Bangko Sentral cancels PhilRem and two other firms' registration

The Bangko Sentral ng Pilipinas (BSP) has canceled the certificate of registration of remittance firm PhilRem Service Corp., after having been found guilty of violating anti-money laundering rules and regulations.

In an emailed statement on Wdeensday, the central bank said its policy-setting Monetary Board canceled the registration of PhilRem, along with foreign exchange dealers Werquick Inc. and Peso Remittance Express Inc.

"The Monetary Board canceled the Certificate of Registration of Philrem (as a Remittance Agent), Werquick (as a foreign exchange dealer/money changer/remittance agent), and Peso Remittance (as a foreign exchange dealer/money changer/remittance agent), due to significant violations of Section 4511N of the Manual of Regulations for Non-Bank Financial Institutions and Circular No. 706 dated 5 January 2011," the BSP said.

Section 4511 of the Manual of Regulations refers to implementing guidelines of foreign exchange dealers, money changers, and remittance agents operations in the country.

Circular No. 706 pertains to the updated anti-money laundering rules and regulations.

PhilRem was hired as the remittance firm which facilitated the money transfers to benefactors that included casinos and junket operators.

It was registered with the Securities and Exchange Commission (SEC) on September 2, 1998, "to engage in the business of remittance of money currency from abroad to be delivered to the different parts of the Philippines."

Given the recent developments, however, Espenilla said that PhilRem, along with the two other firms, "can no longer operate as BSP-registered entities."

"The BSP will also be working closely with other relevant government agencies, such as the Anti-Money Laundering Council and the Department of Justice, in their investigation of possible criminal and administrative violations under the Anti-Money Laundering Act and its implementing rules and regulations, of the aforementioned entities, including their directors and officers," the central bank said.

PhilRem is currently facing money laundering complaints filed by the Anti-Money Laundering Council before the Department of Justice in April.  – VDS, GMA News