tlruoxo SENrneL Ne Prurelruas

OFFICE OF THE GOVERNOR

ctRcuLAR NO.1049
Series of 2019

Subject: Rules and Regulations on the Registration of Operators of Payment Systems

The Monetary Board, in its Resolution No. 1350 dated 5 September 2019, approved
the rules and regulations on the registration of operators of payment systems to implement
Republic Act (R.A.) No. 11127 or the National Payment Systems Act. These rules and
regulations shall form part of the newly-created Manual of Regulations for Payment Systems
(MORPS).

Section 1. Part l, Section 101 of the MORPS shall read, as follows:

101 REGTSTRATTON OF OPERATORS OF PAYMENT SYSTEMS (OpS)

Policy Statement. The Bangko Sentral recognizes the crucial role of payment systems in
maintaining a stable financial system and facilitating the realization of monetary policy
objectives. lt is thus important for the operation of payment systems to be safe, efficient and
reliable.

Definition of Terms. For purposes of these implementing rules and regulations, the
definition of terms under Section 4 of R.A. No. 11127 shall apply.

Coveroge. All OPS as defined under R.A. No. LLL27 and clarified in this Section shall
register with the Bangko Sentral. For this purpose, an OPS shall be a person that performs any
of the following functions:

a. Maintains the platform that enables payments or fund transfers, regardless of

whether the source and destination accounts are maintained with the same or
different institutions;
b. Operates the system or network that enables payments or fund transfers to be made
through the use of a payment instrument;
c. Provides a system that processes payments on behalf of any person or the
governmen| and
d. Such other activities similar to the foregoing, as may be determined by the Monetary
Board.

The examples of activities performed by an OPS under the functions set forth above are
found in Appendix 1.

Requirements for Registrotion. The following rules shall apply to the registration of an
OPS pursuant to Section 10 of R.A. No. LLL27.

A. [{lhi;-:rSt.. i'lll;'.it 1i)rJ.:l }Janl]i;. i:hilii:cincs. i{:l2i ;Oil-l7a)j . w\.rw.b:it.ij'iv.0l " !:!Ftriil'.r.,t1:ili.Jiav.ci-l
 OPS that have yet to commence operations. The following requirements shall apply to an
OPS that have yet to commence operations at the date of the effectivity of this Circular:

a. Applicotion for Registrotion. An OPS shall submit the following documents and
information to the appropriate department of the Bangko Sentral:

(1) Duly accomplished Application for Registration (Form 1) signed by the president,
chief executive officer, or a senior officer holding an equivalent position;
(2) Business Plan, which includes the description of its existing business, business
model and target markets; and
(3) Copy of the business registration/permit indicating the line of business of the
OPS, from the city or municipality that has territorial jurisdiction over the
principal place of business of the OPS for the current period.

The Bangko Sentral may, in the course of the evaluation of the application for registration,
require submission of documents and information in addition to those listed above.

b. Fees for Registrotion. Upon theissuance of the Certificate of Registration (COR), an

OPS shall pay a registration fee of P 20,000.00. A fee of P 1,000.00 shall be assessed
and collected for the replacement of a COR for whatever reason.

c. Dote of Registrotion. All OPS that have not commenced operations shall register with
the Bangko Sentral within one (1) month from the start of their operations except in
the following instances where registration is required prior to commencement of
operation:

(1) A regulator or government agency requires appropriate action from the Bangko
Sentral prior to the start of the OPS business;
(2) The OPS offers remittance services as well as other similar activities performed
by money servlce businesses; and
(3) Such other circumstances, as may be determined by the Monetary Board.

OPS that dre currently operoting. The following requirements shall apply to an OPS that
is already operating at the date of the effectivity of this Circular:

a. Application for Registration. An OPS that has already commenced operations at the
date of the effectivity of this Circular shall submit the following documents and
information to the appropriate department of the Bangko Sentral:

(1) Duly accomplished Application for Registration (Form 1) signed by the president,
chief executive officer, or a senior officer holding an equivalent position;
(2) Business Plan, which includes a description of existing business, business model,
and target markets; and
(3) Copy of the business registration/permit indicating the line of business of the
OPS, from the city or municipality that has territorial jurisdiction over the place
of establishment and operation of the OPS for the current period.

Page 2 of 5
 The Bangko Sentral may, in the course of the evaluation of the application for registration,
request submission of documents and information in addition to those listed above.

b. Feesfor Registration. Upon the issuance of the COR, an OPS shall pay a registration
fee of P 20,000.00. A fee of P 1,000.00 shall be assessed and collected for the
replacement of a COR for whatever reason.

c. Date of Registration. An OPS that is currently operating at the time of the effectivity
of R.A. No. 11127 shall register with the Bangko Sentral by complying with the
registration requirements prescribed under this Section not later than three (3)
months from effectivity of this Circular.

