Financial institutions (BFSIs) supervised by the Bangko Sentral ng Pilipinas' (BSP) have one more year to fully comply to BSP's Europay, Mastercard and Visa (EMV) chip migration requirement.
The central bank has set 30 June 2018 as the hard deadline for BSFIs to complete all their EMV-related activities. The activities include upgrading/enhancing back-end processes and systems, automated teller machine (ATM) and point of sale (POS) terminals; replacing magnetic stripe-based credit and debit/prepaid cards; and distributing EMV-compliant cards.
BSFIs that fail to comply will face monetary sanctions under the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI). Non- or partially-compliant BSFIs are mandated to set up funds for probable losses from counterfeit fraud or skimming attacks until full compliance is achieved.
In addition, BSFIs are mandated to intensify their public awareness programmes on the replacement of their payment cards. In line, customers must be clearly informed about the procedures on replacing their magnetic stripe-based cards, and when EMV cards are available and can be picked up.
BSP first issued a directive in August 2013 that required all of its supervised institutions to shift their payment network to EMV. Earlier, the central bank set 1 January 2017 as the deadline for compliance.