Summary
The Bangko Sentral ng Pilipinas (BSP) is proposing to require banks, e-wallet providers, digital lenders, and other regulated financial institutions to connect their customer verification systems to the government's National ID database. Under a draft memorandum, nearly all BSP-supervised institutions would need to onboard with the Philippine Statistics Authority's (PSA) National ID Authentication Services (NIDAS) for customer due diligence, including account opening and identity verification. The proposal aims to strengthen know-your-customer (KYC) procedures while expanding the use of the National ID as the country's primary official proof of identity.
Key Facts
- BSP proposes requiring banks, e-wallets, digital lenders to connect to National ID database
- Nearly all BSP-supervised institutions must onboard with PSA's NIDAS for KYC/due diligence
- NIDAS enables biometric and demographic verification for secure digital customer identification
- Universal/commercial banks with retail, digital banks, EMI issuers, VASPs: 3 months to submit NIDAS applications
- Other universal/commercial banks, thrift banks, rural/cooperative banks, payment system operators: 6 months
- Institutions registered after memo takes effect: comply within 3 or 6 months from registration
- Doesn't prevent accepting other valid IDs or alternative verification methods
- Once NIDAS due diligence completed, authentication confirmation may satisfy ID requirements for first-time customers
- Financial institutions still must maintain AML/CFT controls, cybersecurity, data protection, governance, consent mechanisms
- BSP may impose supervisory enforcement measures for non-compliance
- Proposal remains a draft, not yet mandatory
Why It Matters
The BSP's proposal to link banks and e-wallets to the National ID database is a significant step toward unifying digital identity infrastructure in the Philippines. By requiring NIDAS integration for customer due diligence, the BSP aims to strengthen KYC procedures, combat financial crime, and expand the National ID's role as the primary proof of identity. The move has major implications for fintechs and e-wallet providers in the Philippines, which would need to integrate their onboarding and verification systems with the government's database. The integration could accelerate digital onboarding and financial inclusion while raising the bar for compliance — and creating new technical and data-privacy obligations for financial institutions. The proposal reflects a broader global trend of governments using centralized digital identity systems to strengthen financial integrity.