FRAUD MONITORING. BSP now requires financial institutions to have an automated and real-time fraud monitoring and detection system to address the rising cyberattacks on consumers. BSP Governor Benjamin Diokno said these systems should also be linked to the FIs' comprehensive financial crime prevention system. (PNA file photo)

MANILA – Financial institutions (FIs) regulated by the Bangko Sentral ng Pilipinas (BSP) are now required to have an automated and real-time fraud monitoring and detection system to address the growing incidents of cyber frauds.

In a virtual briefing on Thursday, BSP Governor Benjamin Diokno said they recently issued Circular No. 1140 as an amendment to the Information Technology Risk Management Framework after their surveillance showed that cyberattacks and illegal schemes affect two or more FIs simultaneously.

Diokno said the FIs’ automated fraud monitoring systems, as well as their anti-money laundering system, “should be linked or integrated to have a cohesive and comprehensive financial crime prevention system.”

FIs are also encouraged to use interactive platforms for their consumer education program, he said.

The Circular is expected to lessen losses from fraud and cybercrimes, and boost the central bank’s bid to further increase digital financial transactions in the country.

“The BSP believes that a holistic and coordinated approach among the industry players is necessary to ensure that funds cannot be easily siphoned off by fraudsters and cybercriminals. In line with this, the BSP shall continue to engage with relevant stakeholders to ensure that policy frameworks and supervisory actions are effective and responsive amid a fast-evolving cyber security environment,” Diokno said.

He said digital payments adoption in the country continues to broaden through sustained growth in the use of interoperable facilities, such as electronic funds transfer facilities PESONet and InstaPay, the national QR Code standard called QR PH, and e.Gov pay, a web-based facility that the public can use to file and pay contributions and payments of government contributions and loans, among others.

Diokno said that from 21.8 million transactions amounting to PHP1.3 trillion in 2021, the volume and value of PESONet transactions reached 26.4 million to PHP1.9 trillion, respectively, to date.

He said InstaPay volume as of end-April this year grew by 32.7 percent to 166 million from 125 million transactions in the first four months last year.

“The rising use of digital payments helps us move closer towards our goal of having a cashlite society,” he added.

Diokno said the central bank “continues to ensure that systematically important payment systems or SIPs, which eventually facilitates the settlement of the digital payments among banks, follow standards, which are at par with global practices to ensure safety and reliability.” (PNA)