Circular No. 1189: Updated Manual of Regulations for Banks and Non-Bank Financial Institutions as of 31 December 2021

,. , , "*,. ' .^ BANGl<O SENTRAL NG PI LIPINAS Subject : OFFICE OFTHE GOVERNOR The Monetary Board. in its Resolution No. 164 dated 8 February 2024, approved the following amendments to the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFl) that were updated as of 31 December 2021. Section I. Section 902-N of the MORNBFl on Virtual Asset Service Providers (VASP). is hereby amended to add the transitory provisions provided under Sec. 3 of Circular Non08 dated 26 January 2021 as a footnote reference. The said Section shall now read. as follows: 902-N VIRTUAL ASSET SERVICE PROVIDERS (VASP)' xXX I Bangko Sentral-registered Virtual Currency Exchanges, as well as VASPs currently operating without Bangko Sentrai approval, shall apply for a Certificate of Authority riot later than three months from 16 February 2021. Upon submission of the application, said entities may continue to operate their business unless instructed otherwise. All VASPs must also comply with the applicable requirements prescribed in this Section within six (6) months from 16 February 2021. Failure to comply with these requirements shall subject the entity to the appropriate enforcement action provided under Sec. 001-N. ciRcu LAR No. Series of 2024 Updated Manual of Regulations for Banks and Non-Bank Financial Institutions as of 31 December 2021 Section 2.1tem "a(Z)" under Section 146-Q/125-NII63-T of the MORNBFl on Management of human resource-related 11:5kis hereby amended to provide the appropriate cross-reference under the Q-regulations given the provisions of Section I of Circular No. 1/12 dated 8 April2021. The said Sections shall now read, as follows: 14.6-Q/125-NII6s-TopERATioNAL RISK MANAGEMET XXx Management of human resource-relatedrts. k; xxx BSFls shall ensure that there are adequate policies and risk management and control measures in the following areas: a. Recruitment and Selection. The board shall establish efficient process that will facilitate timely recruitment and selection of personnel from a broad pool of candidates with appropriate educational background, skills, experience, character, integrity, and competencies to fulfill the duties and responsibilities of the function, This process shall include: 11 I xxx '. e!^ss^i^;atipb: GEN^'13AL . ' ' . . ' ' , ' ' . ' .,... . . . , --.,.. Page I of 6

.* . . . . (2) Screenihg the app/^^ants agarhst the Bangko Sentra/ records. As part of the background screening procedures, the Human Resource Department of the BSFl shall require all those who passed the initial stages of pre-employment screening to accomplish the Authorization Form for Querying (AFQ) the Bangko Sentral Records shown in Appendix Q-44. xxx. Section 3, Section 145 of the MORB on Liquidity Risk Management is hereby amended to add the provisions on the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) for Islamic banks and Islamic banking units as provided under Section 5 of Circular No. 1116 dated 25 May 2021. The said Section shall now read. as follows: 145 LIQUIDITY RISK MANAGEMENT XXX XXX Net Stable Funding Ratio j?VsFR/, xxx XXX implementation ofLCP andNSFP for Jest8Us, The minimum LCR and NSFR will be implemented following the timelines set out below: The availability of liquidity management instruments which are appropriate for IBs/IBUs is very limited. The observation period will provide ample time for the IBs/IBUs to strategize on their liquidity risk management system including choice of liquidity tools to mitigate the risks arising from their business activities. Likewise, this will be an opportune time for the Islamic interbank and money market system as well as the secondary markets for Islamic funds/products to develop and gain traction as the market players gradually meet the set regulatory standards. Requirements during the observation period for 185^,?Bus For monitoring purposes, the IB shall submit within 30 banking days from end of the reference quarter, LCR and NSPR reports in a single currency. With regard to IBU, the conventional bank proper shall riot consolidate the IBU activities in its bank-wide LCR and NSFR reports during the observation period. Instead. the IBU shall submit separate LCR and NSFR reports in a single currency within 30 banking days from end of the reference quarter. The submission of the LCR and NSFR reports shall be subject to the governance process on the quality of bank reporting under Sec. 171. Any non￾compliance with reporting standards. or nori-submission or delayed submission of such reports shall be subject to the monetary and nori-monetary sanctions under Sec. 171. Observation Period 12 June 2021 until 31 December 2024 LCR and NSFR of 100% 01 January 2025 and thereafter The Bangko Sentral, on its part, shall continuously review and keep an open line of communication with stakeholders to ensure that the regulatory framework remains appropriate and relevant. As the domestic Islamic banking market is still in its early stage of development, the Bangko Sentral shall adopt a flexible approach on Page 2 of 6 Classification: GENERAL

