Standard Coding System for PhilPaSS Transactions

December 9, 2013 BSP MEMORANDUM NO. M-2013-055 TO : All PhilPaSS Participant Banks and NBQBs SUBJECT : Standard Coding System for PhilPaSS Transactions The BSP, with its mandate to ensure a safe and efficient payments system, will be implementing a standard transaction coding system in order to properly identify the nature of banks' funds transfer and payment instructions that are coursed through PhilPaSS for settlement. A. Effective 17 February 2014 , all participating banks shall identify the RTGS transactions that will be electronically transmitted to PhilPaSS for settlement based on the standard coding system covering the following transactions: 1. All payment instructions that are currently transmitted to PhilPaSS via MT202s and MT103s for the settlement of institutional funds transfers and customer payments, respectively. EDaHAT 2. All payment instructions that will be manually processed for PhilPaSS settlement as may be requested and authorized by a participating bank/non-bank. 3. Banks' remittance of revenue collections representing BIR taxes and BOC customs duties/taxes; currently transmitted via the Electronic Funds Transfer Instruction System (EFTIS). B. The standard PhilPaSS transaction codes that will be used by all participating banks shall be as follows: Description Standard PhilPaSS Transaction Code Interbank Transactions Interbank Loan Grant IBGR Interbank Loan Payment IBPY Interbank Customer Payments IBCP Interbank Funds Transfer IBFT Reverse Repurchase Agreements Onite RRPONT Reverse Repurchase Agreements Term RRPTRM Special Deposit Account Regular SDAREG SDA Trust SDATRS Electronic Cash Withdrawals with BSP-CD COS Fixed Term Deposit with BSP-TD FTD Interbank Transactions Standard PhilPaSS Transaction Code Modified Disb. System (MDS) MDS To/From BTr KB Funding for RB Payment of DLCFND eRediscounting Loan Foreign Loan Approval and Registration System FLARES Fund Transfers to BSP-FAD (BSP Checkless FTFAD Payment System) 3rd Party Transactions for Manual Settlement, as authorized USD Trades via PDEx USPVP GS Trades Primary Auction GPAUC GS Trades Secondary Market G2DVP GS Trades Public Market Trades eDVP BancNet BNT Megalink MGL BIR/BOC Revenue Collections BIR Tax Collections BIR101 BIR Creditable Withholding Tax BIR108 BIR Own Tax Liabilities BIR109 PAS Advance Import Duties BOC072 PAS Final Payment-Import Duties BOC073 PAS Import Processing Fees BOC074 Non PAS Advance Import Duties BOC075 Non PAS Final Payment-Import Duties BOC076 Non PAS Import Processing Fees BOC077 Export Documentary Stamp Fees BOC078 C. Guidelines and Procedures 1. Interbank Transactions and 3rd Party System Transactions 1.1 The standard codes shall be the initial characters, as applicable, that will form part of the 16-digit Field 20 (Sender's Transaction Reference Number or TRN) of the Interbank payment (or MT202 General Financial Institution Transfer) OR Customer payment (or MT103 Single Customer Credit Transfer) instruction for the intended transaction. ICDSca 1.2 The standard codes shall be strictly followed by participating banks in order that the covered transactions will be properly classified in the PhilPaSS database the source of reports that will be generated by the system. 1.3 The standard PhilPaSS transaction codes will be mapped and built-up in the system database to serve as the roster of transactions that can be transmitted for settlement. 1.4 Any settled payment instruction bearing a transaction code other than any of those listed in the system database roster will be automatically reversed by debiting the DDA of the receiving bank and crediting the DDA of the paying bank. An electronic notification will be generated via SWIFT or PhilPaSS Participant Browser, as applicable, to inform on the reversal of the transaction, if any. Therefore, in order to minimize the reversal of transactions, utmost-care should be observed in assigning the TRN for each transaction to be transmitted for settlement. 2. Remittance of BIR/BOC Collections 2.1 To eliminate dial-up system connectivity problems, the transmission by Authorized Agent Banks (AABs) of all BIR/BOC revenue collections will be migrated from using the Electronic Funds Transfer Instruction System (EFTIS) terminal to the initiation of an MT202 using either SWIFT, PPS-Front-End-System or the PhilPaSS Participant Browser (PPB), as may be applicable. 2.2 The TRN (Field 20) as described in Item 1.1 (above) will be mapped/paired with the Transaction Code (Field 72) in the system to guide and ensure that the bank is transmitting the correct BIR/BOC remittance transaction. 2.3 Failure to indicate and match the required information in the Field 20 (TRN) and Field 72 will trigger the automatic reversal of the payment by returning the funds to the remitting bank. Please be guided on sample scenarios below in order to avoid rejection and (automatic) reversal of debit/credit entries: HSAcaE a. Invalid TRN (Field 20) b. Unmatched Code in Field 20 and Field 72 c. No Transaction Code indicated in Field 72 d. No Collection date indicated in Field 72 e. Invalid Field 72 format, including date format If a BIR/BOC remittance instruction will be rejected/reversed, an email message will be automatically sent to the paying bank stating the reason for such rejection/reversal. 2.4 Information on collection date(s) for BIR/BOC revenue collections shall strictly be inputted under Field 72 (Sender to Receiver Information), regardless if SWIFT or the PhilPaSS Participant Browser (PPB) will be used by the participating bank/non-bank. Details of the required information in Field 72 will be as follows: MT 202 via SWIFT or PPB Sender: Bank Identifier Code (BIC) Receiver: BIC of BTr Field 20: BIR 101 Field 72: //( BIR101 ) //Collection date ddmmyyyy-ddmmyyyy 2.5 A Daily BIR/BOC Remittances and Other Funds Transfers reports will be generated for the Bureau of Treasury (BTr), Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC); based on the standard PhilPaSS codes as well as input details in MT202 Field 20 and Field 72. STIHaE For compliance. (SGD.) NESTOR A. ESPENILLA, JR. Deputy Governor