The Monetary Board approved the amendments to the Bangko Sentral ng Pilipinas’ customer due diligence regulations, which include guidelines on electronic Know-Your-Customer using digital identity system.
The new rules set out the requirements for the use of digital identification and verification as part of the customer onboarding process of BSP-supervised financial institutions.
The guidelines recognize the use of e-KYC through the digital ID system and provide the minimum requirements for BSFIs in the conduct of e-KYC. In particular, the latter should be anchored on robust information and communication technology architecture and tiered or risk-based e-KYC policies and procedures with commensurate onboarding requirements and authentication assurance levels.
The enhanced rules highlight that the Philippine Identification System-enabled e-KYC to be launched by the Philippine Statistics Authority is an acceptable system for e-KYC under Republic Act No. 11055 or the PhilSys Act and its revised implementing rules and regulations.
PhilSys-enabled e-KYC will be allowed subject to PSA’s applicable guidelines and full implementation of the authentication procedures/methods and other related systems under the PhilSys.
BSP Governor Felipe Medalla said: “The policy enhancements promote seamless remote identity verification by leveraging on the use of technology and existing e-KYC systems. E-KYC is one of the key enablers to promote innovation and digital transformation aimed at advancing our financial inclusion agenda.”
BSFIs with existing e-KYC systems are given one year to comply with the prescribed e-KYC requirements. Meanwhile, BSFIs that intend to shift to an e-KYC system are expected to comply with the provisions of the new Circular before the implementation of the system.