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Business groups, foreign chambers push for ratification of electric vehicle bill

REUTERS

INDUSTRY ASSOCIATIONS called on legislators to expedite the ratification of a bill promoting the adoption of electric vehicles (EVs) and laying out how they are to be regulated to pave the way for the Philippines to become a regional hub for the industry.

They said in a joint statement issued on Nov. 22 that they are confident that the measure will be sent to Malacañang before Congress goes on a one-month recess on Dec. 15.

“Passage of the bill will enable the Philippines to participate in what is becoming an enormous new supply chain of the EV industry, particularly components, batteries, and charging stations,” they said.

The ratification of House Bill 10213 and Senate Bill 1382 would also help the Philippines keep up with other countries in EV development, with the US a potential market after EVs and charging stations featured prominently in a recently-signed infrastructure bill.

A bicameral conference committee in Congress was due to meet to harmonize the two bills on Nov. 23, but the meeting was cancelled.

Pampanga Rep. Juan Miguel M. Arroyo, chairman of the House Committee on Energy, said in a Viber message that the Senate asked to reschedule the session. — Russell Louis C. Ku

Senators are currently busy tackling the 2022 national budget.

The bill will require establishments with 20 or more designated parking slots to dedicate 5% of their space for the use of EVs and provide charging points.

The bill, if passed, also establishes tax incentives for EV manufacturers, entities maintaining charging stations, and research and development centers.

Electric vehicles, charging stations, and materials for their assembly will also be exempt from customs duties and value-added tax for five years from the effectivity of the proposed law.

The bill will establish an Electric Vehicles Advisory Board composed of officials from various government agencies, including the Department of Energy and Department of Transportation, to formulate policy encouraging the de-velopment and commercialization of EVs.

The Comprehensive Roadmap on Electric Vehicles (CREV) will become the national plan to help boost the electric vehicle industry. CREV will be integrated with the Philippine Energy Plan and the National Transport Policy.

The statement was supported by foreign business chambers based in the Philippines, including the American, Australian-New Zealand, Canadian, European, Japanese, and South Korean business councils.

Other groups that backed the statement were the Electric Vehicle Association of the Philippines, the IT and Business Process Association of the Philippines, the Management Association of the Philippines, the Philippine Associa-tion of Multinational Companies Regional Headquarters, Inc., the Philippine Parts Makers Association, Inc., and the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. — Russell Louis C. Ku

Cooking and pairing with booze

With restrictions on gatherings slowly lifting, it seems that holidays with our friends and family during this pandemic might be forthcoming. A pairing menu by San Miguel Foods Culinary Center (SMFCC), coupled with drinks from San Miguel Brewery (SMB), Wine Brothers’ Philippines, and Ginebra San Miguel, Inc. (GSMI), just might hit the spot.

The menu was shown off via a Zoom dinner last week by San Miguel. Crostini with a cheese and pimiento spread (made with Magnolia Milky White Cheezee Spread), topped with cubes of Magnolia Milky White Cheese and sliced green olives marinated in olive oil and Ginebra San Miguel Premium Gin served as the first course; this was followed by crostini with Roasted Garlic Butter (Magnolia Gold), and Purefoods Chorizo Bilbao style and onions, stewed in San Miguel Premium All-Malt Beer. Both of these were paired with San Miguel Super Dry, which gave gravitas to their flavors with the crisp notes of the beer.

Pintxos with San Miguel Super Dry

Ring-shaped dumplings ala tortellini came next, filled with cream cheese and spinach on top of an emulsified butter sauce. The sauce was made with Magnolia Gold Butter, Magnolia Full Cream Milk, red onion, beetroot and Ginebra San Miguel Premium Gin. During the webinar, it was suggested to pair this with a Sweet Lemony Martini made with Ginebra San Miguel Premium Gin (demonstrated by GSMI’s mixologist Tabitha Rice) but we found that the gin alone does the job, its sharp, citrusy notes cutting through the rich cream cheese.

The third course was a Magnolia Free Range Chicken marinated for 24 hours in Ginebra’s 1834 Premium Distilled Gin and a blend of herbs and spices, slow-cooked in olive oil, and seared until crispy and golden brown. This was served on top of mashed squash-potato and a pea puree and drizzled with a balsamic reduction. This was paired with Woomera’s Sauvignon Blanc, which gave a liveliness to the dish.

