Republic of the Philippines f> Rex “
HOUSE OF REPRESENTATIVES a s
Quezon City | fe: 22.0CT 2014

SIXTEENTH CONGRESS
Second Regular Session

House BILLNo, 5136

Introduced by HON. ROMAN T. ROMULO

EXPLANATORY NOTE

Back then, automated teller machines (A'TMs) could only be found at the
premises of our banks, Given the high profitability of offering A'TM services,
banks resort to aggressive marketing of said services resulting to the proliferation
of AYM facilities nationwide. Today, these machines can be found almost
everywhere on shopping malls, supermarkets, airports, hospitals, offices and other
business establishments. In fact, according to the Bangko Sentral ng Pilipinas,
there ate fourteen thousand five hundred twenty eight thousand (14,528) units of
ATMs nationwide as of 2013.

While ATMs have proven its accessibility for the purpose of obtaining,
considerable amounts of cash, the same makes customers move vulnerable to
robbery especially during nighttime. A review of our banking laws as well as
regulations imposed by the Bangko Sentral ng Pilipinas (BSP) show that the
matters often addressed to are those relating to the security of the banks, the
ATMs itself and fraudulent banking transactions, and not matters directly relating,
to or affecting the safety and security of ATM users.

A report of the BSP even states that our banking sector continued to
display strong profitability as of the period ended December 31, 2013 with a toral
net profit of P144.9 billion pesos. Given the said figure, our banking institutions
cannot question the feasibility of the proposed measure, as the same would not
result to operational loss. Considering that automated teller machines (A’TMs) are
an integral part of consumers! lives and are used by many people on a daily basis,
it is but proper to ensure the convenience and safety of users and to deter the
commission of crimes relating thereto by establishing security measures for
automated teller machine facilities.

In view of the foregoing, the passage of this bill is earnestly sought

& RQ

ROMAN T. ROMULO.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTE (TH CONGRESS
Second Regular Session

HOUSE BILL NO. 5136

Introduced by HON. ROMAN T. ROMULO

AN ACT PROVIDING FOR THE MINIMUM SECURITY
STANDARDS FOR AUTOMATED TELLER MACHINE
FACILITIES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
Assembled:

SECTION 1. Short Titk. — This Act shall be known as “AIM
Minimum Security Standards Act”.

SECTION 2. Declaration of Policy. — \t is the policy of the State to
serve and protect the people, to maintain peace and order, to protect life,
liberty, and property, and to promote the general welfare.

SECTION 3. Definition of Terms ~ For purposes of this Act, the
following terms shall mean:

(a) AUTOMATED TELLER MACHINE (ATM) shall mean a
machine at a bank or other location which enables a bank
customer to perform basic banking activities such as but not
limited to checking one’s balance, withdrawing or transferring
funds during or even after banking hours;

(b) AUTOMATED TELLER MACHINE FACILITY (ATM
FACILITY) means an area within the dominion and control of a
banking institution comprised of one or more automated teller
machines and any adjacent space which is made available to
banking customers during and after regular banking hours. For
purposes of this Act, the same shall extend to off-site ATM
machines located in non-banking establishments such as but not



limited to schools, airports, shopping malls, supermarkets,
hospitals and other office buildings;

() BANKING INSTITUTION shall mean a network of
commercial, savings, and specialized banks that provide financial
services, including accepting deposits and providing loans and
ctedit, money transmission and investment facilities;

(d) CLOSED CIRCUIT TELEVISION (CCTV) means any system
wherein the circuit in which the video is transmitted is closed and
all elements (camera, display monitors, recording devices) are
directly connected;

(©) CCTV CAMERA means any camera that broadcasts a signal that
can be attached to a CCTY system, whether wired or wirel

() DEFINED PARKING AREA means any portion of a parking
area available and accessible to customers of a banking institution
which is contiguous to any paved walkway or sidewalk within fifty
feet of an automated teller machine facility that is regularly,
principally and lawfully used for parking by users of the
automated teller machine facility while conducting transactions at
such automated teller machine facility and is owned or leased by
the operator of the automated teller machine facility, or owned or
otherwise controlled by the party leasing the automated teller
machine facility site to the banking institution; and

(@) EMV CHIP TECHNOLOGY means the use of smart chip
technology features on payment instruments such as but not
limited to ATM and credit cards with embedded microprocessor
chips that store and protect cardholder data. To combat
counterfeit fraud, the same has dynamic authentication capabilities
such as dynamic values existing within the card chip itself that,
when verified by the point-of-sale device, ensure the authenticity
of the card.

SECTION 4. Deployment of Security Guards — All banking institutions
shall be required to provide twenty four (24) hour security to all their A'TM
facilities by deploying at least one security guard per facility. Provided, that
unenclosed machines that are available for use only during regular hours of
operation located inside any building, structure or space whose primary
purpose or function is not related to banking activities such as but not
limited to shopping malls, supermarkets, school buildings, and public
buildings are required to be guarded only during operating hours. Provided
further, that the expenses related thereto shall be subject to the agreement
between the banking institution concerned and the owner/s of the
establishment.



SECTION 5. Installation of Security Cameras ~ All banking institutions
shall be required to install and maintain in good working condition Closed
Circuit ‘Television (CCTV) Cameras on every ATM facility sufficient to
clearly capture close-up images of the ATM user and the view or
surroundings immediately behind the user, even during nighttime, for
proper monitoring thereof. In no case shall these cameras be installed in
such a way that would capture on record and reveal the personal
identification number (PIN) encoded by cardholders.

