To take advantage of the Liberalized Remittance Scheme (LRS), you will need the following documents:
-A duly completed and signed LRS application form
-Proof of residential address (utility bill, lease agreement, etc.)
-Bank statements or passbook showing your income and/or assets
-Income tax return (ITR) Form 2316 or 1701 with BIR stamp
-Authorization letter from your employer (if employed)
Setting up an Account with an Authorized Dealer.
The first step in taking advantage of the LRS is to set up an account with an authorized dealer bank. You can do this by visiting any branch of a participating bank and requesting for an LRS application form. The list of banks authorized by the Bangko Sentral ng Pilipinas (BSP) to deal in foreign currency can be found on the BSP website. Once you have submitted the required documents, the bank will then open an account for you which will be used exclusively for your foreign currency transactions under the LRS.
Submitting an Application with Required Documents.
After setting up your account with an authorized dealer, you will need to submit a complete and signed LRS application form together with all the required supporting documents listed in subsection 3.1. Once your application has been approved, you will be issued an authorization letter which must be presented to your bank every time you make a remittance under the scheme. The authorization letter is valid for one year and can be renewed annually upon submission of a new application form and supporting documents.
Receiving the Authorization Letter
You will receive your authorization letter within 7 business days from the date when your complete and correctly filed application was received by the BSP Foreign Exchange Regulatory Department (FERD). If additional information or clarification is needed, FERD will contact you directly within 5 business days from receipt of your application form; otherwise, FERD shall issue the authorization letter within 2 business days after contacting you, if applicable. In case FERD denies your request for availing of liberalized remittance scheme, they shall inform you accordingly in writing stating therein their findings and recommendations, if any, within 7 business days from the date of receipt of complete requirements from you. Otherwise, if no action is taken on your request beyond 7 business days from the date of receipt by FERD, it shall be deemed as approved. Your authorizing officer in charge at your chosen bank may proceed with processing your transaction/s. Please note that once approved, You are enjoined to strictly observe all provisions under existing laws, rules, and regulations governing foreign exchange transactions including those related to Anti – Money Laundering Act (AMLA) as well as Know – Your – The customer’s Rule (KYC).
Once you have received your authorization letter, you may now make foreign currency remittances under the LRS up to the maximum amount specified therein Vested. There are two ways to make remittances under the scheme: through a bank or through an authorized money changer. When making a remittance through a bank, you will need to present the following documents:
-The original copy of your authorization letter
-Proof of purpose of remittance (e.g. invoices, contracts, etc.)
-Any other document required by the authorized dealer bank
If you choose to make a remittance through an authorized money changer, you will only need to present your passport and the original copy of your authorization letter. Please note that all transactions made under the scheme must be supported by proper documentation as required by law.