supervision and examination - bangko sentral ng pilipinas supervision and examination.pdf ·...

Supervision and Examination

88

ANNEX A

Service Provider: Financial Consumer Affairs Group

Nature of Complaint Description/Examples Where to File the ComplaintAdministrative - misconduct of bank employee such as lack of concern/inaction/discourteous of bank staffCredit Card - unfair collection practices, unexplained/excessive fees/penalties/chargesDeposit - unserviced/unauthorized withdrawalsE-Banking - undispensed cash, unauthorized withdrawals/debits, unsafe and defective ATM terminalsForeign Exchange - questionable conversion ratesInvestments - fraudulent investment products, non-disclosure of informationLending - excessive interest/penalties/fees/charges; arbitrary foreclosure of mortgaged propertyPawnshop - unauthorized closure of pawnshop

Intra-corporate controversies

Controversies in the election or appointment of directors/officers of the FI, controversies arising between and among stockholders, issue on disqualification of directors/officers

Central Point of Contact Departments/Integrated Supervision Departments

Complaints against director/s and/or officer/s of FI Please refer to the attached BSP Circular No. 477 Office of Special Investigation

Complaints against the employees of the BSP

Misconduct of BSP employee such as discourteousy/arrogance/inaction of BSP staff or employees EFLC Helpdesk

Complaints lodged before any court, tribunal or quasi-judicial agency

Sound administrative policy, more than official courtesy, requires us to give deference to the Court or body which has taken cognizance of the instant case Court or quasi-judicial body

Tracing of deposits

The Law on Secrecy of Bank Deposits (R. A. No. 1405, as amended) specifically prohibits the inquiry, by any person or institutions including the BSP, on another deposit accounts and investments in government securities.

The representative of a deceased or incompetent person can inquire directly from the depository bank the requirements for tracing deposits or withdrawing the deposits.Please see attached Advisory on Tracing of Deposits.

Complaints involving currency in circulation Fake bills, cash shortage Currency Management SubsectorScams Text scams, e-mail scams, investment scams Anti-Money Laundering Council

LIST OF COMPLAINTS INVOLVING FI ISSUES

Financial Consumer Affairs GroupComplaints of financial consumers against BSP-supervised financial institutions (FIs)

* Complaints against employees of the BSP may be directed to Complaints Help Desk

89

PART I - ASSISTANCE TO COMPLAINANTS

Frontline Service: EXTEND ASSISTANCE TO CLIENTS WITH COMPLAINTS ON ISSUES INVOLVING BSP-SUPERVISED FINANCIAL INSTITUTIONS (FIs)

Description of Service: Refer complaints such as unauthorized/unserviced withdrawals, unfair collection practices, unauthorized credit card charges, among others (See Annex A - List of Complaints Involving FI Issues),to BSP-supervised FIs or any of its employees being complained of.

Clients: Financial consumers of BSP-supervised FIs such as depositors, borrowers, credit cardholders and pawners

Client Requirements: Signed letter of complaint with complete mailing address, contact information, and copies of relevant documents. (Complaint letters sent thru postal mail and fax should be signed by the complainant with his/her complete name, and should include name of FI involved, details of transaction/incident being complained of and desired assistance/remedy. Complaints sent thru electronic mail should indicate the sender's full name and contact information.)

Schedule of Availability of Service: A) For telephone calls: Banking days, 8:00 AM to 4:30 PM B) For walk-in clients: Banking days, 9:00 AM to 4:30 PM (Cut-off time: Complaints received from 1:00 PM onwards will be considered as received the following banking day)

Address and Contact Information: A) For telephone calls: Trunk Line: 524-7011, local 2584; Direct Line: 523-3631(Where the Service can be availed) B) For walk-in clients: Economic and Financial Learning Center (EFLC) Kiosk, Ground Floor,

Multi-storey Building, Bangko Sentral ng Pilipinas, Mabini St., Malate, ManilaC) For letters sent thru e-mail: [email protected] D) For letters sent thru fax: 523-3631E) For letters sent thru postal mail or courier: Financial Consumer Affairs Group (FCAG), 5th Floor Multi-storey Building, Bangko Sentral ng Pilipinas, Mabini St., Malate, Manila 1004

Total Fees: None

Total Processing Time: Ten (10) banking days (from FCAG's receipt of signed letter of complaint together with complete relevant documents)

90

STEP NO. CLIENT STEP BSP ACTION OFFICE RESPONSIBLE/ LOCATION

DOCUMENT(S) REQUIRED

DOCUMENT(S) GENERATED

A) TELEPHONE CALL

1

Call FCAG and provide the following information: name,

contact information, details of complaint and desired remedy

Interviews client about the details of his/her complaint and

contact information

Processor, FCAG Assistance Kiosk,

EFLC/GF, Multi-storey Building

Advises client to submit complaint letter and indicate name/contact information of

complainant, name of FI involved, details of

transaction/incident being complained of and desired

assistance/remedy



2

Submit/send a signed complaint letter together with

complete photocopies of relevant documents either thru

postal mail, e-mail, or fax. Please refer to either B, C or D

for the preferred mode of transmission

Receives documents and processes the complaint in

accordance with the steps in either B, C or D

Processor, FSAD-CASG/10F, Multi-storey

Building

Original and client's copy of the complaint letter together with complete photocopies

of relevant documents

B) WALK-IN CLIENTS

1 Proceed to FCAG's Kiosk Interviews the client regarding the details of his/her complaint



2

Secure and accomplish Complaint/ Inquiry/ Request

(CIR) Form (Annex B)

Guides the client in filling-out the CIR Form



Filled-out CIR Form

91




3Submit signed complaint letter and photocopies of relevant documents, if any (2 sets)

Receives documents



Original and receiving copy of the complaint letter together with complete photocopies of relevant

documents

Stamps date/time of receipt and signs/returns client's copy



Original and receiving copy of the complaint letter together with complete photocopies of relevant

documents

4Receive client's copy of

complaint letter duly stamped received/signed

Sends letter advising client on the referral of the complaint to FI

involved

Processor, FCAG/ 5F, Multi-storey Building Letter-Advice

5Receive Letter-Advice on FCAG action thru postal

mail/email/fax

92




C) E-MAIL/FACSIMILE

1

Send thru e-mail/fax the signed complaint

letter together with the complete copies of relevant

documents, if any Note: Complaint letter should

include name/contact information of complainant,

name of FI involved, details of transaction/incident being complained of and desired

assistance/remedy

Acknowledges receipt of e-mail/fax letter thru e-mail/telephone call

Processor, FCAG/5F, Multi-storey Building

E-mail/Fax letter with attachments

2Receive initial acknowledgment e-mail/telephone call confirming

receipt of the complaint

Mails/Emails/faxes letter advising client on the referral of

the complaint to FI involved


3Receive Letter-Advice on FCAG action thru postl

mail/email/fax

93




D) POSTAL MAIL

1

Submit/send signed complaint letter together with the

complete copies of relevant documents, if any

Note: Complaint letter should include name/contact

information of complainant, name of FI involved, details of

transaction/incident being complained of and desired

assistance/remedy

Stamps date/time of receipt and signs on covering letter


Complaint letter and relevant documents

Mails letter advising client on the referral of the complaint to FI

involved


Building

Letter-Advice and Registry Return

Receipt

2Receive Letter-Advice on FCAG action and signs Registry Return Receipt

End of Transaction

94

PART II - FURTHER ASSISTANCE TO DISSATISFIED COMPLAINANTS WHO WENT THROUGH THE PROCESS IN PART I

Frontline Service: PROVIDE ASSISTANCE FOR POSSIBLE CLARIFICATORY MEETING AND/OR ALTERNATIVE DISPUTE RESOLUTION FOR CLIENTS WHO REMAIN DISSATISFIED WITH FINANCIAL INSTITUTION'S (FI) INITIAL COMMENTS/EXPLANATION/ACTION IN PART I

Description of Service: Dissatisfied clients are informed of possible venues for addressing their complaints or settling the dispute

Clients: Financial consumers of BSP-supervised FIs such as depositors, borrowers, credit cardholders and pawners whose complaints went through Part I

Client Requirements: Signed dissatisfaction letter together with photocopies of additional relevant documents, if any

Schedule of Availability of Service: Banking days, 9:00 AM to 4:30 PM (Cut-off time: Letters received from 1:00 PM onwards will be considered as received the following banking day)

Address and Contact Information: A) For walk-in clients: Economic and Financial Learning Center (EFLC) Assistance Kiosk, (Where the Service can be availed) Ground Floor, Multi-storey Building, Bangko Sentral ng Pilipinas, Mabini St., Malate, Manila

B) For letters sent thru e-mail: [email protected] C) For letters sent thru fax: 523-3631D) For letters sent thru postal mail or courier: Financial Consumer Affairs Group (FCAG), 5th Floor Multi-storey Building, Bangko Sentral ng Pilipinas, Mabini St., Malate, Manila 1004

Total Fees: None

Total Processing Time: Thirty (30) banking days from FCAG's receipt of rejoinder (request for/submission of additional pertinent information/documents and evaluation of the complaint entail more time)

95

STEP NO. CLIENT STEP BSP ACTIONOFFICE

RESPONSIBLE/ LOCATION



A) WALK-IN CLIENTS

1Submit Letter-Rejoinder together with relevant documents, if any (2

sets)Receives documents



Original and Receiving Copy of Letter-Rejoinder

and photocopies of additional relevant

documents

Stamps date/time of receipt and signs/returns client's copy



Original and Receiving Copy of Letter-Rejoinder

and photocopies of additional relevant

documents

2 Receive client's copy of duly stamped received/signed

Sends Letter-Advice informing further action/s on client's

complaint


3 Receive Letter-Advice/update on FCAG action

Upon receipt of FI's reply, proceeds with the evaluation of the complaint and prepares the necessary action document/s *

Processor, FCAG/ 5F, Multi-storey Building

96





B) E-MAIL/FACSIMILE

1

Send thru e-mail/fax the Letter-Rejoinder

together with relevant documents, if any

Acknowledges receipt of e-mail/ fax letter thru e-mail/telephone call


E-mail/Fax Letter-Rejoinder with attachments

2Receive acknowledgment

e-mail/telephone call confirming receipt of Letter-Rejoinder

Acknowledgment Letter

Emails/faxes letter advising client of further action/s on

client's complaint


3 Receive Letter-Advice thru email/fax on FCAG action



C) POSTAL MAIL

1 Send Letter-Rejoinder together with relevant documents, if any

Stamps date/time of receipt and signs on covering letter


Letter-Rejoinder and relevant documents

Sends Acknowledgment Letter confirming receipt of Letter-

Rejoinder


Building

Acknowledgment Letter and

Registry Return Receipt

2

Receive acknowledgment confirming receipt of Letter-

Rejoinder and sign Registry Return Receipt

Mails letter advising client of further action/s on client's

complaint


Building

Letter-Advice and Registry Return

Receipt

3Receive Letter-Advice on FCAG action and signs Registry Return

Receipt97







ALTERNATIVE ACTIONS (FCAG's ENDPOINTS)4.1 FOR COMPLAINT WHICH IS SUBJECT TO A CLARIFICATORY MEETING BETWEEN THE FI AND THE CLIENT

Prepares and sends Letter-Invitation for clarificatory

meeting

Processor, FCAG/ 5F, Multi-storey Building Letter-Invitation

4.1a Receive Letter-Invitation for clarificatory meeting

4.1bAttend clarificatory meeting with

the representatives of the FI involved and FCAG

Facilitates clarificatory proceedings between the client

and the representatives of the FI involved


Prepares Minutes of Meeting and have this signed by the

attendees and furnishes copy to client


Minutes of Meeting

4.1c Receive copy of minutes of clarificatory meeting

Proceeds with further evaluation of the case and prepares the necessary action document/s

and sends to client*


4.1d Receive Letter-Advice on FCAG's further action on the complaint

End of Transaction4.2 FOR COMPLAINT REFERRED TO SUPERVISED BANKS COMPLAINTS AND EVALUATION GROUP (SBCEG) FOR MEDIATION

Prepares and sends letter to client regarding referral to

SBCEG


4.2a Receive Letter-Advice that complaint was referred to SBCEG

98





End of Transaction4.3 FOR COMPLAINT REFERRED TO THIS BANK'S OFFICE OF SPECIAL INVESTIGATION (OSI) FOR INVESTIGATION

Prepares and sends Letter-Advice to client regarding

referral to OSI


4.3a Receive Letter-Advice that complaint was referred to OSI

End of Transaction(OSI's investigation process is covered by Rules of Procedure, which exempts them from the fixed timeline commitment;

please refer to separate process matrix) 4.4 FOR COMPLAINT REFERRED TO THIS BANK'S OFFICE OF GENERAL COUNSEL AND LEGAL SERVICES (OGCLS) FOR LEGAL OPINION AND/OR CENTRAL POINT OF CONTACT DEPARTMENT (CPCD) OR INTEGRATED SUPERVISION DEPARTMENT (ISD) FOR FURTHER DETERMINATION OF VIOLATIONS OF BANKING LAWS, RULES AND REGULATIONS)

Prepares and sends Letter-Advice to the client regarding

referral to OGCLS or CPCD/ISD


4.4a

Receive Letter-Advice from FCAG that the complaint was referred for

legal opinion or further investigation (evaluation of the

complaint resumes upon receipt of OGCLS opinion)

End of Transaction

* (i) Letter-Invitation to client for clarificatory meeting (ii) Letter-Advice on action/s taken by FCAG(iii) Final reply to client(iv) Memo to SBCEG for mediation(v) Memo to OSI referring complaints that involve directors and officers of banks(vi) Memo to CPCD/ISD for status updates or inputs to supervisory action(vii) Memo to OGCLS request for opinion

99

Tracing of Bank Deposits

05.30.2008

The Bangko Sentral ng Pilipinas (BSP) has been receiving requests from the public to trace bank deposits of deceased or incompetent persons. The Law on Secrecy of Bank Deposits (RA No. 1405, as amended), however, inhibits BSP from making inquiries regarding these requests.

