Guidelines on the Submission of Documentary and Reportorial Requirements under BSP Circular No. 1198

BANGKO SENTRAL NG PILIPINAS
OFFICE OF THE DEPUTY GOVERNOR I PAYMENTS AND CURRENCY MANACEMENT SECTOR M EMORAN DUM NO. M-2O24-O37 Operators of Payment System (OPS) Guidelines on the Submission of the Documentaryand Reportorial Requirements under BSP Circular No.ll98 Pursuant to Republic Act (R.A.) No. lll27 or the National Payment Systems Act and Circular No. ll98 on the Flegulatory Framework for Merchant Payment Acceptance Activities (MPAA) dated 19 July 2024, all covered OPS engaged in or intending to engage in MPAA shall observe the following guidelines in the preparation and electronic submission of the documentary requirements in the transitory provisions and reportorial requirements under the said Circular. A. General Guidelines
l. All subject OPS shall electronically transmit reportorial requirements to the
corresponding email addresses using the prescribed format in accordance with
Appendix A of this Memorandum. An acknowledgement receipt for the submitted
report will be sent by the appropriate department of the Bangko Sentral.
2. All subject OPS granted with Merchant Acquisition License (OPS-MAL) shall use the
prescribed report templates which can be downloaded from the BSP websiteror directly requested from BSP following the prescribed format in accordance with
Appendix B of this Memorandum,
3. Fleport submissions that do not conform with the prescribed format and
procedures shall not be accepted and will be considered non-compliant with the existing reportorial requirements subject to applicable penalties for delayed, erroneous, and/or unsubmitted reporting under Section l03 of the Manual of Flegulations for Payment Systems (MORPS).
4. Queries regarding respective requirements, its related regulations and guidelines
shall be sent to the respective email address following the prescribed format for the email subject in accordance with Appendix B of this Memorandum.
5. The reference period refers to the specified timeframe, either a calendar quarter or
year, covered within the report or notice.
B. TransitoryProvisions
l. Within six (6) months from the effectivity of Circular No. 11982, OPS already engaged
in MPAA and/or merchant acquisition shall submit the following requirements to the Payment Supervision and Licensing Department (PSLD) of the Bangko Sentral:
For OPS that are non-banld non-Electronic Money lssuer-Non-Bank Financial lnstitutions Document Email Address Engaged in MPAA l. 2. Certifi cation of compliance3 Gap assessmenta psld -reports@bsp.gov. ph Engaged in merchant acquisition l. 2. Certifi cation of compl iance3 Gap assessment4 psld -reports@bsp.gov. ph I https:/Arurw.bsp gov.ph/SitePages/Regulations/RegulationDisp-aspx?ltemld=5O3? 2 On or before I February 2025 3 Annex B of Circular No. ll98 a Annex C of Circular No. ll98 To:
Subject :
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3. Documentary requirements
under the guidelines on the application for Merchant Acquisition License oPs that are Document E-mailAddress Engaged in MPAA l. Gap assessment template4 for the provisions on payment to merchants, pricing mechanism, and reportorial requirements psld￾reports@bsp.gov.ph Copy: Corresponding Financial Supervision Department if not directly under PSLD supervision Engaged in merchant acquisition Ga p assessment tem plate4 for the provisions on payment to merchants, pricing mechanism, and reportorial req uirements A Notice of MPAA and other documentary req uirements (Appendix 505-5) 2. psld￾reports@bsp.gov.ph Copy: Corresponding Financial Supervision Department if not directly under PSLD supervision
2. All OPS emails related to the transitory provision shall be electronically submitted
using the following prescribed format for the email subject:
<OPS Name><space>MPAA Transitory, as illustrated below:
Subject : OPS ABC MPAA Transitory
C. Reportorial Requirements
l. Audited Financial Statements (AFSI
a. All subject OPS-MPAA and OPS-MAL shall submit the AFS within one hundred twenty (l2O) business days after the end of reference year. b. AFS shall include the balance sheets, income statements, statements of changes in equity, statements of cash flows, notes to financial statements, and opinion of the external auditor.
c. AFS shall be submitted together with a Certification of the External Auditor on:
(l ) Compliance with relevant confidentiality clauses; (2) Compliance with disclosure requirements and other information that may be required; and (3) Any matter adversely affecting the condition or soundness of the OPS, such as, but not limited to the following cases:
(a) any material finding involving fraud or error; (b) actual or potential losses wherein the aggregate of which amounts to at least ten percent (lO%) of the consolidated total assets of the OPS; (c) significant doubt as to the ability of the OPS to continue as a going concern:

