The Bangko Sentral ng Pilipinas (BSP) has proposed a new framework imposing tougher penalties on payment system operators that fail to meet regulatory reporting standards, as part of efforts to strengthen oversight and improve the quality of payment data in the Philippines.
According to FinTech Phillipines, the central bank is currently seeking feedback from the financial services industry on a draft circular that aims to amend existing reporting rules for banks, e-wallet providers, and payment gateways. Stakeholders have until 21 November to provide their comments on the proposal.
According to the BSP, the initiative is designed to ensure more accurate and timely reporting from payment system operators. This information is essential for the regulator to assess the effectiveness, reach, and security of payment services in the country.
Under the draft rules, reports that fail to meet the BSP’s prescribed standards will be subject to daily monetary penalties for each day a violation persists. If a non-compliant report is submitted on time, operators will be given one opportunity to correct and resubmit it before the reporting deadline.
The penalties outlined in the proposal will vary depending on the type of institution. Large banks could face fines of up to PHP 3,000 per day, while digital banks could pay PHP 2,000 daily. Thrift and rural banks would be liable for daily fines of PHP 1,500 and PHP 450, respectively, while non-bank payment operators could face fines up to PHP 1,000 per day.
Beyond financial sanctions, the BSP also plans to introduce non-monetary penalties, which could include suspension or disqualification of directors and officers in cases of persistent non-compliance.
The move comes amid continued growth in the Philippines’ digital payments ecosystem. BSP data revealed that digital payments represented 57.4% of the total volume of retail transactions in 2024, up from 52.8% in 2023. In terms of transaction value, digital payments accounted for 59% of all retail transactions last year, reflecting rapid adoption among consumers and merchants.
By reinforcing reporting and compliance standards, the BSP aims to ensure the continued integrity and reliability of the payment system, particularly as digital financial services play an increasingly central role in the Philippine economy.
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