Financial Crime World

BSP Streamlines Licensing Process for Foreign Banks, Representative Offices/Offshore Banking Units

The Bangko Sentral ng Pilipinas (BSP) has introduced a more efficient and streamlined licensing process for foreign banks seeking to establish a presence in the Philippines.

New Guidelines

Under the new guidelines, foreign banks that want to set up a branch or representative office/offshore banking unit in the country will undergo a two-stage process. The first stage involves submitting an application for BSP approval to establish the entity, which will be assessed within 15 working days. Upon completion of this stage, the BSP will issue a letter endorsing the foreign bank’s application to facilitate registration with the Securities and Exchange Commission (SEC).

The second stage involves applying for a Certificate of Authority (COA) from the SEC, which will be issued within five working days after the submission of complete documentary requirements.

Key Requirements

To ensure a smooth processing timeline, applicants are required to submit complete and sufficient documentary requirements. A separate acknowledgment letter will be sent to the applicant upon determination of completeness and sufficiency of the application in form and substance, signifying acceptance of the complete application and commencement of the processing timeline.

Applicants must also substantially comply with the conditions of BSP approval and pre-operating requirements, including registration by the bank of its Articles of Incorporation (AOI) and By-Laws (BL) with the SEC.

Timeline

  • Stage 1: Application for BSP Approval - 15 working days
    • Submission of application for BSP approval to establish a foreign bank branch/representative office/offshore banking unit
  • Stage 2: Application for COA - 5 working days
    • Submission of complete documentary requirements and issuance of Certificate of Authority (COA) to operate a foreign bank branch/representative office/offshore banking unit

Contact Information

For inquiries and concerns, please contact:

  • The Director, Supervisory Policy and Research Department, Bangko Sentral ng Pilipinas (SPRD)
  • The Deputy Director and Head, Islamic Banking Supervision Group, Financial Supervision Sub-Sector III, Bangko Sentral ng Pilipinas (IBSG)

Islamic Banking License

For applicants seeking an Islamic banking license, please contact:

  • The Deputy Director and Head, Islamic Banking Supervision Group, Financial Supervision Sub-Sector III, Bangko Sentral ng Pilipinas (IBSG)

Online Resources

For more information on the licensing process and requirements for foreign banks and representative offices/offshore banking units, please visit the Bangko Sentral ng Pilipinas website at www.bsp.gov.ph.