The law specifically prohibits the inquiry by any person or institutions including the BSP into deposit accounts and investments in government securities (including the mere existence of the same) except for specific circumstances.

A court order is generally required to inquire into any deposit account or investment in government securities. Nevertheless, inquiries may still be pursued if the depository bank of the deceased or incompetent person can be identified through documents such as passbooks, certificates, automated teller machine cards, etc.

In such a case, the representative of a deceased or incompetent person can inquire directly from the depository bank the requirements for tracing deposits or withdrawing from deposit accounts.

The requirements may vary for each bank. The person seeking assistance may be asked to present documents to prove his/her relation to the deceased or his/her estate or the incompetent depositor, as follows:

Requesting Party Document Needed

a. Regular Administrator

Letter of Administration issued by the appropriate court in a probate proceeding, testate or intestate

b. Special Administrator

Order of Appointment as a special administrator by the appropriate court in a probate proceeding

c. Executor with will annexed

Letter of Administration issued by the appropriate court in a probate proceeding after taking into consideration the fact the executor/s named in a will have refused or is unable to act as such

d. Guardian with letters of guardianship

Letter of Guardianship issued by the appropriate regional trial court which is sufficient in form and substance to invest the appointee with due authority

In addition, the bank may request other documents to further establish the identity of the requesting party and to show proof of relation, filiation, and authority of the requesting party to the decedent or his or her estate or incompetent depositor.

Any assistance in the tracing of bank deposits of deceased or incompetent persons rendered by a bank shall be subject to its compliance with the Law on Secrecy of Bank Deposits and other pertinent rules. For further clarification, please contact

FINANCIAL CONSUMER AFFAIRS GROUP Supervision and Examination Sector BANGKO SENTRAL NG PILIPINAS 5th Floor, Multistorey Building, BSP Complex, Mabini, Manila E-mail address: [email protected] Tel. Nos.: Direct Line (+632) 523-3631 • Trunkline (+632) 524-7011 local 2584

105

GRANT OF EMERGENCY LOAN (EL) FACILITY

Description of Service: Processing and evaluation of applications for emergency loans

Clients: Banks

Client Requirements: Compliance to Section X272 of the Manual of Regulations for Banks (MORB)(Please see Annex A)

Schedule of Availability of Service: Banking days, 8:00 AM to 4:30 PM

Address and Contact Information: Central Point of Contact Department (CPCD) I(Where the Service can be availed) 6th Floor, Multi-storey Building, Bangko Sentral ng Pilipinas, Mabini St., Malate, Manila 1004

or

Central Point of Contact Department (CPCD) II8th Floor, Multi-storey Building, Bangko Sentral ng Pilipinas, Mabini St., Malate, Manila 1004or

Integrated Supervision Department (ISD) I 4th Floor, EDPC Building, Bangko Sentral ng Pilipinas, Mabini St., Malate, Manila 1004 (Mabini Wing)or

Integrated Supervision Department (ISD) II4th Floor, EDPC Building, Bangko Sentral ng Pilipinas, Mabini St., Malate, Manila 1004(Roxas Blvd. Wing)

Total Fees: None

Total Processing Time: Ten (10) banking days (from receipt of complete documents)

106





1 Secure and accomplish application forms (EL Forms 1

and 2) downloadable from BSP Website @bsp.gov.ph

2

Submit four (4) sets of duly accomplished EL forms 1 and 2

with other documentary requirements (1 original copy -

to CPCD/ ISD; 2 duplicate copies - DLC; and 1 client

copy)

Receives documentsProcessor, FSAD-

CASG/10F, Multi-storey Building

EL Forms 1 and 2 and other applicable documentary

requirements (Refer to Annex A)

Stamps date/time of receipt and signs/returns client's copy of

application letter


Building

3Receive client's copy duly

stamped received/signed by FSAD-CASG

Releases acknowledgment letter to client


Building

Acknowledgment Letter and Registry

Return Receipt

4Receive Acknowledgment

Letter and sign the Registry Return Receipt

Releases Letter-Advice of Approval


Building

Letter-Advice of Approval and Registry

Return Receipt

5Receive Letter-Advice of

Approval and sign the Registry Return Receipt

END OF TRANSACTION

107

ANNEX APage 3 of 3

1. Basic Documents:

Application Form (EL Form 1); Certified Statement Of Condition (Under Oath) as of the last banking day

of the month preceding the date of emergency loan application; Certification on the solvency and financial stability of the bank; Notarized Secretary's Certificate (EL Form 2); and Resolution of the Bank's Board of Directors:

(i) authorizing the availment of the bank of emegency loan or advance from the BSP; (ii) signifying the bank's commitment to comply with the guidelines set forth and the

terms and conditions that may be imposed by the monetary board;(iii) designating the chairman and the president or in their absence, any of the next two

(2) highest officers, as duly authorized signatories for the emergency loan oradvance application, promissory notes, and all undertakings;

(iv) authorizing the BSP to evaluate other assets of the bank certified by its auditors tobe good and available for collateral purposes should the grant of subsequenttranches be applied for.

2. Additional Documents:

If with Capital Adequacy Ratio (CAR) of not more than 6 Percent

If Zero to negative CAR BSP approved Rehabilitation Plan.

GRANT OF APPROVAL OF EMERGENCY LOAN DOCUMENTARY REQUIREMENTS

Business Improvement Plan (BIP) within six months from the date of advice by the

108

GRANT OF AUTHORITY TO ESTABLISH A NEW BANK/NON-STOCK SAVINGS AND LOAN ASSOCIATION (NSSLA)

Description of Service: Processing of client's request for approval to establish a new bank/NSSLA

Clients: Organizers/Incorporators of proposed bank/NSSLA

Client Requirements: See Annex A

Schedule of Availability of Service: Banking days, 9:00 AM to 4:30 PM (Cut-off time: Applications received from 1:00 PM onwards will be considered as received the following banking day)

Address and Contact Information: Central Applications and Licensing Group (CALG)(Where the Service can be availed) 5F, Multi-storey Building, Bangko Sentral ng Pilipinas, Mabini St., Malate, Manila 1004

Trunk Line: 524-7011, local 2513; Facsimile: 525-1877/306-1414

Total Fees: Banks - None; NSSLAs - P1,000.00

Total Processing Time: 175 banking days broken down as follows:

Note: Client should apply for issuance of COA to operate at least 45 banking days prior to date of opening

Justification on Processing Time: Processing of the application for approval of the establishment of banks/NSSLAs involves several processes.

Approval

Issuance of Certificate of Authority (COA) to register Articles of

Incorporation (AOI) and By-Laws (BL)

Issuance of COA to Operate

85 banking days

45 banking days

45 banking days

Starts from receipt of complete documents by CALG up to date of issuance of transmittal letter of COA to

register the AOI/BL

Starts from receipt of complete documents by CALG up to date of issuance of transmittal letter of

approval

Starts from the receipt of the request to open the bank by CALG up to date of issuance of transmittal

letter of COA to Operate

109





A) APPROVAL OF APPLICATION AND PRE-OPERATING REQUIREMENTS

1

Submit three (3) copies of application letter together

with two (2) sets of documentary requirements

Receives/Verifies/Checks completeness of documents

Processor, CALG/5F, Multi-storey Building Refer to Annex A

Returns client's copy of application letter duly signed/stamped with

date/time of receipt

Processor, CALG/5F, Multi-storey Building

2 Receive client's copy of application

Mails Acknowledgment Letter to client


Building

Acknowledgment Letter and Registry Return

Receipt

3Receive Acknowledgment Letter and sign Registry

Return ReceiptCalls client to inform of the tentative schedule of panel

interview


4Receive call from BSP for the

tentative schedule of panel interview


Mails to client Confirmation Letter of the final schedule of panel

interview


Building

Confirmation Letter and Registry Return Receipt

5Receive Confirmation Letter

and sign Registry Return Receipt

6

Attend the panel interview and present Economic

Justification, Business Plan and Feasibility Study

Conducts panel interview with the clients


Economic Justification, Business Plan and Feasibility Study

110





Calls client to schedule the Character and Background

Investigation (CBI) and Economic Survey


7Receive call from BSP for the

schedule of CBI and Economic Survey


Mails to client Confirmation Letter of the schedule of CBI and

Economic Survey


Building




Calls client to ask if they prefer to receive the Letter-Advice on

Monetary Board (MB) Approval of Application and Pre-operating

Requirements through mail or pick up by authorized client

representative.


9

Receive call from BSP/Inform whether Letter-Advice on MB Approval of Application and Pre-operating Requirements

will be received via mail or will be picked up by authorized

client representative

111





If thru mail: Mails Letter-Advice to client

If thru mail: Processor, FSAD-


if thru mail: Letter-Advice on MB Approval of

Application and Pre-operating Requirements and Delivery Receipt of Door-to-Door Courier

or or or

If thru pick up: Prepares 2 copies (original and

BSP copy) of Letter-Advice for pick-up by authorized client

representative

If thru pick-up: Processor, CALG/5F, Multi-storey Building

If thru pick-up: 2 copies (original and BSP copy) of Letter-

Advice on MB Approval of Application and Pre-

operating Requirements

112





If thru mail: Receive Letter-Advice and

sign Delivery Receipt 10 or

If thru pick up: Pick up Letter-Advice and

sign/return BSP copy as proof of receipt

If thru pick-up: Receives BSP copy of Letter-

Advice on MB Aprroval of Application


If thru pick up: Authorization letter and

identification card of client's representative

End of TransactionB) ISSUANCE OF THE CERTIFICATE OF AUTHORITY (COA) TO REGISTER THE ARTICLES OF INCORPORATION (AOI) AND BY-LAWS (BL) OF THE PROPOSED BANK/NSSLA

11

Submit three (3) copies of application letter together

with six (6) sets of documentary requirements



(a) Proposed Articles of Incorporation (AOI)/ Cooperation (AOC)

(b) Proposed By-laws (BL)

(c) Treasurer’s Affidavit, (d) Certificate of Deposit

of Paid-In-Capital







Building


Receipt

113






Return Receipt

Calls client to ask if they prefer to receive the Letter-Advice on the

suggested corrections of the Office of the General Counsel and Legal Services (OGCLS) through mail or

pick up by authorized client representative


14

Receive call from BSP/ Inform whether Letter-Advice will be

received via mail or will be picked up by authorized client

representative

114





If thru mail: Mails Letter-Advice to client



if thru mail: Letter-Advice on the

suggested corrections of OGCLS and Delivery

Receipt of Door-to-Door Courier

or or or

If thru pick up: Prepares 2 copies (original and

BSP copy) of Letter-Advice for pick-up by authorized client

representative


If thru pick-up: 2 copies (original and BSP copy) of Letter-

Advice on the suggested corrections of OGCLS

If thru mail: Receive Letter-Advice and

sign Delivery Receipt 15 or

If thru pick up: Pick up Letter-Advice and

sign/return BSP copy as proof of receipt

If thru pick-up: Receives BSP copy of Letter-

Advice on the suggested corrections of OGCLS duly signed

by client




16 Submit revised AOI, BL and Treasurer's Affidavit Receives revised documents Processor, CALG/5F,

Multi-storey Building Revised documents

115





Calls client to ask if they prefer to receive Transmittal Letter together with COA to register AOI and BL

through mail or pick up by authorized client representative.


