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How to Start a Money Remittance Business in the Philippines

Money remittance, money transfer, or fund transfer services can be provided by banks, private
remittance companies, and other remittance agents. But for the purpose of this article and considering
that banks and quasi-banking companies are costly and difficult to establish, we will only discuss how
to start and register a money remittance agent business in the Philippines.
Remittance Agents (RAs) refer to persons or entities that offer to remit, transfer or transmit money on
behalf of any person to another person and/or entity. These include money or cash couriers, money
transmission agents, remittance companies and the like – BSP Circular No 471, Section 1, as
amended.
In the Philippines, remittance agents, including money changers and pawnshops are considered non-
bank financial institutions, and are regulated and governed by the Bangko Sentral ng Pilipinas (BSP)
through the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI). Before they can
start operation, they are required to register with the BSP first. And before they can register with the
BSP, they are required to be registered or to apply registration with other government offices, like the
DTI, SEC (for partnerships and corporations), and the local government unit (LGU) or Mayor’s office.
Money remittance or money transfer can also be a good additional service or line of business to add
to a pawnshop or money changing business. That is why you will observe a lot of hybrid businesses
in the country with a combination of a pawnshop business, money changer business, and a money
transfer business.
With the large volume of money remittances from OFWs (Overseas Filipino Workers) to our country,
with our booming BPO industry, and with the rise of Filipino online business owners and professionals
who are serving long-distance and overseas clients, a money transfer business can have a great
market to serve and be a profitable business.
Here are some tips and guidelines to start and register a money remittance or money transfer
business in the Philippines:

Registration
Before applying for a certificate of registration with the BSP, a sole proprietorship form of business
should first register its trade name with the Department of Trade and Industry (DTI), while
partnerships and corporations should apply for registration with the Securities and Exchange
Commission (SEC). Cooperatives should apply for registration with the Cooperative and Development
Authority (CDA).
Remittance agents should also secure a business permit or license to operate with the City or
Municipality where the business is located or will be operated.
An attendance in the Anti-Money Laundering Law Seminar is also one of the vital requirements for
registering your business with the BSP. The following is the list of documentary requirements for
registering a money remittance business/agent with the BSP:
1. Application for a certificate of registration to act as FXD/MC and/or RA (Annex A).
2. Incorporation papers duly authenticated by the Securities Exchange Commission (for corporation
and partnership)/CDA Registration (for Cooperative) (Activity applied for should be indicated/added in
the purpose clause);
3. Copy of certificate of Registration duly authenticated by the Department of Trade and Industry (for
single proprietorship);
4. Copy of business license/permit from the city or municipality having territorial jurisdiction over the
place of establishment and operation (Activity applied for should be indicated/added in the kind of
business and original copy should be presented);
5. List of stockholders/partners/proprietor/directors/principal officers as the case may be; (Name,
Designation, Contact No. and Address);
6. Notarized Deed of Undertaking (Annex B) to strictly comply with the requirements of all relevant
laws, rules and regulations, signed either by the owner, partner, president or officer of equivalent
rank;
7. Two (2) copies passport size pictures and Xerox copy of one (1) valid ID with picture and signature
of the proprietor or the officer duly authorized by the Board of Directors or Partners;
8. Notarized document on tie-up agreement with a remittance company (REMCO)/Remittance Service
Provider (RSP).
a. For any REMCO/RSP or counterparty based abroad, proof that the REMCO/RSP or counterparty is
licensed by the regulatory authority to engage in the remittance business and is subject to the anti-
money laundering laws of the country;
b. For an entity acting as local agent of a REMCO/RSP, a copy of agreement between the local agent
and the REMCO/RSP;
c. For an entity that is a sub-agent or sub-representative of a local agent, copy of tie-up agreement
between sub agent/sub-representative and local agent;
9. Attendance in the Anti-Money Laundering Law Seminar (also, for branch staff); and
10. Any additional documents which the BSP may require from time to time.
Aside from registering with the DTI (for proprietorship), SEC (for partnership and corporation), CDA
for Cooperatives) and securing a certificate of registration or license to operate from the BSP and the
City or Municipality Office, remittance agents should also register with the Bureau of Internal Revenue
(BIR) to obtain official receipts/invoices, books of accounts, and to comply with their internal revenue
tax obligations with the government.
Moreover, for businesses which are hiring employees, registration with the Social Security System
(SSS), Philippine Health Insurance Corporation (PHIC), and Home Development Mutual Fund
(HDMF) is also required.
To learn more about the registration of businesses in the country, you may read our post on “how to
register your business in the Philippines”.

Other requirements
Remittance agents are subject to the provisions of R.A. No. 7653 (The New Central Bank Act) and
R.A. No. 9160 (Anti-Money Laundering Act of 2001, as amended by R.A. No. 9194) and its
implementing rules and regulations, particularly on customer identification, record keeping and
reporting of covered transactions and suspicious transactions , BSP Circular No 471, Section 1, as
amended.
To learn more about BSP regulations on remittance agents, such as the required information to be
submitted by the sender/remitter, reportorial requirements, and sanctions, you may visit, inquire or call
BSP with the following address and contact information.
Bangko Sentral ng Pilipinas
A. Mabini St. cor. P. Ocampo St.,
Malate Manila, Philippines 1004
Tel. No. : (632) 708.77.01
E-mail: bspmail@bsp.gov.ph
You may also read in full the following references:
Reference:
BSP Circular No 471, Series of 2005
BSP Circular No 652, Series of 2009
BSP Issues Guidelines on Use of Electronic Money
Manual of Regulations for Non-Bank Financial Institutions (MORNBFI)

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or part of the article obsolete or inaccurate. We do not guarantee and is not liable for the accuracy or
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information.