On 01 March 2022, the Bangko Sentral ng Pilipinas (BSP) has issued Circular No. 1138 on the Regulatory Reporting Standards for Operators of Payment System (OPS).
The said circular prescribes the following:
Implementation of Reporting Standards – The BSP mandates that the reports to be submitted must be accurate, complete and timely. In order to comply with this mandate, the OPS must have a reporting system with the following functionalities under both business-as-usual and stressed conditions:
a. Generates accurate, complete and reliable information
b. Aggregates all material data across various business lines, entities, services, instruments and other groupings
c. Produces in a timely manner, regular, on-demand and ad hoc reports.
Sanctions can be imposed depending on the classification of non-compliance with the reporting standards:
a. Erroneous report – a report submitted within the prescribed deadline but is found to be non-compliant
b. Delayed report – a report that is compliant but was submitted after the prescribed deadline
c. Unsubmitted – a report that is not submitted or does not comply with the standards by the time the next report becomes due or upon lapse of 30 days from the report’s submission deadline, whichever comes first.
Institutionalizing Reporting Governance – Under this circular, the BSP attributes responsibility to the Board of Directors and senior management to adopt reporting policy and effective reporting system. An effective reporting system shall have the following components:
a. A management information system, data architecture and technology infrastructure commensurate to the business operations of the OPS and capable of subjecting such system to internal independent validation.
b. Documented policies and procedure in report generation, report modification/correction, unusual transaction/fraud monitoring, and maintenance of adequate back-up copies.
c. Independent review of reporting processes and procedure, including the establishment of an internal audit or engaging an independent external party.
The oversight department of BSP shall assess the quality of the reporting system of an OPS in order to ascertain the accuracy, completeness and integrity as well as the timeliness of the regulatory reports.
Adoption of Data Retention Policy – The OPS is mandated to adopt a policy requiring data and report retention period of no less than five (5) years. However, in the following instances, the relevant information shall be preserved beyond the 5-year period until such time that a final judgment has been reach by BSP and the judicial or administrative body:
a. Special examination of the BSP; or
b. Criminal, civil, or administrative body where the OPS is involved as a party to the investigation
The BSP will still issue the specific reportorial requirements, including the report categories, signatories, frequencies, deadlines and manner of submission to BSP.
This article is for general information only and is not intended nor should be construed as a substitute for legal advice on any specific matter. A professional legal advice is still necessary to an actual or particular issue.
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