March 23, 2023

The Monetary Board approved the amendments to the guidelines on electronic money (E-money) and the operations of electronic money issuers (EMI) in the Philippines to promote resilience of EMIs amid the increasing IT related risks and to better protect the interests of E-money account holders.

“The amendments are geared towards equipping EMIs in attending to the evolving needs and behaviors of consumers and in responding to the existing and emerging risks in the financial sector, such as cybersecurity and money laundering. The revised guidelines reaffirm the BSP’s commitment to uphold the welfare of Filipinos by promoting a safe, secure, and inclusive financial system,” Bangko Sentral Governor Felipe M. Medalla said.

The revised guidelines set out higher liquidity and capital requirements for EMIs with significant outstanding E-money balance and large scale operations, respectively. 

EMIs with monthly outstanding E-money balance of at least P100 million are required to maintain liquid assets in trust accounts equivalent to at least 50 percent of their outstanding E-money balance and to cover the remaining balance with placements in bank deposits, government securities, or other liquid assets acceptable to the BSP.  EMIs with outstanding E-money balance below P100M may continue to comply with the liquidity requirements by holding eligible liquid assets.

Meanwhile, the new rules set out higher minimum capital requirements for EMIs with large-scale operations recognizing the higher risk exposures of said entities. The issuance defines large-scale EMIs as those with 12 month average value of aggregated inflow and outflow transactions equal to or greater than P25 billion. 

Under the guidelines, large-scale EMIs are required to maintain minimum capital of P200M while the minimum capital requirement for small-scale EMIs is P100M.

Consistent with the application of the risk-based principle, the BSP lifted the P100,000 monthly aggregate load limit and now allows EMIs to set pre-defined limit and threshold per client category based on the results of their institutional risk assessment and customer due diligence process.

The amendments also simplified the classification of EMIs into two categories: EMI-banks; and EMI non-bank financial institutions (EMI-NBFI), wherein the latter may include cooperatives. EMIs previously classified as EMI-others will be grouped under EMI-NBFI. – Press release