Remittance Authorization (Philippines)

A Remittance Authorization in the Philippines evidences that consent has been freely given, identifying exactly what has been agreed to and by whom.

The Bangko Sentral ng Pilipinas (BSP) requires all entities providing remittance services — whether banks, money changers, or e-money issuers — to register with the BSP under BSP Circular No. 649 and maintain compliance with AMLA know-your-customer (KYC) requirements. Unregistered remittance agents operating without BSP authority face criminal prosecution under Section 36 of the New Central Bank Act (RA 7653, as amended by RA 11211).

The Anti-Money Laundering Act (RA 9160) and its amendments (RA 10365, RA 11521) require BSP-supervised institutions to conduct customer due diligence (CDD) on remittance transactions. AMLC Resolution No. 59 (2020) sets the threshold for enhanced due diligence at PHP 500,000 (or equivalent in foreign currency) per transaction. Single transactions above PHP 500,000 require submission to the AMLC as a covered transaction report. Suspicious transactions — regardless of amount — must be reported to the AMLC within 5 business days.

Overseas Filipino Worker (OFW) remittances are a critical component of the Philippine economy. The Philippine Overseas Employment Administration (POEA) and the Overseas Workers Welfare Administration (OWWA) support remittance channels for OFWs under OWWA Circular No. 2019-001. BSP Circular No. 1050 (2019) regulates remittance service providers that cater to OFW remittance corridors.

For foreign currency remittances above USD 10,000 (or equivalent), BSP FX Manual regulations require documentary support of the underlying transaction — invoices, loan agreements, or service contracts — if the remittance is funded by foreign exchange purchased from the banking system.

The legal framework governing the Remittance Authorization (Philippines) in Philippines draws on several key statutes and regulatory bodies. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Parties executing a Remittance Authorization (Philippines) in Philippines should confirm the document reflects current law, including any amendments enacted since the original drafting date. The National Internal Revenue Code (RA 8424) sets the foundational requirements.

A Remittance Authorization in the Philippines is needed in the following circumstances.

A Remittance Authorization is required when an individual or corporation instructs a BSP-supervised bank or remittance company to transfer funds to another party — domestically via InstaPay or PESONet under BSP Circular No. 980 (2017), or internationally via SWIFT or proprietary remittance networks — as a formal written instruction authorizing the debit from the sender's account.

A Remittance Authorization is needed by Overseas Filipino Workers (OFWs) when authorizing a family member, attorney-in-fact, or employer to receive remittances on their behalf. A Special Power of Attorney (SPA) combined with a Remittance Authorization gives the designated recipient authority to collect remittance proceeds from BSP-registered remittance centers.

A Remittance Authorization is required by Philippine corporations making foreign currency payments — for import settlements, royalty payments, loan repayments to foreign lenders, or service fees to foreign contractors — which require BSP FX Manual compliance documentation, including the authorization form, BIR tax clearance, and underlying contract.

A Remittance Authorization is needed when a Philippine employer paying salaries to foreign employees directs a bank to remit a portion of the salary abroad, subject to BIR withholding tax compliance under NIRC Section 78 and BSP FX Manual for payments above USD 10,000.

A Remittance Authorization is required for real property purchase payments between Philippine residents and non-residents, where the buyer authorizes the bank to remit the purchase price to the seller's foreign bank account under BSP FX Manual Section 9 on non-trade current account transactions.

A Remittance Authorization is needed for stock dividend remittance by Philippine corporations with foreign shareholders, authorizing the bank to convert and remit PHP dividends to foreign shareholders' accounts in compliance with BSP Circular No. 1039 on BSP-registered foreign investments.

A valid Philippines Remittance Authorization must contain the following essential elements.

Remitter (Sender) Information: Full legal name, address, TIN, and government-issued ID details of the remitter. For corporate remitters, include SEC Registration Number and name of authorized signatory with Board resolution under RA 11232. BSP-supervised institutions require photo ID and secondary ID for KYC compliance under AMLC Registration and Reporting Guidelines.

Beneficiary (Recipient) Information: Full legal name, address, and bank account details of the beneficiary — bank name, account number, bank address, SWIFT code (for international transfers), and routing number. For domestic transfers via InstaPay or PESONet, the beneficiary's mobile number or email may be used if registered.

Transfer Amount and Currency: Amount in figures and words in PHP ₱ or foreign currency. For foreign currency remittances funded by bank-purchased foreign exchange above USD 10,000, the remitter must provide documentary support of the underlying transaction per BSP FX Manual Section 9.

Purpose of Remittance: The purpose code — family support, trade payment, loan repayment, dividend remittance, service fee payment, investment — as required by BSP Circular No. 649 for statistical reporting and AMLC transaction monitoring. Mis-stating the purpose is a violation of AMLA RA 9160.

Transfer Date and Value Date: Date on which the remitter authorizes the transfer and the value date on which the beneficiary receives the funds. For SWIFT international transfers, standard value date is T+1 to T+3 business days.

Fee Arrangement: Who bears the bank charges — OUR (sender bears all charges), BEN (beneficiary bears all charges), or SHA (charges split). For OFW remittances, RA 10022 and BSP Circular No. 940 require competitive remittance fees.

AMLA Declaration: The remitter's declaration that the funds are from lawful sources, in compliance with AMLA (RA 9160) and BSP AMLC regulations. False declarations constitute money laundering under RA 9160 as amended by RA 10365.

Authorization Signature: Remitter's signature matching the bank's specimen signature on file, or board-authorized signatory's signature for corporate accounts.

Additional compliance elements for a Remittance Authorization (Philippines) used in Philippines include: Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.