Philippines central bank takes steps to prompt completion of EMV migration for ATMs
Bangko Sentral ng Pilipinas, the central bank of the Philippines, has announced that banks whose ATMs are not EMV-enabled will be required to set aside funds to cover fraud arising from noncompliance.
The BSP has given banks nearly four years to achieve EMV compliance, but as of Jan. 1, approximately 76 million Filipinos had yet to receive chip-enabled replacements for their old mag-stripe cards, according to a report by Manila Times.
BSP Governor Nestor Espenilla Jr. said he hopes to drive EMV compliance from 90 percent to 100 percent by compelling banks to make provisions to cover EMV-related losses.
According to the report, banks will have to determine the extent of their potential losses and set aside funds to cover those losses should fraud occur at their ATMs.
BSP also has warned FIs against turning off noncompliant ATMs to avoid losses, saying that this would constitute "cheating to minimize the risk." FIs caught turning off machines will be fined and penalized, Espenilla said.