Regulatory Alerts2024-05-31
Cancellation of BSP Registration of NIKKO FOREIGN EXCHANGE to Operate as Remittance and Transfer Company with Money Changing/Foreign Exchange Dealing Activities
The Bangko Sentral ng Pilipinas Monetary Board cancelled the Money Service Business registration of Nikko Foreign Exchange for operating as a remittance and transfer company with money changing activities. This action was taken due to significant and recurring violations of the Manual of Regulations for Non-Bank Financial Institutions and breaches of an executed Deed of Undertaking. The Monetary Board denied Nikko FX's request for reconsideration with finality in April 2024, confirming the cancellation effective May 2024.
Page Classification: GENERAL
OFFICE OF THE DEPUTY GOVERNOR I FINANCIAL SUPERVISION SECTOR CIRCULAR LETTER NO. CL-2024-___ To : All Bangko Sentral ng Pilipinas (BSP)-Supervised Financial Institutions Subject : Cancellation of BSP Registration of NIKKO FOREIGN EXCHANGE to Operate as Remittance and Transfer Company with Money Changing/Foreign Exchange Dealing Activities The Monetary Board, in its Resolution No. 1571.A dated 27 October 2022, approved the cancellation of the Bangko Sentral ng Pilipinas (BSP) Money Service Business (MSB) registration of NIKKO FOREIGN EXCHANGE (Nikko FX) to operate as remittance and transfer company (RTC) with money changing/foreign exchange dealing (MC/FXD) activities pursuant to Section 901-N of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), in view of the (a) significant and recurring violations of (i) Section 601-N of the MORNBFI and (ii) Section 901-N of the MORNBFI; and (b) violations of the executed Deed of Undertaking. Further, the Monetary Board, in its Resolution No. 407 dated 8 April 2024, denied with finality the request for reconsideration of Nikko FX on the cancellation of its MSB registration to operate as RTC/MC/FXD. For information and guidance.
CHUCHI G. FONACIER Deputy Governor 31 May 2024