Bonks ond EMls. The following requirements shall apply to banks and electronic money
issuers (EMls) that are currently operating, or will later operate, as an OPS as defined under
R.A. No. LLL27 and clarified in this Section:

a. Registrotion through Notification. A Bank or an EMI shall submit to the appropriate

department of the Bangko Sentral, a notification of its activities as an OPS. lt shall include
a description of its existing business as an OPS, business model, and target markets. The
submission shall be signed by the president, chief executive officer, or a senior officer
holding an equivalent position. The Bangko Sentral may, in the course of the evaluation
of said submission, require additional documents and information in relation to said
notification.

b. Date of Submission A bank or an EMI shall submit the notification with the
supporting documents prescribed under this Section not later than three (3) months from
effectivity of this Circular, or within one (1) month from the start of their operations as
OPS, as appropriate.

lssuance of Bangko Sentrol Certificate of Registration (COR). Upon receipt of the duly
accomplished Application for Registration (Form 1) and the required documents, or
Notification, as the case may be, from the OPS, the Bangko Sentral shall issue a provisional
COR (PCOR). lt shall be valid for the period stated therein unless indicated otherwise in the
List of PCORs published on the Bangko Sentral website. Thereafter, the Bangko Sentral shall
issue a COR to the OPS, if warranted, and provided that the submitted documents satisfy the
regulatory requirements.

Notice Requirements lor Registered Operotors of Poyment Systems. Registered OPS,

except for banks or EMls registered as OPS, shall give notice to the appropriate department
of the Bangko Sentral of the following events within five (5) business days from the date of
occurrence.

a. Commencement of operations for OPS required to register prior to operations.

b. Change of ownership or control of the OPS that will result in ownership or control of
at least twenty percent (2O%l of the voting shares of stock by any person or which will
enable such person to elect, or be elected as, a director of the OPS. The notice shall
indicate the details of the change of ownership or control. The change in ownership

Page 3 of 5
 or control of OPS of a designated payment system shall also be subject to the approval
requirements as may be required by RA No. 11127 and its implementing rules and
regulations.
Suspension or revocation of permits, licenses or other authorities issued to the OPS
by other government agencies. The notice shall include the ground/s for the
suspension or revocation, and the action taken or to be taken by the OPS relative to
the suspension or revocation. Thereafter, the OPS shall provide bi-weekly updates on
the status of the suspension or revocation of its permits, licenses, or other authorities
issued by other government agencies.
d. Change in key officers or representatives authorized to officially communicate to the
Bangko Sentral.
e. Change of registered/business name.

In case of change in the registered/business name, the Bangko Sentral shall issue a new
COR indicating the new registered/business name of the OPS upon its payment of a
replacement fee of P 1.,000.00, submission of the amended Articles of Incorporation (AOl) or
equivalent document reflecting the new registered/business name and return of the COR
issued by the Bangko Sentral to the OPS.

Operoting o Poyment System Without Registration. When an OPS required to be

registered under this Section is found to be operating a payment system without registration,
the Monetary Board shall issue a directive to such OPS to comply with the registration
requirements under this Section. lf the OPS remains unregistered, the Monetary Board shall
issue an order to such OPS to stop from operating a payment system without registration and
to take immediate action to register. The Bangko Sentral may coordinate with other
regulators and concerned government agencies to inform them that the said OPS is operating
a payment system without registration from the Bangko Sentral. The above is without
prejudice to the enforcement actions by the Bangko Sentral, as may be applicable, under
existing laws, rules and regulations.

Enforcement Actions. The Bangko Sentral may deploy enforcement actions to ensure
compliance with the provisions of this Section and bring about timely corrective actions. Any
viof ation of this Section shall subject the OPS and/or its directors, officers, and/or employees
to the sanctions set forth in Section 37 of R.A. No. 7653, as amended, and Section 19 of R.A.
No. 11127, as appropriate.

Section 2. Effectivity. This Circular shalltake effect fifteen (15) calendar days following
its publication either in the Official Gazette or in a newspaper of general circulation.

