Temporary Regulatory Relief for Banks that Offer Basic Deposit Accounts

065 MEMORANDUM NO. M-2021-__ OFFICE OF THE DEPUTY GOVERNOR FINANCIAL SUPERVISION SECTOR To : All Banks Subject : Temporary Regulatory Relief for Banks that Offer Basic Deposit Accounts The Monetary Board (MB), in its Resolution No. 1580 dated 18 November 2021 approved the adoption of temporary regulatory relief for banks that offer basic deposit accounts (BDAs), as follows: 1. Non-presentation of identification cards (IDs) for BDA for the year 2022 subject to the following conditions: a. The customer shall submit duly signed certification, either in physical or electronic form, which need not be notarized, that he/she has no valid ID; b. The customer’s account activities shall be subject to ongoing monitoring by the bank to identify potential abuse of the relaxed requirement and any suspicious transactions shall be reported to the Anti-Money Laundering Council within the prescribed period; and c. Should the depositor exceed the P50 thousand maximum balance, the bank should initiate measures to convert the account into a regular deposit account. Consequently, the existing Know-Your- Customer rules on regular deposit accounts under Section 921 of the Manual of Regulations for Banks will apply; 2. Waiver of Bangko Sentral fees related to the application of Advanced Electronic Payment and Financial Services (EPFS) for the year 2022 for banks which intend to use the said service to support the offering of BDA; and 3. Reduction in the Annual Supervisory Fees of banks for the years 2022 and 2023 by reducing the bank’s Average Assessable Assets by the average amount of BDA maintained by the bank in the preceding year. For this purpose, the average amount of BDA maintained in the preceding year will be computed based on the bank’s BDA balance as of quarter-end reporting period and adjusted by a multiplier of 5. Digitally signed by For guidance. Chuchi G. Fonacier Date: 2021.11.23 19:06:51 +08'00' CHUCHI G. FONACIER Deputy Governor 23 November 2021