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BSP Cancels Nikko Mart Registration Amid Oversight on Money Service Businesses

The Bangko Sentral ng Pilipinas (BSP) has recently revoked the registration of Nikko Mart, a money changer and foreign exchange dealer, as part of its ongoing efforts to oversee money service businesses (MSBs) more stringently.

This revocation marks the first such action against an MSB this year, following the cancellation of 14 MSB registrations last year and 10 in 2022.

The decision, confirmed through a circular letter signed by BSP Deputy Governor Chuchi Fonacier, was made after Nikko Mart was found in serious violation of its deed of undertaking and non-compliance with the Anti-Money Laundering Act of 2001, as well as breaches of the Manual of Regulations for Non-Bank Financial Institutions.

The Monetary Board has also denied Nikko Mart’s motion for reconsideration, effectively affirming the cancellation of its registration. This measure highlights the BSP‘s commitment to enforcing regulatory compliance to curb illegal operations and maintain the integrity of the financial system.

As of the end of 2023, there are 7,357 registered MSBs across the Philippines, providing essential financial services, especially in areas with limited banking infrastructure.

These businesses, which encompass remittance agents, electronic money issuers, and foreign exchange dealers, are vital for supporting economic activity in underserved regions.

They also facilitate significant transaction volumes, with large-scale remittance offices processing average monthly transactions of at least seventy-five million pesos.

In alignment with its financial inclusion goals and to safeguard against the misuse of financial platforms for money laundering and terrorism financing, the BSP continues to monitor these entities closely.

This regulatory vigilance is crucial for ensuring that MSBs adhere to legal standards and contribute positively to the financial ecosystem.

Featured image credit: Edited from Freepik