17

Receive call from BSP/ Inform whether Transmittal Letter

together with COA to register AOI and BL will be received via mail or will be picked up

by authorized client representative

If thru mail: Mails Transmittal Letter together with COA to register AOI and BL

to client



if thru mail: Transmittal Letter together with COA to register AOI

and BL and Delivery Receipt of Door-to-Door

Courier or or or

If thru pick up: Prepares 2 copies (original and BSP copy) of Transmittal Letter

together with COA to register AOI and BL for pick-up by authorized

client representative


If thru pick-up: 2 copies (original and

BSP copy) of Transmittal Letter together with COA to register AOI and BL

116





If thru mail: Receive Transmittal Letter

together with COA to register AOI and BL and sign Delivery

Receipt18 or

If thru pick up: Pick up Transmittal Letter

together with COA to register AOI and BL and sign/return BSP copy as proof of receipt

If thru pick-up: Receives BSP copy of Transmittal

Letter duly signed by client




End of TransactionC) ISSUANCE OF CERTIFICATE OF AUTHORITY (COA) TO OPERATE

19

Submit two (2) copies of application letter together

with one (1) set of documentary requirements


Processor, CALG/5F, Multi-storey Building Refer to Annex A







Building


Receipt

117






Return ReceiptCalls client to schedule an ocular

inspection of bank/NSSLA premises


22Receive call from BSP for the schedule of ocular inspection

of bank/NSSLA premises


Mails to client Confirmation Letter of the schedule of ocular

inspection of bank/NSSLA premises


Building




24Guide BSP Processor during

the course of ocular inspection

Conducts Ocular Inspection Processor on Fieldwork, CALG

118





Calls client to pick up Transmittal Letter together with COA to Operate by authorized client

representative.


25

Receive call from BSP/ Send authorized client

representative to pick up Transmittal Letter together

with COA to OperatePrepares 2 copies (original and BSP copy) of Transmittal Letter

together with COA to Operate for pick-up by authorized client

representative


2 copies (original and BSP copy) of Transmittal Letter together with COA

to Operate

26

Pick up Transmittal Letter together with COA to Operate and sign/return BSP copy as

proof of receipt

Receives BSP copy of Transmittal Letter duly signed by client


Authorization letter and identification card of

client's representative

End of Transaction

119

Annex A

CENTRAL APPLICATIONS AND LICENSING GROUP

CHECKLIST OF DOCUMENTARY REQUIREMENTS - NEW FINANCIAL INSTITUTIONS

[Name of Applicant Bank/NSSLA]

I. General Requirements

DOCUMENTARY REQUIREMENTS

1. Pro-forma application letter to establish 2. Agreement to Organize 3. Requirements for the Organizers, proposed directors and officers:

a. Bio-data sheets b. Evidence of Filipino citizenship c. Statement of Assets and Liabilities d. Statement of Income and Expenses for the last 3 years e. Income Tax Returns of incorporators for the last 3 years f. NBI clearance g. BIR clearance

4. For Corporate Stockholders (For Banks only) a. Board Resolution authorizing investment in the bank b. Articles of Incorporation and By-Laws of the proposed bank c. List of directors and officers d. List of major stockholder, indicating citizenship, number, amount and percentage

of the voting shares to be held by them e. Audited financial statements of the corporation for the last 2 years prior to the

filing of application f. Corporation’s Annual Report to the Stockholders g. Income Tax Returns for the last 3 years h. BIR Clearance

5. For Foreign Bank Subscribers (For Banks only except Rural/Cooperative Banks) a. Board Resolution authorizing the bank to invest in the Philippines b. Historical background of the investing bank c. Articles of Incorporation and By-Laws of the bank d. List of investing bank’s directors and their citizenships e. List of investing bank’s principal officers f. List of major stockholders, indicating citizenship, number, amount and percentage

of the voting and non-voting shared to be held by them g. Investing bank’s financial statements in the last 2 years h. Corporation’s Annual Report to the Stockholders i. Certification from the bank’s home country supervisory authority that they have no

objection to the bank’s investment in the Philippines

120


6. Project Feasibility Study detailing the following: a. Detailed Plan of Operations; b. Economic Justification; and c. Projected financial statements for the first three years of operations together with

the corresponding assumptions, supporting schedules on a monthly basis, i.e. loans releases, collections, deposit generated and cash flow;

II. Additional Requirements

A. For Cooperative Banks


1. Certificate of good standing from the Cooperative Development Authority, in case of cooperative

2. Certificate of registration or re-registration of the various prospective cooperative-members of the cooperative bank

3. Board Resolution authorizing the investment of the cooperatives to the cooperative bank

4. Board Resolution appointing the authorized representative of the cooperative to the cooperative bank. The authorized representative must either be the Chairman, President, or Secretary of the cooperative

5. Latest audited financial statements of the cooperatives B. For Micro-Finance Oriented Banks

a. Vision and mission statement with clear expression of the commitment to reach low-

income clients b. Written manual of operations which shall include administrative and credit program

systems and procedures C. For Non-Stock Savings and Loan Association

a. Official receipt of P1,000 representing filing fee b. Schedule of membership and capital contribution of each member c. Pledge of membership accomplished by each of the members indicating therein the

amount of their monthly contribution d. Certification of the Office or responsible official of parent firm or government agency

on: 1) Payroll deduction of capital contribution and repayment of loans 2) Clearance arrangement 3) Exclusive use of space and authorized business hours 4) Records affecting personal integrity, administrative offense or criminal case

involving the incorporators

121

III. For Issuance of Certificate of Authority to Operate

A. For Banks

a. Certificate of compliance with the conditions of approval duly signed by the

incorporators b. Certificate of Registration of the Articles of Incorporation and By-Laws with the SEC

or with the Cooperative Development Authority, in case of Cooperative Banks c. Certificate of deposits of the bank’s paid-in capital

d. Request for ocular inspection of the bank building or proof of completion of the bank building or premises, facilities, furniture, vault of reinforced concrete with a 2-hour fire resistant door equipped with time delay device/time clock, at least 30 days before the scheduled start of operations

e. 2 sets of specimens of principal bank accounting and other forms f. List of principal and junior officers and their respective designation and salaries g. Certificates of training and seminar of directors, officers, and employees h. Certificates of attendance of the special seminar for members of the Board of

Directors conducted or accredited by the BSP i. Bio-data sheets, evidence of citizenships, NBI/BIR clearances, Statement of Assets

and Liabilities, Statement of Income and Expenses and Income Tax Returns for the last three (3) years of directors or offices who have not had the previous approval of the Monetary Board;

j. Chart of Organizations (The chart should show the names of departments or units or offices with their respective functions and responsibilities, and the designations of positions in each department unit or office with their respective duties and responsibilities. The internal organization should provide for a management structure with clear accountability, a board of directors with ability to provide independent check on management and independent audit and compliance functions and should follow the “four eyes” principle);

k. Manual of Operation embodying the policies and operating procedures of each department or unit or office covering such areas as signing or delegated authorities;

l. Blueprint of floor layout of bank premises; m. Contact of lease on bank’s premises, if the same are to be leased; n. Insurance coverage of bank properties; o. Fidelity bonds of accountable officers p. Excerpts of the minutes of organizational meetings confirming all organizational

and pre-opening transactions relative to activities undertaken to prepare the bank to operate (such as appointment of officers, contract of lease, etc)

q. An alphabetical list of stockholders with the number and percentage of voting stocks owned by them

r. A separate list containing the names of persons who own voting stocks in banks and who are related to each other within the 3rd degree of affinity or consanguinity, with proper indication of the combined percentage of voting stocks held by them in the particular bank, as well as corporations which are wholly-owned or a majority of the stock of which is owned by any such persons, including their wholly or majority-owned subsidiaries;

122

s. Certification by the President that no person who is the spouse or relative within the 2nd degree of affinity or consanguinity of any person holding the position of Chairman, President, Executive Vice President or any position of equivalent rank, General Manager, Treasurer, Chief Cashier or Chief Accountant will be appointed to any of said positions in the bank;

t. Appointment of an officer of the proposed bank who shall have undergone orientation on the reportorial requirements with the BSP and a certification by the Manager that he is fully aware of said reportorial requirements and the respective deadlines for submission to the BSP;

u. Develop and implement a compliance system and shall appoint a Compliance Officer and an Internal Auditor upon start of operations

v. Waiver of Secrecy of Deposits Pursuant to Section 26 of R.A. No. 7653; w. A certification by the PDIC that the organizers had already been briefed on all of its

requirements for newly established banks B. Non-Stock Savings and Loan Association

a. Certificate of compliance with the conditions of approval/pre-operating requirements duly signed by the incorporators;

b. Proof of registration of Articles of Incorporation and By-laws of the

Association; c. List of principal and junior officers and their respective designations

and salaries; d. Bonds of accountable officers;

e. Insurance coverage of properties;

f. Bio-data sheets, evidence of citizenship, NBI/BIR clearances of each of

the members of the board of trustees/officers who have not had the previous approval of the Monetary Board/Governor, which are needed for the evaluation of their qualifications;

g. Chart of Organization (The Chart should show the names of the

departments/units/offices with their respective functions and responsibilities and the designations of positions in each department/unit/office with their respective duties and responsibilities. The internal organization should provide for a management structure with clear accountability, a board of trustees with ability to provide independent check on management and independent audit and compliance functions, and should follow the “four eyes” principle, e.g. segregation of various functions, cross checking, dual control of assets, double signatures, etc.);

h. Plantilla showing the positions with corresponding salaries the total of

which should more or less conform with the amount of salaries shown in the submitted projected statements of earnings and expenses;

123

i. Specimens of principal accounting and other forms;

j. Blueprint of floor layout of office;

k. Picture of office premises, furniture, fixtures and office equipment;

l. Contract of lease, if the office space is to be leased;

m. Excerpts of the minutes of the organizational meetings confirming all

organizational and pre-operating transactions relative to activities undertaken to prepare the NSSLA to operate;

n. Certification of the President that no person who is the spouse or

relative within the 2nd degree of consanguinity or affinity of any person holding the position of Chairman, President, Executive Vice President, or any position of equivalent rank, General Manager, Treasurer, Chief Cashier or Chief Accountant, will be appointed to any of said positions in the Association;

o. Appointment of an officer of the NSSLA who shall have undergone

orientation on the reportorial requirements with the Bangko Sentral ng Pilipinas (BSP) and a certification by the Manager that he is fully aware of said reportorial requirements and the respective deadlines for submission to the BSP; and

p. Other documents/papers which may be required by the BSP.

