Guidelines on the Issuance of License/Authority to Operate a Pawnshop and Other Applications Requiring Prior Approval

February 22, 2017

BSP MEMORANDUM NO. M-2017-007

 

Pursuant to Monetary Board Resolution No. 2061 dated 17 November 2016, approving the Amendments to the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI)-Pawnshop (P) with the issuance of Circular No. 938 dated 23 December 2016 and Memorandum No. M-2017-003 dated 27 January 2017, the following guidelines shall govern the implementation of the pertinent provisions of the MORNBFI-P Regulations on the issuance of license/authority to operate a pawnshop and other applications requiring prior Bangko Sentral ng Pilipinas (BSP) approval.

I. General Guidelines

A. Authorized Signatory

An operator securing BSP's Authority to Operate (AO) a pawnshop business and other requests requiring prior BSP approval shall file an application with 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 Form

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

Application Form	Description
Form 1P	AUTHORITY TO OPERATE A PAWNSHOP BUSINESS
Form 2P	TRANSFER OF OWNERSHIP
Form 3P	CHANGE OF BUSINESS NAME
Form 4P	SURRENDER OF PAWNSHOP OPERATOR LICENSE

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. All applications are subject to non-refundable filing fee of P1,000 on a per office basis. Other relevant fees such as metal plate fee of P500, replacement fee of P1,000 shall likewise be collected, if applicable.

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 documents including proof of payment of applicable fees 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 CAIHTE

b. Postal/Courier services addressed to:The Director

II. Specific Guidelines

A. Licensing Process on the Issuance of Authority to Operate a Pawnshop Business

An entity wishing to be a Pawnshop Operator shall file an application with ISD I, BSP for the Authority to operate a pawnshop business describing the services to be offered and indicating the type of license applied for.

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 using the file name "DET — Pawnshop Name" (example: DET — ABC Pawnshop).

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

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

Illustration

To: [email protected]

Subject: Authority to Operate a Pawnshop Business — Personal, Metro Manila, Manila, ABC Pawnshop

* 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 1P. Said Form 1P 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) working 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 licensing fee (net of filing fee paid) and metal plate fee of P500 to receive the BSP Certificate of Authority (COA). The type/classification of license issued to the entity is indicated in the said COA.

B. Other Applications Requiring Prior BSP Approval

1. Transfer of Ownership

a. A pawnshop operator wishing to transfer ownership shall submit an application using the BSP-prescribed form (Form 2P) duly notarized and signed by the authorized signatory and be accompanied by the documents listed in Annex B at least ten (10) working days before effecting the transfer.

b. If said transfer of ownership shall result in change of classification of pawnshop license or change of registered business name, the applicant shall pay the corresponding fees to receive the new COA.

2. Change of Registered Business Name

A pawnshop operator wishing to change its registered business name shall submit an application using the BSP-prescribed form (Form 3P) duly notarized and signed by the authorized signatory and be accompanied by the documents listed in Annex C at least ten (10) working days before effecting the change. DETACa

3. Reclassification of Pawnshop License

Any change on the type of pawnshop license previously issued by the BSP (i.e., Pawnshop operator classified and registered as Type A but subsequently reclassified as B or C and vice versa) is subject to evaluation. The pawnshop operator shall submit a new set of application in accordance with the provisions in item II.A as cited above.

4. Surrender of Pawnshop Operator License due to Closure of Business

The pawnshop operator shall submit an application using the BSP-prescribed form (Form 4P) for the surrender of the pawnshop operator license at least thirty (30) calendar days prior to the intended closure duly notarized and signed by the authorized signatory together with the documentary requirements listed in Annex D.

III. Licensing Process for Existing BSP-Registered Pawnshops

All existing Pawnshop Operators as of date of signing of this Memorandum shall secure their Authority to Operate a pawnshop business from BSP within one year from the date of effectivity of Circular No. 938 or until 27 January 2018. The following guidelines shall govern:

1. Submit an application in accordance with the provisions in item II.A as cited above.

2. Ensure compliance with the following regulatory requirements:

a. No outstanding annual and metal plate fee;

b. No unsubmitted report/s i.e., Consolidated Statement of Condition (CSOC), Consolidated Statement of Income and Expenses (CSIE) and Audited Financial Statement (AFS), as applicable; and

c. Minimum capitalization and borrowing limits as prescribed under Sections 12 and 13 of Circular No. 938. Any pawnshop that does not meet said requirements shall submit to the BSP within six (6) months from the effectivity of these regulations the application for a Certificate of Authority (COA) along with an acceptable plan of compliance for a period not to exceed one (1) year from date of submission pursuant to Section 76 of the same Circular.

Only applications with no outstanding regulatory requirements, with completely submitted required documents and duly paid non-refundable filing fee shall be accepted and processed.

3. The entity should simultaneously submit the application for head office and notification of its operating pawnshop offices 1 using the DET prescribed forms. The notification guideline is covered by a separate Memorandum. Previously registered pawnshop offices not included in the notification shall be DELISTED from the BSP Registry of Pawnshops.

4. Pawnshop operator with corollary business activities as Foreign Exchange Dealer (FXD)/Money Changer (MC) and/or Remittance Agent (RA) shall comply with the registration requirements provided for under a separate guideline for money service business operations.

5. The applicant shall be informed of the result of evaluation. An entity that received a notice of approval shall pay the corresponding licensing fee (net of P1,000 filing fee paid) prior to the issuance of the new BSP Certificate of Authority (COA) for the head office. The new BSP registration number and type/classification of license issued to the entity are indicated in the said COA.

6. A new BSP registration number and metal plate shall be issued to existing pawnshop offices. The new metal plate shall be subject to P500 fee to cover production cost. Existing pawnshop offices and pending applications with paid annual fee of P500, metal plate fee of P500 2 and processing fee of P1,000 per BSP record shall be applied accordingly.

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

All pawnshop operators shall register with the AMLC within five (5) business days from receipt of COA to facilitate electronic reporting of covered and suspicious transactions. The proof of registration with AMLC shall be submitted to ISD I within five (5) business days from registration thereat.

V. 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. aDSIHc

(SGD.) NESTOR A. ESPENILLA, JR.

Deputy Governor

FORM 1P

Application for Authority to Operate a Pawnshop Business

ANNEX A

Application for Authority to Operate a Pawnshop Business

ANNEX A-1

Deed of Undertaking

ANNEX A-2

Personal Data Sheet

ANNEX A-3

Sworn Certification

ANNEX A-4

Authorization

FORM 2P

Application for Transfer of Ownership

ANNEX B

Application for Transfer of Ownership

ANNEX B.1

Application for Change/Transfer of Shares

ANNEX B.2

Application for Transfer of Ownership

FORM 3P

Application for Change of Business Name

ANNEX C

Application for Change of Business Name

FORM 4P

Surrender of Pawnshop Operator License

ANNEX D

Surrender of Pawnshop Operator License

Footnotes

1. Including pending application/s received by BSP prior to effectivity of Circular No. 938.

2. Pertains to metal plates of pawnshop offices that are for production.