. . . , regulatory compliance, including the submission of required reports, It shall engage and be responsive to the market players and new entrants to the Islamic banking system in implementing the minimum LCR and NSFR requirements. While no interim target level shall be required during the observation period, the supervising department, as part of effective monitoring is expected to engage the IB/IBU on its degree of compliance with the LCR and NSFR. Moreover, there will be continuous dialogue/discussion with industry players to assess readiness for the strict implementation of the applicable LCR and NSFR as provided in this Section on LCR. Supervisory framework, br the minimumpr"dentia//Iquidi^yrequireme"ts Section 4. Section 629 of the MORB on The Currency Pate ^isk Protection Program ICRPP}Facilityis hereby amended to replace Appendix104 (Guide//heSIbrthe treatment of Non-Deliverable Forwards Involving the Philjop/ne Peso) with Section 622 of the MORB. Appendix 104 of the MORB was deleted under Section 8 of Circular No. 1/19 dated 7 June 2021 and transferred to Section 622 of the MORB (Non-Denverable Forejg, n EXchange Forward Contracts Involving the Philjopine Peso). The said Section shall now read. as follows: 629 THE CURRENCY RATE RISK PROTECTION PROGRAM (CRPP) FACILITY XXX Banks' exposures arising from NDP transactions under the CRPP facility shall not be included in the computation of total gross NDF exposures for the purpose of determining compliance with the limit prescribed in Sec. 622. xxx. xXx xxx Section 5. The provisions under Section 622 of the MORB regarding the guidelines on Forward endswap Transactibns under the 'Manual of Regulations on Foreign EXchange Transactions or the FX Manual was deleted and replaced with Non-Del^^erab/e Forejg^n EXchange Forward Contracts/nvo/ving the Philjopine Peso pursuant to Section 3 of Circular No. 11/9 dated 7 June 2021, Similarly, the same guidelines on Forward and Swap Transactions provided under Sec. 621"Q of the MORNBFl was deleted under Section 8 of Circular No. 1/19, In relation to this. the MOR reference provided under Appendix 7h'-4 of the MORB/MORNBFl on the "Reporton FXSwaps with Customers where 1st Leg ts a Purchase of FX 4981hst Pesos 11.01 banks with derivatives litense)"is hereby amended to update the reference to Section 94 of the FX Manual from Section 6221621-Q of the MORB/MORNBFl. The said Appendices shall now read, as follows: Classification: GENERAL Page 3 of 6

. I. Appendix 7 of the MORB (Primary Reports/UBs and TBs) Ca^n! XXX Form No. B xxx xxx Mon Bet xxx Re^ Sec. 94 of FX Manual ' Excluding cross country swaps xxx Report on FX Swaps with Customers' wherelst Leg is a Purchase of FX Against Pesos (For banksh'BS with derivatives license) xxx Ere^12 2. Appendix T-4 of the MORNBFl xxx Gateg. pry xxx Monthly Su^ ^line xxx xxx Form No. B 5th banking day after end of reference month XXX 51^ RE^ xxx MQR R^f. e-mail at iod@bsp. gov. ph xxx XXX xxx Sec. 94 of FX Manual Re^ xxx ' Excluding cross country swaps xxx Report on FX Swaps with CustomersT wherelst Leg is a Purchase of FX Against Pesos (For trust corporation with derivative license) Xxx xxx Ere^ Section 6. The provisions under Appendix 671Q~38 (Del^^e, y of Government Secur/2'1^s to the Investor^. PIincjoa/ Securities Account with the National Pegtsto/ of Scrjo/ess Securrties) of the MORB/MORNBF! is hereby amended to replace Sec. 4311431-Q of the MORB/MORNBFl to Sec. 6311631-Q of the MORB/MORNBFl. The provisions of Section 4311431-Q of the MORB/MORNBFl were transferred to Section 6311631-Q of the MORB/MORNBFl under Section 2 of Circular No. 1/21 dated 8 June 2021. The said Appendices shall now read, as follows: Page 4 of 6 XXx xxx Monthly SI^ Dead^ xXx xXx Classification: GENERAL 5th banking day after end of reference month xxx sin^ RE^ xxx e-mail at iod@bsp. gov. ph XXX XXx rocX XXX xxx

