The Central Bank of the Philippines issued a circular amending reporting, recordkeeping and audit submission rules for Money Service Businesses (MSBs), including Remittance Transfer Companies and Money Changers/Foreign Exchange Dealers, and covering Electronic-Money Issuers (non-bank financial institutions) and Virtual Asset Service Providers. The changes establish a formal reporting governance framework, introduce an MSB financial reporting package for prudential reporting, and tighten sanctions for poor-quality or non-compliant regulatory reports. MSB boards/owners and senior management are required to implement reporting systems that produce submissions that are complete, accurate, adaptable to prescribed forms and processes, and timely, supported by appropriate management information systems, board-approved policies, periodic independent reviews and escalation of material events affecting report quality. Monetary penalties apply on a per-calendar-day basis until a report is determined compliant, with daily fines scaled to average monthly transaction values (PHP 150 to PHP 1,500, with the highest rate applied where no quarterly transaction report is available), alongside potential non-monetary enforcement actions; the central bank may also assess an MSB’s reporting system and require a board-approved corrective action plan. The circular also updates minimum record retention (at least five years, extended where examination issues remain unresolved), requires electronic report submissions from officially registered email addresses, sets signatory and board-resolution requirements for report signatories, defines reporting expectations for crimes and losses (generally PHP 20,000 and above, with reporting within 10 calendar days from knowledge and a later deadline for final reports where investigations are needed), and amends audited financial statement requirements, including a 120-calendar-day submission deadline after fiscal year-end and a limited exemption for small-scale Type “F” RTC/MC/FXD operators. MSBs are given a one-year observation period from the circular’s effectivity to prepare systems and processes, with sanctions for non-compliance with reporting standards applying only to reports due after the observation period ends. The circular takes effect 15 calendar days following completion of publication, and implementing guidelines for submission of the financial reporting package will be issued separately.
Central Bank of the Philippines 2025-10-02
Central Bank of the Philippines overhauls reporting governance for money service businesses with daily fines up to PHP 1,500
The Central Bank of the Philippines has amended reporting, recordkeeping, and audit submission rules for Money Service Businesses (MSBs), including Remittance Transfer Companies, Money Changers/Foreign Exchange Dealers, Electronic-Money Issuers, and Virtual Asset Service Providers. The circular introduces a formal reporting governance framework, a financial reporting package for prudential reporting, and stricter sanctions for non-compliance. MSBs have a one-year observation period to adapt, with penalties applying to reports due after this period.