized Foreign Exchange Agent " shall refer to a thrift bank, a rural bank and tourist-oriented establishments duly accredited by the Ministry of Tourism which are issued Certificates of Authority by the Central Bank to purchase for pesos acceptable foreign currencies which shall be sold to Authorized Agent Banks or to the Central Bank. The authority does not include sales for pesos of foreign currencies. " Authorized Securities Dealer/Broker " shall refer to a firm or entity which is duly licensed by the Securities and Exchange Commission as a stock dealer or broker and is a bona fide member of any of the Philippine Stock exchange. For purposes of dealing in government securities, the term shall include Accredited Government Securities Dealers. All commercial banks, including banks with expanded commercial banking authority, by nature of their functions, are authorized securities dealers/brokers. " Foreign Exchange " refers to currency notes/coins issued by foreign governments; instruments of payment or funds held in foreign banks/banks abroad and denominated in foreign currency. " Foreign Exchange Disbursements " shall refer to expenditures in foreign exchange which have been or which should have been recorded in the books of the company as having been incurred during a given period. It includes, but need not necessarily be limited to: 1. operating expenses including purchase of spare parts and supplies that have not been capitalized; 2. capital expenditures; 3. refunds of deposits; 4. interline billings; and 5. other indirect and related expenses. " Gross Foreign Exchange Receipts " shall refer to all foreign exchange earnings/revenues from operations and from other sources. Foreign exchange earnings from other sources include, but are not limited to, proceeds of sale and/or rental of equipment used in business operations, recoveries on the loss or damage to such equipment and/or appurtenances thereto, etc., which have been or which should have been recorded in the books of foreign exchange earnings/revenues for a prescribed period by the company concerned. " Invisibles " shall refer to foreign exchange transactions, arrangements or business operations which are non-trade or non-merchandise in nature. " Invisible Disbursements/Payments " shall refer to all outward payments, remittances and disbursements in foreign exchange covering expenditures and transactions that are generally considered non-trade in nature. " Miscellaneous Charge Order " or " Exchange Order " shall refer to a coupon accompanying a passenger ticket issued at extra cost to the passenger, for payment of excess baggage charges or for passage of said passenger for trip different from his original itinerary in the ticket. " Net Foreign Exchange Receipts " shall refer to gross foreign exchange receipts less foreign exchange disbursements. " Net Foreign Exchange Earnings " shall mean gross earnings minus necessary expenses. " Non-resident " shall refer to a natural or a juridical person not covered by the definition of " resident ". " Overseas Contractors " shall refer to persons who: 1. undertake construction projects abroad as well as those supplying any one or a combination of labor, machinery and materials; 2. have service contracts within U.S. military, naval and air bases in the Philippines; and 3. have service contracts for projects financed and/or assisted by the World Bank and other similar international organizations. " Persons " shall refer to both natural and juridical persons. " Juridical Persons " refer to firms, associations and corporations duly organized, existing and operating in accordance with laws. " Personal Remittances " shall refer to earnings transferred by residents to non-residents and/or earnings of non-residents transferred to residents. " Resident " shall mean (1) a natural person who is a citizen of the Philippines residing therein; (2) a natural person who is not a citizen of the Philippines but is permanently residing therein; (3) a corporation or other juridical person organized under the laws of the Philippines; or (4) a branch, subsidiary, affiliate, extension/representative office or any other unit of juridical persons organized under the laws of a foreign country and licensed by the Securities and Exchange Commission to do business in the Philippines. " CB-approved Securities " shall refer to certificates of shares in a corporation organized under Philippine law, which are listed in the Philippine Stock Exchange. It includes certificates of indebtedness issued by the Philippine Government. SECTION 67. Penal Sanctions . Any person who shall engage in the trading or purchase and sale of foreign currency in violation of existing laws or rules and regulations of the Central Bank shall be guilty of the crime of black-marketing of foreign exchange and shall suffer the penalty of reclusion temporal [minimum of twelve (12) years and one (1) day and maximum of twenty (20) years] and a fine of not less than Fifty Thousand Pesos (P50,000.00). If the offender is a naturalized citizen of the Philippines, conviction of the offense described above shall carry with it the automatic cancellation of his naturalization as a citizen of the Philippines and shall, upon service of sentence, immediately be deported. A foreigner who is convicted of the offense of blackmarketing shall, upon service of his sentence, be immediately deported. Any willful violation of this Circular shall subject the person or persons responsible to the provisions of Sections 33 and 34 of Republic Act No. 265, as amended. Administrative sanctions provided under Section 34-A of the same Act shall be imposed upon banking institutions, their directors and officers for violation of this Circular. SECTION 68. Repealing Clause . The provisions of Chapters I, II, III, and VIII of Circular No. 960 and Circular No. 365 which are inconsistent with the provisions of this Circular are deemed repealed. The provisions of Circular 970 and its Operating Guidelines, and other Central Bank issuances after Circular No. 970 which pertain to non-trade, including the Circular Letter To All Concerned dated May 4, 1984, if inconsistent with this Circular, are repealed. Notwithstanding any provision of this Circular to the contrary, all unserviced eligible foreign exchange remittances earned and which became due and payable before October 15, 1984, shall not be serviced without prior Central Bank approval. Eligible foreign exchange remittance refers to non-trade and non-loan accounts denominated in acceptable foreign exchange remittable under rules and regulations existing as of October 17, 1983, e.g., dividends, profits, royalties, lease payments, fees, commissions, investments, airline/shipping revenues, insurance premia and telecommunication charges. Pertinent and complete information on said payables shall be submitted to the Central Bank, through FED I, in accordance with the Memorandum. To All Concerned, dated October 12, 1984 attached as Annex 3. This Circular shall take effect on October 15, 1984. For the Monetary Board: (SGD.) GABRIEL C. SINGSON Senior Deputy Governor