In a press statement Wednesday morning, the central bank explained that this move is part of broader amendments approved by the Monetary Board “to gather more accurate and relevant information on FX transactions to promote and maintain price stability and ensure financial stability and effective supervision of banks.”
The new policy comes after a recent bout of weakness in the peso against the US dollar prompted by the combined effects of a strong greenback in international markets and expectations of a local interest rate cut, which the central bank says may happen as early as next month.
More detailed trading reports
The new guidelines mandate banks to submit timely and accurate reports in line with BSP’s stringent reporting standards.
Non-compliant reports, including erroneous, delayed, or unsubmitted ones, will henceforth incur hefty penalties.
For continuous violations, fines can reach up to P100,000 per calendar day. These changes are pursuant to Section 37 of Republic Act No. 7653, as amended by Section 19 of R.A. No. 11211.
Grace period
The amendments not only enforce stricter penalties but also outline a clear process for notifying concerned entities of violations and providing avenues for appeal or reconsideration.
The BSP said its approach emphasizes fairness, consistency, and due process in penalty imposition.
The revised regulations will become effective 15 banking days post-publication, with a transition period until December 31, 2024, for reporting entities to adjust their systems accordingly.
