Fintech oversight to be strengthened

Regulators have signed a memorandum of agreement (MOA) to strengthen the compliance of financial technology (fintech) companies with cybersecurity, anti-money laundering, financing of terrorism and consumer protection, according to the Bangko Sentral ng Pilipinas.

BSP Governor Benjamin Diokno said the agreement calls for the establishment of a cooperative oversight framework under the auspices of the Financial Sector Forum (FSF).

“The institutionalization of the Cooperative Oversight Framework on FinTech innovation symbolizes our unity in diversity and reinforces the spirit of shared commitment among financial sector supervisors to espouse an enabling regulatory environment in the digital financial economy,” Diokno said.

Aside from Diokno, other signatories are Securities and Exchange Commission Chairman Emilio Aquino, Insurance Commission Commissioner Dennis Funa and Philippine Deposit Insurance Corp. president and chief executive officer Roberto Tan.

The framework covers all financial institutions performing multiple regulated activities using a single application platform and wherein such activities fall within the regulatory regime of memberagencies.

It aims to facilitate seamless regulation and supervision of fintech companies across the financial sector leveraging on the consultative and collaborative platform under the MOA.

“This will ensure that risks attendant to fintech activities are effectively managed without stifling innovation,” Diokno said.

Diokno also said the operationalization of the MOA is seen to avoid regulatory overlaps and arbitrage and promote adherence to standards set out in relation to cybersecurity, anti-money laundering/combating of financing of terrorism and consumer protection.

Under its three-year digital payments transform roadmap, Diokno has committed to shift half of retail transactions to digital transactions and double to 70 percent the number of Filipino adults with bank accounts by 2023.