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THE CENTRAL BANK of Pilipinas (BSP) is working with the central bank of Singapore to promote data connectivity between fifinancial institutions to strengthen risk management related to money laundering, terrorism befinancing and cyberattacks.
The BSP on Monday issued a joint statement of intent with the Monetary Authority of Singapore (MAS), which said they intend to adopt and implement policies related to data connectivity applicable to their supervisees. befinancial institutions.
“BSP and MAS recognize that the ability to aggregate, store, process and transmit data across borders is essential for the development of befinancial sector, ”they said in the statement.
“These developments also pose new and complex risks for markets and challenges for legislators and regulators. BSP and MAS are committed to working together and with other countries and authorities to promote an environment in befinancial services that promote the development of the global economy ”, they added.
Regulators said that increased use of data and technology enables financial institutions to offer a wider range of services and also contributes to better risk management and greater effiefficiency.
“Covered institutions must be able to transfer data, including personal information, across borders by electronic means, as long as this activity is for the conduct of business within the scope of their license, authorization or registration,” they said.
“Data localization requirements can increase cybersecurity and other operational risks, hamper risk management and compliance, and inhibit beregulatory and financial supervisory access to data. Data mobility in financial services supports economic growth and the development of innovative financial services, and benefits compliance and risk management programs, among others, by facilitating the detection of cross-border money laundering, patterns of terrorist financing and financing. of proliferation; defend against cyberattacks; and manage and assess risk globally ”, they added.
Regulators said the places where lenders can store and process data should not be restricted, but said they must have “full and timely” access to this data to comply.beThey will fulfill their regulatory and supervisory functions.
“If BSP or MAS cannot access the data, the covered institutions should have the opportunity to remedy that lack of access before they are asked to use or locate computing facilities locally,” the statement said.
The BSP has been engaging in policy dialogues with other central banks and multilateral agencies as the global economy grapples with the coronavirus pandemic.
In September, the BSP signed a Memorandum of Understanding with Otoritas Jasa Keuangan or the Indonesian Financial Services Authority that aims to develop a framework on befinancial regulation mechanisms between the two central banks.
Through the pact, regulators can facilitate initiatives, including a joint regulatory sandbox to test cross-border retail payment links. – LWTN
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