a.

) Policy Regulations in Digital Banking

The Philippine economy has been growing consistently and in recent years, at levels regarded as one of
the fastest in Asia. In fact, our GDP growth rate of 5.6 percent in the first quarter of 2019 is our 78th
consecutive quarter of uninterrupted economic growth, since the Asian financial crisis.

However, the archipelagic nature of the Philippines imposes serious physical barriers to financial access.
As of 2018, 536 out of 1,530 cities and municipalities do not have a banking office. In areas where there
are financial institutions present, financial services are concentrated in highly urbanized and populous
regions, leaving much of the low-income regions significantly underserved. Based on the BSP’s Financial
Inclusion Survey (2017), 48 percent of adults have savings but 68 percent of them keep their savings at
home. Two-thirds of adults do not have a formal account that will enable them to save and access other
financial services, such as credit, insurance, investment, payment and remittance.

Meanwhile, unique mobile user penetration in the Philippines is at 58 percent. With more than half of
Filipinos using the Internet and staying online for an average of four hours every day, we acquired the
title of being the “Social Networking Capital of the World.” As technology continues to move at an
unprecedented scale, we set our sights on digital innovations as a catalyst and strategic enabler of
financial inclusion.

Digital banking is the digitization (or moving online) of all the traditional banking activities and programs
that historically were only available to customers when physically inside of a bank branch. This includes
activities like:

 Money Deposits, Withdrawals, and Transfers

 Checking/Saving Account Management

 Applying for Financial Products

 Loan Management

 Bill Pay

 Account Services

REPUBLIC ACT NO. 8556

AN ACT AMENDING REPUBLIC ACT NO. 5980, AS AMENDED, OTHERWISE KNOWN AS THE FINANCING
COMPANY ACT.

Section 1. This Act shall be known as the "Financing Company Act of 1998."

Sec. 2. Declaration of Policy. — It is hereby declared to be the policy of the State to regulate and
promote the activities of financing and leasing companies to place their operations on a sound,
competitive, stable and efficient basis as other financial institutions, to recognize and strengthen their
critical role in providing medium and long-term credit for investments in capital goods and equipment
especially by small and medium enterprises particularly in the countryside and to curtail and prevent
acts or practices prejudicial to the public interest so that they may be in a better position to extend
efficient service in a fair manner to the general public and to industry, commerce and agriculture and
thereby more fully contribute to the sound development of the national economy.

Sec. 9. Rights and powers. — Financing companies shall have the following powers, in addition to those
granted by this Act and by other laws:

"(f) Provide foreign currency loans and leases to enterprises who earn foreign currency by exports or
other means, subject to existing laws and rules and regulations promulgated by the Bangko Sentral ng
Pilipinas.

REPUBLIC ACT NO. 7653

THE NEW CENTRAL BANK ACT

Section 37. Administrative Sanctions on Banks and Quasi-banks. — Without prejudice to the criminal
sanctions against the culpable persons provided in Sections 34, 35, and 36 of this Act, the Monetary
Board may, at its discretion, impose upon any bank or quasi-bank, their directors and/or officers, for any
willful violation of its charter or by-laws, willful delay in the submission of reports or publications thereof
as required by law, rules and regulations; any refusal to permit examination into the affairs of the
institution; any willful making of a false or misleading statement to the Board or the appropriate
supervising and examining department or its examiners; any willful failure or refusal to comply with, or
violation of, any banking law or any order, instruction or regulation issued by the Monetary Board, or
any order, instruction or ruling by the Governor; or any commission of irregularities, and/or conducting
business in an unsafe or unsound manner as may be determined by the Monetary Board, the following
administrative sanctions, whenever applicable:

(c) suspension of lending or foreign exchange operations or authority to accept new deposits or make
new investments;

Section 66. Composition of the International Reserves. — The international reserves of the Bangko
Sentral may include but shall not be limited to the following assets:

(a) gold; and

(b) assets in foreign currencies in the form of: documents and instruments customarily employed for the
international transfer of funds; demand and time deposits in central banks, treasuries and commercial
banks abroad; foreign government securities; and foreign notes and coins.

