ANOTHER money changer was convicted by the Regional Trial Court (RTC) of Makati City for violating regulations of the Bangko Sentral ng Pilipinas (BSP).
The RTC of Makati convicted the owner and operator of Globexmc Foreign Exchange Services (Globexmc) for violating the BSP’s Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) and the New Central Bank law (Republic Act 7653).
A criminal complaint was filed against the unnamed owner of Globexmc for operating an unregistered money service business (MSB) engaged in foreign exchange dealing.
Documents provided by the BSP said the court found the owner guilty beyond reasonable doubt and was sentenced to pay a fine of P50,000 without the right to avail of the benefits of probation.
The lender of last resort said that with the conviction, the Globexmc owner can no longer own and/or operate an MSB. The unnamed individual is also disqualified from registering with the BSP any entity engaged in the business of remittance services, money changing or foreign exchange dealing. The central bank said the latter is pursuant to Section 901-N of the MORNBFI (as amended).
The regulation pertains to those applicable to MSB operations. It pertains to the amount of capital these businesses must have in order to obtain their BSP registration.
Using the amount of capital, these businesses are classified into either as small-scale operator or large-scale operator on a six-tier system. There are also capitalization requirements set specifically for electronic-money issuers at P100 million and remittance platform provider at P10 million.
The BSP explained it withholds registration if the entity fails to provide the complete required documents and if any of the partners, directors or principal officers were found by the courts as “not fit and proper.”
“The BSP continues to promote compliance with existing laws among banks and non-bank financial institutions performing quasi-banking functions to safeguard the interest of the general public,” read a statement from the central bank.