(d) material breach of Philippine laws. Bangko Sentral charter (RA. No. 7653 as amended by R.A. No. ll2ll), or Bangko Sentral rules and regulations; (e) material internal control weaknesses which may lead to financial reporting problems; and (f) findings on matters of corporate governance that may require urgent action by the Bangko Sentral. d. OPS-MPAA and OPS-MAL that are Banks or EMI-NBFls under the supervision of the Financial Supervision Sector (FSS) shall copy furnish PSLD of their AFS submission to their respective Financial Supervision Department.
2. Statistics Related to MPAA (Appendix 503-2)
a. All subject OPS-MAL are expected to submit three (3) monthly Data Entry Template (DETs) for each reference quarter within fifteen (15) business days after the end of reference quarter. b. All subject OPS-MAL shall submit in Excel format the three (3) monthly MPAA DET to the Payments Policy and Development Department (PPDD) within fifteen (15) business days after end of reference quarter.
c. All subject OPS-MAL with no transaction for the month should input zero (O)or
null values for the report submissions. d. Statistics related to MPAA shall be submitted by subject OPS-MAL that are not required to submit the Electronic Payments and Financial Services (EPFS) Monthly Report pursuant to Section 5O1.6 of MORPS. e. All subject OPS-MAL that are unable to transmit electronically may submit the DET in any portable storage device (e.g., USB flash drive) through messengerial or postal services within the prescribed deadline addressed to:
The Director
Payments Policy and Development Department Bangko Sentral ng Pilipinas Ground floor. EFLC Office BSP Complex, A. Mabini Street, lOO4 Malate, Manila
3. List of Delisted Merchants
a. All subject OPS-MAL shall submit the list of delisted merchants within fifteen (15) business days after the end of reference quarter. b. With respect to the reason of delisting, subject OPS-MAL should indicate the following reasons as reflected in the template: (l) End of Contract (2) Sale or Lease of Dangerous and/or lllegal Goods (3) Deceptive, Unfair, or Unconscionable Sales Act or Practice (4) Sale of Goods under a Cease-and-Desist Order (5) Failure to Remedy Breach of Contract (6) Failure to Meet Merchant Payment Acceptance Criteria (7) Other Reasons
c. All subject OPS-MAL with no delisted merchants for the reference quarter
should indicate "Nothing to report" in the prescribed template.

4. Notice of Significant Changes (Appendix 503-3)
   a. All subject OPS-MAL shall submit to the PSLD a Notice to the Bangko Sentral of significant changes as needed thirty (5O) business days prior to effective date of proposed change. This does not preclude the subject OPS-MAL from compliance with the Notice requirements for registered OPS under Section
   502.6 of the MORPS.
   b. Significant changes include:
   (l) Changes in ownership, directors, and/or key officers or representatives authorized to officially communicate to the Bangko Sentral; and (2) Any proposed changes to merchant payment acceptance model of the OPS-MAL that are significant or change the risk profile of the business model, which includes but is not limited to any changes in target market, mode of payment acceptance, as well as payment and settlement flow.
   c. The subject OPS-MAL should submit a Notice that clearly outlines the changes
   of the subject OPS-MAL, signed by President or officer of equivalent rank of the OPS-MAL, accompanied by relevant supporting documentation. d. OPS-MPAA and OPS-MAL that are banks or EMI-NBFls under the supervision of Financial Superuision Sector (FSS) shall copy furnish PSLD with their submission to their respective Financial Supervision Department regarding any subsequent resignation, retirement, or replacement of directors/officers authorized to officially communicate with the Bangko Sentral. Notice of Change in Average Monthly Value of Collected Funds Transferred to Merchants Resulting to a Change in Categoryof License (Appendix 5(}3-4) a. All subject OPS-MAL shall submit to the PSLD a Notice of change in average monthly value of collected funds transferred to merchants resulting to a change in category of license (Appendix 503-4)within sixty (60) business days after its occurrence, signed by the President or officer of equivalent rank of the OPS-MAL. b. A change in license category is required if the average monthly value of collected funds transferred by an OPS-MAL to its merchants for two consecutive calendar years (e.9., Y2OZ5-2O27 ) falls under a different category, i.e., from Category A to B or Category B to A.
   c. The reckoning date for com puting a change in category of the average monthly
   value of collected funds is fifteen (15) business days after the reference year, in f ine with the submission of Statistics Related to MPAA (Appendix 5o,3-21. d. Banks and EMI-NBF|s under the supervision of FSS shall copy furnish their respective Financial Supervision Department with their submission to PSLD. For compliance. 5. lo December 2O24 MAMERTO NT E.ITANGONAN Deputy cLt ernor