SECTION 6, Video Recordings. — All banking institutions shall retain
the video recordings captured by the CCI'V camera for thirty (30) days for
purposes of review and reference and shall be preserved for a period not
less than three (3) years,

SECTION 7. Use and Disclosure of Video Recordings — The CCTV
recordings required under this Act shall only be used, viewed, copied or
disclosed only under the following circumstanc

(a) IF the recordings are requested by any member or officer of a law
enforcement agency in connection with and limited to the
investigation or prosecution of an offense punishable by law or
regulation;

(b) If the recordings shall be used in connection with any pending
criminal or civil proceeding by any party privy to the case; or

(6) If the recordings shall be necessary for persons to determine whethe:
or not an offense was committed against their person or property, to
ascertain the identity of the perpetrator thereof, and to determine the
manner by which the offense was committed.

SECTION 8. Adoption of EMV Technology ~ Banking institutions shall
ensure the adoption and application of EMV technology on all ATM cards
to be released to clients, Further, they should ensure that previous or
existing magnetic stripe ATM cards released to clients be replaced,

SECTION 9. Adequate Lighting and Proper Landscaping — All ATM.
facilities shall be provided with adequate lighting on a twenty-four hour
basis that would sufficiently permit the security camera/s installed to clearly
capture the images of the ATM user and the view ot surroundings
immediately behind the user most especially during nighttime. Adequate
lighting shall also be required on defined parking areas for ATM facilities

Banking institutions and establishments covered by this Act are
required to ensure that ATM facilities are visible to passersby and to
routinely remove or trim trees or shrubs, if present, that may be used as


potential hiding places for offenders and to allow security cameras to
capture and record an unobstructed view of the surroundings

SECTION 10. Installation of Mirrors — Banking institutions and
establishments with ATM facilities shall be required to install mirrors on
ATMs that are sufficient in size in order to allow users to have a rear view
of the surroundings that are outside plain view during transaction.

SECTION 11. Posting of Saféty Reminders ~ Safety reminders are
required to be posted an area visible to ATM users while transacting, ‘Thes
posters shall contain reminders that may be similar to the following:

(a) Be aware of your surroundings at all times;

(b) If using the ATM at night, it is best to take someone
along with you;

(6) Park your vehicle in a well lit area as close as possible to
the ATM;

(@) Keep your PIN secret and never write it down;

(6) Shield the keypad when entering your PIN to keep it
from the sight of others;

(8 After withdrawing cash, count it quickly in private and
put it away promptly;

(g) Put your ATM card and receipt away promptly and never
leave your receipt at the A'TM;

(b) Avoid being too regular in using an ATM — don’t
repeatedly visit the same machine at the same time at the
same day of the week, for instance; and

@ Any other safety or precautionary reminder,
bank may deem necessary to include

that the

SECTION 12. Compliance Report = Within six (6) months after the
effectivity of this Act, and each year thereafter, every banking institution
which has an A'TM facility in operation on such date and such date ev
succeeding year shall submit a written report to the Bangko Sentral ng
Pilipinas (BSP) in the form prescribed by the latter, certifying that all ATM
facilities are in strict compliance with the provisions of this Act, or if any of
its facilities are not in compliance with such provisions, such report shall
state the manner in which the requirements are not met, the reasons for
such non-compliance and the possible remedies thereof.

If non-compliance with the provisions of this Act be disclosed and
reasonably justified, the BSP shall allow the banking institution concerned to
strictly comply with the requirements within a period it may deem
reasonable which shall in no case exceed sixty (60) days. Failure to comply


within the grace period provided shall call for the imposition of the proper
penalties in accordance with this Act.

SECTION 13. Implementing Rules and Regulations — Within ninety (90)
days after the enactment of this Act, the Bangko Sentral ng Pilipinas (BSP)
shall promulgate the necessary rules and regulations to implement this Act

SECTION 14. bmplementing Agency ~The Bangko Sentral ng Pilipinas
(BSP) and the respective local government units having jurisdiction over the
area wherein the banks or covered establishments are situated shall ensure
the implementation and enforcement of this Act. The BSP is required to
conduct unannounced inspection on ATM facilities to ensure compliance
with the requirements of this Act. In addition, the BSP is required to submit
to Congress at the end of each year annual reports containing the results of
their inspections, the number and types of violations or other instances of
non-compliance of all banking institutions and all other relevant matters that
it deems best to report.

SECTION 15. Civil Liability in Case of Death, Physical Injuries and Other
Grimes — Any banking institution proven to be non-compliant with the
provisions of Sections 4 or 5 of this Act before a court of competent
jurisdiction shall incur civil liability for any death or injury or any other
crimes committed against the person of any person during an attempt to
perform a transaction, during the transaction itself, or immediately
preceding a transaction in an ATM so long as he/she is still within the
premises of the ATM facility.

SECTION 16. Penaltier — Apart from the civil liability imposable in
the preceding paragraph, the Bangko Sentral ng Pilipinas (BSP) shall collect
a fine not less than ‘Twenty Five Thousand Pesos (Php25,000.00) but shall
in no case exceed ‘wo Hundred ‘Thousand Pesos (Php200,000.00) for any
act or omission thereby resulting to any violation of this Act.

In addition thereto, the BSP shall impose a penalty of Two Hundred
‘Thousand Pesos (Php200,000.00) on any banking institution that makes a
material false statement or material omission on its annual compliance
report pursuant to Section 11 of this Act.

SECTION 17. Separability Clause ~ If any separable provision of this
Act be declared unconstitutional, the remaining provisions shall continue to
be in force.

SECTION 18. Repealing Clause — Any law, presidential decree or
issuance, executive order, letter of instruction, administrative order, rule ot


regulation contrary to, or inconsistent with the provisions of this Act
hereby repealed, modified or amended accordingly

SECTION 19. Effeotivity Clause ~ "This Act shall take effect fifteen (15)
days after its complete publication in at least two (2) newspapers of general
circulation.

Approv