QuestionsQuestions (EXECUTIVE ORDER NO. 217)
E-money is monetary value represented by a claim on its issuer that is (a) electronically stored in an instrument/device, (b) issued against receipt of funds of an amount not less than the monetary value issued, (c) accepted as a means of payment by persons/entities other than the issuer, (d) withdrawable in cash or cash equivalent, and (e) issued in accordance with the Circular.
No. The Circular states e-money is not considered a deposit; hence it is not insured with the Philippine Deposit Insurance Corporation (PDIC).
E-money issued is subject to an aggregate monthly load limit of PHP 100,000 unless BSP approves a higher amount. If multiple instruments are issued to the same holder, the total across all instruments must be consolidated to check compliance.
EMIs must maintain accurate and complete records of issued e-money instruments, the identity of e-money holders, and individual and consolidated balances. Their system must monitor transaction movements and link instruments issued to common holders, and the susceptibility to misreporting (intentional or unintentional) is grounds for BSP sanctions.
E-money may only be redeemed at face value. It shall not earn interest nor rewards/incentives convertible to cash, and it cannot be purchased at a discount.
EMIs must provide an acceptable redress mechanism to address customer complaints.
EMIs must have: sound/prudent management and procedures with adequate internal controls; properly designed and thoroughly tested computer systems; appropriate security policies/measures for integrity/authenticity/confidentiality; adequate business continuity and disaster recovery plan; and an effective audit function for periodic review of security controls and critical systems.
EMIs must provide the BSP Supervisory Data Center (Supervision and Examination Sector) quarterly statements including among others: investments, volume of transactions, total outstanding e-money balances, and liquid assets, in the form prescribed later by BSP.
EMIs must notify BSP in writing of any change/enhancement 30 days prior to implementation. If it requires prior BSP approval, BSP evaluates accordingly; changes that expand scope or change the nature of the instrument require prior approval of the Deputy Governor, Supervision and Examination Sector.
Examples include: (1) adding new access channels (e.g., inclusion of an internet channel besides POS terminals), (2) changing technology service providers or other major partners (excluding partner merchants), and (3) other similar changes/enhancements.
EMI-Others must be a stock corporation with minimum paid-up capital of PHP 100 million, and they must engage only in e-money and related/incidental activities (e.g., money transfer/remittance). If they are already doing unrelated business, they must do EMI-Others functions through a separate entity incorporated exclusively for that purpose.
EMI-Others must have sufficient liquid assets equal to the amount of outstanding e-money issued; assets must remain unencumbered. They may be maintained as: (1) bank deposits separately for liquidity purposes, (2) government securities set aside for the purpose, or (3) other liquid assets allowed by BSP.
BSP may review the e-money systems and databases of the EMI-Others. When warranted, access may extend to agents, partners, service providers, or outsourced entities because of their participation in the e-money business.
If the EMI-NBFI or EMI-Others engages in lending activities, it must secure a QB license from the BSP.
The Circular states that applicable penalties prescribed under the AML Law and its implementing rules and regulations will apply.