Manila: All retail payment systems in the Philippines must now comply with the global standard ISO 20022 to streamline domestic and cross-border payments, as mandated by a circular from the Bangko Sentral ng Pilipinas (BSP).

According to Philippines News Agency, BSP Circular 1223, which was approved by the policy-making Monetary Board on November 6, aligns the country's payment systems with global standards as outlined in Section 7 of Republic Act 11127, known as the National Payment Systems Act, and Section 102 of the Adoption of the Principles for Financial Market Infrastructure. This circular stipulates that participants have a two-year period from the issuance's effective date to achieve full compliance. A phased implementation approach is required, with at least one use case harmonized within the first year. The effective date is set 15 calendar days after the circular's publication in a newspaper of general circulation or the Official Gazette.

An ISO 20022 Harmonization Industry Project Team has been established to assist industry players in implementing the new standards. The BSP emphasized in a press release that the new rule follows guidelines from the Bank for International Settlements' Committee on Payments and Market Infrastructures. The BSP stated that this initiative would enhance transaction monitoring, strengthen compliance checks, and improve consumer redress mechanisms.

The circular highlights that regulated financial institutions using InstaPay and PESONet, the electronic fund transfer services under the central bank's National Retail Payment System, have already begun adopting ISO 20022, though their implementation has been inconsistent. With the introduction of Circular No. 1223, industry players are now required to uniformly apply the global standard. The circular also seeks to align with the G20's objectives of improving the affordability, speed, and transparency of remittances, as well as both domestic and cross-border retail payments.