Bangko Sentral ng Pilipinas (BSP) and the Monetary Authority of Singapore (MAS) have committed to work together to promote data connectivity in financial services in a joint statement.

Both regulators 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.

Promotion of data connectivity

This collaboration is based on the understanding that data localisation requirements can increase cybersecurity and other operational risks, hinder risk management and compliance, and inhibit financial regulatory and supervisory access to data.

“Data mobility in financial services supports economic growth and the development of innovative financial services, and benefits risk management and compliance programs, by, amongst others, making it easier to detect cross-border money laundering, terrorist financing patterns, and proliferation financing; defend against cyberattacks; and manage and assess risk on a global basis,” they said.

Based on this, both the central banks intend to promote the adoption and implementation of policies and rules that facilitate the cross border transfer of data that includes personal information by electronic means provided this activity is for the conduct of the business within the scope of their license, authorisation, or registration.

The regulators also agreed not to restrict institutions from storing and processing their data as long as BSP and MAS have full and timely access to the data necessary to fulfill their regulatory and supervisory mandate.

If BSP or MAS is unable to access the data, covered institutions should have the opportunity to remediate such lack of access before being required to use or locate computing facilities locally.

They added that they are committed to working together and with other countries and authorities to promote an environment in financial services that fosters the development of the global economy.

Featured image credit: BSP and MAS