In the proposed amendments, the Bangko Sentral ng Pilipinas the names of deposits of joint accounts should be describe as either “and” or “or.”
MANILA — In a draft circular, the central bank has updated the miscellaneous rules on deposits under the Manual of Regulations for Banks, providing a guideline on the handling of joint accounts, including the acceptability of electronic signatures and the national ID.
According to the BSP’s proposed amendments, depositors of joint accounts described using the conjunction “and” should only be allowed to withdraw from said account with the authority of all the depositors named in the joint account.
In joint accounts described using the conjunction “or,” on the other hand, any of the depositors named in the account, acting separately, shall be allowed to withdraw from the said account, even without the authority of the other depositors named in the account.
Under both types, the BSP says any of the depositors named in the account could place deposits in the account in their individual capacity or even without the authority of the other depositors named in the account.
“Banks shall ensure that the terms and conditions governing joint accounts are part of the deposit agreement, and disclosed to customers. Banks shall ensure that such terms and conditions are explained to and understood by the customers,” it says.
It says further, the provisions of RA 3591 or the Charter of the Philippine Deposit Insurance Act, as amended, should govern the treatment of joint deposit accounts for deposit insurance purposes, as well as the determination of insured deposits in cases where the depositors have obligations with the closed bank.
Electronic signatures accepted in opening bank accounts
Electronic signatures could now be accepted in the opening of bank accounts under Republic Act 8792 or the Electronic Commerce Act of 2000, says the BSP.
“For opening an account or establishing relationship under the true and full name of the depositor, all banking institutions are required to simultaneously obtain a minimum of three specimen signatures, either wet or electronic, or biometrics from their depositors and to update the same, as applicable, based on risk and materiality,” says the BSP.
Banks may require their depositors to submit their clear ID photos at their option, says the central bank.
The BSP also honors the national ID as official and sufficient proof of identity, subject to the appropriate authentication methods, without the need to present other forms of identification, as RA 11055 of the Philippine Identification System Act and its implementing rules and regulations so state.
Meanwhile, the BSP cautions banks on accounts purely used for digital or electronic payments or transactions. Banks should define appropriate due diligence procedures provided that money laundering/terrorist financing risks are effectively managed. (RA/The MiNT)