The Bangko Sentral ng Pilipinas (BSP) has issued new rules covering financial institutions’ use of electronic “know-your-customer (KYC) processes,” providing minimum requirements for digital identification and verification of clients.
The e-KYC guidelines are part of the amendments to the customer due diligence (CDD) regulations, the BSP said in a statement. The new guidelines recognize the use of e-KYC through the digital ID system and provide the minimum requirements for banks in the conduct of e-KYC, it said.
Under the new rule, the Philippine Statistics Authority will launch an e-KYC system that is enabled by the Philippine Identification System (PhilSys), which is an acceptable system under Republic Act No. 11055 or the PhilSys Act and it’s Revised Implementing Rules and Regulations.
“The digital ID system to be used in conducting CDD must be supported by robust technology, adequate governance, processes, and procedures that provide an appropriate level of confidence that the system produces accurate results,” the central bank said.
The BSP Governor Felipe M. Medalla said that e-KYC is one of the key enablers to promote innovation and digital transformation aimed at advancing the financial inclusion agenda.
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The amendments aim to promote a more efficient and seamless identity verification through technology and existing e-KYC systems, he adds.
