Bangko Sentral Relaxes Identification Requirements Amid Calamity

Reducing Bureaucratic Hurdles During Times of Crisis

In a move aimed at reducing bureaucratic hurdles during times of crisis, the Bangko Sentral ng Pilipinas (BSP) has announced a relaxation of identification requirements for financial transactions in areas affected by disasters.

New Guidelines

Under the new guidelines, customers who have lost their identification documents due to calamities will be allowed to transact business with banks and other financial institutions without presenting valid IDs. The BSP has set a daily transaction limit of PHP 50,000 for these customers, provided they submit a written certification that they are victims of the disaster.

Purpose

The measure is designed to help individuals affected by disasters resume their normal lives quickly, while still ensuring that money laundering and terrorist financing risks are effectively managed.

Requirements for Banks and Financial Institutions

• Implement appropriate systems of data collection and recording, including:
  • Photocopying or scanning of identification documents
  • Biometric capturing
  • Manual recording of identification information
• Conduct face-to-face contact and personal interviews with customers
• Monitor account activities closely
• Outsource customer identification procedures to third parties without prior approval from the Monetary Board (with ultimate responsibility for knowing the customer and managing attendant risks remaining with the covered person)
• Rely on third-party providers to perform customer due diligence procedures, provided a written sworn certification is obtained and normal due diligence measures are conducted

Exceptions

The BSP has emphasized that these relaxations do not apply in cases where there is no declaration of calamity or when customers are engaging in transactions that exceed PHP 50,000 per day.