The heaviest course was the Mini Beef Wellington, made with baked Monterey Beef Tenderloin covered in a layer of Purefoods Honeycured Bacon and mushroom duxelles wrapped in a golden puff pastry. This was served with a rich beer gravy made of San Miguel Super Dry. This was paired with 1834 Premium Distilled Gin, with notes of calamansi and sampaguita flowers. The clean-tasting gin, with some palate-cleansing properties and a smooth mouthfeel, cut through the strong and quite salty flavors of this dish, preventing it from being too overpowering.

Finally, a Moist Chocolate Cake in Sweet Red Dark Ganache made with Magnolia’s Devil’s Food Cake Mix (and infused with Woomera’s Sweet Red Wine) was paired with Cerveza Negra — a match made in chocolate heaven. The Cerveza Negra’s coffee and cocoa notes made the pairing seamless.

PAIRED WITH PALE PILSEN

As San Miguel Pale Pilsen is already a fixture of Filipino life, we asked SMB Brewmaster Alan Sienes what could go with it. It’s simple fare: peanuts, cheese found in the fridge, and barbecue.

Meanwhile, SMFCC Corporate Chef Victor “Viboy” Miranda said it goes with “Anything na pang-pulutan na plain na food natin (Anything you can eat while drinking that’s plain).” From their stable of products, he chose their corned beef and bacon.

“Entertaining this holiday season at home does not need to be difficult,” said Leena Tan Arcenas, Culinary Services Manager for SMFCC. “All you need are great quality beverages matched with ‘Madalicious’ recipes,” she said, pointing to the YouTube channel of SMFCC, Home Foodie, which shows recipes made with San Miguel products with a “Madalicious” (a combination of the word “madali” or “easy” in Filipino, and “delicious”) tag.

Those interested in trying out the dishes, most of the recipes can be found here: https://homefoodie.com.ph/recipes. —  Joseph L. Garcia

Effectivity of Manila Water, Maynilad revised contracts pushed back

MANILA WATER Co., Inc. and Maynilad Water Services, Inc. have been given an extension of up to Dec. 18 on the period for the start of their revised concession agreements (RCAs).

In a stock exchange disclosure on Wednesday, Manila Water said it had signed a second amendment of the RCA with the Metropolitan Waterworks and Sewerage System (MWSS) to further extend the period on the start of the agreement’s effectivity up to Dec. 18.

“This is to allow the parties additional time to complete the remaining conditions to the effectivity of the RCA,” Manila Water said.

This marks another extension for Manila Water, as it previously agreed with the MWSS to extend the start of the effectivity of its RCA to “no later than Nov. 18” versus the original date of Sept. 30.

The prior adjustment was approved in a bid to synchronize the effectivity dates of the two water concessionaires’ revised concession agreements.

In a separate mobile phone message, MWSS Administrator Leonor C. Cleofas confirmed that Maynilad had also been granted an extension in the effectivity of its revised concession agreement to Dec. 18.

“Yes, effectivity (of Maynilad revised concession agreement) is Dec. 18. The effectivity both for Manila Water and Maynilad is Dec. 18,” Ms. Cleofas said.

Maynilad was originally given a deadline of Nov. 18 for the effectivity date of its revised concession agreement.

According to Ms. Cleofas, the reason for Maynilad’s extension is also to give additional time to complete the remaining conditions.

Some of the salient features of the two water concessionaires’ RCAs include the removal of the foreign currency differential adjustment and imposition of a tariff freeze until Dec. 31, 2022.

Manila Water delivers water and wastewater services in the eastern part of Metro Manila, which includes Marikina, Pasig, Taguig, Makati, San Juan, Mandaluyong, portions of Quezon City and Manila, and Rizal province.

Maynilad provides water to customers in Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, Malabon, Manila, Makati, and Quezon City, as well as parts of Cavite province including Bacoor, Imus, Kawit, Noveleta, and Rosario.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Talks on heritage cuisine kick off CCA anniversary

facebook.com/ccamanila

The Center for Culinary Arts (CCA) is kicking off its 25th anniversary with a series of talks about Filipino heritage cuisine, a celebration of their alumni, and a cooking competition.

The celebration begins on Nov. 25 with the talk “Pagkaing Atin, Ihain Natin,” where CCA Manila invited known food leaders who will share their experiences on how they can promote Filipino culture and history around the globe. “Entree Pinays,” on the same day, presents a collective of entrepreneurial Filipinas introducing Filipino cuisine and culture to the hearts and minds of Australians and representation of Filipino cuisine on the Australian stage. In another talk, John Buenaventura, named Executive Chef at the newly opened Hilton Abu Dhabi Yas Island, will share how he has been spending his time re-discovering Filipino heritage dishes and promoting them globally; while chef Gelo Guizon will highlight the power of social media, specifically TikTok, and how he uses this platform to advocate Filipino cuisine to today’s generation. These talks will all be held on Nov. 25 from 10 a.m. onwards.

