BSP urges banks to ensure true identity of their customers

MANILA, Philippines - The Bangko Sentral ng Pilipinas is urging banks to maintain a system of verifying the true identity of their customers in line with keeping the domestic financial system stable.

“All banks shall maintain a system of verifying the true identify of their customers and, in case of corporate and juridical entities, require a system of verifying their legal existence and organizational structure as well as the authority and identification of all persons purporting to act on their behalf,” the central bank said in a memorandum.

The minimum requirements under the current rules state that individual customers should provide their true and full name when transacting with banks. Aliases are allowed only if this is registered with any relevant government agency, the BSP said.

With regards to corporate and juridical entities, their accounts should also bear their true and full name.

“All banks shall develop a systematic procedure for identifying corporate, partnership and sole proprietorship entities as well as the stockholders/partners/owners, directors, officers, and authorized signatory of these entities,” the central bank said.

The BSP said banks should also determine the true identity of persons on whose behalf an account is being opened, as well as his or her agent.

For associations, groups, or bodies which are not registered with the Securities and Exchange Commission, banks should treat them as individual customers, the BSP said.

“All banks are reminded to protect the safety, soundness and integrity of the Philippine financial system by observing prudent customer identification process,” the central bank said.

Banks and other BSP-regulated financial institutions such as pawnshops and investment houses abide by the Know-Your-Customer policy in place which is also in line with putting an end to money laundering activities in the country.