REPUBLIC ACT NO. 7721

AN ACT LIBERALIZING THE ENTRY AND SCOPE OF OPERATIONS OF FOREIGN BANKS IN THE PHILIPPINES
AND FOR OTHER PURPOSES.

SECTION 1. Declaration of Policy. — The State shall develop a self-reliant and independent national
economy effectively controlled by Filipinos and encourage, promote, and maintain a stable, competitive,
efficient, and dynamic banking and financial system that will stimulate economic growth, attract foreign
investments, provide a wider variety of financial services to Philippine enterprises, households and
individuals, strengthen linkages with global financial centers, enhance the country's competitiveness in
the international market and serve as a channel for the flow of funds and investments into the economy
to promote industrialization.

Pursuant to this policy, the Philippine banking and financial system is hereby liberalized to create a more
competitive environment and encourage greater foreign participation through increase in ownership in
domestic banks by foreign banks and the entry of new foreign bank branches.

In allowing increased foreign participation in the financial system, it shall be the policy of the State that
the financial system shall remain effectively controlled by Filipinos.

Anti-Money Laundering Act of 2001 (RA 9160)

SEC. 2. Declaration of Policy. – It is hereby declared the policy of the State to protect and preserve the
integrity and confidentiality of bank accounts and to ensure that the Philippines shall not be used as a
money laundering site for the proceeds of any unlawful activity. Consistent with its foreign policy, the
State shall extend cooperation in transnational investigations and prosecutions of persons involved in
money laundering activities wherever committed.

SEC. 3. Definitions. – For purposes of this Act, the following terms are hereby defined as follows:

(a) "Covered institution" refers to:

(1) banks, non-banks, quasi-banks, trust entities, and all other institutions and their subsidiaries and
affiliates supervised or regulated by the Bangko Sentral ng Pilipinas (BSP);

(2) insurance companies and all other institutions supervised or regulated by the Insurance Commission;
and
(3) (i) securities dealers, brokers, salesmen, investment houses and other similar entities managing
securities or rendering services as investment agent, advisor, or consultant, (ii) mutual funds, close-end
investment companies, common trust funds, pre-need companies and other similar entities, (iii) foreign
exchange corporations, money changers, money payment, remittance, and transfer companies and
other similar entities, and (iv) other entities administering or otherwise dealing in currency,
commodities or financial derivatives based thereon, valuable objects, cash substitutes and other similar
monetary instruments or property supervised or regulated by Securities and Exchange Commission and
Exchange Commission

(b) "Covered transaction" is a single, series, or combination of transactions involving a total amount in
excess of Four million Philippine pesos (Php4,000,000.00) or an equivalent amount in foreign currency
based on the prevailing exchange rate within five (5) consecutive banking days except those between a
covered institution and a person who, at the time of the transaction was a properly identified client and
the amount is commensurate with the business or financial capacity of the client; or those with an
underlying legal or trade obligation, purpose, origin or economic justification.

It likewise refers to a single, series or combination or pattern of unusually large and complex
transactions in excess of Four million Philippine pesos (Php4,000,000.00) especially cash deposits and
investments having no credible purpose or origin, underlying trade obligation or contract.

SEC. 4. Money Laundering Offense. – Money laundering is a crime whereby the proceeds of an unlawful
activity are transacted, thereby making them appear to have originated from legitimate sources. It is
committed by the following:

(a) Any person knowing that any monetary instrument or property represents, involves, or relates to,
the proceeds of any unlawful activity, transacts or attempts to transact said monetary instrument or
property.

(b) Any person knowing that any monetary instrument or property involves the proceeds of any
unlawful activity, performs or fails to perform any act as a result of which he facilitates the offense of
money laundering referred to in paragraph (a) above.

(c) Any person knowing that any monetary instrument or property is required under this Act to be
disclosed and filed with the Anti-Money Laundering Council (AMLC), fails to do so.

