Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has asked the banks to migrate to EMV chip technology by 30 June 2018.

Earlier in 2014, the central bank announced that the local card-issuing firms will have to implement the EMV standards by 1 January 2017, as cards equipped with EMV chips are deemed to be more secure compared to traditional magnetic stripe payment cards.

Since some banks are yet to meet the orders, BSP now has extended the deadline by another year and warned that non-compliance of its orders will attract monetary sanctions.

In a statement BSP said: “BSFIs are given until 30 June 2018 to fully comply with the EMV requirement. Failure to do so will subject BSFIs to monetary sanctions provided under relevant provisions in the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI).

“In the interim, non or partially-compliant BSFIs are mandated to book provisions for probable fraud losses starting 30 September 2017 until full compliance is achieved.”

BSP noted that the new guidelines will push the banking industry towards full adoption of EMV technology at a much faster pace.

Additionally, the bank regulator also asked the lenders to take extra steps to invite cardholders to exchange their old cards with the upgraded EMV chip-cards.