Regulatory Alerts2020-08-13
MC No. 21 s.2020 — Rules on Simplified Onboarding Procedures for Low Risk Accounts
The Securities and Exchange Commission issued this circular to introduce simplified onboarding procedures for low-risk individual investor accounts to promote financial inclusion. It defines low-risk accounts as those with aggregate deposits or investments not exceeding 50,000 pesos and permits reduced customer due diligence requirements, including a limited set of identification documents and a 15-day window for identity verification. Regulated financial intermediaries must maintain systems to review account status, escalate to enhanced due diligence if risk increases, and ensure compliance with suitability and payment obligations.
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