BSP outlines legislative agenda for 19th Congress

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has outlined its legislative agenda for the 19th Congress to further promote the stability and ensure the soundness of the country’s banking and payment systems.

“The BSP will work with the 19th Congress on the passage of priority bills that are expected to boost public trust and confidence in the country’s financial and payment systems,” BSP Governor Felipe Medalla said.

Medalla said the BSP supports reforms espoused under the Bank Deposits Secrecy bill, the proposed Financial Accounts Regulation Act (FARA), SIM Card Registration bill, and the Digital Payments bill.

The BSP chief said the proposed amendments to the Bank Deposits Secrecy bill form part of the central bank’s priority legislative measures in the 19th Congress.

The amendments aim to strengthen the banking system’s capacity to effectively combat tax evasion, money laundering and other financial crimes.

In the 18th Congress, the BSP supported the passage of House Bill 8991, which seeks a thorough examination of bank accounts with suspicious transactions.

On the other hand, the proposed FARA intends to strengthen consumer protection and impose higher penalties for financial cybercrimes. The proposed law seeks to regulate the use of bank accounts and e-wallets, and prevent their use for criminal activities.

The regulator is also supporting the SIM Card Registration bill, which intends to deter the proliferation of SIM card-aided crimes, such as bank fraud and text scams.

As a long-standing advocate for the digitalization of financial transactions and financial inclusion, the BSP is also pushing for the passage of the Digital Payments bill.

The proposed bill fosters the adoption of safe, affordable, and efficient digital payments in financial transactions with the government.

During the 18th Congress, BSP’s support led to the passage of legislative measures aimed to intensify consumer protection and enhance the delivery of and access to financial products and services.

These measures include the Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022, the Financial Products and Services Consumer Protection Act, amendments to the Philippine Deposit Insurance Corp. charter and the Financial Institutions Strategic Transfer Act.