BSP Relaxes KYC Requirements to Facilitate Access to Financial Services
Know Your Customer/Client (KYC) is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks’ services are not misused. The KYC procedure is to be completed by the banks while opening accounts and also periodically update the same.
Recently, the Bangko Sentral ng Pilipinas (BSP) has advised the public that it will order the relaxation of KYC requirements to enable access of all identified beneficiaries to financial services. BSP aims to facilitate the delivery of welfare funds to those beneficiaries who have no available valid identification documents (IDs) or transactional account with any financial institution.
Accordingly, the Monetary Board eased the requirement for the presentation of a valid ID for all customer onboarding and transactions during the period of enhanced community quarantine (ECQ) and until 30 June 2020.
Under the recently issued BSP Memorandum No. M-2020-015, any requirement for the presentation of valid IDs shall be relaxed during the above-mentioned period, subject to the following control measures:
(a) The transactions in the account shall not exceed P50,000.00 per day;
(b) Qualified customers are those who reside or conduct business in the area which has been declared to be under ECQ/CQ;
(c) Customers are required to certify that he/she has no valid ID; and
(d) The customer’s account activities shall be subject to ongoing monitoring. Financial institutions are expected to obtain the required minimum information from the customer and perform risk-based customer due diligence.
Note that the foregoing shall apply to both over the counter and electronic or online transactions.
BSP has implemented this relief measure on Customer Identification because it considers the accounts involved as low risk. Likewise, BSP has implemented control measures to prevent money laundering and terrorism financing risks. This initiative by the BSP intends to ensure that Filipinos have continuous access to basic government and financial services amid the ongoing COVID-19 pandemic.
Please stay tuned for new issuances and releases of Bangko Sentral ng Pilipinas. We will accordingly provide updates as new announcements from the BSP are given from time to time.