All you need to know about BSP’s new eKYC regulation (Mar 2023)
The Bangko Sentral ng Pilipinas (BSP) released a circular on March 30, 2023, outlining amendments to existing customer due diligence (CDD) requirements for supervised financial institutions (FIs). These amendments aim to address the lack of identity documents amongst the population, which left many citizens unbanked.
Details of the new regulations
- Stricter Due Diligence: FIs are required to have new minimum requirements when implementing eKYC systems. Users who fail to comply with the new CDD measures can’t open accounts, conduct transactions or establish business relations — and must be included in a suspicious transaction report.
- Customer Identification: The new eKYC guidelines highlight required information or documents needed to establish new accounts, such as Philsys Card Number, name of customer and more. A person’s record on Philsys is considered official and sufficient proof of identity.
- SOPs for Different Scenarios: The circular highlights some measures to handle business relations prior to user verification for existing customers — such as transaction limits, monitoring, etc.
- Accepting Valid ID Documentations: The circular highlights appropriate data collection methods, such as not being allowed to capture the back portion of the PhillD and guidelines for face-to-face contact.
- Guidelines on eKYC: The new guidelines provide details on how eKYC should be implemented, such as the three stages of identity proofing, enrollment, and identity lifecycle management.
What Does This New Regulation Mean for Financial Institutions?
Financial institutions now have more options to reach out to the unbanked community. Instead of relying on manual processes, it is now possible to onboard users remotely via remote video verification and eKYC. This helps push forward the country’s financial inclusion agenda.
It also requires financial institutions to adopt more robust ID collection methods, which prevent the possibility of digital fraud. Identity fraud is an emerging problem in ASEAN, and it’s important for FIs to comply with BSCP and AMLC standards.
The circular takes effect on April 15th and needs to be complied with within one year, making the deadline April 2024.
How Financial Institutions Can Comply with the New Regulation
Innov8tif is well-equipped to help financial institutions undergo digital transformation. We offer a suite of solutions that manage user onboarding, customer due diligence and authentication. Our offerings include eKYC, remote video verification, digital signatures, and more.
We are one of the largest ID verification providers in ASEAN, and we cater to businesses looking for an ecosystem of solutions that is comprehensive, secure and scalable.