. . Appendix 671Q. 38 DELIVERYOF GOVERNMENT SECURITIES To THE INVESTOR's PRINCIPAL SECURITIES ACCOUNT WITH THE NATIONAL REGISTRY OF SCRIPLESS SECURITIES IAPpe"di"' to Secs, 631 242 on Delivery of Securities and 245 on Delivery of Securitie^,"Appendiir to Secs. 701-9:207-9^IfDe/Ive, y of securities), 637.9a"d1002-N) The following are the guidelines on the delivery of government securities xxx as compliance with the requirement of effective delivery under Secs. 242 IDe//Very of Securities), 245 (Delveo, of Securities) and 6311 Secs. 101-Q, and 201-Q/201-N (Delivery of secuftties). 201-Q (/?epurchase agreements covering government securities, commercial papers andothernegot/;able andnon-negotft?b/esecur/ties onhstruments), 631-Q and 1002-N: XXX c. No new Investors Principal Securities Account shall be created unless the foregoing documents are submitted to the BTr. Otherwise, the dealing bank/QB/NBFl will be subject to the appropriate penalties prescribed under Sec, 6311 Secs. 631-Q and 1002-N. Section 7. Section 1/5/11142. Q of the MORB/MORNBFl on regulatory relief framework is hereby amended to update the footnote reference under "Regulatory rel^^fpackage" to include BSP memoranda issued in 2021 related to prudential regulatory relief measures for banks/NBFls, The said Section shall now read, as follows: 1,511,142-Q REGULATORY RELIEF POLICY XXX a. Ot!/ect/yes XXX XXX d. I?egu/ato0, ' fell^fpackage I ' The Bangko Sentral deployed targeted and time-bound Coronavirus Disease 2019 (CoVID￾19) regulatory relief packages that facilitated the uninterrupted flow of financial services in the country through the issuance of various memorandum. such as: (a) M-2020-008 (Pegu/ato0, Pel^^fforBSF/sAffected by the Coy/0-79) dated 14 March 2020 as amended by M-2020-032 dated 27 April2020, M-2020-075 dated 27 September 2020 and M-2020"087 dated 2 December 2020, M-2021-026 dated 26 April 2021: (b) M-2020-011 (Add^^^nat Operational Perl^fibr8SF/SAI^ectedby Measures to Manage the CowD-7951tuat/bn andits Health and Salt>tv Ptsk} dated 19 March 2020. as amended by M-2020-025 dated 13 April 2020, M. 2020.049 dated 93une 2020. M-2020-057 dated 21 July 2020, M-2020-63 dated 7 August 2020 and M-2020-075 dated 27 September 2020, M-2021-026 dated 26 April 2021. M-2021-029 dated 07 May 2021; IC) M-2020.015 (Pel^^fMeasure on Customer Identification to Manage the Coy/0795ituatibn)dated 30 March 2020, as amended by M-2020-057 dated 21 July 2020, M-2021-029 dated 07 May 2021; (d) xxx; (e) M-2020-022 (Rec/assii7cat/bn of Debtsecurit^^s Measured at Fair Value to the AmortizedCost Category/dated 8 April2020 as amended by M. 2021-003 dated 08 January 2021. M-2021-011 dated 02 February 2021; in xxx; (9) M-2020-039 (Utilization of BaselM Cap/'tel andL/^ural'tvBuffe/s) dated 4 May 2020; (hI xxx; (1)M-2021-002 (Regulatory Pel^^f on the Non-/inposition of Sanct/bns for Breach in Page 5 of 6 Classification: GENERAL

