The Bangko Sentral ng Pilipinas (BSP) has issued a directive to banks and payment firms to bolster protections for QR-enabled payment systems. This move is part of the central bank's ongoing efforts to address risks related to fraud and money laundering.
In its Memorandum M-2026-017, the BSP emphasized that institutions under its supervision must ensure that their account onboarding, merchant monitoring, and payment settlement processes are effective and proportionate to the associated risks.
The directive aligns with the National Payment Systems Act, which empowers the BSP to ensure the safety and reliability of the national payment system. It also references the Anti-Money Laundering Act, which aims to prevent the Philippines from being misused for illegal financial activities.
Key Requirements for Financial Institutions
The BSP has called on BSP-supervised institutions to maintain stringent anti-money laundering controls. This includes thorough monitoring of payment activities across all channels, such as electronic fund transfers and QR transactions.
Integrity controls for payment activities should be underpinned by sound account opening, onboarding, and ongoing account monitoring practices.
Bangko Sentral ng Pilipinas
Financial institutions must ensure that merchant payment activities, especially those involving payment aggregators, adhere to robust AML standards. The BSP clarified that the presence of payment aggregators does not lessen the responsibility of banks and financial firms regarding AML compliance.
Payment aggregators are also expected to fulfill their own AML obligations, including conducting thorough due diligence and monitoring of merchants.
Increased Monitoring Measures
Among the new measures are requirements for institutions to access sub-merchant information, apply risk-based onboarding protocols, and conduct regular reviews of merchant profiles. Institutions must also differentiate between merchant and personal accounts.
The BSP has highlighted the importance of ongoing merchant monitoring to ensure that account activities align with legitimate business operations.
Concerns about 'mule merchants' and QR code misuse have prompted the BSP to urge institutions to implement risk-based strategies to detect such activities.
Commitment to Safety in QR Transactions
The BSP reiterated that all financial institutions involved in QR-enabled payment services must prioritize safety for all parties involved. This includes conducting customer and merchant due diligence and adhering to established risk control measures.
As digital payments continue to grow in popularity, the BSP's latest measures aim to ensure a secure environment for both consumers and businesses.