Philippine Central Bank issues Regulatory Reporting Standards for Operators of Payment Systems
The Philippine Central Bank, Bangko Sentral ng Pilipinas (BSP), issued Circular 1138 which establishes Regulatory Reporting Standards for Operators of Payment Systems (OPS).
Through this issuance, the BSP seeks to obtain “relevant, complete, accurate, and timely reports” in order to implement an “effective oversight of the national payment system” which it plans to pursue through the establishment of reporting standards that include information and attachments required by the BSP to be submitted according to definite timelines and on reporting templates.
The Circular requires OPS to put in place a reporting system which has the following functionalities for both business-as-usual and stressed conditions:
- Generates accurate, complete and reliable information required by the Bangko Sentral and other regulatory bodies;
- Aggregates all material data across various business lines, entities, services, instruments and other groupings that are relevant to regulatory reporting; and
- Produces in a timely manner, regular, on-demand, and ad hoc reports particularly those required by the Bangko Sentral and other regulatory bodies.
The reporting system must have the following components to be considered an effective reporting system as determined by the Monetary Board and senior management:
- A management information system, data architecture and technology infrastructure;
- Documented policies and procedures; and
- Periodic independent review of reporting processes and procedures to ensure their continuing reliability and effectiveness
The Circular also provides that OPS shall “adopt a policy requiring data and report retention period of no less than five (5) years”. This period of retention shall be extended in case the OPS shall “become a subject of an investigation, a special examination of the Bangko Sentral or a criminal, civil, or administrative case has been filed in a competent judicial or administrative body where the OPS is involved as a party to the investigation.”
Lastly, Circular 1138 enumerates the sanctions and penalties to be meted out to OPS that are non-compliant with the reporting standards. The BSP shall have the authority to impose monetary and non-monetary penalties in order to ensure compliance with the reporting standards.
The full circular may be accessed here.