BSP agrees to the use of digital ID for bank client verification

The Bangko Sentral ng Pilipinas (BSP) has agreed to the use of digital identification and verification of bank clients. BSP also released guidelines on electronic Know-Your-Customer (e-KYC), which recognizes its use through the digital ID system.

The BSP noted that e-KYC “should be anchored on robust information and communication technology architecture and tiered or risk-based e-KYC policies and procedures.”

The use of eKYC is included in the amendments to the BSP’s customer due diligence (CDD) regulations as approved by the Monetary Board.

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“The policy enhancements promote seamless remote identity verification by leveraging the use of technology and existing e-KYC systems,” said Bangko Sentral Governor Felipe Medalla. “E-KYC is one of the key enablers to promote innovation and digital transformation aimed at advancing our financial inclusion agenda.”

BSP-Supervised Financial Institutions (BSFIs) that are already implementing e-KYC will have one year to comply with the prescribed e-KYC requirements. BFSIs that will shift to an e-KYC system are expected to comply with the provisions of the new circular before the implementation of the system.

The BSP also said that the guidelines include the acceptance of the Philippine Identification System (PhilSys)-enabled e-KYC, which will be launched soon by the Philippine Statistics Authority (PSA).