BSP Disqualifies Six Entities from Registering as Money Service Businesses

The Bangko Sentral ng Pilipinas (BSP), through its Monetary Board (MB), recently announced the disqualification of six entities operating as unregistered Money Service Businesses (MSBs). These MSBs are essentially non-bank institutions that provide services like money remittance, foreign exchange dealings, and money changing. Some also deal in virtual assets, digital representations of value that can be traded or transferred.

Contents

01

The Disqualified Firms

02

Details of the Prohibition

03

Addressing the Proliferation of Unauthorized MSBs

04

Prior Disqualifications and Current MSB Registrations

05

Committed to Regulatory Compliance

The Disqualified Firms

The entities in question are Bontoy Money Changer, Nurul Money Changing Services, Globexmc Foreign Exchange Services, J-Mar Foreign Exchange Service, Money Changer, and Mariada Money Exchange. These firms have been found operating as MSBs without the necessary registration, thus prompting the BSP's decisive action.

Details of the Prohibition

In addition to the direct prohibition, the MB, acting as the policy-making body of the BSP, has put into effect a measure that disallows any sole proprietorship controlled or owned by the owners/operators of the disqualified firms from registering with or obtaining a license from the central bank. This ruling extends to any activities authorized or supervised by the BSP, particularly operations as an MSB without prior registration.

Addressing the Proliferation of Unauthorized MSBs

The disqualification comes as per Section 901-N of the Manual of Regulations for Non-Bank Financial Institutions, marking an effort by the BSP to control the rampant increase of entities engaged in operating unauthorized MSBs. The BSP aims to protect the public by ensuring that all MSBs are properly regulated and supervised.

“Hence, this disqualification is part of BSP's ongoing efforts to address the proliferation of entities engaged in unauthorized MSB operations,” the BSP stated in an official media release.

Prior Disqualifications and Current MSB Registrations

According to research by WikiFX, this isn't the first time the BSP has disqualified entities. Just last year, 10 MSBs were disqualified from obtaining a license to operate due to their failure to register with the central bank. Despite these occurrences, the number of registered MSBs has seen a slight increase. At the end of 2022, the BSP registered 7,584 MSBs, marking an 0.18 percent increase from the 7,570 registered in 2021.

Committed to Regulatory Compliance

As a part of its commitment to ensuring a secure and regulated financial environment, the BSP remains vigilant in its mission to oversee the proper regulation and supervision of MSBs. This commitment extends to protect the public interest by ensuring that all financial operations, specifically those involving money services, comply with established regulations and laws.

By upholding these regulatory measures, the BSP continues to promote a more secure and reliable financial ecosystem, discouraging illicit activities and promoting lawful practices in the Money Service Business industry.

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