Guidelines on Cash Agents

OFFICE OF THE DEPUTY GOVERNOR FINANCIAL SUPERVISION SECTOR 031 MEMORANDUM NO. M-2021-____ To : ALL BANKS WITH CASH AGENT OPERATIONS Subject : Guidelines on Cash Agents Pursuant to Section 275 of the Manual of Regulations for Banks (MORB), a bank may contract third party entities as cash agents, where customers can perform secure online, real-time deposit and withdrawal transactions for their own accounts, fund transfers, bills payment (self- service transactions), and payments, subject to applicable regulations on outsourcing, electronic banking, anti-money laundering, consumer protection, bank secrecy, and customer data confidentiality. The Section further provides that banks shall be accountable to their customers for all acts and omissions of their cash agents on bank-related products and services. Moreover, Section 1002 of the MORB, as amended by BSP Circular No. 1048 dated 06 September 2019, provides the consumer protection standards in terms of disclosure, transparency, and effective recourse, among others. Banks are reminded to ensure that customers are adequately informed and protected when transacting with their cash agents, and should provide mechanisms for their customers to verify accredited agents and to lodge complaints for agent-related transactions. In view of the foregoing, a bank with cash agent operation shall observe the following: 1. In all advertising and marketing materials, terms and conditions on the use of agents, and other forms of communication, it must be clearly stated that the banking products and services are products and services of the bank. 2. To ensure identification of the bank’s accredited cash agents and to protect the customers from transacting with unauthorized agents, the bank shall:

a. Provide a uniform affixed signage which should be noticeable and readable by the customers to be displayed conspicuously in the premises of the cash agent indicating the following: i. A statement that the cash agent is accredited by the bank; ii. Logo of the bank; iii. Bank’s customer care hotline, email address and other consumer assistance channels; and iv. Allowed activities/services and related fees. The foregoing signage shall also appear in the website, and/or other media platforms of the cash agents. b. Publish on its website or in any other media platforms, an updated list of its accredited cash agents, including their complete registered business name, contact number(s)/details, locations and authorized activities/services. 3. The bank shall establish a mechanism for handling complaints on cash agent-related transactions including the committed turn-around time to respond to its clients. The said mechanism should be posted in the bank’s website. For guidance and compliance. Digitally signed by Chuchi G. Fonacier Date: 2021.05.28 11:44:19 +08'00' CHUCHI G. FONACIER Deputy Governor 28 May 2021