Cash Service Alliance General Guidelines

BANGKO SENTRAL NG PILIPINAS

OFFICE OF THE GOVERNOR

CIRCULAR NO. 1099

Series of 2020

Subject: Cash Service Alliance General Guidelines

The Monetary Board, in its Resolution No. 1153 dated 10 September 2020 approved the amendments to the Manual of Regulations for Banks (MORB) for the adoption of the Cash Service Alliance(csA) general guidelines

Section 1. Section 1113 of the MORB is hereby added to read, as follows:

1113 CASH SERVICE ALLIANCE

circulation The Cash mechanism Service Alliance that aims (CSA) to is enable a currency all

mutually Authorized for fit Philippine beneficial Agent currency of Banks agreement (banks) to other service to banks from their enter requirements into

available currency holdings.

The CSA aims to:

b. a. Promote and facilitate efficient circulation of Provide transactions; fit Philippine a clear currency reference to to support accountability, economic

C. roles and responsibilities of stakeholders; Ensure observed that proper and secured procedures in the conduct of CsA transactions; are

d. Strengthen cooperation and their proactive role in currency among banks and circulation enable

management.

Appendix 145. The CSA general guidelines are provided in

Enforcement Actions. Consistent with Sec. 002, the

promote Bangko this Section Sentral adherencel and may to bring deploy the requirements about enforcement timely set actions corrective forth in to

actions. The. Bangko Sentral may issue directives or impose sanctions on the bank, for violation of the provisions of this Section, which may include, among others, restrictions Or prohibitions from certain authorities/activities. Sanctions may likewise be

A. Mabini St. Malate 1004 Manila, Philippines * (632) 8708-7701 . www.bsp.gov.ph - [email protected]

concerned. imposed l on bank directors, officers and employees

MORB as shown in Annex A of this Circular. Section 2. Appendix 145 on the CSA general guidelines is hereby added on the

publication in the Official Gazette or in a newspaper of general circulation. Section 3. This Circular shall take effect fifteen (15) calendar days following its

FOR THE MONETARY BOARD:

C

BENJAMIN E.DIOKNO

Governor

G6 October 2020

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Annex A

CASH SERVICE ALLIANCE (CSA) GENERAL GUIDELINES (Appendix to Sec. 1113)

direct exchange of fit currency among banks, and to serve shall adopt in drafting their bilateral agreements. asa The CsA General Guidelines is issued to formalize the general reference guide that participating banks

legal quality CsA transactions shall tender such that genuineness Philippine banknotes cover fit currency. These are is obvious. Specifically, and coins of good

mutilated and should to be considered fit for circulation, 1111. not exhibit counterfeit currency the characteristics as stipulated banknotes and coins Of in Sec. unfit,

I.Stakeholders

Primary stakeholders associated in this CsA:

C. Bangko Sentral ng Pilipinas Cash Department (Bangko a. Source bank - supplier of fit currency from their b. Client bank - requesting party and recipient of fit currency; and the Greater Manila Area. available currency holdings; Sentral CD) - the unit that manages the CsA System and coordinates CsA transactions of banks servicing

Secondary stakeholder:

d. Cash-in-Transit transport/deliver fit currency. service compliance with Sec. ll2. providers (CiT) hired companies Banks shall by banks third-party ensure to

II. Order and Acknowledgment Protocol

Banks with intention to deposit fit currency Or withdraw from the Bangko Sentral CD shall utilize the CSA System to provide information on their available fit

transaction will take precedence over direct deposit currency or to place fit currency orders. The CSA to or withdrawal from the Bangko Sentral CD.

the provisions enumerated below: All Source banks and Client banks shall comply with

Annex A

a. From 8:00 am to 10:00 am, holidays, Source bank and Mondays to Fridays, Client bank shall except submit

the following information to the Bangko Sentral CD through the csA System:

Available fit currency Source Bank holdings Fit currency requirements (per denomination, Client Bank number

of pieces/ bundles/bags, (per denomination, and amount) number of pieces/ bundles/bags, and amount)

reasonable service fee for Source bank shall also the CsA transaction. provide information On

b. Bangko (AMS) who Sentral will CD monitor shall have and CSA manage Account Managers information

provided by Source bank and Client bank. CSAAMs

Mondays to Fridays, except holidays; shall match fit currency requirements with available fit currency holdings from 10:00 am t0 12:00 nn,

c. The CsA AMs shall inform Client bank through email or phone call of the available fit currency from the Source bank between 10:00 am to 0l:30 pm, Mondays to Fridays, except holidays;

d. Both the Source bank and Client bank shall confirm approval of the matched CsA transactions via e-mail once functionality is available. The CSA AM shall to [email protected] and/or through the CsA System,

acknowledge confirmation from both parties;

e. Upon receipt of confirmation from the CsA AM, the Source bank shall directly communicate with Client

not later than the following banking day; bank for the facilitation and completion of payment

f. No cancellation of order after confirmation shall be accommodated; and

g. Should there be no available CsA match:

(1) The Source bank may:

(a) deposit its available fit currency with the

if so desired; or 03:00 PM of the Bangko Sentral CD same day or next banking day, as regular deposit until

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Annex A

(b) update its available fit currency for CSA

transaction the following day within prescribed time.

(2) The Client bank may:

(a) proceed transaction with with regular the Bangko currency Sentral withdrawal the

following banking day, if so desired; or (b) update its transaction the fit following currency day within prescribed requirements for CsA

time.

