BSP Amends Reporting Governance Framework for MSBs

The amendments aim to strengthen risk monitoring in the sector and align local practices with global AML/CFT standards.

The Bangko Sentral ng Pilipinas (BSP) has introduced amendments to its reporting governance framework for Money Service Businesses (MSBs).

The move aims to strengthen risk monitoring in the sector and align local practices with global AML/CFT standards.

The BSP said the amendments will “enhance regulatory and supervisory activities over MSBs to ensure that attendant risks remain manageable as the industry continually evolves and business models become increasingly complex.”

The draft regulations require MSBs to adopt effective reporting systems to ensure regulatory reports are complete, accurate, timely, and adaptable.

MSBs should also establish systems for management information reporting and written policies and procedures documenting their standards and processes.

An effective governance process over the MSB’s reporting system must be established by the board of directors, partners, or proprietor; and implemented by senior management.

MSBs will also have to undertake periodic reviews of their governance process to ensure the reporting system continues to remain relevant and effective.

The amendments also revise the penalties that can be imposed on MSBs for non-compliance with reporting requirements, setting daily fines ranging from PHP 150 and PHP 1,500 for violations.

Once the draft regulations take effect, MSBs will have one year to come into compliance.