Reporting standards eyed for payment operators

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is putting in place regulatory reporting standards for operators of payment systems as it ramps up efforts to transform the country from a cash-heavy into a cash-light economy.

The BSP has released the draft circular and major stakeholders have until Jan. 29 to submit their comments.

The proposal requires operators of payment systems to submit reports that are accurate, complete and timely to be considered compliant with the BSP reporting standards.

“Inputs to the reports shall be validated to ensure accuracy and integrity. The reports shall reflect all information required by the BSP. Moreover, submission of reports shall be made within the timeline prescribed by the BSP,” the BSP said.

The central bank also said an operator of payment systems needs to put in place a reporting system that has the following capabilities under both business-as-usual and stressed conditions.

It said the reports should include all material data across various business lines, entities, services, instruments and other groupings that are relevant to regulatory reporting.

Operators, the BSP said, should establish a management information system, data architecture, and technology infrastructure that fully support reporting requirements and facilitate internal independent validation prior to submission of reports.

Likewise, there should be documented policies and procedures laying out the standards and processes for generating high quality internal and external reports as well as periodic independent review of reporting processes and procedures to ensure their continuing reliability and effectiveness.

“Such assessment shall be conducted by competent persons with relevant information technology, data, and regulatory reporting expertise,” the BSP said.

The BSP said that there should also be procedures to implement modifications in reporting processes, in order to incorporate corrective measures and/or enhancements for the purpose of addressing weaknesses identified during periodic reviews, responding to changes in operating environment, or complying with new regulatory reportorial requirements.

“Protocols that ensure timely reporting to the board and senior management of significant transactions, events, or activities that have material impact on the quality of reports,” it said.

The BSP said overseeing department would conduct an assessment of the quality of the reporting system of an operator of payment systems in order to ascertain the accuracy and integrity, as well as the completeness and timeliness of their regulatory reports.

The BSP has launched a three-year digital payments transformation roadmap, charting current initiatives and strategy in advancing an efficient, inclusive as well as safe and secure digital payments ecosystem.

BSP Governor Benjamin Diokno has committed to convert 50 percent of the total volume and value of retail payments into digital form and expand the number of financial included to 70 percent of Filipino adults by onboarding them to the formal financial system through the use of payment or transaction accounts.