Regulatory Alerts2026-06-03
Reminder on Non-Deliverable Foreign Exchange Derivatives Transactions for AABs Own Account
The Bangko Sentral ng Pilipinas reminds Authorized Agent Banks that non-deliverable FX derivatives transactions for their own account must serve legitimate economic purposes such as hedging investments. The regulator explicitly prohibits speculative positioning, directional peso exposure, or arbitrage-driven activities that lack specific underlying exposures and documentation. Banks are required to maintain adequate internal controls and audit trails to ensure compliance with these guidelines for all new contracts and renewals.
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