Two entities barred from securing money service business licenses

THE BANGKO SENTRAL ng Pilipinas (BSP) has disqualified two firms from securing a money service business (MSB) licenses after they were found operating as such without proper registration.

A circular letter signed by BSP Deputy Governor Chuchi G. Fonacier dated Feb. 15 said the Monetary Board has disqualified Kidlat Fast Cash, Inc. and Tong’s Money Changer from registering with the central bank.

The two firms were disqualified from obtaining a license to engage in any activity supervised by the BSP after operating as MSBs without prior BSP registration.

Any sole proprietorship owned and controlled by their owners has also been banned from registering with the BSP.

Kidlat Fast Cash, Inc. was located in Dumaguete City, Negros Oriental with Ernesto R. Ramas-Uypitching as one of the owners, while Tong’s Money Changer is located in Panglao, Bohol, with Jered Jane Yap as the point person.

The disqualification is in accordance with Section 901-N of the BSP’s Manual of Regulations for Non-Bank Financial Institutions.

The central bank earlier said that disqualifying firms is part of its efforts to address the proliferation of entities operating unauthorized MSBs.

Pawnshops, along with foreign exchange dealers, money changers, and remittance agents, are considered as MSBs by the BSP.

As of end December 2022, BSP-registered money service businesses had 7,584 head offices and branches nationwide.

Pawnshops and MSBs are seen by the BSP as access points for the financially unserved and underserved areas in the country. — K.B. Ta-asan