BSP cancels registration of 6 money service firms

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has revoked the registration of a sixth money service business (MSB) in 2024, underscoring its continued crackdown on non-compliance and financial misconduct in the sector.

In a circular letter signed by BSP Deputy Governor Chuchi Fonacier dated Dec. 6, the regulator said the Monetary Board has cancelled the certificate of registration of Fil-Express International Remittance & Delivery Services, Inc.

The MSB was found violating a provision under Section 901-N of the BSP’s Manual of Regulations for non-bank financial institutions (MORNBFI) for money service firms.

This was the sixth time that the central bank revoked an MSB’s license to operate.

Earlier in November, the Monetary Board cancelled the registration of Uno Forex Inc. to operate as a money changer and forex dealer.

The BSP also revoked the license of Nikko FX to operate as a remittance and transfer company with money changing and foreign exchange dealing services for violating relevant sections in the MORNBFI.

In April, the BSP cancelled the registration of Nikko Mart for serious violation of its deed of undertaking. The BSP did not say if the two MSBs are affiliated.

The central bank has also revoked the license of Atomtrans Tech Corp., a virtual asset service provider (VASP).

Atomtrans was previously allowed to operate as a remittance and transfer company with remittance agent and virtual currency exchange service, or now broadly classified as a VASP.

Last year, the regulator cancelled the certificate of registration of 14 MSBs, while in 2022 it revoked the licenses of 10 MSBs.

As of end-2023, there were 7,358 registered MSBs operating nationwide serving as major financial service access points for individuals, small businesses and social amelioration beneficiaries, especially in areas where banks’ presence is lacking.

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

MSBs have mostly large-scale remittance head offices and branches that also offer money changing and foreign exchange business with average monthly network volume of transactions of at least P75 million. These entities are required to maintain capital of at least P50 million.