BSP set to review list of pawnshops

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) is set to review its list of pawnshops to remove those that are non-operational.

“Although there are many reported pawnshops, there are also a lot of unreported inactive (ones). Right now, we’re in the process of cleaning up the list,” BSP Deputy Governor Nestor A. Espenilla Jr. said.

Espenilla noted the central bank’s main concern with regard to pawnshops are their compliance with anti-money laundering regulations and with consumer protection issues.

He explained that pawnshops can easily be venues for stolen goods that’s why the central bank recently issued a regulation mandating stores to ask for proper identification before dealing with a customer.

“Basically, the regulation says you don’t deal with somebody not properly identified,” Espenilla said.

Individuals turn to pawnshops for fast cash as the stores readily lends out money in exchange for a pawned item such as jewelry, appliances, mobile phones, laptops, and so on.

At the same time, the BSP has an ongoing inspection in various pawnshops in the country to ensure no anti-money laundering regulations are broken.

“We have a very active program inspecting pawnshops... We have people roaming around, year-round,” Espenilla said.

The Bureau of Internal Revenue (BIR) recently singled out pawnshops as among businesses that neglect to pay their taxes.

The BIR has noted that despite a reported increase in their revenues last year, taxes paid by pawnshops have declined.