Peso RTGS Participants Mandated to Submit Compliance Reports by BSP

Peso RTGS Participants Mandated to Submit Compliance Reports by BSP

by May 23, 2024

The Bangko Sentral ng Pilipinas (BSP) has mandated all participants in its peso real-time gross settlement (RTGS) payment system to submit an attestation report, confirming their active participation and compliance with regulations.

According to Memorandum No. M-2024-014, signed by BSP Assistant Governor Mary Anne P. Lim, who also chairs the RTGS Management Committee, the first attestation report is due on 28 June 2024, covering the period from 1 January to 31 December 2023.

Lim stated that this report forms part of the Peso RTGS Rules on Reporting Requirements, requiring all participants to certify their adherence to the participation terms and conditions in the RTGS, known locally PhilPaSSplus.

The attestation report will encompass several areas including laws and regulations on payment systems, operational and financial requirements, risk management, collaborative activities, reporting requirements, data confidentiality, and sponsorship arrangements. The deadline for subsequent annual reports will be the last banking day of January each year.

OmniPay Joins BSP's PhilPaSSplus as First Nonbank EMI Participant

Source: BSP

This latest requirement follows the BSP’s introduction of a monthly monitoring report for sponsored RTGS payment system participants in June 2023. The monthly report aims to identify, monitor, and manage any material risks to the RTGS that may arise from sponsorship arrangements.

The BSP defines sponsorship as a relationship where a sponsor institution settles transactions on behalf of a sponsored institution, which may include banks, non-bank financial institutions, or payment service providers (PSPs) lacking direct RTGS access.

RTGS participants include the BSP, financial institutions with settlement accounts at the BSP, financial market infrastructures (FMIs), clearing switch operators, and critical service providers within the RTGS ecosystem.

The BSP’s RTGS payment system plays a crucial role in ensuring the smooth flow of funds and transfers within the country, facilitating financial market transactions involving securities and foreign currencies for business and risk management purposes.

In previous efforts to streamline the system, the BSP adjusted qualification requirements for non-bank e-money issuers and other entities with retail transactions, allowing them to operate without the need for sponsorship by existing participants.

The BSP has updated and amended the RTGS rules to address potential systemic risks and safeguard the National Payment System (NPS) and the circulation of money or movement of funds in the Philippines.



Featured image credit: Edited from Freepik