Guidelines on the Issuance of Certificate of Registration and Other Applications Requiring Prior Approval

March 31, 2017

BSP MEMORANDUM NO. M-2017-014

 

Pursuant to Monetary Board Resolution No. 38 dated 05 January 2017, approving the amendments in Section 4511N and Appendix N-8 of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) with the issuance of Circular No. 942 dated 20 January 2017, the following guidelines shall govern the implementation of the pertinent provisions of the MORNBFI on the issuance of Certificate of Registration as Remittance and Transfer Company (RTC), Money Changer (MC)/Foreign Exchange Dealer (FXD) and other applications requiring prior Bangko Sentral ng Pilipinas (BSP) approval.

I. General Guidelines

A. Authorized Signatory

The application for BSP Certificate of Registration as RTC/MC/FXD, collectively known as Money Service Business (MSB) operators, and other requests that require prior BSP approval shall be filed with the Integrated Supervision Department I (ISD I), BSP. The application form shall be signed by the proprietor/managing partner/president or officer of equivalent rank and shall be accompanied by the necessary documentary requirements. The applicant shall ensure its completeness, reliability and conformity with the BSP-prescribed forms. No application shall be accepted from a person or entity other than the proprietor/partner/president unless the person or entity applying in behalf of the proprietor/partnership/corporation submits a duly executed and notarized special power of attorney authorizing the person or entity. In the case of a corporate applicant, a certified true copy of the board resolution authorizing the person or entity shall likewise be submitted.

B. BSP-prescribed Forms

All applications shall be submitted using the following prescribed Data Entry Template/Form, otherwise, it shall not be accepted.

Application Form	Description
Form 1M	Certificate of Registration
Form 2M	Change of Registered/Business Name
Form 3M	Change of Ownership or Control

C. Start of Processing of Application

Applications shall only be processed upon receipt of the following:

1. Proof of payment of non-refundable filing fee of P1,000 deductible from the registration fee.

Payment of fees may be made through the following:

a. Cash Department located at Ground Floor Multi-Storey Building, BSP Complex, A. Mabini Street, Malate, Manila upon generation of Order of Payment at the ISD I Registration Counter or at any BSP Regional Offices/Branches as the case may be.

b. In the form of Manager's Check (MC) or Postal Money Order (PMO) payable to the Bangko Sentral ng Pilipinas sent through registered mail or courier.

2. Complete documentary requirements which may be submitted either through:

a. Personal filing at ISD I Registration Counter, Ground Floor Multi-Storey Building, BSP Complex, A. Mabini Street, Malate, Manila; or

b. Postal/Courier services addressed to:

The Director

Integrated Supervision Department I

Bangko Sentral ng Pilipinas

14th Floor, Multi-Storey Building

BSP Complex, A. Mabini Street

1004 Malate, Manila

II. Specific Guidelines

A. Issuance of Certificate of Registration

Registration constitutes a two-stage process. Stage 1 is a preliminary screening process for BSP to determine if applicant is eligible for registration. In Stage 2, the eligible applicant is required to submit supporting documents to complete the registration process.

1. First stage

The applicant shall submit the following for evaluation together with proof of payment of non-refundable filing fee of P1,000:

i. Application Letter

The applicant shall indicate the entity's contact number/s, e-mail address and the classification of RTC/MC/FXD it is applying for signed by the authorized signatory. For Type A, B, E and F applications, the average monthly network volume of transactions based on the applicant's faithful disclosure should likewise be indicated in the application letter.

For the purpose of this Memorandum, the volume of transactions shall refer to the aggregate of the following: (a) FX bought; (b) FX sold; (c) domestic and international pay-out (inward) transactions; and (d) domestic and international send-out (outward) transactions as shown in the sample format below.

TRANSACTION	ESTIMATED AVERAGE MONTHLY VOLUME (in Php)*
FX Bought/FX Purchase
FX Sold/FX Sale
Domestic and international pay-out (inward) transactions
Domestic and international send-out (outward) transactions
TOTAL

*For existing BSP-registered RTC/MC/FXD, actual transaction volume shall be disclosed

ii. Business Plan including target markets

The Business Plan should contain the following information, at a minimum:

a. Purpose of the Business;

b. Form of Business Organization and Organizational Structure;

c. Products and Services to be offered;

d. Capital Requirements and details of Source of Funding/Financing;

e. Target Market;

f. Target Network (including number of branches/offices to be accredited as Remittance Sub-agents (RSAs), if any); and

g. Operational Workflow.

iii. List of owners/controlling shareholders, directors, and principal officers with the following information:

 

 

The entity's officers shall be invited for a presentation of its business model, if warranted.

2. Second stage

If applicant is deemed eligible in Stage 1, the applicant shall be required to submit relevant supporting documents.

Submission guidelines:

1. The application shall be submitted using the prescribed Data Entry Template (DET).

In using the DET, the following shall be observed:

a. Download the prescribed DET and User's Guide or request directly from BSP-ISD I thru email address [email protected]

b. Accomplish the prescribed DET and save the file using the prescribed format as follows:

<Application Form Number>DET — <Entity Name>

(example: 1MDET — XYZ Money Changer and Remittance Business)

c. The duly accomplished DET shall be submitted through e-mail address [email protected] using the prescribed format for the subject as follows:

<Application Form Number> - <Mode of Submission*>, <Province, City/Municipality** of Head Office>, <Entity Name> as illustrated below:

Illustration

 

To:	[email protected]
Subject:	Form 1M — Personal, Metro Manila, Manila, XYZ Money Changer and Remittance Business

* Mode of submission of documents, if through Personal filing (Personal) or Postal/Courier services (Mail) ** The city/municipality in the subject refers to the location of the head office.

