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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
According to the Bangko Sentral ng Pilipinas Circular No. 1108, Virtual Asset Service Provider (VASP) refers to any entity that offers services or engages in activities that provide facility for the transfer or exchange of VA, which involve the conduct of one or more of the following activities:
(1) exchange between VAs
(2) exchange between one
(3) transfer of VAs; and
(4) safekeeping and/or administration of VAs or instruments enabling control over VAs.
The Bangko Sentral ng Pilipinas (BSP) issued Circular No. 1108 Series of 2021, which provides for the Guidelines for VASP. In the said circular, it was stated that the Monetary Board, in its Resolution No. 78 dated 21 January 2021, approved the following rules and regulations governing the operations of VASPs in the Philippines, which shall amend in its entirety Section 902-N of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI):
Capitalization. VASPs shall have a minimum paid-in capital as follows:
|
Category |
Minimum Required Capital |
|
VASP with safekeeping and/or administration services for VAs (i.e., VA Custodian) as defined in this Circular |
P50.0 million |
|
VASP without safekeeping and/or administration services for VAs |
P10.0 million |
Transactional Requirements for VASPs. VASPs and other BSFIs that engage in or facilitate VA transfers shall consider all VA transfer transactions as cross-border wire transfers and shall comply with pertinent rules on wire transfers as stated in Part Six (AML Regulations) of this Manual.
For VA transfers amounting to P50,000.00 or more, or its equivalent in foreign currency, the originating institution in a VA transfer must obtain and hold the required and accurate originator information as well as the required beneficiary information, and transmit said information to the beneficiary institution. Beneficiary institutions must obtain and hold required originator information as well as required and accurate beneficiary information. All the information gathered shall be made available on request to competent authorities.
The required information for VA transfers, including transactions associated with a VA transfer, includes the following:
- originator’s name (i.e., the sending customer);
- originator’s account number used to process the transaction (e.g., the VA wallet);
- originator’s physical (geographical) address, or national identity number or customer identification number (i.e., not a transaction number) that uniquely identifies the originator to the ordering institution, or date and place of birth;
- beneficiary’s name; and e. beneficiary account number where such an account is used to process the transaction (e.g., the VA wallet)
- beneficiary account number where such an account is used to process the transaction (e.g., the VA wallet).
The required information must be transmitted immediately and in a secure manner. VASPs shall uphold the confidentiality, integrity and availability of the required information to facilitate recordkeeping and use of such information by receiving VAPs or other covered entities, as well as to prevent unauthorized disclosure. Entities should also submit the required information simultaneously or concurrently with the transfer itself.
For large value pay-outs of more than P500,000 or its equivalent in foreign currency, in any single transaction with customers or counterparties enhanced due diligence shall be conducted and said pay-outs shall only be made via check payment or direct credit to deposit accounts or account to account transfer using electronic fund transfer facilities.
Sanctions. Appropriate monetary penalties, sanctions and other enforcement action/s specified under Section 901-N shall be imposed on the VASP, their directors and/or officers for the noted violations.
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