BSP Guidelines on Electronic Money Issuance

E-money: monetary value representing a claim on issuer, electronically stored, issued against equivalent funds, accepted by others, withdrawable in cash, issued per this Circular.
EMIs classified as:
- EMI-Bank: Banks
- EMI-NBFI: BSP-supervised Non-bank Financial Institutions
- EMI-Others: BSP-registered non-bank money transfer agents.
Electronic instruments include cash cards, e-wallets, mobile access devices, stored value cards.
Bank-issued e-money is not a deposit.

Banks must apply under relevant MORB provisions for EMI status.
NBFIs must comply with MORB and MORNBFI provisions.
Non-bank institutions must register as money transfer agents with BSP and meet additional criteria.

Aggregate monthly load limit: P100,000 unless BSP approves higher.
Consolidation of all instruments loaded per holder for limit compliance.
Maintain accurate records linking instruments to holders; subject to BSP sanctions for misreporting.
E-money redeemable at face value only; no interest, rewards or discounting; not insured by PDIC.
Clear issuer identification on instruments and client acknowledgement.
Compliance with Anti-Money Laundering laws to be ensured among agents.
Establish customer complaint redress mechanisms.
Written disclosure of redemption rights, conditions, fees, and complaint procedures in English and Filipino.
Minimum systems and controls before issuance include sound management, tested computer systems, robust security, business continuity plans, effective audit.
Quarterly reporting to BSP on investments, transactions, balances, and liquidity.
BSP notification 30 days prior to any changes or enhancements; prior approval required if changes affect scope or nature.

Must be stock corporation with at least P100 million paid-up capital.
May only engage in e-money and related activities; non-related businesses require separate incorporation.
No credit extension unless complying with Section 6.
Maintain liquid assets equal to outstanding e-money, in unencumbered forms (bank deposits, government securities, BSP-approved assets).
BSP access to review systems, databases, and related agents/provider entities.
Submit audited financial statements within 30 days after audit report.

EMI-NBFIs and EMI-Others engaging in lending must secure quasi-banking license from BSP.

Monetary penalties and sanctions for:
- Issuance without BSP approval (penalties under R.A. 7653, watchlisting).
- Violations of Anti-Money Laundering Law and regulations.
- Violations of this Circular.
Misreporting of transactions or balances grounds for BSP sanctions.

Incorporation of MORB electronic banking provisions into MORNBFI as Sections 4621 Q/S/P/N.

Existing EMIs with prior authority may continue, subject to compliance certification or compliance plan submission within one month.

Takes effect 15 days after publication in Official Gazette or newspaper of general circulation.