SEC. 11. Authority to Inquire into Bank Deposits. – Notwithstanding the provisions of Republic Act No.
1405, as amended; Republic Act No. 6426, as amended; Republic Act No. 8791, and other laws, the
AMLC may inquire into or examine any particular deposit or investment with any banking institution or
non-bank financial institution upon order of any competent court in cases of violation of this Act when it
has been established that there is probable cause that the deposits or investments involved are in any
way related to a money laundering offense: Provided, That this provision shall not apply to deposits and
investments made prior to the effectivity of this Act.

SEC. 13. Mutual Assistance among States. –

(a) Request for Assistance from a Foreign State. - Where a foreign State makes a request for assistance
in the investigation or prosecution of a money laundering offense, the AMLC may execute the request or
refuse to execute the same and inform the foreign State of any valid reason for not executing the
request or for delaying the execution thereof. The principles of mutuality and reciprocity shall, for this
purpose, be at all times recognized.

(b) Powers of the AMLC to Act on a Request for Assistance from a Foreign State. - The AMLC may
execute a request for assistance from a foreign State by: (1) tracking down, freezing, restraining and
seizing assets alleged to be proceeds of any unlawful activity under the procedures laid down in this Act;
(2) giving information needed by the foreign State within the procedures laid down in this Act; and (3)
applying for an order of forfeiture of any monetary instrument or property in the court: Provided, That
the court shall not issue such an order unless the application is accompanied by an authenticated copy
of the order of a court in the requesting State ordering the forfeiture of said monetary instrument or
property of a person who has been convicted of a money laundering offense in the requesting State, and
a certification or an affidavit of a competent officer of the requesting State stating that the conviction
and the order of forfeiture are final and that no further appeal lies in respect of either.

(c) Obtaining Assistance from Foreign States. - The AMLC may make a request to any foreign State for
assistance in (1) tracking down, freezing, restraining and seizing assets alleged to be proceeds of any
unlawful activity; (2) obtaining information that it needs relating to any covered transaction, money
laundering offense or any other matter directly or indirectly related thereto; (3) to the extent allowed by
the law of the foreign State, applying with the proper court therein for an order to enter any premises
belonging to or in the possession or control of, any or all of the persons named in said request, and/or
search any or all such persons named therein and/or remove any document, material or object named
in said request: Provided, That the documents accompanying the request in support of the application
have been duly authenticated in accordance with the applicable law or regulation of the foreign State;
and (4) applying for an order of forfeiture of any monetary instrument or property in the proper court in
the foreign State: Provided, That the request is accompanied by an authenticated copy of the order of
the regional trial court ordering the forfeiture of said monetary instrument or property of a convicted
offender and an affidavit of the clerk of court stating that the conviction and the order of forfeiture are
final and that no further appeal lies in respect of either.

(d) Limitations on Requests for Mutual Assistance. - The AMLC may refuse to comply with any request
for assistance where the action sought by the request contravenes any provision of the Constitution or
the execution of a request is likely to prejudice the national interest of the Philippines unless there is a
treaty between the Philippines and the requesting State relating to the provision of assistance in
relation to money laundering offenses.

(e) Requirements for Requests for Mutual Assistance from Foreign States. - A request for mutual
assistance from a foreign State must (1) confirm that an investigation or prosecution is being conducted
in respect of a money launderer named therein or that he has been convicted of any money laundering
offense; (2) state the grounds on which any person is being investigated or prosecuted for money
laundering or the details of his conviction; (3) give sufficient particulars as to the identity of said person;
(4) give particulars sufficient to identify any covered institution believed to have any information,
document, material or object which may be of assistance to the investigation or prosecution; (5) ask
from the covered institution concerned any information, document, material or object which may be of
assistance to the investigation or prosecution; (6) specify the manner in which and to whom said
information, document, material or object obtained pursuant to said request, is to be produced; (7) give
all the particulars necessary for the issuance by the court in the requested State of the writs, orders or
processes needed by the requesting State; and (8) contain such other information as may assist in the
execution of the request.

