BSP simplifies registration for pawnshop, fx dealers, remittance firms

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has further simplified the registration process for pawnshops’ money service businesses and remittance firms, bringing down the number of required documents.

BSP Deputy Governor Chuchi Fonacier told The STAR the issuance of Circular 1039 was in line with the rationale and provisions of Republic Act 11032, otherwise known as the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.

The number of documentary requirements was reduced to four from the current 11 for pawnshops, as well as eight for money service businesses including remittance and transfer company as well as money or foreign exchange dealers.

“The amendments primarily aim to simplify the documentary or registration requirements for both money service businesses and pawnshops operators,” she said.

Likewise, Fonacier said remittance sub-agents (RSAs) are no longer required to register with the central bank unlike before wherein RSAs with two offices are required to register as remittance and transfer company.

“With the issuance of Circular 1039, RSAs shall be considered extension office and part of the network of its remittance and transfer company and thus are no longer required to register with the BSP,” she added.

However, Fonacier clarified the remittance and transfer company still needs to comply with the notification requirements for its RSAs and BSP supervisory expectations in accrediting its RSAs. 

The remittance and transfer company remains the primary entity registered with the BSP and is responsible for the RSAs’ compliance with all applicable anti-money laundering laws as well as rules and regulations.

She said the anti-money laundering training requirement has been amended as only for the proprietors, partners, directors and senior officers of pawnshops and money services businesses such as president or officer of equivalent rank and function.

For other personnel of the entity, Fonacier said they are still required to attend the training that may not necessarily be conducted by the BSP or AML Council Secretariat.

Previously, all personnel involved in the pawnshop and money service businesses are required to attend anti-money laundering seminars to be conducted by the BSP or AML Council Secretariat before the start of operations.

Likewise, the new circular also required virtual currency exchange operators to submit a list of operating offices and websites every semester.

The virtual currency exchange operators were also required to maintain an internal control system commensurate to the nature, size, and complexity of their respective businesses.