III. Currency Quality and Packaging

Currency that will be serviced shall CSA 1 transactions comply with provisions of shall cover fit Secs. under currency 1111 the CSA and and banks 1112. shall conform with the following standards:

a.Must not include e unfit, mutilated and counterfeit

b.Must be e. In transporting fit c.Banks d. Coins shall be sorted Bangko Sentral, properly plastic or duffle bag stickers/adhesive residue; with standard quantity for coins. sorted by denomination currency; shall free abide with from pins, currency, for per and properly labelled; by shrink-wrapped fitness banknotes, series, denomination; clips, banks level and staple must and in per bundle, and canvass bag set wires, accordance use by clear and the

Source bank shall issue D certification that it is

transaction. complying with the above standards for every CSA

IV. Settlement Options

of their transaction, they have the following settlement options to choose from: Upon confirmation by both Source bank and Client bank

a. Bangko Sentral Philippine Payment and Settlement System (PhilPaSS)

Client bank shall issue payment instruction through the Real Time Gross Settlement (RTGs) or PhilPaSs of

1 Each bundle of banknotes consists of 1,000 pieces, or l0 wrappers of 100 pieces of banknotes of same denomination of wrapper.

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Annex A

Banko (DDA) and credit the DDA of Source bank. Sentral to debit its Demand Deposit Account

b. Direct debit to a maintained deposit account

The Client bank may agree to open/maintain a deposit account with the Source bank to facilitate automatic debit to settle csA transactions.

C. Issuance of Managers Check (MC)

directly to the Source bank. Client bank shall issue an Mc which can be presented

Settlement Option "b" bank) and Option "c" transactions The Bangko mainly Sentral (MC) (opening of account with the through shall urges be considered only PhilPass banks to (Option settle Source if the "a"). CSA

same are more convenient and cost effective to both parties.

V. Delivery and Completion of CsA Transaction

a. Transport of arranged and coordinated between the Source 275 in for CiT armored Client l vehicle service. companies. bank, defining and fit currency e.g.. thru setting CiT Banks under services shall abide operational the or CSA bank's with Sec. shall standards bank and own be

b. Upon settlement confirmation, deliver/the Client applicable) the requested bank shall fit the Source bank shall pick-up currency (whichever is at the

delivery/pick up, to deliver/pick up designated delivery/pick as well the requested as up the point. period within which fit currency The place shall Of

be agreed upon by the Source bank and Client bank.

c. Upon delivery holdings and receipt Of Source Of bank Client Of bank its fit of currency its fit

and/or bank currency shall thru requirement, inform CSA System, via both e-mail Source once to functionality bank [email protected] and Client is available, Bangko Sentral CD on the day of the

be provided transaction are to tag time of delivery receipt, it as "completed". Information to amount and denomination/s delivered/received.

d. The bank obligation and Client and bank responsibilities in case of any of delay the in Source the

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Annex A

delivery and completion of the CSA transactions shall be governed by their contractual agreements.

VI. Dispute Management

precautionary measures accuracy of the transactions. in providing, resolution mechanism, Both Source agreeing, bank and which shall to and Client safeguard complying They bank be shall the included shall with be integrity responsible take in their dispute all and

contractual agreements. They shall exert earnest efforts

CsA transactions: to settle any currency discrepancy dispute. The following shall serve as guide in resolving disputes relating to

a. Closed Circuit Televisions (ccTVs), bags are to be unloaded and opened; regularly strategically positioned in the areas where currency checked and maintained, which should be must be

b.Both designate witness the opening and inspection of currency bags; Source bank their and authorized Client bank representatives are required to to

c. Reporting discrepancy of course/s of Client bank to banking within bank remedy. through number Or discovery Source Witness) the is of the bank email days The of deemed transaction pieces, during prescribed action within any needs copy Client of from the to the currency delivery name furnished to to two date have Source bank alleged resolve period, (i.e., confirm of (2 Of waived shortage shall Authorized bank banking date discrepancy the the issue. delivery; amount, Source receipt shall inform Bangko Or its Or days within bank Representative overage right denomination, be of if and discuss Source Sentral and details made report Or not two to by Client upon seek done bank CD. the on (2

d. The Of still and with witnesses currency CCTV Client be within deemed footages bank Or practical the from both parties; Source and/or prescribed period, or as may bank may request under recount the circumstances, Of delivered viewing

e. Restitution of the shortage or return of the overage

CcTv footage and shall be made based on the religious validation results from compliance with quality and standard packaging; and

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Annex A

f. Source bank shall provide the Bangko Sentral CD with information on the resolution of the case (e.g.

shortage replaced; overage returned) within two banking days after resolution.

quality, the Bangko Sentral CD shall look into the matter Source bank's non-adherence with the prescribed banknote Upon receipt of complaint from Client bank of the

may and the Secs. endorse be Bangko 1111 deployed and to the Sentral 1112, for appropriate supervising department of to ascertain if non-compliance with provisions of and other pertinent Bangko Sentral enforcement actions

regulations.

VII. Directory of Banks' Authorized Representatives/

Witnesses and CiT Companies

names All Of banks their shall authorized submit to the Bangko representatives/witnesses Sentral CD the and

presented hired operations, whenever responsibility representatives company Guidelines CiT ID there Company, and and to before every Of to endorsement are establish validate both together the first replacements. Source implementation the from banking the with authenticity Senior bank identity contact day It and Officer Of shall Of the information, Client Of Of this documents Of year be their cash bank CSA the OY

counterparts.

This Directory shall be updated by the Bangko Sentral CD each time banks submit the names of their representatives/witnesses and CiT Companies. authorized

VIII.Amendment and Separability Clause

by the Bangko Sentral upon consultation with The CsA general guidelines may be amended or modified Source banks

provisions not impair the and Client banks. shall be considered Bangko Sentral unenforceable hereof regulations operationof Or Each provision contrary separable. are determined or to or law, If. affect any of such invalidity for this existing those to any CsA Guidelines be reason, any portions of or invalid, future shall

the guidelines that are valid.

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