. 58L by Forei;g, n Bank Branches Estab/Iched PIibr to P. A, No. 7064/1d/M-2021055 dated 19 October 2021 ITemporaty, Regulatory Pel^^f on the Capital treatment of Provts/on Ihg Requiren7ents under the Phi7ijopihe Financial Reporting Standard IPFRS/ 911^ M-2027-056 dated 21 October 2027 IPegu/atoof neatment of Restructured Loans for Purposes of Measuring Expected Credit LossesI and (7)M-2027-065 dated 23November202717emporaty, Regulatory ReffefforBanks that Offer Basic DepositAccounts/ Section 8. Appendix 145 of the MORB on Cash Service Altonce (CSA/ General Guide/Ihesis hereby replaced in its entirety with the revised CSA general guidelines issued under Memorandum No. M-2021-027 dated 23 April 2021. which incorporates the implementation of CSA in the Bangko Sentral Regional Offices and Branches as shown in Annex A. Section 9. Sec, 3861363-Qj307-N of the MORB/MORNBFl on Issuance of COEs is hereby amended to add a footnote reference to the Bangko Sentral "Guide//hes for Obta/hing a Certificate of E/^;^Ibi//^y ICOE/ under Pepubffc Act 119.4, ) No. 77523: otherwise known as the Fibanc/a/ Inst/'tutions Strategic Transi^!I 11.1S7) Act" that was issued under Memorandum No. M-2021-034 dated 43une 2021. The said Section shall now read, as follows: 3861s63-Qj307-N SALE/rRANSFER AND INVESTMENT TRANSAcrioNS OF BSFis PURsuANT To R. A No. 1152s, OTHERWISE KNOWN As THE FINANCIALiNsriTUTioNs srRATEcicTRANSFER (FistjAcr xxx Issuance of COEs A BSFlwhich intends to avail of the tax exemptions and fee privileges under the FIST Act shall apply for a COE in accordance with the Bangko Sentral's guidelines for obtaining a COEl under the FIST Act. The following transactions shall require a COE: XXX ' Issued under Memorandum No. M-2021-034 dated 4 June 2021 IGuide/fries for Obta/bin9 a Certificate of E/j^Jib//^tyICOE/ under PepubffcAct 117. A. / No. 71523; otherwise known as the Financial/fistitutibnsStrategic Transi^. I IF/571Actl. Section 10, The Sections/Appendices cited in certain Circulars issued in 2021 are renumbered to align with the new formatting conventions of the MopB/MORNBFi, as shown in Annex B. Section 11. This Circular shall take effect fifteen (15) calendar days following its publication either in the Official Gazette orin a newspaper of general circulation. February 2024 Classification: GENERAL FOR THE MONETARY BOARD: ELI M. REMOLONA, JR. Governor Page 6 of 6

. * . . CASH SERVICEALLIANCE(CSA)GENERALGUIDELINES 1:4ppendiir to Sec. In^ The CSA General Guidelines shall facilitate the servicing of currency requirements of banks from the available fit currency holdings of other banks. and serve as a general reference guide that participating banks shall adopt in drafting their bilateral agreements in this regard. CSA transactions shall take precedence over direct deposit to or withdrawal from the Bangko Sentral CD or Bangko Sentral ROB. Fit currencies and currency requirements that banks intend to deposit to or withdraw from the Bangko Sentra! CD or Bangko Sentral ROB on the next banking day shall be posted in the CSA System. I I. Stakeholders a, Source bank - the bank with available fit currency holdings that will service the currency requirements of Client bank: b. Client bank - the bank that requested and received the fit currencies of Source bank: c. Bangko Sentral rig Pilipinas Cash Department (Bangko Sentral CD) - the unit that monitors postings and CSA transactions of banks servicing the Creater Manila Area;' and d. Bangko Sentral rig Pilipinas Regional Office/Branch (Bangko Sentral ROB) -the unit that monitors postings and CSA transactions of banks outside the Greater Manila Area. 11, Currency Quality and Packaging CSA transactions shall cover fit currencies. These are legal tender Philippine banknotes and coins of good quality such that genuineness is obvious. Specifically. to be considered fit for circulation. banknotes and coins should riot exhibit the characteristics of unfit. mutilated or counterfeit currency as stipulated in Sec. 1/11. Fit currencies under the CSA shall conform with the following standards: Appendix, 45 Annex A a. For fit banknotes: (1) Standard unit of fit banknotes shall be per bundle consisting of 1,000 pieces or ten (10) wrappersoflOO pieces of banknotes of the same denomination per wrappen (2) Each bundle of fit banknotes shall be properly shrink-wrapped: (3) Wrapper strap binding the 100 pieces of fit banknotes shall be white in color and plainly marked with the following information: (i) denomination and amount of currency: (ii) date of Source bank's verification; (iii) the printed name(SI and signature(s) of Source bank's verifier; and (iv) the name of the Source bank. (4) Fitnesslevelof banknotes shall be in accordance with the standard level set by the Bangko Sentral: ' Pursuant to Appendix 84 - Guidelines and Procedures Governing Currency Deposits and Withdrawals of Banks for Credit to or Debit from their Demand Deposit Accounts with Bangko Sentral. 2 Covers Metro Manila, Bulacan, Cavite. Laguna and Rizal. Page I of 6