124

GRANT OF AUTHORITY TO ESTABLISH A DOMESTIC BRANCH OF A LOCAL BANK/NON-BANK FINANCIAL INSTITUTION (FI)

Description of Service: Processing of client's request to establish a domestic branch of a local bank/NBFI

Clients: Banks and NBFIs under the supervision of BSP

Client Requirements: See Annex A


Address and Contact Information: Central Applications and Licensing Group (CALG)(Where the Service can be availed) 5th Floor, Multi-storey Building, Bangko Sentral ng Pilipinas, Mabini St., Malate, Manila 1004

Trunk Line: 524-7011, local 2437; Direct Line: 524-5207; Facsimile: 525-1877/306-1414

Total Fees: Branch processing fees are as follow: (pursuant to Subsection X151.4 of the MORB)

Type of Financial Institutions Fee/branch• Universal Banks/Commercial Banks/ Affiliated Thrift Banks P 200,000• Non-Affiliated Thrift Banks (TBs)/National Cooperative Banks (CBs) 100,000• Rural Banks (RBs)/Local Cooperative Banks 25,000• Microfinance-oriented Banks 5,000• NBFIs None

Provided that branches of TBs, RBs and local Cooperative Banks to be established within the region where the head office is located shall be free from assessment

Total Processing Time: 70 banking days (processing time starts from the time of filing by the client with CALG of an application letter with complete documentary requirements up to the date of issuance of transmittal letter of approval/denial by CALG)

Justification on Processing Time: There are a number of prudential pre-qualification requirements and prerequisites that must be complied with by an applicant bank/NBFI

125




1

Submit two (2) copies of application letter together with

one (1) set of documentary requirements

Receives documents; Stamps date/time of receipt and

signs/returns client's copy of application letter


Building

Original and Receiving copy of application letter together

with one (1) set of documentary requirements

2

Receive client's copy of application letter duly stamped

received/signed by FSAD-CASG

Releases Acknowledgment Letter to client


Building


Receipt

3Receive Acknowledgment

Letter and sign Registry Return Receipt

Calls client to ask if they prefer to receive the Decision Letter through mail or pick up

by authorized client representative/faxes advance

copy


4

Receive call from BSP/ Inform whether Decision Letter will be

received via mail or will be picked up by authorized client representative/ Acknowledge

the receipt of advance fax copy of decision letter

126




If thru mail: Mails Decision Letter to client



If thru mail: Decision letter and

Registry Return Receipt or or or

If thru pick up: Releases 2 copies (original and BSP copy) of Decision

Letter for pick-up by authorized client representative

If thru pick up: Processor, CALG/5F, Multi-storey Building

If thru pick-up: 2 copies (original and BSP

copy) of Decision Letter

If thru mail: Receive Decision Letter and sign Registry Return Receipt

5 orIf thru pick up:

Pick up decision letter and sign/return BSP copy as proof

of receipt

If thru pick up: Receives BSP copy of

decision letter duly signed by client representative


If thru pick-up: Authorization letter and

identification card of client representative

End of Transaction

127

ANNEX A Page 1 of 3

SUPERVISION AND EXAMINATION SECTOR

CENTRAL APPLICATIONS AND LICENSING GROUP

LIST OF DOCUMENTARY REQUIREMENTS ESTABLISHMENT OF A BRANCH IN THE PHILIPPINES (Per Circular Letter No.-2009-042 dated 14 May 2009)

I. For Domestic Banks pursuant to Subsection X151.3 of the Manual of

Regulations for Banks

A. Application letter signed by the President of the Bank or Officer of equivalent rank and accompanied by the following information/documents:

1. Business plan detailing the following:

a. Primary banking activities/products and services to be

offered;

b. Competition analysis to show that its application will not lead to overbanking in the target market; and

c. Financial projections for the first three (3) years of

operations showing sustained viability, as may be required by the appropriate department of the Supervision and Examination Sector (SES):

Provided, that normally operating UBs, KBs and TBs with total resources of P1.0 billion or more shall be exempt from the foregoing requirements. A Bank is not considered normally operating if it is under Prompt Corrective Action (PCA) or is non-compliant with supervisory directives duly confirmed by the Monetary Board. In the evaluation of the business plan, due consideration shall be given to Banks that are able or are committed to invest or deploy branch resources in their area of operations;

2. Certified true copy of the resolution of the Bank’s board of

directors authorizing the establishment of the branch and indicating its proposed site;

3. Organizational set up of the proposed branch showing the

proposed staffing pattern; 4. Certification/undertaking signed by the President of the Bank or

Officer of equivalent rank that the Bank has complied or will comply, as the case maybe, with the prerequisites for the grant

128

ANNEX A Page 2 of 3

of authority to establish a branch under Subsection X151.2 of the MORB, as amended by Circular No. 624 dated 13 October 2008;

5. Confirmation/Statement from financial institutions other than

BSP on the balance/status of the Bank’s borrowings/bills payable (if any); and

6. Certification from the Philippine Deposit Insurance Corporation

(PDIC) that the Bank is a member in good standing.

B. Additional requirements for the establishment of microfinance/ BMBE-oriented branches of banks which are not microfinance/ BMBE-oriented are as follows: 1. The branch shall have a manual of operations on

microfinancing duly approved by the bank’s board of directors; 2. The branch shall have an adequate loan tracking system that

allows daily monitoring of loan releases, collections and arrearages, and any restructuring and refinancing arrangements;

3. The branch shall be managed by a person with adequate

experience or training in microfinancing activities; and 4. At least seventy percent (70%) of the deposits generated by

the branch to be established shall be actually lent out to qualified microfinance/BMBE borrowers and the microfinance/BMBE loans of said branch shall at all times be at least fifty percent (50%) of its gross loan portfolio.

II. For Non-Bank Financial Institutions pursuant to Subsection 4151Q.5 of

the Manual of Regulations for Non-Banks.

All application shall be supported by the following documents:

1. Ability to conduct operations from the head office as not to be a cause for delayed submission of reports to the BSP and/or recording of transaction in the head office;

2. Correspondent banking and audit arrangements between the branch and the head office to ensure effective and efficient cash/money transactions;

3. Certified true copy of the resolution of the bank’s board of directors authorizing the establishment of the branch;

129

ANNEX A Page 3 of 3

4. Services to be offered, as well as any extension offices, etc. to be opened;

5. Days and hours to be observed;

6. Areas to be served;

7. Bio-data of the proposed branch manager and organizational chart of the proposed branch showing the proposed staffing pattern;

8. Business and/or economic justifications (including data) for the establishment of the branch; and

9. Number of financial institutions in the area (banks, investment houses, finance companies and pawnshops)

130

GRANT OF AUTHORITY TO ENGAGE IN ELECTRONIC BANKING (E-BANKING) SERVICES

Description of Service: Processing of client's request to engage in e-banking services

Clients: Banks and Non-Bank Financial Institutions (NBFIs) under the supervision of BSP

Client Requirements: Requirements are explicitly provided under Section X621 of the Manual of Regulations for Banks (MORB): (a) Conditional approval (see Annex A) and (b) Final approval (see Annex B)Note: A presentation is required from applicant bank/NBFI to resolve issues and grey areas on

the proposed e-banking service


Address and Contact Information: Core Information Technology Specialist Group (CITSG)(Where the Service can be availed) Room 601, 6th Floor, EDPC Building - Roxas Blvd. Wing

Bangko Sentral ng Pilipinas, Mabini St., Malate, ManilaDirect Lines: 526-2361/526-2364/526-2360; Facsimile: 526-6698

Total Fees: None

Total Processing Time: A) Conditional approval: 15 banking days (from receipt of CITSG of complete documents up to issuance of authority)

B) Final approval: 40 banking days (from receipt of CITSG of complete documents up to issuance of authority)

Justification on Processing Time: A) Conditional approval: Validation of client's compliance with pertinent BSP regulations in coordination with the BSP department supervising the client

B) Final approval: Validation of client's compliance with pertinent BSP regulations in coordination with the BSP department supervising the client;Evaluation / Validation of submitted documents; andGranting of Final Approval by the Monetary Board

131




1

File an application and submit pertinent documents (2 sets)

When to submit application: (a) Conditional Approval - Upon

compliance with all the minimum pre-conditions under

Subsection X621.1 of the MORB (see Annex A); (b) Final Approval - Within 30 calendar

days from the date of launching of the e-banking service

pursuant to Subsection X621.4 of the MORB (see Annex B)


signs/returns client's copy of application letter

Processor, FSAD-CASG/4F, EDPC Building

Original and Receiving copy of documents (See Annexes

A and B)

2

Receive client's copy of application duly stamped


Releases/Mails Acknowledgment Letter to

client



Receipt

3Receive/pick-up

acknowledgment letter and sign Registry Return Receipt

Calls client to pick up Decision Letter; faxes

advance copy

Processor, CITSG/6F, EDPC Building

Fax copy of Decision Letter

132




4

Receive advance copy of Decision Letter sent thru fax

and send authorized representative to pick up

original copy of letterReleases original copy of

Decision Letter and requires client's authorized

representatives to sign file copy of Decision Letter and



Original and File Copy of Decision Letter; Registry

Return Receipt

5

Receive/pick-up original Decision Letter and sign/return file copy of Decision Letter and


Receives signed file copy of Decision Letter and Registry

Return Receipt


File Copy of Decision Letter and Registry Return Receipt

duly signed by client's authorized representative

6

Submit Notification Letter on the following (2 sets):

(a) date of launching of the approved e-banking service

within 5 banking days from date of launching;

(b) any enhancement to the approved e-banking service 30

days prior to date of implementation

(Note: This client step is applicable only after the

conditional approval has been granted by the BSP)


signs/returns client's copy of Notification Letter

Processor, FSAD-CASG/4F, EDPC Building Notification Letter

133




7

Receive client's copy of notification letter duly stamped


End of Transaction

134

Annex A

SUPERVISION AND EXAMINATION SUB-SECTOR I Core Information Technology Specialist Group (CITSG)

GRANT OF CONDITIONAL APPROVAL TO PROVIDE

ELECTRONIC BANKING SERVICE § X621.1 Application Banks wishing to provide and/or enhance existing electronic banking services shall submit to the BSP an application describing the services to be offered/enhanced and how it fits the bank’s overall strategy. This shall be accompanied by a certification signed by its president or any officer of equivalent rank and function to the effect that the bank has complied with the following minimum pre-conditions:

a. Adequate risk management process is in place to assess, control, monitor, and respond to potential risks arising from the proposed electronic banking activities.

b. Manual on corporate security policy and procedures exists that shall

address all security issues affecting its electronic banking system particularly on authentication, non-repudiation, authorization, integrity and confidentiality

c. The system had been tested prior to its implementation and that the test

results are satisfactory. As a minimum standard, appropriate systems testing and user acceptance testing should have been conducted

d. Business continuity planning process and manual have been adopted

which should include a section on electronic banking channels and systems

135

Annex B

SUPERVISION AND EXAMINATION SUB-SECTOR I Core Information Technology Specialist Group (CITSG)

GRANT OF FINAL APPROVAL

TO PROVIDE ELECTRONIC BANKING SERVICE

§ X621.4 Documentary requirements

a. Within thirty (30) calendar days from such launching/enhancement, banks shall submit to the BSP thru the SRSO (now to CITSG) for evaluation, the following documentary requirements:

1. Discussion on the banking services to be offered/enhanced, the business objectives for such services and the corresponding procedures, both automated and manual, offered through the electronic banking channels

2. Description or diagram of the configuration of the bank’s electronic banking system and its capabilities showing: a. Electronic banking system linkage to other host systems or the network

infrastructure in the bank b. Transaction and data flow through the network c. Types of telecommunications channels and remote access capabilities

(e.g. direct modem dial-in, internet access, or both) exist d. Security controls/measures installed

3. List of software and hardware components indicating the purpose of the software and hardware in the electronic banking infrastructure

4. Description of the security policies and procedures manual containing : a. Description of the bank’s security organization b. Definition of responsibilities for designing, implementing, and monitoring

information security measures c. Established procedures for evaluating policy compliance, enforcing

disciplinary measures and reporting security violations

5. Brief description of the contingency and disaster recovery plans for electronic banking facilities and event scenario or problem management plan or program to resolve or address problems, such as complaints, errors and intrusions and the availability of back-up facilities

6. Copy of contract with the communications carrier; arrangements for any liability arising form breaches in the security of the system or from unauthorized/fraudulent transactions

7. Copy of the maintenance agreements with the software or hardware provider/s

8. Latest report on the periodic review of the system, if applicable

9. Others, as deemed necessary

136

Frontline Service: REGISTRATION OF FOREIGN EXCHANGE DELEARS (FXD)/MONEY CHANGERS(MC) AND REMITTANCE AGENTS (RA)

Description of Service: Processing of client's application for the issuance of the Certificate of Registration (COR)for FXD/MC and RA

Clients: Foreign Exchange Dealers/Money Changers and Remittance Agents

Client Requirements: See Annex A for checklist of registration requirements


Address and Contact Information: Integrated Supervision Department I (ISD I)(Where the Service can be availed) Room 406, 4th Floor, EDPC Building, Bangko Sentral ng Pilipinas, Mabini St., Malate, Manila 1004

Trunk Line: 524-7011, local 2613/2614; Direct Line: 400-7026; Facsimile: 523-2422orBSP Regional/Branch Offices (See Annex B for list of BSP Regional/Branch Offices)

Total Fees: P1,000.00/office processing fee

Total Processing Time: Thirty (30) banking days from receipt by ISD I of complete documents up to the time of issuance of the action taken on application, whether approval or denial

Justification on Processing Time: Voluminous applications received and evaluation of documents submitted in compliance with BSP regulations.

