Title
ID Requirements for Ficial Transactions
Law
Bsp Circular No. 608
Decision Date
May 20, 2008
BSP Circular No. 608 mandates that clients engaging in financial transactions with banks and non-bank financial institutions must present a valid photo-bearing ID issued by an official authority, enhancing access to financial services for Filipinos, especially overseas workers and those in remote areas.

Legal basis and amending scope

  • BSP Circular No. 608 is issued pursuant to Monetary Board Resolution No. 553 dated 8 May 2008.
  • The Circular amends BSP Circular No. 564 dated 3 April 2007 on guidelines for accepting valid identification cards for financial transactions by covered institutions.
  • BSP Circular No. 564 is amended to include updated identification requirements, including requirements relevant to overseas Filipino workers (OFWs).
  • The identification requirements apply to banks and non-bank financial institutions under BSP supervision and are implemented alongside anti-money laundering customer identification requirements.

Policy and purpose for ID rules

  • The Circular promotes access of Filipinos to services offered by formal financial institutions, particularly those residing in remote areas.
  • The Circular encourages and facilitates remittances of OFWs through the banking system.
  • The Circular advances the requirement of valid identification for first-time customers to support customer identification in financial transactions.

Definitions and coverage of transactions

  • For this Circular, financial transactions may include remittances, among others, as falling under the definition of transaction.
  • Under Republic Act No. 9160, otherwise known as the Anti-Money Laundering Act of 2001, as amended, a financial transaction is any act establishing any right or obligation or giving rise to any contractual or legal relationship between the parties thereto.
  • Under Republic Act No. 9160, as amended, financial transaction also includes any movement of funds by any means with a covered institution.

Valid IDs for first-time clients

  • Covered institutions must require first-time clients who engage in a financial transaction to present the original and submit a CLEAR copy of at least ONE (1) valid photo-bearing identification document.
  • The client’s first ID requirement applies upon the client’s first engagement in a financial transaction with covered institutions.
  • For purposes of the Circular, “official authority” means any of the following:
    • (i) Government of the Republic of the Philippines;
    • (ii) its political subdivisions and instrumentalities;
    • (iii) Government-owned and/or controlled corporations (GOCCs); and
    • (iv) private entities or institutions registered with or supervised or regulated by the BSP, or the Securities and Exchange Commission (SEC), or the Insurance Commission (IC).
  • The following are valid ID examples under the Circular:
    • Passport
    • Driver’s License
    • Professional Regulation Commission (PRC) ID
    • National Bureau of Investigation (NBI) Clearance
    • Police Clearance
    • Postal ID
    • Voter’s ID
    • Barangay Certification
    • GSIS e-Card
    • SSS Card
    • Senior Citizen Card
    • OWWA ID
    • OFWID
    • Seaman’s Book
    • Alien Certification of Registration/Immigrant Certificate of Registration
    • Government Office and GOCC ID, e.g. Armed forces of the Philippines (AFP ID), Home Development Mutual Fund (HDMF ID)
    • Certification from the National Council for the Welfare of Disabled Persons (NCWDP)
    • Department of Social Welfare and Development (DSWD) Certification
    • Integrated Bar of the Philippines ID
    • Company IDs issued by private entities or institutions registered with or supervised or regulated either by the BSP, SEC, or IC

Special ID rule for minors in remittances

  • Students who are beneficiaries of remittances/fund transfers and are not yet of voting age may present an ID in lieu of a voting-age ID.
  • These student beneficiaries must present the original and submit a CLEAR copy of ONE (1) valid photo-bearing school ID.
  • The school ID must be duly signed by the principal or head of the school.

One-time ID submission for institutions’ clients

  • Banks and non-bank financial institutions under BSP supervision must require their clients to submit a clear copy of ONE (1) valid ID on a one-time basis only, or at the commencement of a business relationship.
  • Covered institutions must require clients to submit an updated photo and other relevant information whenever the need arises.
  • These identification submission rules apply in addition to existing customer identification requirements under anti-money laundering rules.

Relationship to anti-money laundering rules

  • The identification requirements under this Circular operate in addition to the customer identification requirements under Rule 9.1 C of the Revised Implementing Rules and Regulations (RIRRs) of Republic Act No. 9160 (Anti-Money Laundering Act of 2001, as amended).

Adoption and controlling amendments

  • BSP Circular No. 608 amends BSP Circular No. 564 dated 3 April 2007 by updating the identification card guidelines for banks and non-banks financial institutions under BSP supervision.
  • The Circular specifically requires the listed identification documentation standards for first-time clients and specifies special handling for eligible minor student remittance/fund transfer beneficiaries.
  • The identification submission and update obligations apply to the covered institutions’ client relationships, including where remittances are involved.

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