March 10, 2017
BSP MEMORANDUM NO. M-2017-009
| TO | : | All Banks |
| SUBJECT | : | Reminder on Dealings with Money Services Business (MSBs) |
Pursuant to Part 8 of the Manual of Regulations for Banks (MORB) 1 and further to Memorandum No. M-2016-004 dated 5 April 2016, banks are required, as part of customer identification process, to secure, among others, a copy of registration of foreign exchange dealers, money changers and remittance and transfer companies, or collectively known as money services businesses (MSBs), with the Bangko Sentral ng Pilipinas (BSP). Banks are advised of the recently issued 2 enhanced oversight framework for MSBs, which includes the revised rules for registration with the BSP. As such, banks are reminded to deal only with MSBs duly-registered with the BSP.
Also, as part of ongoing monitoring of customers, accounts and transactions, banks are likewise required to have a system that will enable them to understand the normal and reasonable account activity of customers and detect unusual or suspicious patterns of activity. 3 This includes, among others, the ability to identify customers or accounts...
