Document background
The Funds Flow Memorandum is a critical document used in the Philippine financial and corporate landscape to orchestrate complex financial transactions involving multiple parties. It provides a detailed roadmap of how funds will move between various accounts and parties, ensuring compliance with Philippine banking regulations, including BSP requirements and anti-money laundering rules. This document type is particularly important in project finance, corporate acquisitions, and complex lending arrangements where precise timing and coordination of fund transfers is essential. The memorandum helps prevent operational errors, ensures regulatory compliance, and provides clear documentation for audit purposes. It typically works in conjunction with other transaction documents such as facility agreements, security documents, and escrow arrangements.