To recognize the excellence of CCA’s “ambassadors,” on Dec. 1, 2 p.m., there will be a demonstration of both modern and traditional Filipino dishes by CCA Alumni. This event is a cook-off between graduates of CCA Manila who are well-known in the food industry. They include chefs Allan Briones (Chef de Cuisine at The Peninsula Manila),  Migo Razon (Executive Chef of Sheraton Melbourne), and Sonny Mariano (Corporate Pastry Chef of Tasteless Food Group), and Pauline Sarmiento (owner of a bakeshop and home-cooked foods restaurant). On Dec. 2, 2 p.m., CCA presents the “Clash of the Clans: Culinary Competition.” Groups of CCA Manila students will compete among themselves in a face-to-face Filipino cuisine competition in these categories — meat, plant-based, seafood appetizer, and a cheese-based dessert.

CCA Manila was founded in 1996, less than a decade after Annie Guerrero opened Cravings, a restaurant and catering business in 1988. Her daughter, present Cravings Group CEO Badjie Guerrero-Trinidad, saw a dearth of skilled chefs in kitchens across the country and partnered with a culinary school in Canada to set up CCA.

According to their website, it started with a tour with visitors from the Northern Alberta Institute of Technology, one of whom asked, “Where do Filipinos learn how to cook?” The mother and daughter team sought the help of Dr. John Knapp, project coordinator of that institution and the College of Home Economics in UP Diliman to build a curriculum. The school is currently recognized by the American Culinary Federation Education Foundation as a Quality Program, and has a partnership with the Institut Culinaire Disciples Escoffier, which enables students to earn a French National Diploma in culinary studies.

Veritas Luna, Chancellor for Education for CCA Manila, said during a press conference streamed last week on Facebook Live, “We have to thank God. We are able to provide nurturing and holistic student, faculty, and staff development programs. We have industry-approved facilities and we have current culinary technologies available for learning, and we are able to maintain a robust networking program for our students and alumni.”

For more information on the event lineup and conference tickets, contact Jessical Cristobal at j.cristobal@cca-manila.edu.ph, talktous@cca-manila.edu.ph, 0955-143-8890, Facebook.com/ccamanila, or Instagram.com/ccamanila. One can also register through: http://tinyurl.com/ccamanilasilveranniversary. —  J.L. Garcia

House committee approves bill banning raw black sand exports

A COMMITTEE in the House of Representatives approved a bill Wednesday that would prohibit the export of raw black sand, in a bid to capture value-added from processing it before export.

The House Committee on Natural Resources approved an unnumbered substitute bill to House Bill 6321 or the proposed Black Sand Processing Act, filed by Probinsyano Ako Party-list Rep. Jose C. Singson, Jr.

The measure permits only the export of black sand that has been processed, and proposes to require miners companies to build, or lease advanced processing plants to extract magnetite in the province or region where the sand was mined.

Violators could be liable for at least six years’ imprisonment and a fine of at least P5 million.

Mr. Singson said that the Philippines is losing billions of dollars from importing processed black sand, which could be instrumental in building up its infrastructure.

“Imports of these processed products (are) very costly, while the raw materials used… were exported from our country at a very cheap price,” he said in the bill’s explanatory note. — Russell Louis C. Ku

Chronicling the PHL blockchain story

WITH digital transformation becoming imperative for institutions and businesses to thrive, three colleagues from the finance industry worked together to write a book on blockchain technology.

The idea of writing a book came over coffee.

“One day, we were having coffee and we struck a conversation on what would be good in terms of pushing adoption and awareness of an important topic,” co-author Henry R. Aguda, chief technology and operations officer of UnionBank of the Philippines, Inc., said during the online book launch on Nov. 11. “That small idea resulted in two years of work that we three collaborated on.”

With the goal of offering a deeper understanding of blockchain and its role in the future of the country, co-authors and work colleagues Mr. Aguda, Catherine Bautista-Casas, and Nathan J. Marasigan wrote Opening the Archipelago: The Sto-ry of Blockchain.

Published by Bookshelf PH, the book focuses on blockchain in the Philippine context and is divided into three parts which discuss the basic concepts of blockchain, a showcase of the different blockchain use cases and initiatives in the Philippines, and concludes with a discussion about the need for progressive regulation and how this can shape blockchain innovation and the future of this country.

