BSP shuts down another forex dealer

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of another foreign exchange dealer due to various violations of the rules and regulations governing money service business.

The central bank’s Monetary Board issued Resolution No. 1167, finalizing the denial of Lady Diamond Foreign Exchange Service’s request for reconsideration regarding the cancellation of its registration to operate as a foreign exchange dealer and money changer.

In September last year, the regulator issued Resolution No. 1414.A, cancelling the registration of Lady Diamond Foreign Exchange Service to operate due to non-compliance with Republic Act 9160 or the Anti-Money Laundering Act of 2001, as amended.

According to the BSP, the foreign exchange dealer and money changer also violated the revised implementing rules and regulations of the anti-money laundering law.

Furthermore, the erring money changer also violated its deed of undertaking as money service business.

Last September, the BSP has disqualified Riyben Foreign Exchange from obtaining a license with the central bank to engage in any activity that is authorized or supervised by the BSP for operating without prior registration.

The disqualification is pursuant to Section 901-N of the BSP’s Manual of Regulations for Non-Bank Financial Institutions, and is part of the BSP’s efforts to address the proliferation of entities engaged in the operation of unauthorized money services businesses.

Last July, the regulator ordered the closure of two money changers and foreign exchange dealers for failing to comply with anti-money laundering/combating the financing of terrorism (AML/CFT) provisions and other regulations.

The BSP cancelled the registration of Jane Money Changer and EFinancing Inc. to operate as money changer or foreign exchange dealer pursuant to the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI).

The regulator wants to make sure that MSBs are not used as a venue for money laundering and terrorism financing activities.

Money service business entities include remittance agent and sub-agent, remittance platform provider, electronic or e-money issuer as well as money changer or