BSP requires money service businesses to submit reports electronically

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is now requiring money service businesses, pawnshops, as well as non-stock savings and loan associations (NSSLAs) to submit their reports on cyber-related fraud and other crime related incidents electronically.

BSP Deputy Governor Chuchi Fonacier said the BSP was pursuing initiatives of maximizing available information technology infrastructure for regulatory reporting.

Fonacier issued Memorandum No. 2021 – 008 containing the guidelines on the electronic submission of the report on crimes and losses to the central bank.

She said the new guidelines would take effect on Feb. 1.

“Reportable incidents falling due for submission to the BSP after Jan. 31   shall be transmitted electronically using the data entry template prescribed for updated report on crimes and losses,” Fonacier said.

BSP Governor Benjamin Diokno issued a circular in November last year on the amendments to the Manual of Regulations for non-bank financial institutions covering the submission of report on crimes and losses.

Under the circular, money service businesses, pawnshops and NSSLAs are required to electronically submit a report on crimes and losses within 10 calendar days from the knowledge of the crime or incident.

These businesses are required to report crimes whether consummated, frustrated or attempted against property or facilities such as robbery, theft, swindling or estafa, forgery and other deceits as well as other crimes involving loss or destruction of property of the pawnshop when the amount involved in each crime is P20,000 or more.

Likewise, crimes involving personnel, regardless of amount and whether or not such crimes resulted in the loss/destruction of property of the pawnshop, shall also be reported to the BSP.

The entities are also required to report crimes and incidents other than crimes involving loss, destruction or damage to the articles, regardless of amount.

Pawnshops continue to play a key role by serving as access points for the distribution of government cash aids and by providing needed loans and financial services to Filipinos amid the novel coronavirus disease 2019 or COVID-19 pandemic.

The industry has a network of 14,416 head offices and branches nationwide as of end July, exceeding the combined 12,913 network of universal, commercial, thrift, rural and cooperative banks.

On the other hand, the asset growth of NSSLAs likely eased five percent last year after booking a double-digit 14.9 percent to P260.2 billion in 2019 from P226.4 billion in 2018 as loans grew 16.1 percent to P205.5 billion from P177.1 billion.

At end-2019, about 86.8 percent of said assets came from military and uniformed personnel NSSLAs, which continue to have the biggest contribution to the industry’s resources.

Moreover, the NSSLA industry’s key capital, asset quality, profitability, and liquidity ratios remain above regulatory thresholds.

There are about 63 NSSLAs with 291 branches in the country catering to the needs of well-defined individuals, public and private school teachers, employees of the government and private sectors as well as market vendors.