Other services – Philippines

27.02.2024

Securities lending and borrowing

Philippines securities are not eligible for Clearstream Banking's securities lending and borrowing programme.

Cross-border settlement

There are no cross-border settlements for Philippines securities.

Holding restrictions

There are restrictions on foreign investment in the Philippines.

  • A non-Filipino citizen, whether resident or non-resident in the Philippines, is regarded as a foreign investor.
  • A Filipino citizen, whether resident or non-resident in the Philippines, is regarded as a local investor.

A non-resident corporate is classified as non-Filipino citizen and is therefore considered as a foreign investor. Please refer to the Investment regulation section of the Market Profile – Philippines.

Foreign exchange and repatriation of income proceeds

Clients may repatriate their Philippine Peso (PHP) income proceeds directly from their Clearstream Banking account to their United States Dollars (USD) account. To be eligible for this service, clients must ensure the following:

  • the intended funds to be repatriated are income proceeds, and not sales proceeds;
  • the income proceeds are derived from securities held in their account with a valid Bangko Sentral Registration Document (BSRD);
  • the income proceeds remain available in their account during the requested repatriation process;
  • instructions containing the full required details and representation (outlined below under "Repatriation request process") are delivered to Clearstream Banking via Swift (MT599).

Instructions that do not meet the above-mentioned requirements will not be processed until amended or clarified.

Repatriation request process

Clients can request Clearstream Banking to convert PHP and repatriate in USD by sending foreign exchange instructions via free-format message (Swift MT599) to the attention of Singapore Income Team, by including the requested information below and using the following statement:

"To: CEDELULL
Attention: Singapore Income Team

We hereby instruct Clearstream Banking S.A. to convert the income proceeds we have received in Philippine Pesos (PHP) in our account with you into US Dollars (USD). We provide you with the necessary details for your actions, below:

  • Client’s safekeeping account number:
  • Cash account number in case different from the safekeeping account number:
  • ISIN of the dividend/interest payment:
  • Value Date of the dividend/interest payment:
  • Nominal holding for which the conversion should be done:
  • Amount in PHP for which the conversion should be done:

We hereby represent, warrant and covenant that:

  • We have not made a transfer for the above-mentioned payment through any other means;
  • The payments are exclusively income proceeds payments related to BSRD certified securities and are not sales proceeds;
  • We shall provide the custodian with any documentation and/or information that may be required by the relevant applicable laws and regulations in relation to such payments and instruction referred to herein;
  • All information included herein, as well as any information which may be submitted by us to the custodian in connection with this instruction, is and shall be true, complete and correct and shall be deemed to be given under our sworn statement;
  • The final beneficial owners of the funds that are being transferred under this foreign exchange transaction are not residents in the Philippines.

In addition, we hereby authorise the custodian to, in our name and on our behalf:

  • Submit to the Bangko Sentral ng Pilipinas (BSP) any and all information required by the BSP in connection with this foreign exchange transaction according to the relevant applicable laws and regulations,
  • Sign any affidavits and/or declarations and/or any other documentation that may be required by the BSP and/or any other authority or third parties, in connection with this foreign exchange transaction.

In addition:

  • We hereby acknowledge that the general terms and conditions of the custodian are applicable, where relevant, to the services in relation thereto;
  • We hereby agree to be solely responsible for the accuracy and completeness of the information and documentation to be provided to the regulators or any competent local authorities and to comply with the relevant laws and regulations applicable to foreign exchange transactions;
  • We agree to indemnify and hold harmless the custodian, its directors, officers, employees and agents from and against any and all liabilities, expenses, damages and other costs of any kind (including legal fees and expenses) arising from or in connection with any misrepresentation, insufficiency, inaccuracy, illegitimate and/or omission within this sworn statement."

Tax services

Clearstream Banking does not currently provide relief at source or standard refund tax services for the Philippines.

Clients will be taxed at the default tax rate and should arrange for their own tax reclaim service by appointing a local tax consultant in the Philippines if they qualify for a reduced tax rate via the Double Taxation Treaty or tax exemption.

Clearstream Banking is not in a position to track or intervene in any way in the tax relief at source and tax reclaim processes.