137



DOCUMENT(S) REQUIRED DOCUMENT(S) GENERATED

A) THROUGH MAIL

1

Secure and accomplish BSP required forms downloadable

from http://www.bsp.gov.ph/regulati

ons/reg_others.asp, ISD I or BSP Regional/Branch

Offices

2

Mail complete application forms and other BSP required

documents together with P1,000 processing fee (payment may be made through check or postal money order, payable to

Bangko Sentral ng Pilipinas)

Receives documents and encodes receipt of

application in the Document Tracking System (DTS)

Processor, FSAD-CASG Satellite Office, Room 408/4F, EDPC

Building

See Annex A for registration requirements

138




For applications with complete documentary

requirements: Mails Acknowledgment Letter

and Official Receipt (OR)

For applications with complete documentary requirements:

Acknowledgment Letter, OR and Registry Return Receipt

or or

For applications with incomplete documentary

requirements: Mails Letter-Advice informing

client of deficiencies and encloses encloses OR

Note: P1,000 processing fee is non-refundable

For applications with incomplete documentary requirements: Letter-Advice, application

documents, OR and Registry Return Receipt


Building

139





requirements: Receive Acknowledgment Letter and OR and sign Registry Return Receipt

3 or


requirements: Receive Letter-Advice,

application documents, OR and sign Registry Return

Receipt

Registration Documents: (1) COR (2) Transmittal Letter (TL); (3) Sticker; and(4) Registry Return Receipt

4Receive Registration

Documents and sign Registry Return Receipt

End of Transaction


Building

Mails Registration Documents

140




B) THROUGH PERSONAL FILING WITH INTEGRATED SUPERVISION DEPARTMENT I

1


from http://www.bsp.gov.ph/regulations/reg_others.asp, ISD I or BSP Regional/Branch Offices

2

Submit complete accomplished forms and

other BSP required documents (2 sets)

Receives documents and verify completeness

Processor, ISD I, Room 406/4F, EDPC

Building


Prepares and issues Order of Payment (OP)


BuildingOP

3 Receive OP

4 Give OP and pay processing fee

Receives OP and Payment; Issues OR

Teller, Cash Department/GF, Multi-

Storey BuildingOP OR

5 Receive OR

6 Present OR Notes OR number/date in Evaluation Report/ Returns

OR


BuildingOR

7 Take back ORReturns client's copy of

Application Documents duly signed/stamped with date/time of receipt


Building

8 Receive client's copy of Application Documents

Prepares 4 copies of Acknowledgment Letter/Calls

client to pick up Acknowledgment Letter


Building

141




9

Receives call and send authorized client

representative to pick up original copy of

Acknowledgment LetterReleases original copy of

Acknowledgment Letter and requires authorized client representative to sign file copy of Acknowledgment

Letter and Registry Return Receipt


Building

Original and File Copy of Acknowledgment Letter; Registry

Return Receipt

10

Receive/pick-up original Acknowledgment Letter and

sign/return file copy of Acknowledgment Letter and


Receives signed file copy of Acknowledgmnet Letter and



Building

File Copy of Acknowledgment Letter

and Registry Return Receipt duly signed by

client's authorized representative

Calls applicant to pick up registration documents

(COR, TL and/or sticker)


Building

11

Receive call to pick up registration documents/ send

authorized client representative

Registration Documents: (1) COR (2) Transmittal Letter (TL); (3) Sticker; and(4) Registry Return Receipt

End of TransactionC) THROUGH PERSONAL FILING WITH BSP REGIONAL/BRANCH OFFICE



Releases Registration Documents/Takes back Registry Return Receipt

signed by authorized client representative


Building

Authorization letter and identification card of client representative; Registry

Return Receipt

142




1



2



Receives documents and verifies completeness

Processor, BSP Regional/Branch

Office (See "Annex B" for list

of BSP Regional/Branch

Offices)


Prepares and issues OP Processor, BSP Regional/Branch

Office OP

3 Receive OP


Receives OP and Payment; Issues OR

Teller, Cash Department, BSP-Regional/Branch

Office

OP OR

5 Receive OR

143




6 Present OR Receives OR/ Photocopies OR and returns OR to client


Office OR


application for registration letter duly signed/stamped

with date/time of receipt


Office

8 Receive client's copy of Application Forms

Mails Acknowledgment Letter


Building

Acknowledgment Letter and Registry Return Receipt


Return ReceiptRegistration Documents: (1) COR (2) Transmittal Letter (TL); (3) Sticker; and(4) Registry Return Receipt



End of Transaction

Mails Registration Documents


Building

144

Annex A

Name of Applicant/Entity:

Business Address:

Tel. No. Fax No. TIN:

Date:

Bangko Sentral ng Pilipinas A. Mabini St., Malate, Manila

Gentlemen:

We hereby apply for registration as: [ ] Foreign Exchange Dealer/Money Changer [ ] Remittance Agent

We have been in this business since _______________ (if applicable).

In support of this application, we submit the following documents:

• Incorporations 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); 1/

• Copy of certificate of Registration duly authenticated by the Department of Trade and Industry (for single proprietorship);

• 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); 1/

• List of stockholders/partners/proprietor/directors/principal officers as the case may be; (Name, Designation, Contact No. and Address);

• Notarized Deed of Undertaking (Annex A-1) 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;

• 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;

• For Remittance Agent (RA) Only – 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;

• Attendance in the Anti-Money Laundering Law Seminar (also, for branch staff); and

• Any additional documents which the BSP may require from time to time.

Very truly yours, __________________________ Signature over printed name of (Owner or President or officer of Equivalent Rank) _____________________________________________________

Designation 145

Annex A-1

Name of Applicant/Entity: Address: Tel. No.: Fax No.: TIN :

DEED OF UNDERTAKING

I, _____________________________ (name and designation), of legal age and under oath, declare the following:

1. That I have been duly authorized by ___________________________ (name of institution) and its Board of Directors/Partners/Owners to bind ___________________________ (name of institution) to strictly comply with all the requirements, rules and regulations of the Bangko Sentral ng Pilipinas regarding the registration and operations of foreign exchange dealers/ money changers/ remittance agents as well as the provisions of the Anti-Money Laundering Act of 2001 (R.A. No. 9160, as amended by R.A. No. 9194) and its implementing rules and regulations;

2. That I certify that ______________________________________ (name of institution) undertakes to strictly comply with all the requirements, rules and regulations of the Bangko Sentral ng Pilipinas regarding the licensing and operations of foreign exchange dealers/money changers/remittance agents as well as with all the provisions of the Anti-Money Laundering Act of 2001 (R.A. No. 9160) and its implementing rules and regulations;

3. That I certify that ____________________ (name of institution) through and

with full knowledge and agreement of its Board of Directors/Partners/Owners, understands and accepts that in case of violations of any of the aforementioned laws, rules and regulations. ____________________________ (name of institution) and its Board of Directors/Partners/Owners/Stockholders/Officers/employees responsible for such violation/s shall be subject to sanction prescribed under Section 36 of R.A. No. 7653, otherwise known as the “New Central Bank Act” and other applicable laws, rules and regulations.

4. I/we shall attend the seminar on Anti-Money Laundering Law before

commencement of actual operations. Attendance to these seminars shall also be required for officers and staff in-charge of branch operations __________________________ (Signature over printed name) _____________ __________________________ (Designation)

Subscribed and sworn to before me this _____ day of _______________, 20___, affiant exhibiting to me his/her Community Tax Certificate No. ____________ issued at________________ on _______________________. NOTARY PUBLIC

146

Annex B

List of Bangko Sentral ng Pilipinas Regional/Branch Offices

BSP Regional/Branch Office

Address Contact Number

La Union Regional Office Quezon Avenue, City of San Fernando

(072) 888-2083

Cebu Regional Office Cor. Osmena Blvd & P. del Rosario Sts., Cebu City

(032) 254-0973

Davao Regional Office Quirino Avenue, Davao City (082) 300-3709 Angeles Branch Sto. Entierro St., Angeles City (045) 323-4101/888-4747 Bacolod Branch Lacson cor. Luzurlaga Sts.,

Bacolod City (034) 433-3178

Batac Branch National Highway, Quiling Norte Batac, Ilocos Norte

(077) 792-2103/792-2101

Cabanatuan Branch

Cor. Del Pilar and Paco Roman Sts., Cabanatuan City

(044) 463-1734/463-1736

Cagayan De Oro Branch Trinidad Bldg., cor Corrales Ave & Yacapin Sts., Cagayan de Oro City

(088) 857-1554

Cotabato Branch Quezon Ave., cor Sinsuat Ave., Cotabato City

(064) 421-3117/421-7370

Dagupan Branch Tondaligan, Bonoan Guesset, Dagupan City

(075) 614-3027

Dumaguete Branch

July Dev. Corp. Bldg., V. Lacson & Cervantes Sts., Dumaguete City

(035) 225-3464

General Santos Branch Pendatum & Daproasa Sts., General Santos City

(083) 552-1905

Iloilo Branch BSP Bldg., Solis St., Iloilo City (033) 335-1180 Kalibo Branch

RSL Bldg., Arch. Reyes and G. Pastrana Sts., Kalibo, Aklan

(036) 262-7030

Legazpi Branch Del Rosario Bldg. II, Rizal Avenue, Legaspi City

(052) 480-5519

Lucena Branch Quezon Avenue, Lucena City (042) 373-7323 Naga Branch Chua Oco Bldg., Elias Angela St.,

Naga City (054) 811-2472

Ozamiz Branch Circumferential Road, Ozamiz City (088) 521-2678 Tacloban Branch Uytingco Bldg., Sen. Enaje St.,

Tacloban City (053) 325-5134

Tuguegarao Branch

Cor. Mabini and Gonzaga Sts., Tuguegarao, Cagayan

(078) 844-2043

Zamboanga Branch LHB Bldg. I, Veteranos Ave., Zamboanga City

(062) 991-2151

147

Frontline Service: REGISTRATION OF PAWNSHOPS (PS)

Description of Service: Processing of client's application for the issuance of any of the following: Acknowledgment of Registration (AOR) for Pawnshop Head Office Authority to Operate (AO) for Pawnshop Branch

Clients: Pawnshops

Client Requirements: See Annexes for checklist of registration requirements: Annex A - Pawnshop Head Office Annex B - Pawnshop Branch


Address and Contact Information: Integrated Supervision Department I (ISD I)(Where the Service can be availed) Room 406, 4th Floor, EDPC Building, Bangko Sentral ng Pilipinas, Mabini St., Malate, Manila 1004

Trunk Line: 524-7011, local 2613/2614; Direct Line: 400-7026; Facsimile: 523-2422orBSP Regional/Branch Offices (See Annex C for list of BSP Regional/Branch Offices)

Total Fees: P1,000.00/office processing fee and an additional P3,000.00/office registration fee which is valid for three (3) years

Total Processing Time: Thirty (30) banking days from receipt by ISD I of complete documents up to the time of issuance of the action taken on application, whether approval or denial

Justification on Processing Time: Voluminous applications received and evaluation of documents submitted in compliance with BSP regulations

148




A) THROUGH MAIL

1


from http://www.bsp.gov.ph/regulati

ons/reg_others.asp, ISD I or BSP Regional/Branch

Offices

2

Mail complete accomplished forms and other BSP required

documents together with P1,000 processing fee and an additional P3,000 registration fee (payment may be made

through check or postal money order, payable to


Receives documents/Encodes receipt

of application in the Document Tracking System

(DTS)


Building

See Annexes A or B for registration requirements

149





requirements: Mails Acknowledgment Letter and Official Receipt (OR) for

P1,000 processing fee

For applications with complete documentary requirements:

Acknowledgment Letter, OR for P1,000 processing fee and Registry

Return Receipt

or or


requirements: Mails Letter-Advice informing client of deficiencies; returns application documents and P3,000 registration fee; and

encloses OR for P1,000 processing fee

Note: P1,000 processing fee is non-refundable

For applications with incomplete documentary requirements: Letter-Advice, application

documents, P3,000 check or postal money order, OR for P1,000

processing fee and Registry Return Receipt


Building

150





requirements: Receive Acknowledgment Letter and OR for P1,000 processing fee and sign Registry Return Receipt