 

The e-mail address to be used by the entity should belong to an authorized responsible officer. It shall be considered as the official e-mail address registered with BSP which shall be used for official communications.

d. Print the corresponding DET generated application Form 1M. Said Form 1M duly notarized and signed by the authorized signatory shall be submitted together with the documentary requirements listed in Annex A. The applicant shall submit both the soft and hard/printed copy.

The applicant shall submit the documents/DET generated forms within five (5) business days from the date of the e-mail. Otherwise, the application may be considered as withdrawn.

2. The applicant shall be informed of the result of evaluation. An entity that received a notice of approval shall pay the corresponding registration fee (net of filing fee paid) for the issuance of the Certificate of Registration (COR). The type/classification of RTC/MC/FXD is indicated in the said COR.

3. Registration Process for Existing BSP-Registered MSBs

All existing registered MSBs as of date of signing of this Memorandum shall re-register with BSP within six (6) months from the date of effectivity of Circular No. 942 or until 10 August 2017.

The following guidelines shall govern:

1. The entity shall simultaneously submit the requirements for the first and second stage as listed in item II.A above.

2. The entity's application for head office and notification of its operating offices 1 using the DET-prescribed form should likewise be simultaneously submitted. The notification guideline is covered by a separate Memorandum. Previously registered RTC/FXD/MC offices that are not included in the said notification shall be DELISTED from the BSP Registry of MSBs.

3. The applicant shall be informed of the result of evaluation. An entity that received a notice of approval shall pay the corresponding registration fee (net of filing fee paid) for the issuance of the COR. The new BSP registration number and type/classification of RTC/MC/FXD are indicated in the said COR.

4. Existing RTC/MC/FXD offices including pending applications with paid processing fee of P1,000 shall be applied accordingly.

B. Other Applications Requiring Prior BSP Approval

1. Change of Registered/Business Name

A BSP-registered MSB wishing to change its registered/business name shall submit an application using the BSP-prescribed Form 2M duly notarized and signed by the authorized signatory and be accompanied by the following documentary requirements at least ten (10) business days before effecting the change:

a. Certificate of Registration from the Department of Trade and Industry (DTI), Securities and Exchange Commission (SEC) or Cooperative Development Authority (CDA), as the case may be, indicating the new business/registered name;

b. Original copy of Bangko Sentral COR issued under the old name;

c. Certified true copy (by the Head of Business Permit and Licensing Office or equivalent position, with printed Name and Designation) of the city/municipal license/business license/mayor's permit for the current period; and

d. Payment/Proof of payment of applicable fees.

2. Change of Ownership or Control

a. A BSP-registered MSB wishing to change/transfer ownership or control shall submit an application using the BSP-prescribed Form 3M duly notarized and signed by the authorized signatory and be accompanied by the documents listed in Annex B at least ten (10) business days before effecting the transfer.

b. If such change of ownership or control shall result in change of classification of BSP registration and/or change of registered/business name, the applicant shall pay the corresponding fees to receive the new COR.

3. Reclassification of Registration Category

For MSB already registered as Small-Scale Operator requiring re-classification as Large-Scale Operator and vice versa based on prescribed average monthly network volume of transactions shall submit a new set of application in accordance with the provisions in item II.A as cited above together with the original COR and proof of payment of P1,000 for COR replacement fee, subject to evaluation of ISD I, BSP.

III. Registration with the Anti-Money Laundering Council (AMLC)

MSBs are required to register with the AMLC within thirty (30) calendar days from the actual date of commencement of money service business operations and shall submit to ISD I proof of registration with AMLC within five (5) business days from registration thereat. Failure to register shall result in the automatic cancellation of the Bangko Sentral registration as MSB.

IV. Business Hours

A. ISD I Registration Counter at Ground Floor Multi-Storey Building, BSP Complex, Manila

1. Acceptance of Applications/Notifications/PaymentsMonday to Friday, 9:00 a.m.-2:00 p.m.

2. Inquiries/ClarificationsMonday to Friday, 9:00 a.m.-4:30 p.m.

B. BSP Regional Offices/Branches (Payments only)

Monday to Friday, 9:00 a.m.-1:30 p.m.

For guidance and compliance.

(SGD.) NESTOR A. ESPENILLA, JR.Deputy Governor

FORM 1M

Application for Registration as Money Service Business Operator

ANNEX A

Application for Certificate of Registration

Annex A-1.1

Annex A-1.2

ANNEX A-2

Personal Data Sheet

ANNEX A-3

Authorization

ANNEX A-4

Sworn Certification

ANNEX A-5

Sworn Certification

ANNEX A-6

List of Remittance Tie-Up Partners

FORM 2M

Application for Change of Registered/Business Name

FORM 3M

Application for Change of Ownership or Control

ANNEX B

Application for Change/Transfer of Ownership

ANNEX B.1

Application for Change/Transfer of Shares

ANNEX B.2

Application for Change/Transfer of Ownership

Footnotes

1. Including pending application/s received by BSP prior to effectivity of Circular No. 942.