FOR THE MONETARY BOARD:

lnou* Ada
FRANCISCO G. DAKILA, JR.
Officer-in-Charge

? s"pt"rber 2019

Page 4 of 5
 Examples of Activities Performed by an Operator of a Payment System

Maintains the platform that enables payments or fund transfers, regardless of whether the
source and destination accounts are maintained with the same or different institutions

o Owns or operates a computer application system that enables payments or fund

transfers
o Sets rules by which payments may be made or funds may be transferred
o Allows customers to fund their accounts by submitting to the operator cash or its
equivalent in exchange for the value to be stored in their account
o Allows accounts of system users to be linked to their accounts with other financial
institutions (Fls) (e.g., deposit account, e-money account, credit card account)

Operates the system or network that enables payments or fund transfers to be made
through the use of a payment instrument

o Provides a system or network infrastructure that enables payments and financial

services of Fls
r Sets rules, functions, procedures, arrangements or devices that enable an account
holder or holder of the payment instrument to transact with a third party
o Transfers payment information (e.9., card transaction details) to and from
participating institutions
o Provides network participants with a listing of the amounts due toffrom other
participants
o Offers service/s to more than one (1) Fl and enables them to perform payments or
fund transfers among each other
o Enables the acceptance of specific payment instrument/s by institutions such as
government, com mercial establish ments, and other merchants/bi llers

Provides a system that processes payments on behalf of any person or the government

o Receives payment for or on behalf of the sellers of goods, providers of services, or

creditors/billers in accordance with a written agreement
o Sets rules, provides arrangements or facilities to collect funds from the public and
transmits the same to sellers of goods, providers of services, or creditors/billers in
accordance with a written agreement
o Allows payments to be made to more than one commercial establishment or
creditor/biller

Page 5 of 5
 OPS Form 1
Pegli of2
APPUCATION FOR REGISTRATION AS OPERATOR OF A PAYMENT SYSTEM (OpSl
(To be completely fllled up. Indicate 'N/A' if an it€m ls not applicable.)

Thru: The offlce of thc Dircctor Date:

Paymcnt Swtem OveFEht DeDanment (PSODI
Thls form ls to be acomplished by the Operetor of a Payment system (OPSI. An OPS refers to any p€r$n performing any of the actiyitles as
deffned fn section 4{l) of R.A. No. 11127 (The llatlonal Payment Syst?ms Acll. Klndly indicote ln the checkltst ot the bock oI thls form the
odlvftles pedormed hyyow componv,
1. FUIf COMPAT{Y NATI,IE | 2.TrN
3.COMPANYNAME
4. REGISIERED BUSII{ESSfiRADE NAME/S
5. COMPAT{Y REGISTRANOil'{O. 6. DAIE ISSUED 7.VAilD Ut{Tt[

8. BUSINESI LOCATIO]{ t trlttlo o gn hrrngi sp.dry SWtto.ondrtut c tu''rgo| | fq/rturr/tipof/ry

afr.m-fuanrte

9. BUSTilESS CONTACT |NFO. Lardt ac ttffilleilo. EnoIIfudttst WcDstt

10. BUSINESS PERMIT/ilATURE or ilPE lustr.3sFar|tttflo. Oo'rBtuad VoMaladl xldol!,uiht.'' I Vr',ltr&'.St!,a.'8

oF EUS|I{E5S
U. Areyou llcensed to do business In the tr Yes lfyes, lndtcate the type oI llcense
lhlllpplnes? ENo isued tothe compony

TI. FORM OF BUSII{Ess ORGAT{IZATION 13. AUTHORIZED CAPTTAI STOCK

(e.& Sole Proprietorship, Partnershlp,
corooEllon- Cooa.retive- atc-l
14. OW]IERIIHIP AI{D MANAGEMET{T STRUCTURE
!1.1 Ust of Board of Direaors/Partncrs/Owners
tlatt'€ Adzqurtlp Addr?ls ftttt,0'n NH xot EmoilAddtat
Ovnrdi,lo

14.2 tlst of Shareholders fwitD ownenhip of ot leost 1096)

Ittome a'/tr'.nttfi Addrt6,t ,bti'lo'' ftE xot Er'dlAddr!'6
Ortt 6ttro

14.3 tirt of lGy Otfielr (Presdeng Finance Officer, Treasurer ond their equiwlent)
Iloma Athsrrtrp |ddrrs' fgftIo', ft[ EmonAddr6