, . . (5) Fit banknotes shall not be inserted with unfit, mutilated and counterfeit banknotes, and shall be free from pins, clips, staple wires, and stickers/adhesive residue; and (6) Fit banknotes shall be placed in a sealed clear plastic or duffle bag during transport. b. For fit currency coins: (1) Standard unit of fit coins shall be per bag, sorted by series, and in accordance with the following quantity per denomination: Denomination 20~piso O-piso 5-piso -PISO 25-5entimo O-sentimo 5-sentimo (2) Each canvass bag shall be labeled with tags. one placed inside and another attached outside, containing the following information: (i) denomination, quantity and amount; and (ii) name of the Source bank. -sentimo Pieces per bag ,000 (3) Fit coins shall not be inserted with foreign coins, token coins and other objects, and shall be free from adhesive tapes. 1/1. Settlement Option Source bank and Client bank have the following options to settle the CSA tra nsaction: ,200 ,500 2,000 ,000 4,500 5,000 mount per bag 20,000.00 5,000 a. Bangko Sentral Philippine Payment and Settlement System IPhilPaSS) 2,000.00 7,500.00 2,000.00 Client bank shall issue payment instruction through the Real Time Gross Settlement (RTGS) or PhilPaSS of Banko Sentral to debit its Demand Deposit Account(DDA)and credit the DDA of Source bank, 750.00 450.00 b. Direct debit to a maintained deposit account The Client bank may agree to open/maintain a deposit account with the Source bank to facilitate automatic debit to settle CSA transactions. 250.00 50.00 c, Issuance of Managers Check (MC) Client bank shall issue an MC which can be presented directly to the Source bank. The Bangko Sentral recommends banks to settle CSA transactions mainly through PhilPaSS (Option "a"). Settlement Option "b" (opening of account with the Source bank) and Option "c" (MC) shall be considered only if the same are more convenient and cost effective to both parties. Page 2 of 6

. . IV. Bilateral Agreement between Source bank and Client bank CSA transactions shall be covered by a formal bilateral agreement between Source bank and Client bank. It shall be executed before their first CSA transaction and. at a minimum. shall include provisions for the following: a. The authority of designated representative/s of the Source bank and the Client bank as CSA Account Manager/s who will coordinate activities related to CSA. including approval of CSA transactions, shall be formalized. b. The responsibility for the transport of the subject fit currencies - Fit currencies shall either be delivered by the Source bank or picked-up by the Client bank. c. The mode of delivery of the subject fit currencies -The bank responsible for the transport of subject fit currencies shall use its own armored vehicle service or hire the services of a third party Cash-in-Transit {CiT) service provider subject to compliance with Secs. 1/2 and 275. d. The place of delivery/pick-up of fit currencies - It is recommended that the place of delivery/pick-up of fit currencies shall be within the premises of the Client bank/Source bank, However. the parties may also agree on a different delivery/pick- up point if they find it more advantageous and more convenient. e. The obligations and responsibilities of the Source bank and the Client bankin case of cancellation CSA transaction after confirmation. f. The time period during the normal banking day within which the delivery/pick-u p of fit currencies can be made. g. The obligations and responsibilities of the Source bank and the Client bank in case of any delay in the delivery/pick-up. h. The mode of settlement of the CSA transaction. Settlement options are provided under Part 1/1. i. The responsibility of the Source bank for the completeness and coin PIiance with standard fitness level of subject fit currencies of the CSA transaction shall be explicit in the bilateral agreement. j, The reasonable service fee. if any, for the CSA transaction. k. A dispute resolution mechanism shall be included in the provisions of the bilateral agreement. Guidelines in resolving dispute relating to CSA transactions are provided under Part Vll. Posting, Earmarking Request and Confirmation of CSA Transaction in the CSA System V. The following provisions shall cover guidelines for the posting. earmarking request and confirmation of CSA transaction in the CSA System: a. Timeline for posting of fit currency holdings and currency requirementsin the CSA System are, as follows: Bank Source bank Client bank Particulars Fit currency holdings Currency requirements jineline 7:00 am to 12:00 noon 7:00 am to 3:00 pm Page 3 of 6

