They hope to boost cross-border data transfer and risk management.
The Monetary Authority of Singapore (MAS) and the Bangko Sentral ng Pilipinas (BSP) have released a joint statement of intent to promote data connectivity in recognition of its importance in financial services.
The two parties acknowledged that data localisation requirements can boost cybersecurity and other operational risks, as well as hinder risk management and financial regulatory to data access.
In addition, data mobility benefits risk compliance schemes by making it easier to detect cross-border money laundering, terrorist financing, and proliferation financing, the statement read.
The two central banks will push for the implementation of policies that allow covered institutions to electronically transfer data across borders for business conducts. The location where covered institutions can store and process their data should not be restricted as long as BSP and MAS have timely access to the data necessary to fulfill their regulatory and supervisory mandate.
Moreover, if BSP or MAS will be unable to access the data, covered institutions should have the chance to address the oversight before being required to use computing facilities locally.
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