Peso Bank Accounts of Non-Residents other than Banks

February 6, 1950 CBP NOTIFICATION TO AUTHORIZED AGENTS NO. 19-50 SUBJECT : Peso Bank Accounts of Non-Residents other than Banks 1. This Notification supersedes Notification to Authorized Agents No. 1 dated December 31, 1949, entitled "Peso Assets of Non-Residents", in so far as peso bank accounts of non-residents, other than banks, are concerned. LLjur 2. Peso bank accounts existing as of the date of this Notification belonging to any firm partnership, association, branch office, agency, company or other unincorporated body or entity residing or located in the Philippines which are only operated by persons in the Philippines (and not by the non-resident owner) may be treated as resident accounts after prior approval by the Exchange Control Office. Applications to operate such accounts as resident accounts must be filed on E.C. Form No. 107. This form must be accomplished in quadruplicate and submitted to the Exchange Control Office through the authorized agent maintaining the account. This form is an undertaking that neither the applicant nor the firm, partnership, association, branch office, agency, company or other unincorporated body or entity in whose name the account is held will make available to any person or firm, etc. in the Philippines any foreign exchange against payments or credits in pesos, and that any transaction with respect to the account not directly connected with the business in the Philippines of the owner of the account or representing remittances from overseas will be subject to prior approval of the Exchange Control Office. 3. No new peso bank account of a non-resident person, firm, partnership, association, branch office, agency, company or other unincorporated body or entity may be opened without prior approval by the Exchange Control Office. The application for a license to open such an account must be filed on E.C. Form 108 and must include information as to the purpose for which the account is to be maintained and the sources of funds to maintain the peso account. 4. The following credits both to existing and to new peso bank accounts of non-residents other than banks are permitted without prior approval by the Exchange Control Office: (a) Transfer from the account of a non-resident bank; (b) Dividends and interest on securities owned by the holder of the account; (c) Refunds of amounts previously debited overcharged; (d) Proceeds of small checks provided the aggregate credits during a calendar month do not exceed P1,000.00 and no individual credit is in excess of P400.00; and (e) Balances of a non-resident switch transaction authorized by E.C. Form X, or proceeds of sales of securities by a non-resident authorized by E.C. Form Y, as described in Section 5 of Notification to Authorized Security Dealers No. 1 dated January 18, 1950. 5. The following debits to such peso bank accounts are permitted without prior approval by the Exchange Control Office: (a) Local payments in respect of postal and telegraph charges, stamp fees, storage and safe custody charges, bank charges, payments to servants, insurance premia, taxes, allowances to relatives, minor repairs to houses, and other local payments, provided the aggregate debits during a calendar month do not exceed P2,000.00 and that no single payment is in excess of P200.00; and (b) Debits in reversal of previous credits. 6. Authorized agents shall render weekly reports on all transactions effected under the terms of this Notification to the Exchange Control Office. 7. For all transactions with respect to these accounts other than those described in this Notification, prior approval by the Exchange Control Office is required.