. , . b. Posting made by Source bank and Client bank may be revised or deleted within above timelines; c. From 7:00 am to 3:00 pin, Client bank may initiate earmarking request in the CSA System for the available fit currency holdings posted by Source bank. Accordingly. Client bank shall then initiate coordination with Source bank to discuss the terms of their CSA transaction in accordance with their bilateral agreement including the date of delivery/pick-up of fit currencies; d. Source bank shall either confirm or reject earmarking request within 30 minutes from the time the same was initiated by the Client bank in the CSA System. e. If earmarking request is confirmed. both banks shall generate CSA Confirmation and Acknowledgement Receipt Form (CSA CARF} from the CSA System as proof of confirmed CSA transaction. CSA CARF shall be presented by concerned bank during actual delivery/pick-up of fit currencies. f. On the other hand. if earmarking request is rejected, reasons for the rejection thereof shall be provided by the Source bank in the CSA System; g. If earmarking request is rejected. orif no actions were made by the Source bank within the prescribed period. the posted fit currency holdings will be re-opened in the CSA System and become available for earmarking request by other Client banks. h. For fit currency holdings posted in the CSA portal which were not confirmed as CSA transaction, the Source bank may: U) deposit the fit currencies to the Bangko SentralCD or Bangko Sentral ROB on the next banking day; or (2) include them in the fit currency holdings to be posted in the CSA System on the next banking day. i. For currency requirements posted in the CSA System. the Client bank may; (1) proceed with the regular withdrawal of currency requirements from the Bangko Sentral CD or Bangko Sentral ROB on the next banking day subject to compliance with Appendix 84 (Sec. N};' or (2) include them in the currency requirements to be posted in the CSA System on the next banking day. j. All postings in the CSA System, except those which were confirmed as CSA transaction, will be automatically removed from the CSA System by 8:00 pin of the same day. Vl. Delivery and Receipt of Fit Currencies and Completion of CSA Transactions in the CSA System The following provisions shall cover guidelines for the delivery and receipt of fit currencies and completion of CSA transactions in the CSA System: ' For Bangko Sentral CD- submission by banks of Currency Order Slip (Cos) riot later than 4:00 pm of the previous banking day. For Bangko Sentral ROB- transmittal of the withdrawal transaction of banks through the electronic cash transaction system riotlaterthan 4:00 pin of the previous banking day. Page 4 of 6

