Investment Houses Lending Financing E-Money Remittances and Virtual

(PD No. 129) Companies Companies Issuer Transfer Currency

(RA No. 9474) (RA No. 8556) (BSP Cir. No. Companies Exchanges
649) (BSP Cir. No. (BSP Cir. No.
942)1 944)

Permitted Any enterprise Corporations Extending credit - Issuing e- - provides To provide a

Activities which engages in engaged in facilities to money Money or facility for the
the underwriting of granting loans consumers and to Value Transfer conversion or
securities of other from its own industrial E-money is Service exchange of
corporations2, capital funds or commercial, or monetary value (MVTS)8 fiat currency to
including the from funds agricultural electronically - refers to the virtual currency
government and its sourced from enterprises6. stored in transferring of or vice versa9.
instrumentalities3 not more than convenient funds or
19 persons5 Engage in quasi- payment facilitating the To ensure that
Arrange to distribute banking and money instruments movement of the PH shall
securities; market operations that consumers funds or not be used for
Participate in buying can use to buy monetary money
subject to approval
and selling, or pay for instruments laundering or
distribute or arrange of BSP; Engage in goods and from the terrorist
to distribute trust operations services, to sender or financing
securities; Distribute subject to the transfer or originator to a activities.
or participate in provisions of the remit funds or receiver of
purchase and sell General Banking Act to withdraw beneficiary
on best-effort basis and approval by the funds. locally and or
securities; Soliciting internationally

1
http://www.bsp.gov.ph/downloads/regulations/attachments/2017/c942.pdf
2
Section 2, Presidential Decree No. 129.
3
Section 2(a), Implementing Rules and Regulations of PD No. 129.
5
Rule 2(j), Implementing Rules and Regulations of Republic Act No. 9474.
6
Section 3, Republic Act. No. 8556.
8
Section 4511N.1, BSP Circular no. 942, Series of 2017
9
Section 1, Guidelines for Virtual Currency (VC) Exchanges; Section 4512N, Manual of Regulations for Non-Bank Financial Institutions.
 dealer or selling BSP; Issue bonds - Shall have a and
member of and other capital system to undertaken by
securities and such instruments subject maintain an any financial
other powers under accurate and institution.
to the rules of the
the Securities Act; complete a. RTC
Promote, sponsor, BSP; Rediscount record of e- (Remittance and
or otherwise assist their paper with money Transfer
Company)
and implement government financial instruments
I. RA (Remittance
projects for institutions subject issued, the Agent)
economic to relevant laws, identity of e- A. RDA
development; rules and regulation; money holders, (Remittance
Financial consultant, and the Direct Agent)
Participate in special B. RANP
investment adviser, individual and
or broker; portfolio loan or credit consolidated (Remittance
programs sponsored Agent Network
manager, and/or balances Provider
financial agent; by the government II. RPP
Encourage financial institutions; - Shall ensure (Remittance
companies to go Provide foreign that the e- Platform Provider)
public, and initiate currency loans and money b. RSA
and/or promote the instruments (Remittance Sub-
leases to enterprises Agent)
formation, merger, clearly identify
consolidation, who earn foreign the issuer who
reorganization, or currency by exports is ultimately
recapitalization of or other means, responsible to
productive subject to existing the e-money
enterprises; Partake laws and rules and holders.
researches, studies - Shall provide
regulations of the
and surveys on such an applicable
matters as business BSP7 redress
and economic mechanism to
conditions of various address the
countries, the complaints of
structure of financial its customers
markets; Acquire,

7
Section 9, RA No. 8556.
 own, hold, lease or
obtain an interest in
real and/or personal
property as may be
necessary; Design
pension, profit-
sharing and other
employee benefits
plans; Such other
activities as are
directly or indirectly
related to the
dealing in securities4

