Amendments to Miscellaneous Rules on Deposits

BAnGKO SENtRAL NG PILIPINAS

OFFICE OF THE GOVERNO

CircULAr NO. 1163

Series of 2022

Subject: Amendments to Miscellaneous Rules on Deposits

Regulations for Banks (MORB}. amendments to the miscellaneous rules on deposits under Section 276 of the Manual of The Monetary Board, in its Resolution No. 1739 dated 1 December 2022. approved the

as the acceptability of electronic signatures pursuant to Section 8 of the Republic Act (R.A.) (PhillD) pursuant to R.A. No. 11055 or the Philippine Identification System (PhilSys) Act. No. 8792 or the Electronic Commerce Act of 2000, and the Philippine ldentification Card The amendments aim to provide guidance on the handling of joint accounts as well

2019, on Miscellaneous Rules on Deposits is hereby amended to read, as follows: Section l. Section 276 of the MORB, as amended by Circular No. 1065 dated 3 December

"Section 276 MISCELLANEOUS RULES ON DEPOSITS

Banks shall also be governed by the following miscellaneous rules on deposits.

institutions are required to obtain a minimum of three (3) specimen signatures depositors to submit clear iD photos. account/establishing relationship under the true and fuli name of the depositor, all banking fingerprints, iris scans, or facial recognition images) from their depositors and to update the same, as applicable, based on risk and materiality. Banks may, at their option, require their Specimen signatures or biometrics, identification photos. For opening any type of deposit simultaneously executed by the depositor, either wet or electronic, or biometrics (such as

No. 8792 or the Electronic Commerce Act of 2000. Electronic signatures shati be accepted pursuant to the provisions of Section 8 of R.A.

implementing rules and regulations, where the PhilSys Card Number (PCN) or PhilSys Number (PSN) derivative, or the PhiliD card, in physicai or digital form, is presented by the appropriate authentication methods, without the need to present other forms of identification. customer, it shall be accepted as official and sufficient proof of identity, subject to the As provided under R.A. No. l1o55 or the Philippine Identification System Act and its

For accounts xxx*

the depositors described using either "and" or "or". I or the Civil code of the Philippines, between the joint accountholders. The share or portion unless the contrary is proved, and the benefits as well as the charges in the joint account shall be proportional to their respective shares. The joint account is held under the name of entity jointly with one or more natural persons. The funds deposited in the joint deposit account are governed by the rules on co-ownership, as provided under Republic Act No. 386, belonging to the joint depositors in the ioint deposit account shall be presumed eaual persons, or by two or more juridical persons or entities or (ii) held by a juridical person or Joint accounts. Joint account is a deposit account (i) held jointly by two or more natural

named in the account. to withdraw from the said account with the authority of all the depositors named in the authority of the other depositors named in the account. Under both types of joint accounts deposits may be placed in the account even without the authority of the other depositors joint account; and any of the depositors of joint accounts described using the conjunction "or", acting separately, may be allowed to withdraw from the said account, even without the Depositors of ioint accounts described using the coniunction "and" shall only be allowed

Electronic access and transactions may be allowed for ioint accounts provided that for

have appropriate system, procedures, and controls to obtain the authorization of all the depositors in the joint account prior to effecting the transactions. electronic withdrawals/fund transfers/payments from a joint "and" account, the bank should

shall observe applicable laws, rules and regulations, inciuding existing implementing heir/s or its authorized representative before allowing any withdrawal from the joint deposit account which law, rules and regulations, and policies should be fully disclosed to the policies for purposes of, among others, ascertaining the identity and the right to claim of the depositors in accordance with Section looz (Consumer Protection Standards). In case of death of one of the depositors in either joint "and" or "or" account, the bank

interest of the depositors, such as assignment or voiuntary lien/encumbrance of the account as security for any obligation, the bank shall ensure that the governing rules for these transaction/s and their attendant risks or obligations are explicitly. clearly and adequately provided in the terms and conditions and are explained to. understood, and accepted by the joint accountholders. For both type of joint accounts, in case of transactions that will restrict the rights or

Establishing the Philippine Deposit Insurance Corporation, Defining its Powers and Duties the deposit agreement, explained to, understood, and accepted by the customers. The and for Other Purposes". and the pertinent implementing regulatory issuances, shall govern provisions of Republic Act (R.A.) No. 3591, as amended, otherwise known as "An Act the treatment of joint accounts for deposit insurance purposes. Banks shall ensure that the terms and conditions governing joint accounts are part of

XXX

Section 2. The following transitory provisions shall be incorporated as footnote to Section 276 on Joint accounts:

of Section 2'76 (Miscetianeous Rutes on Deposits) as amended by this Circular. Upon effectivity of this Circular, new joint accounts shall be subject to the provisions

accounts shall be converted into joint accounts aligned with this Circular with full consent Deposits) as amended by this Circular upon renewal and/or rollover of the account. The bank shall ensure that the governing terms and conditions are expiained to, understood, and accepted by the customers. In cases that the consent of the joint "and/or" depositors cannot be obtained within the one-year transitory period to convert the joint account to either joint depositors consent thereto and accept the terms and conditions. of and disclosure to the joint accountholders. In case of existing joint time deposits, these shall be converted into ioint accounts aligned with Section 276 (Miscellaneous Rules on "and" or "or" accounts, the same shall be monitored by the bank until such time that the joint Within one (1) year from the effectivity of this Circular, existing joint "and/or" deposit

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

FOR THE MONETARY BOARD:

FeLiPe M. Medalla Ii h

Governor

14. December 2022

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