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BSFIs Mandated to Implement Enhanced Customer Due Diligence Measures
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In an effort to strengthen anti-money laundering and combating the financing of terrorism (AML/CFT) measures, the Bangko Sentral ng Pilipinas (BSP) has issued Circular No. [insert number], requiring banking and financial institutions (BSFIs) to implement enhanced customer due diligence (CDD) procedures.
Enhanced Customer Due Diligence Measures
The circular takes effect on [insert date] and requires BSFIs to verify the identity of their customers through a combination of traditional methods and electronic know-your-customer (e-KYC) processes. The new guidelines aim to ensure that BSFIs have robust systems in place to mitigate money laundering and terrorist financing risks.
Customer Identification Data Collection
Under the circular, BSFIs are required to collect and record customer identification data, including biometric information, through various means such as:
- Photocopying/scanning of identification documents
- Using Information and Communication Technology (ICT) to capture personal information
- Manual recording
BSFIs must also digitize customer records in accordance with relevant BSP and Anti-Money Laundering Council (AMLC) issuances.
Alternative Identification Documents
In cases where customers present alternative identification documents not listed in the circular, BSFIs may accept these documents provided they are deemed reliable and can validate the information indicated on the document.
Electronic Know-Your-Customer (e-KYC) Processes
The circular emphasizes the importance of e-KYC processes, which involve using electronic or digital methods to verify customer identity. BSFIs may use different methods to conduct customer identification and verification, including digital ID systems. However, in implementing e-KYC processes, institutions must ensure that they have:
- Robust, effective, and reliable ICT architecture
- Adopt tiered or risk-based policies and procedures
The BSP has recognized the PhilSys-enabled e-KYC as an acceptable system for e-KYC using digital ID systems in the Philippines.
Consequences of Non-Compliance
Failure to comply with the new guidelines may result in supervisory enforcement actions, including penalties and fines. The BSP will deploy appropriate measures to ensure that BSFIs adhere to the requirements set forth in the circular.
Effective Date
The circular is effective 15 calendar days following its publication either in the Official Gazette or a newspaper of general circulation.
Contact Information
[Insert contact information]
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