Capitalization Initial paid-in capital P1,000,000.00 Shall have a paid in For Non RTCs13 shall have It shall obtain a
and key of P20,000,000 at Additional capital of the ff: Banking a benchmark Certificate of
requirements the time of Capital 1. Metro Manila Institution capital: Registration to
corporation10. Requirements: and other first registered with 1. Type A - operate as a
1. Metro Manila class cities - the BSP: LARGE remittance and
and other P10,000,000 Must be a SCALE transfer
first class 2. Other stock Operator- company.14
cities - classes of cities - corporation Remittance
P300,000; P5,000,000 with a Agent with RTCs shall
2. Second class 3. minimum paid or w/o have a
and other Municipalities - up capital of money benchmark
cities- P2,500,00012 100 million changing/F capital:
P150,000 OREX 1. Type A -
3. Municipalities dealing LARGE
- P75,00011 operations - SCALE

4
Section 7, PD No. 129.
10
Section 8, PD No. 129.
11
Rule 4, IRR of RA No. 9474
12
Section 6, RA No. 8556.
 at least Operator-
P50M Remittance
(Benchmar Agent with or
k Capital) w/o money
2. Type B - changing/FOR
Small- EX dealing
Scale operations - at
Operator – least P50M
Remittanc (Benchmark
e Agent Capital)
with or 2.Type B -
without Small-Scale
money Operator –
changing/f Remittance
oreign Agent with or
exchange without
dealing money
operations changing/forei
- Less gn exchange
than dealing
P50.00 operations -
million Less than
(Benchma P50.00
rk Capital) million
3. TYPE D - (Benchmark
Remittanc Capital)
e Platform
Provider - 3. TYPE D -
P10.00 Remittance
million Platform

13
Remittance and Transfer Company (RTC)
14
Section 1, Guidelines for Virtual Currency (VC) Exchanges; Section 4512N.3, Manual of Regulations for Non-Bank Financial Institutions.
 (Benchma Provider -
rk capital) P10.00
million
(Benchmark
capital)

Nationality No/ No/ No/ No/ No/ No/

requirement Yes - Localization Yes - purposes Yes - Localization Yes Yes Yes
laws of localization Laws
laws16 RTC (Remittance and
Investment Houses Financing Transfer Company) -
shall be organized in Companies shall be Localization Laws. It
the form of stock organized in the must be incorporated
and registered in the
corporation in form of a stock
SEC and must
accordance with the corporation at least register in BSP
provisions of the 40% of the voting before it can
Corporation Law15 stock is owned by operate.18
Filipino citizens17
- Entities
already
registered as
RA shall be
automatically
classified as
such,
notwithstandi
ng whether
they are
acting as
Remittance

15
Section 3(A), IRR of PD 129.
16
Rule 5, IRR of RA No. 9474.
17
Section 6, RA No. 8556.
18
Section 2, Circular No. 471, Series of 2005
 Sub-Agent
(RSA) of a
third party
engaged in
local/internat
onal
remittance
business.19

a. RA (Remittance
Agent)
1. RDA
(Remittance
Direct Agent)
2. RANP
(Remittance
Agent Network
Provider)

b. RPP (Remittance
Platform Provider) -
Foreign RPP shall do
business in the
philippines through
its locally
incorporated
subsidiary: Provided,
That an existing
foreign RPP doing
business in the
Philippines shall
have two (2) years
within which to
incorporate a local
subsidiary

19
Section 4511N.1(a), BSP Circular no. 942, Series of 2017
Governing Securities and Securities and Securities and Banko Sentral Banko Sentral ng Banko Sentral
Laws and Exchange Exchange Exchange ng Pilipinas, Pilipinas, AMLC, ng Pilipinas,
Regulation Commission20/ Commission, Commission/ Banko BSP Circular SEC BSP Circular
Banko Sentral ng and Bank Sentral ng Pilipinas No. 649, No.944
Pilipinas - Sentral ng has supervisory
Regulatory powers Pilipinas22 authority with
over Investment respect to financing
Houses21 companies licensed
to perform quasi-
banking functions23

20
Section 11, PD No. 129
21
Section 12, PD No. 129.
22
Rule 9, IRR of RA No. 9474.
23
Section 4, RA No. 8556.