BSP tightens rules on remittances, dormant accounts

MANILA, Philippines - Local remittance senders will now have to shoulder alone transaction fees and charges under new regulations of the Bangko Sentral ng Pilipinas (BSP) issued yesterday.

Under Circular 928, the central bank also tightened regulations on bank treatment of dormant accounts or those which do not have recorded transactions for a particular period.

“Banks shall adopt a policy for the fees charged on financial products and services and a fee structure as a measure of fair treatment of its clients,” the central bank said in a statement.

As far as local remittances are concerned, previous rules have allowed both the sender and receiver of money to shoulder transaction costs.

BSP said rules were changed to allow money receivers — from Manila to provinces and vice-versa — to be able to budget their money.

“This enables determination of the exact amount to be received by the beneficiary and allows consumers to decide on the most cost-efficient means for remitting money,” it said.

On unused accounts, the circular said lenders, while allowed to impose so-called “monthly dormancy fees,” may only do so up to P30 a month.

Previously, no specific cap was imposed.

The amount may also only be imposed if no activity, whether withdrawal or deposit, was recorded in the account for at least five years, or if deposit fell below the minimum monthly average daily balance.

Banks should also inform depositors “at least 60 days” before the imposition of dormancy fees. The latter, in turn, would also have 60 days, up from just 30, to challenge it.

“To comply with the notification requirements, a depositor must be notified through postal mail, courier delivery, email, telephone or other means...,” BSP said.

“Banks shall publicly notify clients of any amendments in the terms and conditions of retail bank products/services,” it added.