Published — April 12, 2021
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Read also: AUTHORITY TO INQUIRE INTO BANK DEPOSITS UNDER ANTI-MONEY LAUNDERING ACT
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Any person, natural or juridical, may, in accordance with the provisions the Foreign Currency Deposit Act, deposit with such Philippine banks in good standing, as may, upon application, be designated by the Central Bank for the purpose.
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The banks designated by the Central Bank shall have the authority to accept deposits and to accept foreign currencies in trust.
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The banks designated by the Central Bank shall have the authority to pay interest in foreign currency on such deposits.
Republic Act No. 6426 or Foreign Currency Deposit Act encourages foreign currency deposits in the Philippines.
Republic Act No. 6426 or Foreign Currency Deposit Act of the Philippines provides that:
Any person, natural or juridical, may, in accordance with the provisions the Act, deposit with such Philippine banks in good standing, as may, upon application, be designated by the Central Bank for the purpose, foreign currencies which are acceptable as part of the international reserve, except those which are required by the Central Bank to be surrendered in accordance with the provisions of Republic Act Numbered Two Hundred Sixty-Five (Now Rep. Act No. 7653 or the New Central Bank Act).
The banks designated by the Central Bank shall have the authority:
(1) To accept deposits and to accept foreign currencies in trust provided, that numbered accounts for recording and servicing of said deposits shall be allowed;
(2) To issue certificates to evidence such deposits;
(3) To discount said certificates;
(4) To accept said deposits as collateral for loans subject to such rules and regulations as may be promulgated by the Central Bank from time to time; and
(5) To pay interest in foreign currency on such deposits.
Further, there shall be no restriction on the withdrawal by the depositor of his deposit or on the transferability of the same abroad except those arising from the contract between the depositor and the bank.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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