Accounting Alert

This Accounting Alert is issued to circulate BSP Circular No. 1189 dated February 8, 2024 which summarizes the amendments to the MORB and MORNBFI.

The Amendments

• Section 902-N of the MORNBFl on Virtual Asset Service Providers (VASP) amended to add the transitory provisions provided under Sec. 3 of Circular No. 1108 dated 26 January 2021 as a footnote reference
• Item "a(2)" under Section 146-Q/125-NII63-T of the MORNBFl on Management of human resource-related risk is amended to provide the appropriate cross-reference under the Q-regulations given the provisions of Section 1 of Circular No. 112 dated 8 April 2021.
• Section 145 of the MORB on Liquidity Risk Management is hereby amended to add the provisions on the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) for Islamic banks and Islamic banking units as provided under Section 5 of Circular No. 1116 dated 25 May 2021.
• Section 629 of the MORB on The Currency Pate Risk Protection Program (CRPP) Facility is hereby amended to replace Appendix 104 (Guidelines for the treatment of Non-Deliverable Forwards Involving the Philippine Peso) with Section 622 of the MORB. Appendix 104 of the MORB was deleted under Section 8 of Circular No. 1119 dated 7 June 2021 and transferred to Section 622 of the MORB (Non-Deliverable Foreign Exchange Forward Contracts Involving the Philippine Peso). 
• The provisions under Section 622 of the MORB regarding the guidelines on Forward and Swap Transactions under the Manual of Regulations on Foreign Exchange Transactions or the FX Manual was deleted and replaced with Non-Deliverable Foreign Exchange Forward Contracts/Involving the Philippine Peso pursuant to Section 3 of Circular No. 1119 dated 7 June 2021. Similarly, the same guidelines on Forward and Swap Transactions provided under Sec. 621-Q of the MORNBFl was deleted under Section 8 of Circular No. 1119. In relation to this, the MOR reference provided under Appendix 7T-4 of the MORB/MORNBFl on the "Report on FX Swaps with Customers where 1st Leg is a Purchase of FX Against Pesos (For banks with derivatives license)" is hereby amended to update the reference to Section 94 of the FX Manual from Section 622/621-Q of the MORB/MORNBFl. 
• The provisions under Appendix 671Q~38 (Delivery of Government Securities to the Investor's Principal Securities Account with the National Registry of Scripless Securities) of the MORB/MORNBFI is hereby amended to replace Sec. 431/431-Q of the MORB/MORNBFl to Sec. 631/631-Q of the MORB/MORNBFl. The provisions of Section 431/431-Q of the MORB/MORNBFl were transferred to Section 631/631-Q of the MORB/MORNBFl under Section 2 of Circular No. 1121 dated 8 June 2021
• Section 1151/1142-Q of the MORB/MORNBFl on regulatory relief framework is amended to update the footnote reference under "Regulatory relief package" to include BSP memoranda issued in 2021 related to prudential regulatory relief measures for banks/NBFls.
• Appendix 145 of the MORB on Cash Service Alliance (CSA) General Guidelines is hereby replaced in its entirety with the revised CSA general guidelines issued under Memorandum No. M-2021-027 dated 23 April 2021 which incorporates the implementation of CSA in the Bangko Sentral Regional Offices and Branches as shown in Annex A of this circular.
• Sec. 386/363-Q/307-N of the MORB/MORNBFl on Issuance of COEs is hereby amended to add a footnote reference to the Bangko Sentral "Guidelines for Obtaining a Certificate of Eligibility (COE) under Republic Act No. 11523, otherwise known as the Financial Institutions Strategic Transfer Act" that was issued under Memorandum No. M-2021-034 dated 4 June 2021.

Please see attached circular for further information.