Appendix A: Prescribed Format for Reports
rBanks or EMI-NBFls under the supervision of Financial Supervision Sector (FSS) shall copy furnish psld-reports@bsp.gov.ph of their AFS submission to their respective Financial Supervision Department Report Title File Name Extension EmailSubject EmailAddress Audited Financial Statements Certification of the External Auditor AFS-OPS Name PDF <Name of OPS><space>AFS,<Reference Period in dd Month g4yy> Example Subiect: OPS ABC AFS,3l December 2024 psld-reports@bsp.9ov.ph I Statistics Related to MPAA - Data Entry Template MPAA-OPS Name XLS < Name of OPS-MAL><space>M PAA, <space><Reference Month in dd Month 566ry> Example Subiect : OPS ABC MPAA,3l Auqust 2024 ppdd-payme ntsdata@bsp.gov. ph Copy: psld-reports@bsp,gov.ph List of Delisted Merchants DelistedM erchants￾OPS Name < Name of OPS-MAL><space>Delisted Merchants, <space><Reference Month in dd Month y144y> Example Subject : OPS-MAL ABC Delisted Merchants, 3l August2024 Notice of Significant Changes NoticeSC￾OPS Name PDF <Name of OPS-MAL><soace>Notice of Significant Change,<space><Reference Month in dd Month yy5ry> Example Subject OPS-MAL ABC Notice of Significant Chanqe, 3l Auqust 2024 psld-reports@bsp.gov.p h Copy: Corresponding Financial Supervision Department if not directly under PSLD supervision Notice of Change in Average Monthly Value of Collected Funds Transferred to Merchants Resultino NoticeCC￾OPS Name <Name of OPS-MAL><space>Notice of Change in Capital Category,<Reference Date in dd Month 54447> Examole psld-reports@bsp.gov.p h Copy: Corresponding Financial Supervision Department if not directlv under PSLD supervision Pagel of3

to a Change in
Cateqory of License
Subject OPS-MAL ABC Notice of Change in
Capital Cateqory,3l Auqust 2024
Appendix B: Prescribed Format and Email Addresses for lnquiries and Requests for Template
A. Inquiry on Report
Report Title Email Subiect EmailAddress statistics Related to MPAA <Name of OPS-MAL> <space> [|NQUIRYI MPAA Statistics Examole subiecr: oPs ABc ilNQUIRYI MPAA Statistics ppdd￾paym entsdata @bsp.gov. ph List of Delisted Merchants <Name of OPS-MAL> <space> [NQUIRY] Delisted Mercha nts Example subiect: oPS ABc IINQUIRYI Delisted Merchants Audited Financial Statements Certification of the External Auditor <Name of OPS> <space> [NQUIRY MPAA AFS Examole SUbiECt: OPS ABC TINQUIRYI MPAA AFS psld@bsp.gov.ph Notice of Significant Changes <Name of OPS-MAL> <space> [INQUIRY] MPAA Notice of Significant Changes Example Subject: oPS ABC ilNQUIRYI MPAA Notice of Siqnificant Chanqes Notice of Change in Average Monthly Value of Collected Funds Transferred to Merchants Resulting to a Change in Category of License <Name of OPS-MAL> <space> [NQUIRY] MPAA Notice of Change in Capital Category Example subjecr: oPS ABc ilNQUIRYI MPAA Notice of Change in Capital Cateqory B. Request for Template

Report Title Email Subiect Email Address Statistics Related to MPAA - Data Entry Template <Name of OPS-MAL> <space> [REQUESII MPAA DET Examole Subiect: OPS ABC TREQUESTI MPAA DET ppdd￾payme ntsdata@bsp.gov. ph List of Delisted Merchants <Name of OPS-MAL> <space> [REQUEST] Delisted Merchants Template Example subjecr: oPS ABC [REQUEST] Delisted Merchants Temolate Notice of Significant Changes <Name of OPS-MAL> <space> [REQUEST] MPAA Notice of Significant Changes Examole subject: oPS ABc [REQUEST] N4PAA Notice of Siqnificant Chanqes psld@bsp.gov.ph Notice of Change in Average Monthly Value of Collected Funds Transferred to Merchants Resulting to a Change in Category of License <Name of OPS-MAL> <space> [REQUEST] MPAA Notice of Change in Capital Category Example subject: oPS ABc [REQUEST] MPAA Notice of Chanqe in Capital Cateqorv