Bangko Sentral hikes liquidity, capital requirements for e-money issuers

ABS-CBN News

Posted at Feb 08 2023 05:45 PM

MANILA - The Bangko Sentral ng Pilipinas on Wednesday said it has amended the guidelines covering electronic money and operations of e-money issuers (EMIs) amid increasing risks to protect consumers. 

In a statement, the BSP said the Monetary Board approved the amendments which include the higher liquidity and capital requirements for EMIs with significant outstanding e-money balance and large scale operations.

EMIs with a monthly outstanding E-money balance of at least P100 million are required to maintain liquid assets in trust accounts equivalent to at least 50 percent of their outstanding e-money balance and to cover the remaining balance with placements in bank deposits, government securities or other liquid assets acceptable to the BSP, it said.

Those with outstanding e-money balance below P100 million may continue to comply with the liquidity requirements by holding eligible liquid assets, it added.
 
The updated guidelines also set out higher capital requirements for EMIs with large-scale operations due to higher risk exposures, the BSP said. These entities are required to maintain a minimum capital of P200 million while the minimum capital requirement for small-scale EMIs is P100 million, the BSP added.

Meanwhile, the BSP said it lifted the P100,000 monthly aggregate load limit and now allows EMIs to set pre-defined limit and threshold per client category based on the results of their institutional risk assessment and customer diligence process. 

The classifications of EMIs were also simplified into 2, namely the EMI-Banks and EMI Non-Bank Financial Institutions which may include cooperatives.
 
The BSP said the definition of e-money was also expanded to include those that may be transferred to other accounts as compared with earlier regulation limiting it to only those withdrawable in cash or cash equivalent.

"The amendments are geared towards equipping EMIs in attending to the evolving needs and behaviors of consumers and in responding to the existing and emerging risks in the financial sector, such as cybersecurity and money laundering," BSP Gov. Felipe Medalla said.

"The revised guidelines reaffirm the BSP’s commitment to uphold the welfare of Filipinos by promoting a safe, secure, and inclusive financial system," he added.

E-money issuers were given 1 year from the effectivity of the revised regulations to comply, the central bank said.

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