A blockchain is a distributed database that stores information electronically in digital format. It is mostly known for its crucial role in maintaining a secure and decentralized record of transactions in cryptocurrency systems. It assures the fidelity and security of data records and allows digital information to be recorded and distributed, but not altered, deleted, or destroyed.

“I hope that this book may serve as a jumping-off point for a broader discussion of the role of blockchain technology in the Philippines. I invite other business leaders, entrepreneurs, community organizers, investors, media, and other stakeholders to join in, as it’ll take the entire business community to maximize its full potential to change Filipino society,” Mr. Aguda said in a statement.

A press release said the book is recommended for “anyone who wants to innovate with blockchain or partner with those already doing so in the space, including startup founders, corporate executives, government regulators, community organizers, institutional investors, and other like-minded leaders.”

“We try to document the most innovative and interesting use cases that could play a big role in changing or solving the important pain points in the Philippines,” Mr. Marasigan said at the online book launch.

Ms. Bautista-Casas, who has over two decades of experience in the banking and finance industry, said much like the use of Microsoft products today, “blockchain will be the necessity.”

“Everything in the future will be programmable,” she said.

Opening the Archipelago: The Story of Blockchain in the Philippines is priced at P1,000. For more information, visit https://bookshelf.com.ph/pages/opening-the-archipelago-1. — Michelle Anne P. Solima

Term deposit yields mixed on Fed bets, oil prices

YIELDS ON THE central bank’s term deposits ended mixed on Wednesday amid a decline in oil prices and with US Federal Reserve officials saying faster monetary policy normalization could happen on the back of signs of recovery in the world’s largest economy.

Demand for the term deposit facility of the Bangko Sentral ng Pilipinas (BSP) amounted to P614.309 billion on Wednesday, well above the P500-billion offer and also beating the P607.646 billion in bids logged last week.

Broken down, bids for the seven-day deposits reached P258.252 billion, surpassing the P180 billion auctioned off by the central bank and also higher than the P191.315 billion in tenders recorded the previous Wednesday.

Lenders asked for yields ranging from 1.7149% to 1.74%, narrower than the 1.7% to 1.775% band logged a week ago. This caused the average rate of the one-week deposits to decline by 0.45 basis point (bp) to 1.7329% from 1.7374% previously.

Meanwhile, tenders for the 15-day deposits amounted to P356.057 billion, higher than the P320-billion offering but failing to beat the P416.331 billion in bids logged on Nov. 17.

Accepted rates for the tenor were from 1.73% to 1.99%, wider than the 1.74% to 1.8088% range seen a week earlier. With this, the average rate of the two-week papers increased by 1.17 bps to 1.7795% from 1.7678%.

The BSP has not offered 28-day term deposits for more than a year to give way to its weekly auctions of bills with the same tenor.

The central bank uses the TDF and its short-term securities to gather excess liquidity in the financial system and guide market rates.

Term deposit yields ended mixed as Fed officials have become more hawkish in their statements on the pace of the US central bank’s unwinding of asset purchases and rate hikes, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Fed Vice Chair Richard Clarida said they might assess the possibility of increasing the pace of the reduction in asset purchases at the Fed’s December meeting, Reuters reported Saturday.

Last week, Chicago Fed President Charles Evan said he has become “more open-minded” to start raising interest rates by 2022 if inflation remains elevated.

The recent decline in oil prices as major economies pledged to release reserves to curb the low supply that caused costs to rise also affected sentiment, Mr. Ricafort added.

Reuters reported Wednesday that Brent crude futures inched down 7 cents or 0.1% to $82.24 a barrel by 0432 GMT. Meanwhile, the price of US West Texas Intermediate crude futures increased by 10 cents or 0.1%, to $78.60 a barrel. — L.W.T. Noble with Reuters

A Brown nets 68% higher despite lower revenues

A BROWN Co., Inc. recorded a 68% higher net income for the third quarter of 2021 compared with that in the same quarter last year despite a 23% decline in revenues in the same period.

The listed firm’s net income from July to September 2021 reached P142.18 million from P84.61 million year on year, the company said in a disclosure to the Philippine Stock Exchange (PSE) on Wednesday.

In a disclosure on Nov. 18, however, A Brown reported topline revenues for the third quarter of 2021 stood at P206.15 million, down by 23% from P270.70 million in the same quarter last year.

