Pursuant to Monetary Resolution No. 427 dated March 21, 2002, Section 2 of Circular No. 297 dated September 17, 2001 is hereby amended to read as follows:

"SECTION 2. Subsections X602.2 and 4603Q.2 are hereby amended to read as follows:

Subsection ____. Transactions between bank and subsidiary/AFFILIATE. - All derivatives transactions between banks/NBQBs/FIs and their subsidiaries/AFFILIATES (e.g. Forex Corporation) shall be with prior BSP approval."

This Circular shall take effect immediately.

Adopted: 3 April 2002