Philippine banks are given until June 30, 2018 to fully conform with the requirements to make all their issued automated teller machine cards EMV (Europay, MasterCard and Visa)-compliant.
In a statement Thursday, the Bangko Sentral said its policy-making Monetary Board has approved the supplemental guidelines on the EMV migration requirement and has identified penalties for non-compliance.
BSP-supervised financial institutions that fail to meet the requirements will be sanctioned based on rules under the Manual of Regulations for Banks and the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), it said.
”In the interim, non or partially-compliant BSFIs are mandated to book provisions for probable fraud losses starting 30 September 2017 until full compliance is achieved,” it said.
Banks have been directed to fully comply with EMV, a system developed by Europay, MasterCard and Visa that uses chip that have greater security compared to magnetic strip, by January 2017.
Most banks failed to comply with the requirement but BSP Deputy Governor Nestor Espenilla Jr. earlier said “quite a number” of banks have increased their multi-factor authentication system to strengthen their capacity against cyber-attacks.
MFA is required for transactions that are considered sensitive communications like enrollment in transactional electronic services or e-services, payments and fund transfers to third parties.
MB has amended regulations on MFAs and now requires BSFIs to adopt the system for certain transactions starting Sept. 30, 2017.
BSP is also urging banks to intensify their public awareness campaign and tap “all available communication channels” to make their clients understand the need to transfer to EMV technology.
It said clients should be clearly informed on the process on getting their EMV-capable ATMS and when it is available.
“To further strengthen consumer protection and complaints handling and resolution as prescribed under BSP Circular No. 936 dated 28 December 2016, the actual restitution of cardholder/s with valid claims should take place within the 10-day resolution timeline for complaints and/or requests for chargeback as a result of counterfeit fraud,” it added.
BSP Circular No. 936, series of 2016, covers the “Guidelines on the Implementation of EMV Card Fraud Liability Shift Framework”.