Another money changer gets license revoked by BSP
In a circular letter signed by BSP Deputy Governor Chuchi Fonacier, the regulator said the Monetary Board has cancelled the certificate of registration of Nikko Mart to operate as a remittance and transfer company with money changing and foreign exchange dealing services for serious violation of its deed of undertaking.
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has cancelled the registration of another money changer as the regulator continues to ramp up its campaign against illegally operating money service businesses (MSBs).
In a circular letter signed by BSP Deputy Governor Chuchi Fonacier, the regulator said the Monetary Board has cancelled the certificate of registration of Nikko Mart to operate as a remittance and transfer company with money changing and foreign exchange dealing services for serious violation of its deed of undertaking.
The company’s license was revoked for violating provisions of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), as well as Republic Act 9160 or the Anti-Money Laundering Act (AMLA) of 2001.
The Monetary Board also denied with finality Nikko Mart’s motion for reconsideration on the cancellation of its registration.
This is the first MSB whose license to operate was cancelled by the BSP this year. Last year, the regulator cancelled the certificate of registration of 14 MSBs, while in 2022 it revoked the licenses of 10 MSBs.
According to the central bank, the MSBs were either found operating without BSP registration or have violated rules and regulations governing operations and reporting obligations of non-bank entities engaged in remittance and money changing and/or foreign exchange dealing.
As of end 2023, there were 7,357 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 money changer 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.
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, especially during the peak of the COVID-19 pandemic.
The BSP also makes sure that MSBs are not used as a venue for money laundering and terrorism financing activities.