Supplemental Guidelines to Treasury Circular No. 02-2014 Dated 16 June 2014

November 7, 2022 BTr TREASURY CIRCULAR NO. 5-2022 TO : All Heads of Departments, Bureaus, Offices and Instrumentalities of the National Government, State Universities and Colleges, Authorized Government Depository/Servicing Banks and All Others Concerned SUBJECT : Supplemental Guidelines to Treasury Circular No. 02-2014 Dated 16 June 2014 on Guidelines in the Opening of Bank Accounts for Receipts and MDS Disbursement of the National Government Agencies 1.0 LEGAL BASIS This Circular is issued pursuant to Executive Order No. 55, s. 2011, Executive Order No. 449, s. 1997 and Bangko Sentral ng Pilipinas (BSP) Circular No. 811, s. of 2013. TIADCc 2.0 PURPOSE This Treasury Circular (TC) supplements and revises certain provisions of TC No. 02-2014 dated 16 June 2014 to: 2.1 include Government Owned or Controlled Corporations and Local Government Units as Implementing Agencies for opening of MDS accounts in the coverage; 2.2 provide prescriptive period for the validity of the authority to open bank account; 2.3 enhance the BTr Form 1 Request for Authority to Open Bank Account; and, 2.4 enhance the BTr Form 3 Waiver of Confidentiality. 3.0 PROCEDURES FOR OPENING OF BANK ACCOUNT To effectively and efficiently implement the guidelines in the opening of bank accounts, the following provisions of TC No. 02-2014 are hereby revised as follows: 3.1 Section 3.4 is amended to read: " 3.4 In case of transfer of MDS servicing bank/branch 3.4.1 NGAs/GOCCs/LGUs shall: 3.4.1.1 Reconcile the account/s with the former bank/branch, which includes but not limited to, monitoring of all outstanding MDS checks issued, past and current ones, prior to the issuance of the authority for the opening of a new account; cSEDTC 3.4.1.2 Close the MDS sub-account/s in the former bank/branch only after the three (3) months validity of MDS Checks issued from the time of approval of opening of the new account; and, 3.4.1.3 Inform the concerned BTr Regional Office of the closure of the bank account for proper monitoring, within five (5) business days from the closure of the previous bank account." 3.2 Additional Sub-section in Section 3 is inserted to read: " 3.6 Requests for authority to open bank accounts made by a bank branch or any other party in lieu of the agency concerned shall not be considered or entertained." 4.0 AGENCY RESPONSIBILITY 4.1 Section 5.2 of TC 02-2014 is amended to read: " 5.2 The Head of Agency or Authorized Representative shall execute and submit the Waiver of Confidentiality on each bank account in favor of BTr and the bank using the attached BTr Form 3-A (for MDS sub-accounts) and BTr Form 3-B (for Other accounts)." 4.2 Likewise, the following Sub-sections under Section 5 are hereby inserted to read: " 5.3 The authority to open bank account issued by the Regional Director shall be valid for six (6) months from the date of its receipt by the Agency. The extension of its validity may be allowed upon showing, to the satisfaction of the RD, that the failure by the Agency to effect the opening of the bank account was not attributable to the fault or negligence of their officers and/or employees, same to be reduced in a request letter signed by the Head of said requesting Agency." 5.4 The government agency shall submit monthly report to the concerned BTr Regional/Provincial/District Office of accounts maintained, opened and closed on or before the 10th day of the ensuing month." 5.0 BANK RESPONSIBILITY 5.1 Additional Sub-section in Section 6 of TC 02-2014 is inserted to read: " 6.3. The AGDB/AGSB shall require the transacting agency to submit the approved request to Open Bank Account (BTr Form 1) as part of the exercise of due diligence and to prevent the unauthorized opening of bank account." 6.0 REPEALING CLAUSE All circulars, orders, and/or memoranda inconsistent herewith are hereby repealed and/or modified accordingly. AIDSTE 7.0 EFFECTIVITY This Circular shall take effect immediately. (SGD.) ROSALIA V. DE LEON Treasurer of the Philippines BTr FORM 1 Request for Authority to Open Bank Account BTr FORM 3-A (For MDS Account) Waiver of Confidentiality BTr FORM 3-B (For Other Accounts) Waiver of Confidentiality