3 or


requirements: Receive Letter-Advice, application documents, P3,000 check or postal

money order, OR for P1,000 processing fee and sign Registry Return Receipt

OR for P3,000 registration fee and Registration documents:

Application for Head Office:(1) Acknowledgment for Registration (AOR); (2) Conditions for Registration (CFR);(3) Sticker; and(4) Registry Return Receipt Application for Branch:(1) Authority to Operate (AO); (2) Transmittal Letter (TL); (3) Sticker; and(4) Registry Return Receipt

Mails registration documents and OR for the P3,000

registration fee


Building

151




4

Receive OR for P3,000 registration fee/registration

documents and sign Registry Return Receipt

End of TransactionB) THROUGH PERSONAL FILING WITH INTEGRATED SUPERVISION DEPARTMENT I

1



2



Receives documents and verify completeness


Building


Prepares and issues Order of Payment (OP) for P1,000

processing fee


BuildingOP for P1,000 processing fee

3 Receive OP


Receives OP and Payment; Issues OR for P1,000

processing fee


Storey Building

OP for P1,000 processing fee OR for P1,000 processing fee

5 Receive OR

6 Present OR Notes OR number/date in Evaluation Report/ Returns

OR


BuildingOR


Application Documents duly signed/stamped with date/time of receipt


Building


152




Prepares 4 copies of Acknowledgment Letter and

calls client to pick up Acknowledgment Letter


Building

9

Receive call/Send authorized client representative to pick

up original copy of Acknowledgment Letter

Releases original copy of Acknowledgment Letter and requires client's authorized representative to sign file copy of Acknowledgment

Letter and Registry Return Receipt


Building

Original and File Copy of Acknowledgment Letter; Registry

Return Receipt

10

Receive/pick-up original Acknowledgment Letter and

sign/return file copy of Acknowledgment Letter and


Receives signed file copy of Acknowledgment Letter and



Building

File Copy of Acknowledgment Letter

and Registry Return Receipt duly signed by

authorized client representative

Calls applicant to secure OP for P3,000 registration fee

and pick up registration documents (AOR, CFR, AO, TL and/or sticker); Prepares

OP


Building

11

Receive call to secure OP for the P3,000.00 registration fee/ send authorized client representative to pick up registration documents

153




12 Secure OP for the P3,000.00 registration fee Issues OP


BuildingOP

13 Receive OP

14 Give OP and pay P3,000 registration fee

Receives OP and payment; Issues OR for P3,000

registration fee


Storey Building

OP for P3,000 registration fee OR for P3,000 registration fee

15 Receive OR

154




Registration Documents: Application for Head office:(1) Acknowledgment for . Registration (AOR); (2) Conditions for . Registration (CFR); (3) Sticker; and(4) Registry Return Receipt Application for Branch:(1) Authority to Operate (AO); (2) Transmittal Letter (TL); (3) Sticker; and(4) Registry Return Receipt

17Take back OR and receive

Registration Documents/ Sign Registry Return Receipt

Releases Registration Documents/Takes back Registry Return Receipt

signed by client's authorized representative


Building

Authorization letter and identification card of client representative;


End of Transaction

OR

Notes OR number/date in Evaluation Report/ Returns

OR/Issues Registration Documents and Registry

Return Receipt


Building16 Present OR

155




C) THROUGH PERSONAL FILING WITH BSP REGIONAL/BRANCH OFFICE

1



2


other BSP required documents (2 sets) together with P3,000 registration fee

(payment may be made through check or postal money order, payable to


Receives documents and verifies completeness


Office (See "Annex C" for list

of BSP Regional/Branch

Offices)


Prepares and issues OP for P1,000 processing fee


Office OP for P1,000 processing fee

3 Receive OP


Receives OP and payment/ Issues OR for P1,000

processing fee

Teller, Cash Department, BSP-Regional/Branch

Office

OP for P1,000 processing fee OR for P1,000 processing fee

5 Receive OR

6 Present OR Receives OR/ Photocopies OR and returns OR to client


Office OR


Application Documents letter duly signed/stamped with



Office

156





Mails Acknowledgment Letter


Building

Acknowledgment Letter and Registry Return Receipt


Return ReceiptOR for P3,000 registration fee and Registration documents:Application for Head office:(1) Acknowledgment for . Registration (AOR); (2) Conditions for . Registration (CFR); (3) Sticker; and(4) Registry Return Receipt Application for Branch:(1) Authority to Operate (AO); (2) Transmittal Letter (TL); (3) Sticker; and(4) Registry Return Receipt

10

Receive OR for P3,000 registration fee/Registration


End of Transaction

Mails Registration Documents and OR for the

P3,000 registration fee


Building

157

Annex A INFORMATION SHEET

BSP 7-26-01C (Name of Entity) (Address) 1. Taxpayer’s Identification No. : 2. Tel. No. : 3. Form of Business Organization: Single Proprietorship Partnership Corporation 4. Paid-in Capital : 5. Citizenship: (Proprietor/Partners/Corporation) Citizenship Capital Contribution

Name and Address Filipino Foreign No. of Shares Amount %

(Continue on separate sheet if necessary) 6. List of Directors/Officers: Attach Personal Data Sheet (BSP-7-26-01.1C)

Name Address Position

(Continue on separate sheet if necessary) 7. Premises/Facilities

Purchased

Rented/Leased

Cost of Purchase

Rental: Monthly/Yearly

1. Land 2. Building 3. Vault

(Continue on separate sheet if necessary)

158

of 3

8. Checklist of Requirements to Accompany Information Sheet for the Registration of New Pawnshop with BSP

Type of Organization

Single Prop.

Part- nership Corp.


[ ] [ ] 1. Copy of Articles of Partnership/Incorporation1/ 2/ and By-Laws 1/ 2/ duly registered with the SEC, in the case of a partnership or a corporation, which Article shall indicate that the primary purpose of the partnership/corporation is to engage in the business of a pawnshop or a pawnbroker

[ ] 2. Copy of Certificate of Registration of Business Name1/ 2/ with the Department of Trade and Industry (DTI), in case of a sole proprietorship

[ ] [ ] [ ] 3. Copy of City/municipal license/business license/mayor’s permit1/ 2/ for the current period

[ ] [ ] [ ] 4. Personal data sheet3/ with passport size picture duly accomplished by the proprietor or partners or incorporators, directors, officers and individual stockholders owning 10% or more of the voting stock (Annex A-1)

[ ] [ ] [ ] 5. Duly notarized authorization to conduct background investigation from the proprietor or partners or incorporators, directors, officers and individual stockholders owning 10% or more of the voting stock (Annex A-2)

[ ] [ ] [ ] 6. Certification3/ from any banking institution on the amount deposited for pawnshop capitalization indicating the outstanding balance and owner of the account (Annex A-3)

[ ] [ ] [ ] 7. Duly notarized written undertaking3/ to comply with BSP rules and regulations duly signed by the proprietor/managing partner/president (Annex A-4)

[ ] [ ] [ ] 8. Sample pawn ticket 2/ 4/ 5/ and, if applicable, a letter request for additional pawn ticket stipulations5/ under Subsection 4323P (Annexes A-5 and A-6)

[ ] [ ] [ ] 9. Authorized signatories6/ with personal data sheet [ ] [ ] [ ] 10. Copy of the income tax returns1/ (ITR) of the proprietor/partners/incorporators

owning 10% or more of voting stock of a corporate pawnshop, for the immediately preceding year duly stamped received by the BIR or employer, as the case may be. In the absence of ITR, other document(s) to support financial capacity shall be submitted

[ ] [ ] [ ] 11. Copy of NBI Clearance1/ of proprietor/partners/incorporators/directors and president or officer of equivalent rank

[ ] [ ] [ ] 12. Copy of clearances1/ from the Barangay where the proprietor/partners/ incorporators, directors and president or officer of equivalent rank reside and from the Barangay where the pawnshop shall conduct business

[ ] [ ] [ ] 13. Reproduction of signage 2/ to be used by the pawnshop as prescribed in Subsection 4181P.2

[ ] [ ] [ ] 14. Copy of franchising agreement2/, if using a business name or style that is previously registered as business name or style of another person or entity

[ ] [ ] [ ] 15. Sketch of location of principal place of business [ ] [ ] [ ] 16. Notarized special power of attorney authorizing a person/entity to apply for

registration in behalf of the proprietor/partner/ incorporator. In the case of a corporate applicant, a certified true copy of the board resolution authorizing the person or entity shall likewise be submitted

[ ] [ ] [ ] 17. Certificate of attendance on the Anti-Money Laundering Act seminar of the pawnshop’s officers and personnel directly involved in pawnshop operations

[ ] [ ] [ ] 18. Attendance on pawnshop regulation briefing conducted by the BSP or any accredited service provider of the pawnshop’s proprietor/partner/ incorporators/ directors, officers including branch manager or officer-in-charge

[ ] 19. In the case of corporation, directors must have attended a special seminar on corporate governance conducted by a service provider accredited by the SEC or BSP.

[ ] [ ] [ ] 20. For applications submitted through BSP Regional Offices or Branches, photocopy of Official Receipt as proof of payment of processing fee and check or postal money order payable to Bangko Sentral ng Pilipinas as payment of registration fee

1 / - Original shall be presented to BSP for authentication.

2/ - The business name of a pawnshop that is registered with the DTI or the SEC, as the case may be, shall include the word “pawnshop” to reflect the nature of business it is engaged in.

159

of 3

As a general rule, the business name appearing in the Certificate of Registration of DTI or SEC, as the case may be, shall be used consistently in the pawnshop’s signage and in all documents including pawn tickets, official receipts, stationery, etc. of the pawnshop. A pawnshop that uses or will use a name that is different from its registered name with the DTI or SEC or that uses or will use a name already registered and being used by another pawnshop shall indicate parenthetically such name, the registered name of the pawnshop with the DTI or SEC, as the case may be, with the words “owned and operated by” before the registered name in the signage, pawn tickets, official receipts, stationery, etc. of the pawnshop. A pawnshop that is a subsidiary or affiliate of another pawnshop shall likewise indicate such relationship in the signage, pawn tickets, official receipts, stationery, etc. A subsidiary is a corporation more than fifty percent (50%) of the voting stock of which is owned by another corporation; while an affiliate is corporation less than fifty percent (50%) of the voting stock of which is owned by another corporation.

3/ - In BSP prescribed form.

4/ - The business address to be used uniformly in all pawnshop documents shall be exactly that appearing in the Mayor’s Permit.

5/ - The pawn ticket shall conform with the standard features prescribed in Section 4322P of the BSP Manual of Regulations for Non-Bank Financial Institutions (Pawnshop). Additional features/stipulations to be incorporated in the pawn ticket shall be covered by a written request for BSP approval. Final printing of pawn tickets shall be done only after BSP approval.

6/ - Required for pawnshops with signatories other than the owner.

9. Operations shall start on :

Note: Pursuant to Subsection 4101P.6 of the revised Manual of Regulations for Non-Bank Financial Institutions - Pawnshops, a non-refundable processing fee of P1,000.00 shall be collected from a person or entity applying to register a pawnshop upon completion of the documentary requirements listed below. In addition to the processing fee, a registration fee of P3,000.00 which shall be valid for a period of three (3) years shall be collected prior to the release of the approved Acknowledgement of Registration.

CERTIFICATION

REPUBLIC OF THE PHILIPPINES ) ) S.S.