, , , . . a. Source bank (for delivery) or Client bank (for pick-up) shall present the CSA CARF to the counterparty bank upon arrival at the latter's premises. b. Turn-over the fit currencies from Source bank to the Client bank: (1) If fit currencies are delivered by the Source bank: in Client bank shall inspect plastic/duffle bag containing fit banknotes and/or canvass bags containing fit coins for any signs of tampering. (ii) For fit banknotes, Source bank shall open sealed clear plastic or duffle bag in front of the Client bank. (iii) Source bank shall turn-over fit banknotes and/or fit coins to the Client ba nk. (iv)In the presence of the Source bank, Client bank shall check the completeness of fit banknotes as to number of bundles and wrappers, and/or of fit coins as to number of bags then reconcile the breakdown and amounts against the detailsin the CSACARF. (2) If fit currencies are picked-up by the Client bank in Source bank shall turn-over fit banknotes and/or fit coins to the Client ba nk. (ii) In the presence of the Source bank. Client bank shall check the completeness of fit banknotes as to number of bundles and wrappers, and/or of fit coins as to number of bags then reconcile the breakdown and amounts against the details in the CSA CARF. (iiii Fit banknotes shall be placed inside sealed transparent plastic or duffle bag/s before they are carried to the armored vehicle used by the Client ba nk. c. Client bankshall acknowledge the receipt of fit currencies in the CSA CARF, d. Client bank shall initiate the settlement of the CSA transaction, e, Source bank and Client bank shall tag the CSA transaction as "Completed" in the CSA System within the same day the fit currencies were delivered/picked-u p. Vll. Dispute Resolution Both Source bank and Client bank shall take all precautionary measures to safeguard the integrity and accuracy of the CSA transactions. They shall be responsible in providing. agreeing, and complying with a dispute resolution mechanism, which shall be included in their contractual agreements. They shall exert earnest efforts to settle any currency discrepancy dispute. The following shall serve as guide in resolving disputes relating to CSA transactions: a, Closed Circuit Television (CCTV) cameras, which should be regularly checked and maintained, must be strategically positioned in the areas where currency bags are to be unloaded and opened: b. Both Source bank and Client bank are required to designate their authorized representatives to witness the opening and inspection of currency bags; c. Reporting of anycurrency shortage or overage by the Client bank to the Source bank shall be made upon discovery during delivery/pick-up or within two (2) banking days from date of delivery/pick-up; if not done within the prescribed period, Source bank or Client bank is deemed to have waived its right to seek remedy. The Client bank shall inform Source bank through email of the alleged discrepancy and details of the transaction Ii. e. , amount, denomination, number of pieces, name of Authorized Representative or Witness) copy furnished the Bangko Sentral CD or Bangko Sentral ROB. Source bank needs to confirm receipt Page 5 of 6

. , . . . , of report on discrepancy within two (2) banking days and discuss course/s of action to resolve the issue. d. The Client bank or Source bank may request viewing of CCTV footages and/or recount of delivered currency within the prescribed period, or as may still be deemed practical under the circumstances. and with witnesses from both parties: e. Restitution of the shortage or return of the overage shall be made based on the validation results from CGTV footage and religious compliance with quality and standard packaging; and f. Source bank shall provide the Bangko Sentral CD or Bangko Sentral ROB with information on the resolution of the case Ie. g. , shortage replaced; overage returned) within two banking days after resolution. Upon receipt of complaint from Client bank of the Source bank's non-adherence to the prescribed banknote quality, the Bangko Sentral CD or BSP ROB shall lookinto the matter and endorse to the appropriate supervising department of the Bangko Sentral to ascertain if enforcement actions may be deployed for non-compliance with provisions of Secs. Inland 1/12, and other pertinent Bangko Sentral regulations, Vin. Amendment and Separability Clause The CSA general guidelines may be amended or modified by the Bangko Sentral upon consultation with Source banks and Client banks. Each provision of this CSA Guidelines shall be considered separable. If. for any reason, any provisions hereof are determined to be invalid. unenforceable. or contrary to any existing or future Bangko Sentral regulations or law. such invalidity shall not impair the operation of or affect those portions of the guidelines that are valid. Page 6 of 6

, . , , Renumbering of the Sections/Appendices cited in Certain Circulars Circular Number 1112 1/14 Date 04.08.21 04.16.21 Section/Subsection/ Appendix No. 1/17 Sec. 125-T 1/22 05.27.21 Sec. 126-T Sec. 127-T 06.17.21 Sec. 128-T Appendix Q-89 Updated Section/ Appendix No. Sec. 121-CC 1/25 Appendix CC-4 Sec. 163-T Annex B Sec, 129-T Sec, 164-T 08.20.21 Sec. 115-CC Sec. 165-T Sec, 1/7-CC 1/29 Sec. 166-T Appendix Q-92 Sec. 121-CC Sec, 123-CC Sec. 101 -CC 11,221 Appendix CC-5 Sec. 121-CC Appendix P-12 Sec. 167-T Appendix T-6 Sec. 101-CC Appendix CC-4 Sec. 101-CC Sec. 135. Q Sec. 101-CC Sec. 120-T Sec. 102-CC Sec. 101-CC Appendix P-15 Appendix T-7 Appendix CC-6 Sec. 134. Q Sec. 153-T Pagel of I