November 11, 2024 | 12:00am
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) and the Cooperative Development Authority (CDA) are finalizing the guidelines for cooperatives that are currently involved or interested in operating as electronic money issuers.
The regulator has made available a draft joint circular on the proposed guidelines. Industry players may submit their feedback on the draft rules until Nov. 15.
The BSP said that cooperatives could effectively contribute to the digitalization of payments and financial inclusion given their presence in municipalities and cities in the Philippines.
Therefore, the BSP and the CDA signed a memorandum of agreement (MOA) on Oct. 18 to improve collaborative oversight and supervision of covered cooperatives. These are cooperatives that are licensed as an e-money issuer or registered as an operator of payment systems (OPS).
“The implementation of the MOA is expected to result in adoption of a comprehensive regulatory framework, particularly on covered cooperatives, which will promote inclusive digital payments ecosystem, broader access to digital payments services, and contribute to the development of the Philippine economy,” the BSP said.
The implementation of the MOA is also expected to lead to greater transparency and accountability of covered cooperatives as it sets the guidelines and the minimum regulatory requirements to harmonize existing laws on payments.
“The joint memorandum circular likewise delineates the respective authorities of BSP and CDA with respect to the activities that they respectively supervise and establishes formal lines of communication to facilitate cooperative oversight on covered cooperatives,” it said.
Under the draft rules, covered cooperatives should include in their by-laws the adoption of a governance structure that provides clear and direct lines of responsibility and accountability of directors and senior management.
Covered cooperatives should strictly adhere to the guidelines on the issuance and operations of e-money under the Manual of Regulations for Non-Bank Financial Institutions. This includes adoption of minimum systems and protocols, adherence to regulations on financial consumer protection and observance of the minimum liquidity requirements.
“Covered cooperatives shall follow the more stringent requirements between the provisions of applicable BSP issuances and those prescribed by the CDA,” the BSP said.
“For purposes of determining compliance of Covered Cooperatives with this rule, each Authority shall have access to relevant information and documents that are under the custody or control of the other,” it said.
Covered cooperatives should comply with the additional requirement not later than six months from its effectiveness. Thus, they are directed to submit to the appropriate department of the BSP and copy furnish the appropriate department of the CDA some relevant documents.
The documents include valid certificates of compliance as cooperatives issued by the CDA and amended by-laws for cooperatives registered as OPS.
Be the first to comment