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Manila Bulletin devider Business devider Banking & Finance devider BSP cracks down on shadow e-money groups in fintech tightening

BSP cracks down on shadow e-money groups in fintech tightening

Published Jun 26, 2026 04:00 pm  |  Updated Jun 26, 2026 02:48 pm

At A Glance

  • Bangko Sentral ng Pilipinas (BSP)-supervised financial institutions (BSFIs) are banned from entering partnerships that would allow unlicensed third-party players to conduct electronic money (e-money) operations.

Bangko Sentral ng Pilipinas (BSP)-supervised financial institutions (BSFIs) are prohibited from entering into partnerships that would allow unlicensed third-party players to conduct electronic money (e-money) operations.

“BSFIs shall not enter into any arrangement that results in another person or entity conducting or appearing to conduct regulated e-money activities without the requisite BSP authority,” BSP Deputy Governor Mamerto E. Tangonan said in a memorandum issued on Thursday, June 25.

Tangonan clarified that such authority is granted only to an entity duly approved by the BSP and must be exercised in accordance with the Manuals of Regulations for Banks (MORB) and the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI).

Various business models frequently used in the digital finance space are covered by the directive.

“Arrangements involving technology services, platform access, co-branding, partnerships, wallet provisioning, outsourcing, or similar structures shall be governed and implemented in a manner consistent with Sections 4, 6, and 10 of Republic Act (RA) No. 11127, or the National Payment Systems Act (NPSA),” the memorandum read.

To identify potential violations, the BSP will look beyond formal contracts and examine the actual operations of these partnerships.

Tangonan said the BSP will consider factors such as each party’s functions, responsibilities, and risks; how services are presented to customers; who controls the funds or accounts; and whether the arrangement allows another person or entity to effectively perform activities that require BSP authorization.

Further, the regulator emphasized that responsibility for regulatory compliance cannot be outsourced. It said duly authorized entities will “remain fully responsible” for their regulated activities and must continue to comply with all applicable laws, rules, and regulations.

This responsibility includes maintaining standards for governance, safeguarding customer funds, liquidity, and consumer protection.

Failure to comply with these guidelines may result in severe penalties, the BSP warned. “Any violation of applicable laws, BSP regulations, or the terms and conditions of the relevant authority, license, or registration may subject the BSFI concerned, its directors, officers, and/or persons responsible to the appropriate supervisory or enforcement action,” it said.

Related Tags

Bangko Sentral ng Pilipinas (BSP) Banks Non-banks e-money providers Mamerto Tangonan
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