(f) Authentication of Documents. - For purposes of this Section, a document is authenticated if the same
is signed or certified by a judge, magistrate or equivalent officer in or of, the requesting State, and
authenticated by the oath or affirmation of a witness or sealed with an official or public seal of a
minister, secretary of State, or officer in or of, the government of the requesting State, or of the person
administering the government or a department of the requesting territory, protectorate or colony. The
certificate of authentication may also be made by a secretary of the embassy or legation, consul general,
consul, vice consul, consular agent or any officer in the foreign service of the Philippines stationed in the
foreign State in which the record is kept, and authenticated by the seal of his office.

(g) Extradition. - The Philippines shall negotiate for the inclusion of money laundering offenses as herein
defined among extraditable offenses in all future treaties.

A.M. No. 01-7-01-SC July 17, 2001

RULES ON ELECTRONIC EVIDENCE

Acting on the Memorandum dated 18 June 2001 of the Committee on the Revision of the Rules of Court
to Draft the Rules on E-Commerce Law [R.A. No. 8792] submitting the Rules on Electronic Evidence for
this Court's consideration and approval, the Court Resolved to APPROVED the same.

(h) "Electronic document" refers to information or the representation of information, data, figures,
symbols or other modes of written expression, described or however represented, by which a right is
established or an obligation extinguished, or by which a fact may be proved and affirmed, which is
received, recorded, transmitted, stored, processed, retrieved or produced electronically. It includes
digitally signed documents and any printout or output, readable by sight or other means, which
accurately reflects the electronic data message or electronic document. For purposes of these Rules, the
term "electronic document" may be used interchangeably with "electronic data message".

Rule 3 ELECTRONIC DOCUMENTS

Section 1. Electronic documents as functional equivalent of paper-based documents. – Whenever a rule

of evidence refers to the term writing, document, record, instrument, memorandum or any other form
of writing, such term shall be deemed to include an electronic document as defined in these Rules.
Section 2. Admissibility. – An electronic document is admissible in evidence if it complies with the rules
on admissibility prescribed by the Rules of Court and related laws and is authenticated in the manner
prescribed by these Rules.

Section 3. Privileged communication. – The confidential character of a privileged communication is not

lost solely on the ground that it is in the form of an electronic document.

REPUBLIC ACT NO. 10175

AN ACT DEFINING CYBERCRIME, PROVIDING FOR THE PREVENTION, INVESTIGATION, SUPPRESSION

AND THE IMPOSITION OF PENALTIES THEREFOR AND FOR OTHER PURPOSES

Section 1. Title. — This Act shall be known as the "Cybercrime Prevention Act of 2012″.

Section 2. Declaration of Policy. — The State recognizes the vital role of information and
communications industries such as content production, telecommunications, broadcasting electronic
commerce, and data processing, in the nation’s overall social and economic development. The State also
recognizes the importance of providing an environment conducive to the development, acceleration,
and rational application and exploitation of information and communications technology (ICT) to attain
free, easy, and intelligible access to exchange and/or delivery of information; and the need to protect
and safeguard the integrity of computer, computer and communications systems, networks, and
databases, and the confidentiality, integrity, and availability of information and data stored therein,
from all forms of misuse, abuse, and illegal access by making punishable under the law such conduct or
conducts. In this light, the State shall adopt sufficient powers to effectively prevent and combat such
offenses by facilitating their detection, investigation, and prosecution at both the domestic and
international levels, and by providing arrangements for fast and reliable international cooperation.

Digital Banking in other countries:

In UNITED STATES

 The Gramm-Leach-Bliley act ( 1999) generally repealed the provisions of the bank Act of 1993
that separate investments banks from commercial banks and authrorised the creation of FHCS.
 The Dodd-Frank Act (2010) was the greatest legislative overhaul of finanacial services regulation
in the United States since the 1930’s and made signifant changes to the U.S bank regulatory
framework.
 The Economic Growth, Regulatory Relief and Consumer Protection Act, Pub. L. 115-174 (2018),
relaxed the regulatory requirements imposed by Dodd-Frank for all but the very largest banks,
those holding 250 Billion Dollars or more assets.