In implementation of Section 53.3 of Republic Act No. 8791 (The General Banking Law of 2000, a bank may be authorized, upon prior Monetary Board approval, to render the following services in favor of subsidiaries, affiliates and companies related to it by at least 5% common ownership:

1. Credit card, bank and loans reconciliation;
2. Credit card billing;
3. Time deposit processing;
4. Merchant settlement and care service;
5. Collectors;
6. Credit application processing;
7. Call center support;
8. Telemarketing of bank and credit card products;
9. Human resource-related service;
10. Finance/accounting functions;
11. Documentation;
12. Cashiering;
13. Reports preparation; and
14. Safekeeping of securities; 

subject to the following conditions;

i. The particular type of service to be rendered by the bank should be submitted for prior approval of the Monetary Board; 

ii. As service provider, the following shall be upheld by the bank:

a) Confidentiality of bank deposits and investment in government bonds (R.A. No. 1405); 

b) Prohibition against outsourcing of inherent banking functions [Section 55.1 (e) of R.A. No. 8791 and Circular No. 268]; and 

c) Prohibition on cross-selling except as allowed under applicable regulations.

This Circular shall take effect after fifteen (15) days following the completion of its publication in any newspaper of general circulation. 

Adopted: 27 Feb. 2003 

(SGD.) RAFAEL B. BUENAVENTURA
  Governor