BSP strengthens reporting standards for payment system operators

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has imposed strict reporting standards on payment system operators as part of initiatives to establish a safe and efficient payment system in the country.

BSP Governor Benjamin Diokno said the Monetary Council issued Resolution 196 approving regulatory reporting standards for payment system operators.

“This recent policy release is critical in PASB’s determination of appropriate oversight interventions, the formulation of responsive policies and regulations, and the continued development of the national payment system,” Diokno said.

The new regulations under Circular 1138 are consistent with Republic Act 11127 or the National Payments Systems Act (NPSA).

According to the guidelines, reports submitted to the regulator must be accurate, complete and timely to be considered compliant with the PASB reporting standards.

“Entries in reports must be validated by payment system operators before being submitted to the BSP to ensure the accuracy, completeness and integrity of the information submitted. Reports should reflect all information required by PASB,” he said.

The circular requires a payment systems operator to put in place a reporting system that will aggregate all relevant data and produce the reports required by the BSP under status quo and stress conditions in a timely manner.

Stress conditions refer to emergency conditions for payment system operators such as a crisis, national or public health emergencies, weather-related events, or sudden closures of markets and agencies. compensation.

To facilitate the generation of this information, the board of directors and senior management are encouraged to implement an effective management information system that allows for independent validation and periodic independent review of reports.

“The regulatory reports submitted by PAHO provide valuable information that will help PASB promote the safe and efficient operation of the national payment system, consistent with its mandate under the NPSA,” Diokno said.

The issuance of the policy is part of the phased implementation of the NPSA, which grants the BSP the authority to require payment system participants, including payment system operators, to submit reports on their operations, including information relevant for statistical, policy-making, monitoring and regulatory purposes.

The circular also specifies the penalties that may be imposed on a payment system operator in the event of non-compliance with reporting obligations.

“Reports with incomplete schedules or attachments are considered not to comply with the reporting standards prescribed in this section. In addition, the submission of reports must be done within the deadlines and in accordance with the report templates prescribed by BSP,” Diokno said in the circular.

The pecuniary penalty applicable for each violation is 3,000 pesos for primary reports and 600 pesos for secondary reports for operators of payment systems belonging to large banks, 1,500 pesos for main reports and 300 pesos for secondary reports for savings banks as well as 450 peso for main reports. and P150 for secondary reports of rural and cooperative banks.

On the other hand, non-bank payment system operators would be charged P300 for primary reports and P60 for secondary reports per breach.

Primary reports refer to periodic monitoring reports that must be submitted daily, monthly or quarterly, while secondary reports are those that will be required from non-designated payment system operators, such as the semi-annual report on payment services and annual reports.

Diokno warned that the regulator would also impose non-monetary sanctions such as warning, reprimand, suspension and possible disqualification of the CEO and board.

In February, nearly 200 payment system operators were registered with the BSP.


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Elaine R. Knight