For the nine-month period ending in September, A Brown’s consolidated revenues were down by 17.2% to P495.53 million from P598.44 million in the first nine months of 2020.

Nonetheless, the company still recorded a 23% growth in its net income for the three quarters to P368.04 million from P298.24 million in the same period last year.

“Higher margins in the real estate segment due to lower development costs for corresponding units sold contributed to the higher net income,” the listed firm said.

It added that its “real estate sales delivered 89% of the consolidated revenues.”

A Brown’s real estate sales dropped by 24% to P181.11 million in July to September 2021 from P240.20 million year on year due to the lower percentage of completion of units sold.

Its sales of agricultural goods also went down by 25% to P18.43 million from P24.68 in the same quarter year on year because of “lower sales of crude palm oil, palm stearin, and palm fatty acid distillate.”

Meanwhile, the firm’s income for water services grew by 13% in the third quarter of 2021 to P6.60 million from P5.82 million in the same quarter last year brought about by an increase in water connections “due to additional buyers moving in to their units.”

A Brown is primarily engaged in real estate development in Northern Mindanao and in Rizal. It also has investments in power generation through affiliates Palm Concepcion Power Corp. and Peakpower Energy, Inc.

The company also reported that one of its fully owned subsidiaries, Vires Energy Corp. (VEC), has completed the pre-front end engineering design study for the marine and onshore scope of the natural-gas fired power plant and liquefied natural gas terminal it is developing in Batangas City.

The 500-megawatt project is set to become the country’s largest floating power plant and is expected to open for commercial operations in January 2023. — Bianca Angelica D. Añag

Sustainability reporting helps firms become ‘more cognizant’ of issues

FIRMS said sustainability reporting helps their companies address both the positive and the negative impacts of their businesses.

In the first two installments of the virtual Climate Investment Forum on Monday and Tuesday, listed conglomerates said they refer to available international frameworks as well as form their own reporting system for nonfinan-cial disclosures.

“We had seen that disclosing all of our positive and negative impact, actually [made us] more cognizant of the issues,” Ma. Victoria A. Tan, executive director of group risk management and sustainability at Ayala Corp., said on Monday.

“You have that responsibility to make sure that the negative impact will be addressed [as] part of risk management, [while for] the positive impact, you can amplify because it actually serves as an encouragement for others to follow,” she added.

For its part, the country’s Securities and Exchange Commission (SEC) issued Memorandum Circular No. 4, series of 2019 or the Sustainability Reporting Guidelines for Publicly Listed Companies (PLCs), which adopts a com-ply-or-explain approach.

The regulator said it is their “effort to drive publicly listed companies towards adopting a more sustainable approach in their corporate ventures.”

The guidelines provide a reporting template and PLCs are also allowed to use internationally recognized sustainability frameworks, which firms can choose depending on their goals and what they want to measure.

Metro Pacific Investments Corp. (MPIC) said the country still needs to simplify reporting frameworks for firms.

“We have to be able to fortify but simplify our frameworks and the disclosure requirements and make it relevant to what they do, and corollary to that would be assurance,” June Cheryl Cabal-Revilla, chief finance, sustainability, and risk officer at MPIC, said on Tuesday.

“Assurance would provide the discipline for accurate, fair reporting, and proper monitoring of performance and targets,” she said.

Both MPIC and SM Investments Corp. (SMIC) said sustainability reporting has to be “personal” to firms and it should be something that is done beyond compliance.

“Reporting is not the same thing as action. Reporting could really help because reporting gives you transparency as to what’s going on, it makes it hard to hide,” Timothy Daniels, consultant and head of investor relations and sustainability at SMIC said on Tuesday.

“If you do it right, it can make it very clear to you what is the priority… or what are the real risks of your business,” he added.

However, amid calls to expand sustainability reporting even for micro, small, and medium enterprises (MSMEs), reporting for smaller firms should have their own criteria that still meet the same objectives.

“There has to be a bit of a different set of criteria for SMEs as compared to PLCs, definitely, in terms of the scope, in terms of the context,” said Marla G. Alvarez, vice-president for sustainability at SM-led BDO Unibank, Inc. on Monday. — Keren Concepcion G. Valmonte

DoF urges Japan to invest more in PHL infra, manufacturing

FINANCE Secretary Carlos G. Dominguez III asked Japan on Wednesday to increase its investment in Philippine infrastructure development, manufacturing, and digitization.

Mr. Dominguez also called for stronger business partnerships in renewable energy as well as research and development.

