With the May elections just around the corner, the leading Financial Technolgy (FinTech) organisations in the Philippines are gearing up to ensure the elections are conducted in a fair manner from a fiscal point of view, as well as prevent unlawful activities during the campaign period.
To ensure free and fair elections, two of the biggest FinTech associations in the country are using their digital platforms to advocate fair practices. They’re educating the polity by launching an advocacy campaign on the responsible use of digital payment platforms in view of the general elections on 9 May.
Importantly, they’ve roped in the country’s central bank, Bangko Sentral ng Pilipinas (BSP) and the Anti-Money Laundering Council (AMLC) that their members have put in place robust control mechanisms to mitigate abuse of digital fund transfer services.
The good thing about digital transactions is transactions can be traced, given the right mechanism. Though digital allows the transfer of money without the need for person-to-person contact, a system can be put in place to track the change of hands.
To discourage misuse of the system, these FinTech operators impose:
- stringent onboarding processes
- one-is-to-one account registration and creation
- robust electronic Know-Your-Customer
- account verification to track the identity and traceability of digital transactions.
Moreover, these institutions have also established compliance measures and risk management systems. These are supported by advanced algorithms and security controls that can detect unusual or suspicious transactions.
The industry leaders expressed that they remain steadfast in their commitment to promote the responsible use of digital payment platforms, especially in the days leading up to the May elections. Congruent to these measures, they are supporting collective advocacy to further strengthen and promote financial education and consumer protection programmes, especially during a pivotal election season.
To allow for maximum transparency, the Commission of Elections (COMELEC) and the Philippine National Police (PNP) has alerted the BSP. In response, the central bank has directed BSP supervised financial institutions (BSFIs) to counter the possible use of digital cash in vote-buying by instituting remedial measures and necessary enhancements. Furthermore, BSFIs were told to make sure that their current account and transaction monitoring capabilities are commensurate to respond against the fraudulent activities.
The BSP said BSFIs should concentrate a significant number of account registrations in the area or locality where there is rampant vote buying or selling and should be on the lookout for large cash transactions during the election period. It is a positive sign that there is a conscious effort to block illegal activities using a digital platform.
Moreover, Philippine banks are starting to protect themselves against cybercrime. For one, the government-owned Development Bank of the Philippines (DBP) is taking measures to improve its cyber-resiliency.
Indeed, the country’s digital transformation is still a long way to go. Nonetheless, it’s starting to heat up. Knowing how important this year’s election is, the COMELEC has asked the help of the biggest names in ICT to ensure clean and honest elections — as reported on OpenGov Asia.