I, ________________________________________, solemnly swear that all matters set forth on these statements are true and correct to the best of my knowledge and belief. Proprietor / Managing Partner /President TIN SUBSCRIBED AND SWORN to before me in the City/Municipality of ___________________ , this ___ day of ________________ , 20__ , personally known to me to be the person who executed and signed the foregoing before me and acknowledged that he executed the same. NOTARY PUBLIC

Until December 31, _____ PTR No. /(place/date issued) Roll of Attorney No._______ IBP No._______ (address of Notary Public)

Doc. No. Page No. Book No. Series of 20

160

Annex A-1

Page 1 of 7

Submission: Upon applying for the issuance of Acknowledgment of Registration and/or Authority to Operate to: Original – ISD I Duplicate – SDC

(Passport size picture)

___________________________________________________________ Name of Pawnshop

_______________________________________________________________________

Address

PERSONAL DATA SHEET Name Position I hereby certify that the information contained in this document and its supporting schedule of my own knowledge is true and correct. ______________________ _________________________ Date Signature SUBSCRIBED AND SWORN to before me in the City/Municipality of ________________ , this ___ day of ________________ , 20__ , personally known to me to be the person who executed and signed the foregoing before me and acknowledged that he executed the same. NOTARY PUBLIC

Until December 31, _____ PTR No. /(place/date issued) Roll of Attorney No._______ IBP No._______ (address of Notary Public)

Doc. No. Page No. Book No. Series of 20

161

Annex A-1

Page 2 of 7

NAME TIN UPDATED AS OF

PERSONAL INFORMATION :

SURNAME GIVEN MIDDLE 1. NAME :

2. TIN : 3. UPDATED AS OF:

4. OTHER NAMES USED, IF ANY :

5. MANAGEMENT LEVEL : Director Officer Proprietor

6. DATE ELECTED/APPOINTED :

7. TERM OF OFFICE : Permanent Temporary

8. RESIDENCE ADDRESS :

TELEPHONE NO. : E-MAIL ADDRESS : 9. BUSINESS ADDRESS :

TELEPHONE NO. : E-MAIL ADDRESS :

10. CIVIL STATUS : Single Married Annulled/Legally Separated Widow

11. SEX : Male Female

12. CITIZENSHIP : 13. DATE OF BIRTH :

14. PLACE OF BIRTH :

15. FOR ALIENS ONLY : ACR NO. Date

16. DEPARTMENT OF LABOR AND EMPLOYMENT REGISTRATION :

Number Date

17. STATUS OF STAY : Resident Non-Resident

162

Annex A-1

Page 3 of 7


EDUCATION AND TRAINING:

18. Educational Attainment:

DEGREE/COURSE

SCHOOL LAST ATTENDED

YEARS GRADUATED/ATTENDED

COLLEGE : POST GRADUATE : OTHERS :

19. Training in Pawnbrokering and Other Related Fields

NATURE/TITLE CONDUCTED BY YEAR TAKEN

WORK EXPERIENCE :

20. Present Position – This Institution

NAME OF OFFICE POSITION DATE ASSUMED

21. Present Position – Other Private Institution (Including Corporate Directorships)

NAME OF OFFICE

POSITION

DATE

ASSUMED

INDICATE IF PROPRIETOR/PARTNER/

STOCKHOLDER

163

Annex A-1

Page 4 of 7


22. Present Position – Government (Including Directorships in Government Corporate Institutions)

NAME OF OFFICE

POSITION

DATE ASSUMED

INDICATE IF ELECTIVE OR

APPOINTIVE AND PART/FULL-TIME

23. Past Positions – This Institution

NAME OF OFFICE

POSITION

DATE ASSUMED

INDICATE IF ELECTIVE OR

APPOINTIVE AND PART/FULL-TIME

24. Past Positions – Other Private Institution (Including Corporate Directorships)

DURATION (YEAR)

NAME OF OFFICE POSITION FROM TO

164

Annex A-1

Page 5 of 7


25. Past Positions – Government (Including Directorships to Government Financial Institutions)

DURATION (YEAR)

NAME OF OFFICE POSITION FROM TO

FAMILY RELATIONS (Legitimate or Common Law) :

SURNAME GIVEN MIDDLE 26. NAME OF

SPOUSE :

27. TIN :

28. Employment (last 10 years)

DURATION (YEAR) NAME OF OFFICE POSITION FROM TO

SURNAME GIVEN MIDDLE

29. NAME OF COMMON-LAW SPOUSE :

30. TIN :

31. Employment (last 10 years)

DURATION (YEAR) NAME OF OFFICE POSITION FROM TO

165

Annex A-1

Page 6 of 7


FAMILY RELATIONS (Legitimate or Common Law) :

32. First Degree Relatives by Consanguinity: Parents and legitimate or illegitimate Children of legal age

NAME Surname Given Middle

RELATIONSHIP

33. First Degree Relatives by Affinity: Parents-in-law and Children-in-law

NAME

Surname Given Middle RELATIONSHIP

34. Second Degree Relatives by Consanguinity: Grandparents and Grandchildren and Brothers and Sisters of legal age

NAME

Surname Given Middle RELATIONSHIP

35. Second Degree Relatives by Affinity: Grandparents-in law and Grandchildren-in-law and Brothers-in-law

and Sisters-in-law of legal age

NAME Surname Given Middle

RELATIONSHIP

166

Annex A-1

Page 7 of 7


OTHERS : (last item) 36. Business establishments where the directors/officers and their spouses and relatives within the second

degree of consanguinity or affinity have equity interests. (As of ______________________)

NAME OF CORPORATION/ASSOCIATION/

FIRM

NAME OF PERTINENT STOCKHOLDERS,

MEMBERS,CENTRAL PARTNERS, OTHERS

PERCENT OF STOCKHOLDINGS

37. Have you ever been convicted, judicially or administratively, of an offense, or judicially declared insolvent,

spendthrift, or incapacitated to contract? Yes No If yes, please state:

PARTICULAR NATURE OF

CRIME/OFFENSE/VIOLATION

COURT OF JURISDICTION

DATE INFORMATION/COMPLAINT

FILED

(Please indicate “N/A” for fields that are not applicable.)

167

Annex A REPUBLIC OF THE PHILIPPINES ) PROVINCE OF ) MUNICIPALITY OF )

A U T H O R I Z A T I O N I, _____________________, after being sworn in accordance with law, do

hereby authorize the following, pursuant to the provisions of Subsection X143.5(c) of the Manual of Regulations for Banks and Section 4143Q.5(c) of the Manual of Regulations for Non-Bank Financial Institutions, as amended by Circular No. 421 dated 08 March 2004:

a) (Name of Bank/NBFI) to conduct a background investigation on myself

relative to my application for or appointment to the position of (position) ___ in _(Name of Bank/NBFI)____which include, among others, inquiring from the Watchlist Files of the Bangko Sentral ng Pilipinas; and

b) The Bangko Sentral ng Pilipinas to disclose its findings pertinent to the

aforementioned inquiry on the said watchlist files to (Name of _Bank/NBFI)__. With the above authorization, I hereby waive my right to the confidentiality of

the information that will be obtained as a result of the said inquiry, provided that disclosure of said information will be limited for the purpose of ascertaining my qualification or non-qualification for the said position.

In Witness Whereof, I have hereunto set my hand this ________________.

___________________________ (Signature Over Printed Name)

SIGNED IN THE PRESENCE OF: ___________________________ ___________________________

(Witness) (Witness)

168

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES } S.S.

_______________CITY } BEFORE ME, this ____ day of _____________ 200__ in _____________, personally appeared the following person: Name Community Tax Place Date Certificate known to me to be the same person who executed the foregoing instrument and he acknowledged to me to be the same person who executed the foregoing instrument and he acknowledged to me that the same is his free act and deed. This instrument, consisting of two (2) pages, including the page on which this acknowledgment is written, has been signed on the left margin of each and every page thereof by _______________, and his witnesses, and sealed with my notarial seal. In witness whereof, I have hereunto set my hand, the day, year and place above written.

Notary Public

Doc. No. ______ Page No. ______ Book No. ______ Series of 200__.

169

Annex A-3

BANK CERTIFICATION Date Integrated Supervision Department I Bangko Sentral ng Pilipinas A.Mabini St., Malate 1004 Manila Greetings: This is to certify that there is on deposit with this bank the sum of_________________________________________________ (P___________________) in the name of (name of depositor and account number) for (name of Pawnshop) which is in the process of registration. The deposit is clear and free from liens, restrictions, condition or holdout and may be withdrawn in behalf of the pawnshop. Name of Bank

By: Name and Designation

SUBSCRIBED AND SWORN to before me in the City/Municipality of ___________________ , this ___ day of ________________ , 20__ , personally known to me to be the person who executed and signed the foregoing before me and acknowledged that he executed the same.

NOTARY PUBLIC PTR No. /(place/date issued) Until December 31, _____ Roll of Attorney No._______ IBP No._______ (address of Notary Public)

Doc. No. ______ Page No. _____ Book No.______ Series of ______

170

Annex A-4

U N D E R T A K I N G

I, the undersigned ____________________________ of ___________________ Position Name of Pawnshop ____________________ located at __________________________________ , of legal Address age __________________ and resident of ___________________________________ Citizenship Permanent Address _________________________________________ do solemnly swear/certify that: 1. I/We have read P.D. 114 (the Pawnshop Regulation Act) and the implementing BSP

Manual of Regulations for Non-Bank Financial Institutions (Pawnshops) and being aware of our responsibilities as pawnbrokers shall diligently administer the affairs of our business and comply with all the provisions of P.D. 114 and other applicable laws of the Republic of the Philippines, orders, instructions, rules, regulations and policies of the Bangko Sentral ng Pilipinas, as well as its charter;

2. I/We recognize the authority of the Bangko Sentral ng Pilipinas and those of its duly authorized deputies to conduct periodic examinations of the books of accounts, business affairs and financial condition of this institution and will not obstruct the same without legal/justifiable reasons;

3. I/We shall insure with an insurance company, accredited by the Insurance

Commissioner, the place of business of the pawnshop as well as the pawns placed outside the vault against fire. My/Our accountable officer(s) and employee(s) who will have immediate access to the pawned articles shall likewise obtain an appropriate bond;

4. I/We shall install within the pawnshop’s place of business a fire-burglar-proof steel

safe/vault where the pawns and records shall be kept at all times;

5. I/We shall notify the pawner in writing before the expiry of the 90-day grace redemption period, that the pawn shall be sold or disposed of at public auction unless he redeems the same. I/We shall give notice, specify the date, hour and place where the sale shall take place;

6. I/We shall not start operations until the Bangko Sentral ng Pilipinas certificate of

registration is received and the prescribed pawn ticket, BIR-registered official receipts, accounting books and records for pawnshops such as the loans extended and loans paid register and such other required accounting records are already available and ready for use to record all transactions;

7. I/We shall inform the Bangko Sentral ng Pilipinas of the date of the actual start of

operations within five (5) days therefrom together with certification of compliance with Nos. 3, 4 and 6 above; and

8. I/we shall attend the seminars on pawnshop rules and regulations and Anti-Money

Laundering Law before commencement of actual operations. Attendance to these

171

of 2

seminars shall also be required for officers and staff in-charge of branch operations.

9. I/we shall notify the Bangko Sentral ng Pilipinas for any closure or transfer of pawnshop’s place of business including transfer of ownership.

10. The following shall compose the initial staff of the pawnshop: Name Position Educational Attainment

11. I/We shall respond to communications/letters from BSP within the period indicated or, in the absence thereof, within ten (10) banking days from receipt of said communications/letters.

12. I/We shall comply with the minimum paid-in capital and prudential capital ratio

requirements of the BSP. Signature Over Printed Name Date

SUBSCRIBED AND SWORN to before me in the City/Municipality of _________________ , this ___ day of ________________ , 20__ , personally known to me to be the person who executed and signed the foregoing before me and acknowledged that he executed the same. NOTARY PUBLIC Until December 31, _____ PTR No. /(place/date issued) Roll of Attorney No._______ IBP No._______ (address of Notary Public) Doc. No. ______ Page No. ______ Book No.______ Series of ______

172

Annex A-5

STANDARD PAWN TICKET (Appendix to Subsection 4323P.1)

BUSINESS/REGISTERED NAME Address and Telephone Number Taxpayer Identification Number

Business Days and Hours Serial No. : 001 Original Principal Amount of Loan Interest in absolute amount 1/ Date Loan Granted Service Charge in amount Maturity Date Net Proceeds Expiry Date of Redemption

Interest Rate in percent : ______

Please check :

1/Formula (Principal x Rate x Time)

Per annum Per month Per day

Penalty interest in percent, if any

Description of the Pawn Appraised Value

Information on the Pawner Name Sex Complete residential address Date of Birth Telephone/mobile phone No. Nationality E-mail address, if any: Height Preferred Mode of notification: Please check Weight Mail to above address Text/SMS E-Mail ID Presented

TERMS AND CONDITIONS OF STANDARD PAWN TICKET 1. The pawner hereby accepts the pawnshop’s appraisal as proper. 2. The pawnshop hereby agrees not to collect advance interest for a period of more than one (1) year. 3. The service charge is equivalent to one percent (1%) of the principal loan, but shall not exceed five pesos (P5.00). No

other charges shall be collected. 4. This loan is renewable for such amount and period as may be agreed upon between the pawnshop and the pawner

subject to the same requirements for a new loan. 5. Upon maturity of this loan, as indicated above, the pawner still has ninety (90) days from maturity date within which to

redeem the pawn by paying the principal loan plus the interest that shall have accrued thereon. 6. The amount of interest due and payable after the maturity date of the loan up to the redemption period shall be

computed upon redemption at the rate of interest provided above based on the sum of the principal loan and interest earned as of the date of maturity. Any additional penalty and/or interest shall also be computed in the same manner.

