BSP weeds out 250 erring pawnshops, forex dealers

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has delisted 250 pawnshops, foreign exchange dealers, money changers, and remittance agents in the first five months.

On top of the list were Philrem, Peso Remittance Express Inc. and WerQuick Inc.

The three companies were delisted last May 31.

Last June 1, the BSP announced the Monetary Board revoked the certificate or registration of Philrem, WerQuick, and Peso Remittance for various violations in connection with the $81 million bank heist coursed through Rizal Commercial Banking Corp. (RCBC).

The BSP said it would work closely with other relevant govt agencies such as the Anti Money Laundering Council (AMLC) and the Department of Justice (DOJ) in their investigation of possible criminal and administrative violations under the Anti Money Laundering Act (AMLA) or RA 9160 and its implementing rules and regulations.

The bank regulator said it would run after the companies as well as their directors and officers.

Philrem chair Michael Bautista and his wife Salud who is president of the company attended the hearings conducted by the Senate Blue Ribbon Committee.

Both were charged by the AMLC for their role in the illegal transfer of $81 million stolen by hackers from the account of the Bangladesh Bank with the Federal Reserve Bank of New York last February.

Last April 5, the BSP said it would go hard on banks violating the rules on transactions with foreign exchange dealers, money changers, and remittances companies.

The BSP issued Memorandum No. M-2016 – 004 reminding all banks on sound risk management practices when dealing with foreign exchange dealers, money changers, and remittance agents.

Violations of the rules provided under Part 8 or the Anti-Money Laundering Regulations of the Manual of Regulations for Banks should be subject to applicable sanctions and penalties.