Latest news with #BSP-supervised
GMA Network
a day ago
- Business
- GMA Network
BSP may require financial institutions to limit user access to online gaming
The Bangko Sentral ng Pilipinas (BSP) is looking at requiring Philippine financial institutions to limit the gaming access of their users, in a bid to protect clients of digital platforms from risks associated with online gambling. According to the central bank, it has already circulated a draft circular for such measures, and is now reviewing feedback from stakeholders. 'The circular would seek to require BSP-supervised institutions (BSIs), primarily banks and electronic money issuers, to better protect users of their digital platforms from these risks. Protection may come in the form of various limits to gaming access,' the BSP said. 'The BSP is taking a collaborative approach to crafting the circular, to ensure that the final policy strikes a balance between protecting consumers and preserving access to digital payments for licensed businesses,' it added. To recall, the BSP in 2021 issued a directive that prohibited regulated entities from dealing with unlicensed gambling operators. It also ordered e-wallets and other BSIs to remove links to electronic sabong or e-sabong from their platforms in 2022. 'The BSP remains committed to promoting a safe, secure, and inclusive digital finance ecosystem for all Filipinos,' the BSP said. Earlier this week, Senator Sherwin Gatchalian proposed a measure imposing strict regulations for online gambling, including banning the use of an e-wallet for online gambling, increasing the minimum age from 18 to 21, and having a minimum bet of P10,000 and a top up of P5,000. Malacañang last month said the government has shut down 7,000 unauthorized gaming websites, citing concerns related to online gaming addiction. — BM, GMA Integrated News
GMA Network
11-06-2025
- Business
- GMA Network
Financial institutions given until June 2026 to boost fraud management systems
Financial institutions under the supervision of the Bangko Sentral ng Pilipinas (BSP) have been given until June 2026 to boost their fraud management systems (FMS), and limit their use of interceptable authentication mechanisms such as one-time pins (OTPs) sent via SMS and email. Under the Anti-Financial Account Scamming Act (AFASA), BSP-supervised financial institutions (BSFIs) with complex electronic products and services (EPS) or those with an average of at least P75 million monthly network value for the last six months are required to strengthen their FMS. The implementing rules and regulations (IRR) of AFASA, set to take effect on June 25, 2025, require such BSIs to have their FMS cater to behavioral anomalies, blacklist screening, geolocation monitoring, mobile device and account information changes, in a bid to prevent unauthorized transactions. 'We already have a fraud management system, but we enhanced it, and we all know that it takes time to buy all the new software, so we gave the banks one year,' BSP deputy governor Elmore told reporters in a press chat in Manila City. This is on top of the FMS required of all BSIs with an Advanced Electronic Payment and Financial Services (EPFS) license to have their FMS that is real-time, commensurate to risks, has fraud detection and blocking, comprehensive, and constantly calibrated. 'We are going into additional FMS. The present will not really suffice. Everything is moving very fast so we have this additional. Sometimes a good system is only good until the scammers find a way to go around it,' Capule said. President Ferdinand 'Bongbong' Marcos Jr. signed the AFASA, or Republic Act 1201,0 on July 20, 2024, after being designated as a priority bill by the Legislative Executive Development Advisory Council (LEDAC). The IRR of the law also provides for BSP-supervised financial institutions to limit the use of OTPs sent to users via SMS and email, and adopt more multi-factor authentication (MFA) methods. 'With the increasing prevalence of social and engineering attacks aimed at obtaining login credentials, BSFIs should limit the use of authentication mechanisms that can be shared with, or intercepted by, third parties unrelated to the transaction,' according to BSP Circular 1213. Among the other recommended MFA methods are biometric authentication, which allows customers to use their fingerprint scanning, facial recognition, and voice recognition to authorize transactions, and behavioral biometrics that track patterns such as typing speed, mouse, or device movements. The BSP also allows for passwordless authentication that uses factors like biometrics, hardware tokens, and cryptographic keys, such as Fast Identity Online (FIDO) which allows biological features or a security key to log in to online accounts. The circular also provides for adaptive authentication, which adjusts the authentication process based on the user's context to cover factors such as location, device, and behavior. This will prompt additional verification steps or other actions upon detection of unusual activity. 'We have to realize all of these things are very, very expensive, that's the reality, so we are giving them sufficient time. But at the same time, we realize that if they will not adapt to this, we cannot really solve these scamming, these frauds, so it's a calibrated speech,' Capule said. According to the BSP, it received around 70,000 complaints in 2024, of which 13% were unauthorized transactions including phishing and vishing. There were 703 cases that entered into mediation during the year, with an 83% success rate. For this year, the central bank said cases that have entered mediation from January to May have already hit 400. –NB, GMA Integrated News
Coin Geek
15-05-2025
- Business
- Coin Geek
Philippines pushes for fairer digital transaction fees