7. The pawnshop shall notify the pawner of any change in its business address/location. 8. The pawner shall advise the pawnshop of any change of address/contact number/e-mail address. 9. The pawnshop shall send a reminder to the pawner in the preferred mode of notification given above, or at the new

address/mobile phone number or e-mail address, if such was provided by the pawner before the expiration of the ninety (90) day grace period. The pawnshop shall have the right to sell or dispose of the pawn if the pawner fails to redeem it within the ninety (90) day grace period.

10. This ticket shall be surrendered at maturity date upon payment of the loan. In case of loss or destruction of this ticket, the pawner hereby undertakes to personally present an affidavit to the pawnshop before the redemption period expires. The pawnshop has two (2) days to decide whether to accept (1) the affidavit in place of the original pawn ticket; or (2) to issue a substitute pawn ticket, thereby cancelling the original.

11. The pawner shall not assign, sell or in any other way alienate the pawn securing this loan without prior written consent of the pawnshop. If the pawnshop agrees, the terms and conditions of this contract remain enforceable.

12. In case of pre-payment of this loan by pawner, the interest collected in advance shall accrue in full to the pawnshop. 13. The pawner shall not be entitled to the excess of the public auction sale price over the amount of principal, interest and

service fee; neither shall the pawnshop be entitled to recover the deficiency from the pawner.

(Signature or Thumbmark)

Pawner

(Signature)

Pawnshop’s Authorized Representative 173

Annex A-6

FORMAT OF STATEMENT OF UNDERSTANDING ON PAWNSHOP TRANSACTION

(Appendix to Subsection 4323P.1) _________________________________

(Business Name of Pawnshop)

STATEMENT OF UNDERSTANDING

I ACKNOWLEDGE THAT I UNDERSTAND AND FULLY AGREE TO THE TERMS

AND CONDITIONS OF THIS CONTRACT OF PLEDGE/PAWNSHOP TRANSACTION, AND TO THE FOLLOWING:

1. Agreement as to Interest Rates. The parties are generally free to agree in writing on

the interest rates to be imposed in loans secured by pledge/pawned properties. In case of dispute, the regular courts of law have the vested power to determine the reasonableness and legality of interest rates.

2. Degree of Diligence Required of a Pawnshop. In accordance with Republic Act No. 386, as amended, the Civil Code of the Philippines, pawnshops shall take care of the thing pawned by exercising reasonable care and caution that an ordinary prudent person would as to his own property.

a. Accountability in case of Fire. The office building/premises and all pawns in the pawnshop, except those which are kept inside a fireproof vault, are insured against fire in accordance with the pertinent regulations of the Bangko Sentral ng Pilipinas (BSP). The amount of indemnity shall be dependent on the insurance policy agreement between the pawnshop and the insurance company.

b. Accountability in case of robbery and other fortuitous events. Any claim

for restitution by pawners in case of loss, destruction or defect of the pawn due to robbery and other fortuitous event, with or without the fault or negligence of the pawnshop, its officers and directors, are cognizable by the regular courts.

I DECLARE UNDER THE PENALTY OF THE ANTI-FENCING LAW THAT I AM THE OWNER OF THE PROPERTY SUBJECT OF THIS AGREEMENT.

_________________________________ (Signature of Pawner over Printed Name)

Date ______________ Notice to Pawner: You are entitled to a copy of this paper which you shall sign.

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Annex B Application for Authority to

Operate a Branch Date Proposed Branch Name :

Address :

Head Office : Tel. No. : Address :

Date of start of Operations : No. of Existing Branches : Address of Latest Branch Registered with BSP :

Integrated Supervision Department I Bangko Sentral ng Pilipinas A.Mabini St., Malate 1004 Manila Gentlemen: We hereby request that an Authority to Operate a branch in the city/municipality of ________ as stated above be issued. In support of this request, I am pleased to submit herewith the attached documents for your evaluation and consideration. Very truly yours, (Signature over Printed

Name of

Owner/president or officer of equivalent rank)

175

Note: Pursuant to Subsection 4151P.5 of the revised Manual of Regulations for Non-Bank Financial Institutions - Pawnshops, a non-refundable processing fee of P= 1,000.00 shall be collected from a person or entity applying to establish a pawnshop branch upon completion of the documentary requirements listed below.

In addition to the processing fee, a registration fee of P3,000.00 shall be collected for every pawnshop branch prior to the release of the approved Authority to Operate which shall be valid for a period of three (3) years.

CHECKLIST OF BSP REGISTRATION REQUIREMENTS FOR

NEW PAWNSHOP BRANCH

Type of Organization

Single Prop.

Part- nership

Corp.


[ ] [ ] [ ] 1. Duly notarized certification from the Head Office as to its compliance with the minimum amount of capital under Sections 4106P and 4107P of the Manual of Regulations for Non-Bank Financial Institutions – Pawnshops

[ ] 2. Certified true copy of the board resolution authorizing the establishment of the branch, in case of corporation

[ ] [ ] [ ] 3. Information on branch location and facilities (such as vault)

[ ] [ ] [ ] 4. City/municipal license/business license/mayor’s permit 1 2/ from the city or municipality where the pawnshop branch is to be established

[ ] [ ] [ ] 5. Personal data sheet3/ (BSP- _____ ) with passport size picture duly accomplished by the proposed manager and accountable employee (Annex A-1)

[ ] [ ] [ ] 6. Duly notarized authorization to conduct background investigation from the proposed manager and accountable employee (Annex A-2)

[ ] [ ] [ ] 7. In case of a sole proprietorship, the latest/unexpired Certificate of Registration of business name2/ from the DTI; or in the case of a partnership and corporation, a copy of the Amended Articles of Partnership/Incorporation and By-Laws2/, if there is any

[ ] [ ] [ ] 8. Consolidated balance sheet3/ and income statement3/ of the pawnshop as of and for the period 1 January to the end of the month immediately preceding the application for branching

[ ] [ ] [ ] 9. Duly notarized written undertaking3/ to comply with BSP rules and regulations duly signed by the proprietor/managing partner/president (Annex A-4)

[ ] [ ] [ ] 10. Sample pawn ticket 2/ 4/ 5/ and, if applicable, a letter request for additional pawn ticket stipulations5/ under Subsection 4323P (Annexes A-5 and A-6)

[ ] [ ] [ ] 11. Authorized signatories with personal data sheet 1/ 6/

[ ] [ ] [ ] 12. Sketch of location [ ] [ ] [ ] 13. Notarized special power of attorney authorizing a person/entity to

apply for authority to operate a branch in behalf of the proprietor/partner/ incorporator. In the case of a corporate applicant, a certified true copy of the board resolution authorizing the person or entity shall likewise be submitted

[ ] [ ] [ ] 14. NBI clearance1 of branch manager or officer-in-charge [ ] [ ] [ ] 15. Clearances1 from the Barangay where the branch manager or

officer-in-charge resides and from the Barangay where the pawnshop branch shall conduct its business

[ ] [ ] [ ] 16. Reproduction of signage2/ to be used by the branch [ ] [ ] [ ] 17. Certificate of attendance of the proposed manager and accountable

employee on Anti-Money Laundering Act seminar [ ] [ ] [ ] 18. Attendance on pawnshop regulation briefing conducted by the BSP

or any accredited service provider of the branch manager or officer-in-charge

176

[ ] [ ] [ ] 19. For applications submitted through BSP Regional Offices or

Branches, photocopy of Official Receipt as proof of payment of processing fee and check or postal money order payable to Bangko Sentral ng Pilipinas as payment of registration fee

1 / - Original shall be presented to BSP for authentication.

2/ - The business name of a pawnshop that is registered with the DTI or the SEC, as the case may be, shall include the word “pawnshop” to reflect the nature of business it is engaged in. As a general rule, the business name appearing in the Certificate of Registration of DTI or SEC, as the case may be, shall be used consistently in the pawnshop’s signage and in all documents including pawn tickets, official receipts, stationery, etc. of the pawnshop. A pawnshop that uses or will use a name that is different from its registered name with the DTI or SEC or that uses or will use a name already registered and being used by another pawnshop shall indicate parenthetically such name, the registered name of the pawnshop with the DTI or SEC, as the case may be, with the words “owned and operated by” before the registered name in the signage, pawn tickets, official receipts, stationery, etc. of the pawnshop. A pawnshop that is a subsidiary or affiliate of another pawnshop shall likewise indicate such relationship in the signage, pawn tickets, official receipts, stationery, etc. A subsidiary is a corporation more than fifty percent (50%) of the voting stock of which is owned by another corporation; while an affiliate is corporation less than fifty percent (50%) of the voting stock of which is owned by another corporation.

3/ - In BSP prescribed form.

4/ - The business address to be used uniformly in all pawnshop documents shall be exactly that appearing in the Mayor’s Permit.

5/ - The pawn ticket shall conform with the standard features prescribed in Section 4322P of the BSP Manual of Regulations for Non-Bank Financial Institutions (Pawnshop). Additional features/stipulations to be incorporated in the pawn ticket shall be covered by a written request for BSP approval. Final printing of pawn tickets shall be done only after BSP approval.

6/ - Required for pawnshops with signatories other than the owner.

Registration Documents: Submitted by : Tel. No. : Checked by : Date :

177

Annex C

List of Bangko Sentral ng Pilipinas Regional/Branch Offices

BSP Regional/Branch Office

Address Contact Number

La Union Regional Office Quezon Avenue, City of San Fernando

(072) 888-2083

Cebu Regional Office Cor. Osmena Blvd & P. del Rosario Sts., Cebu City

(032) 254-0973

Davao Regional Office Quirino Avenue, Davao City (082) 300-3709 Angeles Branch Sto. Entierro St., Angeles City (045) 323-4101/888-4747 Bacolod Branch Lacson cor. Luzurlaga Sts.,

Bacolod City (034) 433-3178

Batac Branch National Highway, Quiling Norte Batac, Ilocos Norte

(077) 792-2103/792-2101

Cabanatuan Branch

Cor. Del Pilar and Paco Roman Sts., Cabanatuan City

(044) 463-1734/463-1736

Cagayan De Oro Branch Trinidad Bldg., cor Corrales Ave & Yacapin Sts., Cagayan de Oro City

(088) 857-1554

Cotabato Branch Quezon Ave., cor Sinsuat Ave., Cotabato City

(064) 421-3117/421-7370

Dagupan Branch Tondaligan, Bonoan Guesset, Dagupan City

(075) 614-3027

Dumaguete Branch

July Dev. Corp. Bldg., V. Lacson & Cervantes Sts., Dumaguete City

(035) 225-3464

General Santos Branch Pendatum & Daproasa Sts., General Santos City

(083) 552-1905

Iloilo Branch BSP Bldg., Solis St., Iloilo City (033) 335-1180 Kalibo Branch

RSL Bldg., Arch. Reyes and G. Pastrana Sts., Kalibo, Aklan

(036) 262-7030

Legazpi Branch Del Rosario Bldg. II, Rizal Avenue, Legaspi City

(052) 480-5519

Lucena Branch Quezon Avenue, Lucena City (042) 373-7323 Naga Branch Chua Oco Bldg., Elias Angela St.,

Naga City (054) 811-2472

Ozamiz Branch Circumferential Road, Ozamiz City (088) 521-2678 Tacloban Branch Uytingco Bldg., Sen. Enaje St.,

Tacloban City (053) 325-5134

Tuguegarao Branch

Cor. Mabini and Gonzaga Sts., Tuguegarao, Cagayan

(078) 844-2043

Zamboanga Branch LHB Bldg. I, Veteranos Ave., Zamboanga City

(062) 991-2151

178