“We have gone through a difficult episode and proved that our institutions are strong enough to keep our people safe and prosperous. We have laid down firm foundations to ensure a stable recovery towards a more inclusive economy,” he said at an economic briefing with government and business representatives in Japan.

He said that the steady decline in coronavirus disease 2019 (COVID-19) infections supports a possible full reopening of the economy by the start of next year.

As of Wednesday, the Health department reported 890 new COVID-19 infections, bringing total active cases to 17,864.

The last few months of President Rodrigo R. Duterte’s administration will be focused on speeding up the infrastructure program, Mr. Dominguez said.

“The modernization of our infrastructure should open many opportunities for Japanese businesses looking at the region for expanding their operations,” he said.

Infrastructure spending in the first nine months of the year increased by 42.1% year on year to P641.5 billion.

Foreign direct investment rose 20% to $812 million in August, although lower levels of earnings reinvestment and higher equity capital withdrawals indicate caution among investors, according to data from the Bangko Sentral ng Pilipinas. — Jenina P. Ibañez

Britain seeks ban of single use plastic plates and cutlery in England

Padraig Treanor/Unsplash

LONDON — Single-use plastic plates and cutlery and polystyrene cups could all be banned in England as the British government seeks to eliminate all avoidable plastic waste, it said on Saturday.

England uses 1.1 billion single-use plates and 4.25 billion items of single-use cutlery, most of which are plastic, per year, but only 10% are recycled upon disposal, it said.

Under proposals in a 12-week public consultation, businesses and consumers will need to move towards more sustainable alternatives.

The government also launched a separate call for evidence to address other sources of plastic pollution, such as wet wipes, tobacco filters, sachets, and other single-use cups.

Banning plastic in these items could be a future policy measure.

“There is growing recognition of the damage that plastics cause to our environment and marine life in particular. We want to reduce the use of plastics in packaging and ban its use in items linked to littering,” said environment minister George Eustice.

“We have already banned plastic straws, stirrers and cotton buds and now plan to extend the ban to cutlery and balloon sticks where alternative materials, like wood can be used.”

A ban on supplying plastic straws and stirrers and plastic-stemmed cotton buds came into force in England last year.

Forced charges for single-use carrier bags has cut consumption in the main supermarkets by 95% since 2015.

The devolved administrations of Scotland, Wales, and Northern Ireland are responsible for their own policies on plastic waste. — Reuters

BSP lets banks waive ID requirement for opening basic deposit accounts

BW FILE PHOTO

THE CENTRAL BANK will allow banks to offer basic deposit accounts (BDAs) next year to clients without any IDs to bring more Filipinos into the financial system.

Memorandum No. M-2021-065 signed by Bangko Sentral ng Pilipinas Deputy Governor Chuchi G. Fonacier on Nov. 23 directs banks to allow clients to open a BDAs by presenting a physical or online notarized certification that they do not have a valid ID.

“This is to incentivize banks to offer BDA to boost financial inclusion. But, just to clarify, the relaxed KYC (Know-Your-Customer) [process] is subject to certain conditions,” Ms. Fonacier said in a Viber message.

In the absence of an ID when opening a BDA, the memorandum said account activities will be monitored for potential abuse of the relaxed requirement.

“Suspicious transactions shall be reported to the Anti-Money Laundering Council within the prescribed period,” the memorandum said.

When deposits under a BDA breach the P50,000 limit for the account type, the bank is expected to initiate measures to convert the account into a regular deposit account. Under this scenario, the KYC rules for a regular deposit ac-count will already be applied, including the need to present an ID.

Banks that will allow clients to open BDAs without the need to present IDs will be given regulatory relief by the BSP, including waiving fees related to the application of Advanced Electronic Payment and Financial Services for 2022.

These banks will also be subjected to lower annual supervisory fees for 2022 to 2023 as the BSP will reduce their average Assessable Assets depending on the average amount of BDAs maintained in the preceding year.

In July, the BSP directed banks to accept the national ID as the sole proof of identity for those who wish to open an account. Prior to the national ID, financial institutions required at least two valid government IDs to open an ac-count.

A central bank study showed the lack of documentary requirements is among reasons that prevent Filipinos from becoming part of the formal financial system, although the main hindrance remained the lack of money (45%) fol-lowed by the view that they do not need an account (27%).

The BSP hopes to bring 70% of Filipino adults into the banked population by 2023.

Earlier this week, BSP Governor Benjamin E. Diokno said there were 7.4 million BDAs opened as of the second quarter of 2021, with aggregate deposits worth P4.9 billion. — Luz Wendy T. Noble

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