Implementation of CPMI-IOSCO Principles on PhilPaSS Payments and Settlements System
The Philippine Payments and Settlements System (PhilPaSS) implemented the CPMI-IOSCO Principles to ensure robust management of financial transactions. PhilPaSS, established in 2002, facilitates real-time gross settlement of critical financial transactions. The Bangko Sentral ng Pilipinas' Payments and Settlements Office is committed to maintaining a secure payment system that adheres to international standards, undergoes regular assessments, and addresses any identified gaps promptly.
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Implementation of the CPMI IOSCOs Principles for Financial Market Infrastructures on the Philippine Payments and Settlements System (PhilPaSS) Ms. Eleanor S. Turaray Acting Director Payments and Settlements Office Bangko Sentral ng Pilipinas 3 December 2018 Global Payments Week, Kuala Lumpur, Malaysia
PhilPaSS - SIPS PhilPaSS system of the Philippines installed in year 2002 that handles the settlement of time- critical & large-value financial transactions through the deposit reserves maintained by participating institutions in the BSP. The modern real-time gross settlement
Participants in PhilPaSS 3rd Party Payment System Providers Financial Institutions BSP Departments
The BSP Payments and Settlements Office The PSO is committed to provide & maintain a robust payment system that will ensure the mitigation of payments- related risks capable of triggering systemic impact on financial systems, institutions & individuals. Mission We resolve to: Ensure strict compliance with rules & regulations covering the operations of PhilPaSS; Implement adequate & effective PhilPaSS business continuity management measures; Observance of international standards on payments & settlements; Continuous advancement of payments processes & procedures to benefit our stakeholders & the economy as a whole.
Compliance to International Standards 3rd party assessments; and Regular self-assessments
Compliance to International Standards 2005 IMF Assessment 2007 Self-assessment on the 10 Core Principles for SIPS 3rd party assessment on the PFMI 2014 2018 Self-assessment on the PFMI
Results of the 3rd Party Assessment Gravity & Urgency of the Need to Address Concerns Gaps are minor and may be addressed in the normal course of business Gaps should be addressed in a defined timeline Assessment Rating No. of Principles 7 out of 18 principles applicable to PSS Actions Taken OBSERVED 8 out of 18 principles applicable to PSS BROADLY OBSERVED Gaps addressed as of date except for the gap cited on operational risk (Principle 17) Gaps may become serious if not addressed promptly & should be addressed with high priority Serious gaps warrant immediate action & should be accorded highest priority NOT APPLICABLE 2 out of 18 principles applicable to PSS PARTIALLY OBSERVED Partially addressed (legislation is already being sought) None NOT OBSERVED 6 out of the 24 principles
Participants in PhilPaSS 3rd Party Payment System Providers Financial Institutions BSP Departments
No. GENERAL ORGANIZATION 1 LEGAL BASIS 2 GOVERNANCE 3 FRAMEWORK FOR THE COMPREHENSIVE MANAGEMENT OF RISKS CREDIT & LIQUIDITY RISK MANAGEMENT 4 CREDIT RISK 5 COLLATERAL 6 MARGIN 7 LIQUIDITY RISK SETTLEMENT 8 SETTLEMENT FINALITY 9 MONEY SETTLEMENTS 10 PHYSICAL DELIVERIES CENTRAL SECURITIES DEPOSITORIES & EXCHANGE-OF-VALUE SETTLEMENT SYSTEMS 11 CENTRAL SECURITIES DEPOSITORIES 12 EXCHANGE-OF-VALUE SETTLEMENT SYSTEMS DEFAULT MANAGEMENT 13 PARTICIPANT-DEFAULT RULES & PROCEDURES 14 SEGREGATION & PORTABILITY GENERAL BUSINESS & OPERATIONAL RISK MANAGEMENT 15 GENERAL BUSINESS RISK 16 CUSTODY & INVESTMENT RISKS 17 OPERATIONAL RISK 18 ACCESS & PARTICIPATION REQUIREMENTS 19 TIERED PARTICIPATION ARRANGEMENTS 20 FMI LINKS EFFICIENCY 21 EFFICIENCY & EFFECTIVENESS 22 COMMUNICATION PROCEDURES & STANDARDS TRANSPARENCY 23 DISCLOSURE OF RULES, KEY PROCEDURES & MARKET DATA 24 DISCLOSURE OF MARKET DATA BY TRADE REPOSITORIES Principle Rating Actions Made PARTIALLY OBSERVED PARTIALLY OBSERVED OBSERVED Legislation is already being sought Legislation is already being sought OBSERVED OBSERVED Not Applicable BROADLY OBSERVED Recommendations already addressed BROADLY OBSERVED BROADLY OBSERVED Not Applicable Recommendations already addressed Recommendations already addressed Not Applicable BROADLY OBSERVED Recommendations already addressed OBSERVED Not Applicable OBSERVED OBSERVED BROADLY OBSERVED BROADLY OBSERVED OBSERVED Not Applicable Legislation is already being sought Recommendations already addressed BROADLY OBSERVED Not covered by the assessment Recommendations already addressed BROADLY OBSERVED Not Applicable Recommendations already addressed
Policy-Making Body BSP DIGITAL PAYMENTS TRANSFORMATION STEERING COMMITTEE Deputy Governor, CSS Chairperson Deputy Governor, FSS Vice-Chairperson Members/ TWG 1. HR 2. IT 3. Financial Supervision & Consumer Protection 4. Monetary Policy 5. PSO 6. PSOD 7. Core IT Specialist Group 8. Economic Research 9. Accounting
Implementation of the CPMI IOSCOs Principles for Financial Market Infrastructures on the Philippine Payments and Settlements System (PhilPaSS) Ms. Eleanor S. Turaray Acting Director Payments and Settlements Office Bangko Sentral ng Pilipinas 3 December 2018 Global Payments Week, Kuala Lumpur, Malaysia
