BSP blacklists 2 more illegal money changers

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has blacklisted two more unregistered money changers as the regulator steps up its campaign against illegally operating money service businesses (MSBs).

BSP Deputy Governor Chuchi Fonacier said the   Monetary Board has issued Resolution   1746 disqualifying Mer’s Business Center and PAYB Bills Payment and Remittance Center or Infinity PAYB from registering and obtaining a license from the regulator.

Likewise, the BSP also disqualified the respective owners of the entities from engaging in any activities authorized by the regulator for operating as money service businesses without the required registration and license.

Mer’s is located in Barangay San Francisco in Panabo City, while PAYB is based in Niog II in Bacoor City.

Last June, the regulator blacklisted Adahn Money Changer, Mudzmar Money Changing Services, and Zhenrihada Money Changing Services all operating in Barangay Plainview in Mandaluyong as well as LM’s Money Changer in Laoag City in Ilocos Norte.

According to the BSP, the MSBs were found operating without BSP registration in violation of rules and regulations governing operations and reporting obligations of non-bank entities engaged in remittance and money changing and/or foreign exchange dealing.

MSB entities include remittance agent and sub-agent, remittance platform provider, electronic or e-money issuer as well as money changer or foreign exchange dealer.

Latest data showed that there are 7,214 registered MSBs operating nationwide serving as major financial service access points for individuals, small businesses, and social amelioration beneficiaries during the pandemic, especially in areas where banks’ presence is lacking.

Majority or 47.8 percent of the MSB is engaged exclusively in remittance transfer business, while 38.7 percent offer remittance, money changing and foreign exchange dealings.

 Just like pawnshops, the BSP said MSBs have become critical and relevant financial service access points to reach the financially unserved and underserved areas of the country, thus helping in achieving the financial inclusion objectives of the BSP. 

The BSP also makes sure that MSBs are not used as a venue for money laundering and terrorism financing activities.