Getting your Trinity Audio player ready... The Bangko Sentral ng Pilipinas (BSP), the Philippine central bank, is urging financial institutions to adopt a 'market-based' and 'fair' pricing mechanism for digital transaction fees, in a move aimed at reducing—if not removing—costs for consumers transferring money electronically. The BSP is currently seeking comments from stakeholders on a draft circular that would guide banks and non-bank financial institutions in setting their fees for electronic fund transfers such as InstaPay and PESONet. 'The pricing mechanism must be adequately supported by an analysis of costs incurred by the BSFI [BSP-supervised financial institution] in delivering electronic payment products and services, which may be subject to validation by the BSP,' the proposal stated. BSP emphasized that these pricing models must not create an imbalance between different users. 'The pricing mechanism shall not unduly favor one end-user relative to others,' the draft further noted. The proposed guidance marks a shift from the central bank's previous approach, explicitly proposing eliminating fees on small-value personal fund transfers. That provision is no longer part of the current draft. Although the response of banks to the earlier proposal remains unclear, any effort to bring down digital transaction costs aligns with the BSP's broader agenda to increase digital adoption and improve financial access across the Philippine population. According to BSP data, current InstaPay fees range from PHP8 to PHP75 ($0.14 to $1.35) per transaction, while PESONet charges can go as high as PHP600 ($11). Furthermore, the draft circular introduces an added layer of oversight, requiring BSP approval for any increases in existing fees or the introduction of new charges on digital payment services. Digital payment usage surges as BSP eyes more inclusive system The BSP's push for fairer transaction fees comes on the back of rising digital payments across the country. According to the latest central bank data, the share of digital payments in total retail transactions rose to 52.8% in 2023, up from 42.1% in 2022. This means that out of the estimated five billion monthly retail payment transactions in the country last year, over 2.6 billion were conducted through digital channels. The central bank sees this growth as both an opportunity and a responsibility. By ensuring that fees are aligned with actual service delivery costs, it aims to support further uptake while making financial services more accessible to more Filipinos. BSP governor cites financial sector strength, vows reform continuity The BSP's regulatory efforts to improve digital transactions are part of a broader strategy to strengthen the financial system, which the central bank said closed 2024 with strong momentum. In its report on the Philippine Financial System for the second half of 2024, the BSP highlighted the continued growth of supervised financial institutions, including banks, trust operations, and foreign currency deposit units. These gains, it said, have enabled institutions to keep delivering essential financial services to households and businesses alike. 'BSP's policy reforms and collaboration, alongside improving macroeconomic and industry outlook, have enabled supervised entities to expand and meet Filipinos' evolving financial needs,' BSP Governor Eli M. Remolona, Jr. said in a statement. 'These efforts support a more resilient financial system.' The report attributed sector-wide growth to a widening financial services network and advances in digital platforms. These trends, BSP noted, are enhancing customer experiences and increasing the reach of financial services, including to underserved and remote communities. The BSP also outlined its continued focus on safeguarding the system against financial crime and cyber threats. It spotlighted the rollout of enhanced supervision mechanisms for money laundering and terrorism financing risks, as well as a cyber resilience roadmap and updated regulatory approaches for money service businesses and pawnshops. Additionally, the lifting of the moratorium on the establishment of digital banks was cited as a forward-looking step, reinforcing the BSP's commitment to innovation while maintaining oversight. Watch: The Philippines is at the forefront of blockchain tech adoption title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
The Star
07-05-2025
- Business
- The Star
The Philippines seeks to establish lower digital transaction fees
The fresh proposal no longer included the BSP's explicit plan previously to eliminate the fees on small-value personal fund transfers. — Philippine Daily Inquirer MANILA: The Bangko Sentral ng Pilipinas (BSP) wants financial institutions to establish a 'market-based' and 'fair' pricing mechanism for fees they collect on electronic fund transfers, in a bid to lower, if not eliminate, transaction costs for Filipinos. The central bank is soliciting comments from stakeholders on a draft circular that would guide financial firms in adopting a pricing mechanism for fees on fund transfers, regardless of the size of the transaction. Notably, the fresh proposal no longer included the BSP's explicit plan previously to eliminate the fees on small-value personal fund transfers. Instead, the new draft circular would compel operators of payment systems (OPS) to ensure that the fees were based on the actual costs of sending funds electronically, subject to prevailing market conditions. 'The pricing mechanism must be adequately supported by an analysis of costs incurred by the BSP-supervised financial institution in delivering electronic payment products and services, which may be subject to validation by the BSP,' the document read. The pricing mechanism shall not unduly favour one end-user relative to others,' it added. It was unclear how the previous proposal to waive the service fee on small fund transfers was received by banks. Nevertheless, any reduction to transaction costs would bode well for the central bank's goal to boost digital transactions. The latest data showed that the share of digital payments to total retail payment transactions in the country grew to 52.8% in 2023, from 42.1% in 2022. That meant out of the five billion total monthly transactions recorded in 2023, more than 2.6 billion of them were successfully converted to digital form. Figures from the BSP showed the current InstaPay fees for individual transactions range from as low as eight pesos to as high as 75 pesos, while PESONet transfers could cost between eight pesos and 600 pesos for consumers. Under the proposed circular, regulated entities must obtain the BSP's approval prior to any increases in existing fees and charges, or introduction of new fees on digital payment transactions. — The Philippine Daily Inquirer/ANN
