Mon, Nov 16, 2020 – 12:17 PM
BANKS and financial institutions under the jurisdiction of the Monetary Authority of Singapore (MAS) and the central bank in the Philippines are now allowed to exchange data electronically for business purposes.
This data transfer includes personal information, and the institutions will be able to store and process the information anywhere, so long as the two central banks have full and timely access to the data necessary to fulfil their regulatory and supervisory mandate.
In cases where the data is stored such that the MAS and the Bangko Sentral ng Pilipinas (BSP) do not have sufficient regulatory or supervisory oversight, the relevant institutions will be allowed time to remediate any lack of access before being required to use or locate computing facilities locally.
In a joint statement on Monday, the two central banks said they recognise that the ability to aggregate, store, process and transmit data across borders is critical to the development of the financial sector.
“The expanding use of data in financial services and the increasing use of technology to supply financial services offer a range of benefits, including greater consumer choice, enhanced risk management capabilities, and increased efficiency,” they said.
However, noting that such developments can pose market risks and challenges for policymakers and regulators, the authorities added that they are committed to working together and with other countries and authorities to promote an environment in financial services that will contribute to development of the global economy.
While data localisation requirements can increase cybersecurity and other operational risks, such as hindering risk management and compliance, data mobility in financial services, on the other hand, supports economic growth and the development of innovative financial services, MAS and BSP noted in the statement. It also benefits risk management and compliance programmes by making it easier to detect cross-border money laundering, terrorist financing patterns, and proliferation financing, they added.
Both central banks said they hope to encourage other authorities to adopt policies and rules which facilitate similar developmental goals.