Section 6. Powers of the Bangko Sentral.— In the performance of its mandate under this Act, the Bangko Sentral shall have, in addition to its powers under existing laws, the following powers:

1. Designate a payment system if it determines the payment system as posing or having the potential to pose a systemic risk or the designation is necessary to protect the public interest.

   1. Any such determination by the Bangko Sentral shall be conclusive. The designation of a payment system by the Bangko Sentral shall be effective until revoked. The Bangko Sentral may revoke such designation if it finds that the designated payment system no longer poses any systemic risk or it is no longer in the public interest that the system be designated.

   2. Should the Bangko Sentral designate a payment system, it shall require the participants of the designated payment system to comply, within a reasonable period, with the provisions of this Act and its implementing rules and regulations. The Bangko Sentral snail give due consideration to the orderly transition of the operations of the newly designated payment system to ensure that it operates in a safe, efficient and reliable manner.

2. Require operators of the designated payment system to secure prior authority from the Bangko Sentral.

   1. In granting the authority, the Bangko Sentral shall take into consideration the capability of an operator in terms of its financial resources, technical expertise, and reputation. The licensing process shall include, but not be limited to, an assessment of the ownership structure, governance, key personnel, business model, risk management and financial resources.

   2. No person or entity shall be allowed to act as an operator of a designated payment system without prior authority from the Bangko Sentral. The determination of whether a person or entity is acting as an operator of a designated payment system without Bangko Sentral authority shall be made by the Monetary Board. To resolve such issue, the Monetary Board may, through the appropriate department of the Bangko Sentral, examine, inspect or investigate the books and records of such person or entity.

3. Accredit or require, when deemed necessary, a payment system management body organized by participants of the designated payment system for the purpose of self-regulation.

   1. The accredited payment system management body may issue and enforce its rules and regulations and impose appropriate sanctions among participants of the designated payment system: Provided, That, such rules and regulations shall be with prior Bangko Sentral approval and subject to its review.

4. Issue, through the Monetary Board, rules and regulations governing the following:

   1. The standard of operation of payment systems and the conduct of examination of the participants of the designated payment systems, in such frequency as may be prescribed by the Monetary Board, to determine compliance with laws and regulations;

   2. The adequacy of resources of operators of the designated payment systems to ensure that the designated payment systems have a high degree of security and operational reliability and have contingency requirements for timely completion of daily processing commitments;

   3. The qualifications and disqualifications of individuals elected or appointed as directors or officers of operators of the designated payment systems with particular regard to their integrity, experience, education, training and competence. The Monetary Board may suspend, disqualify or remove any director or officer found unfit for the position;

   4. The appropriate measures to ensure the confidentiality of payment information which, under the provisions of this Act and other existing laws, is considered confidential;

   5. The necessary measures to ensure the compliance of designated payment systems with Republic Act No. 9160, as amended, otherwise known as the “Anti-Money Laundering Act of 2001”, and other related laws;

   6. The mechanism for the protection of the rights of the end-users and participants to the designated payment systems;

   7. Principles on setting prices or pricing mechanisms in payment systems;

   8. Guidelines applicable to payment system management bodies, including the grant and revocation of accreditation; and

   9. Other pertinent matters as may be determined by the Monetary Board.

5. Issue, through the Monetary Board, directives and orders to any participant of a payment system whenever the Monetary Board has determined that it is necessary to ensure the safety, efficiency or reliability of a payment system or it is in the interest of the public to do so.

6. Require participants of payment systems to submit reports on their operations and provide information for statistical, policy development, supervisory and regulatory purposes.

7. Assess and collect from the participants of the designated payment systems an annual fee in such amount, as may be necessary to cover expenses related to or incidental to the conduct of supervisory functions over such entities, subject to the rules prescribed by the Monetary Board.

8. Such other powers as may be reasonably necessary to meet the objectives of this Act.