Another money changer axed by BSP, 4th this year

MANILA, Philippines —  Another money changer has its license canceled by the Bangko Sentral ng Pilipinas (BSP) as the regulator continues to strengthen its supervision on money service businesses (MSBs).

In a circular letter dated June 10 and signed by Arifa Ala, assistant governor of the BSP’s Financial Supervision Sub-Sector II, the BSP said the Monetary Board has approved to cancel the registration of Foreignex Inc.

This prevents the money service firm from operating as a money changer or a foreign exchange dealer, pursuant to Section 901-N of the Manual of Regulation for Non-Bank Financial Institutions (MORNBFI).

According to the central bank, it has canceled the registration of Foreignex Inc. due to gross violation of the provisions or requirements under the MORNBFI as well as violations of its deed of undertaking.

This is the fourth MSB whose license to operate was canceled by the BSP this year, following the cancellation of Nikko Foreign Exchange’s registration earlier this month.

In April, the BSP canceled the registration of Nikko Mart for serious violation of its deed of undertaking. The BSP did not say if the two MSBs are affiliated.

The central bank has also revoked the license of Atomtrans Tech Corp., a virtual asset service provider (VASP). Atomtrans was previously allowed to operate as a remittance and transfer company with remittance agent and virtual currency exchange service, or now broadly classified as a VASP.

Last year, the regulator canceled the certificate of registration of 14 MSBs, while in 2022 it revoked the licenses of 10 MSBs.

As of end 2023, there were 7,358 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.