Sumary of BSP supports Senate Bill 1643:
- IN order to further foster financial inclusion in the Philippines, the Bangko Sentral ng Pilipinas (BSP) is pushing for the institutionalization of its regulation governing banks’ cash agents.
- “The BSP supports the objective of Senate Bill (SB) No. 1643 to establish a regulatory environment for innovation and to expand the reach of banks to remote or rural areas to cash agents,” Joyce Suficiencia, director of the central bank’s Financial Inclusion Office, said during a Senate meeting on Thursday.
- According to Suficiencia, the proposed SB 1643 institutionalizes the BSP Circular 940, which requires banks to obtain prior regulatory approval before engaging third-party firms as their cash agents.
- Suficiencia said under Circular 940, banks must have clearly defined policies, procedures, and controls in place for their cash agent operations, including but not limited to cash agent selection, due diligence, and customer care arrangements, before they can be given authority to engage cash agents.
- The circular also allows banks to hire cash agents to receive and dispense cash on their behalf in connection with online self-service consumer activities such as deposits, withdrawals, money transfers, and bill payments.
- Cash agents can also execute know-your-customer processes, as well as collect and forward loan and account application materials, according to the BSP official.