One of the principal authors of the national identification law on Friday welcomed the appointment of the Bangko Sentral ng Pilipinas as the producer of the national identification system’s blank cards.
Laguna Rep. Sol Aragones made the statement following the signing of the memorandum of agreement between the Philippine Statistics Authority and the BSP on the production of the blank cards for IDs under the Philippine Identification System.
“With the BSP as the producer of the blank ID cards, corruption will eliminated,” Aragones said.
“This is great news. We can implement the PhilSys Law as soon as possible,” she said.
Aragones chaired the House Committee on Population and Family Relations that led the deliberations for the passage on August 2018 of Republic Act No. 11055 or the Philippine Identification System (PhilSys) Act during the 17th Congress.
The BSP announced that it has set aside P3.4 billion for the production of 116 million blank cards, or amounting to P30 per card, that will be issued until 2022. The total projected cost is P30 billion.
Aragones reiterated the need to produce the IDs at the soonest possible time, which she said are crucial in providing Filipinos with access to government and financial services.
The PhilSys simplifies the processes for services offered both by the government and private companies, said Aragones, as only one ID would be required instead of the usual two, which millions of Filipinos do not have.
The World Bank’s Identification for Development initiative reports that over 16.3 million Filipinos do not have proof of identity, which hinders them from availing of government and financial services.
As this developed, the BSP said that the distribution of national IDs will increase financial inclusivity among Filipinos by reducing the number of documents needed to open bank accounts.
In a press conference after the signing of a memorandum of agreement (MOA) between the BSP and the Philippine Statistics Authority (PSA) on October 7, BSP Managing Director Pia Roman-Tayag highlighted the merit of the Philippine Identification System (PhilSys) in connecting registered Filipinos to financial institutions.
“One of the biggest barriers in opening an account is the proof of identity and not having the necessary documentary requirements. The way that PhilSys is designed is that even those without initial documentary requirements, the law provides some provisions in which they can register,” Tayag said.
“So even the most vulnerable, those who have not been partially identified, can be identified through the PhilSys. And that is the connection for them to be now KYC’d (Know Your Customer) and have an account. And as we know with an account, they can already access a range of financial services,” she added.
BSP Governor Benjamin Diokno likewise affirmed the identification purpose of the national ID, where it replaces the two government-issued ID requirements for opening a bank account under existing KYC rules.
“That would be very helpful for most of our en banc because as you know, farmers don’t usually have passport or driver’s license, so now in this, PhilID is all you need to open an account,” Diokno noted.
Under Republic Act 11055, also known as the Philippine Identification System Act, the presentation of a PhilID is sufficient proof of identity for transacting business with private entities. Upon authentication, the ID can be used to open bank accounts and other financial transactions, among other services that require proof of identity.
The national ID also forms an important part of the digital financial inclusion agenda for the BSP, where it provides an opportunity to include people in the financial system who are unable to open a formal account due to the lack of an acceptable ID.
The MOA between the BSP and the PSA involves the printing of 116 million blank ID cards for the central bank, with the PSA tasked to collect the personal information that will be included in the IDs.
The national ID will contain the name, sex, date, and place of birth, blood type, and address of an individual, along with biometric data that includes a front-facing photograph, a full set of fingerprints, and an iris scan. With PNA