Circular Letter No. CL-2021-080, issued on 18 October 2021 by the Bangko Sentral ng Pilipinas (“BSP”), disseminates to all BSP-Supervised Financial Institutions (“BSFI”) the Anti-Money Laundering Council’s (“AMLC”) Guidelines on Digitization of Customer Records (“DIGICUR”) adopted via the AMLC Regulatory Issuance (“ARI”) A, B, and C, No. 2, Series of 2018.
According to the BSP, all covered persons, except money services businesses (“MSBs”) who generally do not maintain accounts or electronic wallets for their customers, are obliged to comply with DIGICUR. This is in line with DIGICUR’s objectives of maintaining the confidentiality of AMLC’s financial investigations and ensuring the swift retrieval of customer records by covered persons.
The BSP made it clear that the covered persons subject to DIGICUR include BSFIs whose business involves customers who are able to open, keep and maintain accounts, e-wallets, or other similar electronic products or services with them. ARI No. 6, Series of 2021 requires such BSFIs to: (i) complete and fully comply with DIGICUR on or before the final and non-extendible deadline of 30 September 2022; (ii) submit, until the requirements of DIGICUR have been fully complied with, a Quarterly DIGICUR Status Report of Compliance (QUADSREC) within fifteen (15) calendar days after each reference quarter, except that the first report shall be submitted on or before 31 October 2021; and (iii) submit a one-time QUADSREC on or before 31 October 2021, indicating that the covered person/BSFI is exempted from DIGICUR’s coverage, in cases of those BSFIs who do not maintain such accounts or e-wallets for their customers.
BSP reminds BSFIs that: (a) non-compliance with the DIGICUR requirements constitutes a grave violation and may be punished by penalties ranging from Php37,500 to Php375,000 per customer; and (b) failure to submit QUADSREC within the period prescribed is a violation punishable by penalties ranging from Php15,000 to Php150,000 per account.
The information provided here is for information purposes only, and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.