15. BRIEF DESCRIPT]ON ON HOWTHE BUSINESS OPERATESAT{DTARGETMARKET

15.1 Pim.ry Produd/Servk 15.2 ReEnue Gcncr.dnS Acdvitie3 153 T.[ct Markct
(dropdown menu to be rdected by appllcent)
a. Trenractiorlr$eilfee
b. Subccrlpdon-besedfee
c. Ucensefees
d. Others (pterse cre.E a ftGld thatcan b€
fflled bv tart)
16. NETWOR( AND OPERANOilS
16.1 llumbcrof branchcs or:eruldn; unlts (ovcr- 16.2 Numbar ot prydent terrnln.ls (sclf-servlcc - 16.3 llumber of partlclpants/ ute6
dr.-countcr/trllcr rslstcdl ATM. P.YmGnt l0osl(sl

LT.TYPESOFPAYMEIff I 5JrortDrscdPtbt oJtuW,a,t tlnn Ddq po''aa* Awfigcmdrthtl 4lrarvgamot Wttduaot

mlmeof'grsadoac tuKaafbrrt
INSIRUMEilTS/MEDIAISSUED @

lshall bc coneidcred thc ofidal c-mrll addrcss rcglstered with gSP

 OPs Fom I
PegtE2orz
APPTICANON FOR REGFTRATION AS OPERATOR OFA PAYMENT SYSTEM (OPS}
(To be completely fflled up. Indlcate "N/A" if an item is not applicable)

Kindly place a check mark ( v ) beside the actMty/ieE pertormed by your company.

A. Maintsint the platform tha? cnables p?ynentr or fund tronstcrs, rcgodless of whether the sourxa ond dcstlnatlon gr;counb ar?
molntoined with ?he sme or difierent institutbm
tr Owns or operotes o computer opplicatlon system thot enobles poyments orlund tonsfers
tr Sets rules by whlch payments moy be mode or funds moy be tronsferred

tr Nlows customerstofund their amounts hy submitting tothe operatorcosh orlts equtwlent ln exclnngeforthewlueto be stored
in their occount
tr Hlows occounts of system users to be llnked to thelr sccounts with other finonctol lnstltutlons (Fts) (e.g. deposft occount, e-money
occctunt, credlt cord occount)
8. Operat s ttc system or neharoln. tlrrlt .acbtcs poymllntr or furd f unsftrc b be mode through the use ol o poyrcnt iwtrument

tr Provldes o system or network infmstructure thot enobles poymenB ond finonctol sedces ol Fls
tr Sets rules, functions, procedures, onongemenE or devices thot enoble on occount hotder or hotder of the pyment instrument b
tronssd wlth a third porty
tr Tronsfers payment lnformotlon (e.g. cord tronsoction detoils) to and from parttclpottng lnsttttttlons
tr Provides network porttclponB wlth o llstlng of the amounts due to/from other portktponr
tr Olfen seMce/s to more thon one (7) Fl ond enobles them o perlorm poyment or fund tmnslerc omong eqch other
tr Enobles the occeptonce ol specific poyment instrumenVs by tnsdtutions such os gotrernment, ammerciol establishmeng snd
other merchonUblllers

C. Provides o systcm tlnt proccsse poyncnB on bchall ol any pcrson ot thc govemment
tr Recelves po@ent for or on beholl ol the sellers of goods, provlden of serulces, or aeditorclbtllers ln qccordonce wfth o written
ogreement
tr Sefs rules, proides orrongements or locllltles to colled funds lrom the public and transmiE the same to sellerc of gods, provlderc
of servlces, or crediton/billen ln occordance with o wrt't;ten ogreen ent
tr Allows poymmB to be mode to more thon one cornmerclol estobllshment or qeditor/biller

l, [insert namel, [insert deslgnationJ of [insert company name], hereby certify to the following:

1. I am authorized to siSn thls Application for Registratlon as oPs for and on behalf of [insert company name].
2. The completion of the Application for Registntlon as OPS was made after conduct of self-assessment whereby it was
determlned that [insert company name] is an OPS pursuant to R.A. No. 11127 (The National Payment Systems Act)
and BSP Orcular No- As OPS, [insert cornpany name] performs: ftnsert actlvlties performed as an OpS].
3. (insert company namel ls licensed to do buslness In the Philippines and has obtained the necessary authoritles and
-.
permits from the relevant government agencles or units to perform the abovernentloned activities.
4, By Indlcating in this registration form the personal lnformation of the Board of Dlrectors, tist of partnem, ownert
shareholders, and key officers, said persons are aware of their rights under R,A. No. 10173 (Data Privacy Act of 2012)
and they authorize the BSP to collect, process and store thelr personal informatlon and share with and make available
this Application for Reglstration to interested parties for lawful purposes and legitlmate lnterests and to comply with
legalmandate.
5. The lnformation provided hereln are true, accurate and complete.

Name
Deslgnation of Authorized Offlcer