The Bangko Sentral ng Pilipinas (BSP) is proposing stricter standards on financial reporting and audit oversight for Operators of Payment Systems (OPS).

The central bank has released a draft circular outlining these regulations and is accepting industry feedback until 12 December.

The proposed rules aim to strengthen the financial reporting of entities such as banks, e-wallet providers, and payment gateways that facilitate fund transfers.

Under the proposal, licensed operators must submit annual financial statements no later than 120 days after the close of their calendar or fiscal year. Furthermore, these operators must hire external auditors exclusively from a BSP-approved list.

Foreign-based firms would be required to adhere to these disclosure requirements alongside equivalent regulations enforced in their home jurisdictions.

While government-owned operators fall under the Commission on Audit and are generally exempt from the external audit requirement, the Monetary Board may mandate an external audit if supervisory concerns, such as internal control breaches, arise.

The draft circular also enforces strict protocols for external auditors, including provisions on rotation and the avoidance of conflicts of interest. Auditors must report significant issues—such as fraud, potential losses, or material breaches of laws—to the BSP within 15 calendar days of discovery.

Failure to comply could result in penalties for operators or the exclusion of auditors from the central bank’s list.

“The Bangko Sentral recognises the importance of financial reports and disclosures in the conduct of effective supervision and in sustaining public and stakeholder confidence in the payment system,” the BSP stated.

The regulator added that the measures aim to enhance the quality, integrity and transparency of information channelled to the supervisory process and ultimately promote fairness, accountability, and confidence in financial reporting.

Featured image by pressfoto via Freepik.