6. September 30,1976 Offshore Banking was formally
introduced to the Philippines with the
promulgation of P.D No.1034 and 1035
governing offshore banking unit’s or
OBU’s and Foreign Currency Deposit
Unit’s or FCDU’s
July 21,1970 The Central Bank of the Philippines
issued Circular No. 304
April 4,1972 Republic Act No. 6426,otherwise known
the Foreign Currency Deposit Act was
promulgated.
April 24,1972 Subsequently implemented by Central
Bank Circular No.343
7.
8. As defined in the Presidential
Decree No.1034
Shall refer to the conduct of banking
transactions in foreign currencies involving
the receipt of funds from external sources
and the utilization of such funds.
9. On the other hand offshore
banking unit’s shall mean:
A branch,subsidiary or affiliate of
a foreign banking corporation
which is duly authorized by the
Central Bank of the Philippines to
transact offshore banking
business in the Philippines.
10. Offshore Banking Unit’s or OBU’s
are allowed to lend and
borrow,both inside the Philippines
and out in any currency except
Philippine pesos
With a high interest rates as much
20%
