The Bangko Sentral ng Pilipinas (BSP) has approved amendments to its due diligence regulations to include electronic Know-Your-Customer (e-KYC) using digital identity.
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 (BSFIs).
e-KYC has to be anchored on robust information and communication technology architecture, tiered or risk-based e-KYC policies as well as procedures with commensurate onboarding requirements and authentication assurance levels.
The enhanced rules also highlights the acceptance of the soon-to-be launched Philippine Identification System (PhilSys)-enabled e-KYC system by the Philippine Statistics Authority (PSA).
BSFIs with existing e-KYC systems are given one year to comply with the prescribed 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.
Bangko Sentral Governor Felipe M. 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.”
