MORNBFI Vol. 1 - Planters Development Bank

§§ 4701Q.5 - 4701Q.1209.12.31b. Operation of electronic systemoutsourced to a third party service providertaking into consideration the existence ofadequate security controls and theobservance of confidentiality [as requiredin R.A. No. 1405 (Bank Secrecy Law)] ofcustomer information;c. Adoption of measures to properlyeducate customers on safeguarding of userID, PIN and/or password, use of QB’sproducts/services, actual fees/QB chargesthereon and problem/error resolutionprocedures;d. Clear communication with itscustomers in connection with the terms andcondition which would highlight how anylosses from security breaches, systemsfailure or human error will be settledbetween the QB and its customers;e. Customer’s acknowledgement inwriting that they have understood theterms and conditions and thecorresponding risks that entail in availingelectronic service;f. The QB’s oversight process shallensure that business expansion shall notput undue strains on its systems and riskmanagement capability;g. The establishment of procedures forthe regular review of the QB’s securityarrangements to ensure that sucharrangements remain appropriate havingregard to the continuing developments insecurity technology;h. Strict adherence to BSP regulationson fund transfers in cases where clientsuse the electronic services to transferfunds;i. The electronic service shall not beused for money laundering or other illegalactivities that will undermine the confidenceof the public; andj. The BSP shall be notified in writingthirty (30) days in advance of anyenhancements that may be made to theonline electronic service.(Circular No. 649 dated 09 March 2009)§ 4701Q.6 Requirements for quasibankswith pending applications. The sameprocedure and requirements stated in theforegoing shall apply to all QBs withpending applications with the BSP, excepton the submission of the documentsenumerated in Subsec. 4701Q.4. QBswhich have already submitted all therequired information/documents need notcomply with this requirement.(Circular No. 649 dated 09 March 2009)§ 4701Q.7 Exemption. Electronicservices that are purely informational innature are exempted from these regulations:Provided, however, That should suchservices be upgraded to transactionalservice, then prior BSP approval shall berequired.(Circular No. 649 dated 09 March 2009)§ 4701Q.8 Transitory provision. QBswith existing electronic services but do notqualify as a result of the pre-screeningprocess mentioned in Subsec. 4701Q.2,shall be given three (3) months from21 December 2000, within which toshow proof of improved overall financialcondition and/or substantial compliancewith BSP’s prudential requirements,otherwise, their electronic activities willbe temporarily suspended until suchtime that the same have been compliedwith.(Circular No. 649 dated 09 March 2009)§§ 4701Q.9 - 4701Q.11 (Reserved)§ 4701Q.12 Sanctions. For failure toseek BSP approval before launching/enhancing/implementing electronicservices, and/or submit within theprescribed deadline the requiredinformation/documents, the followingmonetary penalties and/or suspension ofelectronic activities or both, shall beimposed on erring QBs and/or its officers:Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart VII - Page 3