BSP tightens rules on disclosure of remittance fees by non-banks

Consumers must know exactly how much they are paying domestic non-bank entities for transferring money within the country, according to the latest rules approved by the policy-setting Monetary Board.

In a statement on Friday, the Bangko Sentral ng Pilipinas (BSP) said the rules seek "to level the playing field between banks and other non-bank BSP-supervised entities that offer domestic remittance transactions."

The BSP noted it issued last year Circular No. 928 to amend the regulations governing fees on retail bank products and services, including dormant deposit accounts.

The circular required banks to charge all remittance fees upfront so that the sender is aware of the full cost of the transaction and the exact amount to be received by the beneficiary.

"The intention is to improve the transparency of remittance charges and enable consumers to determine the most cost-efficient means of sending remittances," the central bank said.

The latest regulation makes the requirement of charging all remittance fees upfront applicable to all BSP-supervised non-bank entities that offer domestic remittance transactions.

"This is in line with the objective of the BSP to foster a robust consumer regulatory environment to enable citizens to make wiser financial decisions and to contribute actively to the promotion of financial stability," the central bank said. — Ted Cordero/VDS, GMA News