Remittance Company License Philippines: How to Register an RTC with the BSP

A remittance company in the Philippines must be registered with the Bangko Sentral ng Pilipinas (BSP) before it can operate. Registration classifies the entity as a Remittance and Transfer Company (RTC), and the BSP issues a Certificate of Registration (COR) once the requirements are met. The rules come from the consolidated Money Service Business (MSB) regulations under the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI)-M, issued through BSP Circular No. 1206, series of 2024. Below is the ordered path to registration.

Who must register as a remittance company

An RTC is any entity providing Money or Value Transfer Service (MVTS) — accepting cash, cheques, other monetary instruments, or stores of value and paying a corresponding sum to a beneficiary through a message, transfer, or clearing network.

The rules recognize several forms:

• Remittance Agent (RA) — operates a remittance business network, including a Remittance Direct Agent or a Remittance Network Provider.
• Remittance Platform Provider (RPP) — provides a shared platform or IT infrastructure and maintains settlement accounts for remittance transactions within its network.
• E-Money Issuer (EMI) — an entity authorized by the BSP to provide money transfer or remittance services using an electronic stored money value system and similar digital financial services.
• Virtual Asset Service Provider (VASP) — for transfer or exchange of virtual assets.

A foreign RPP must do business through a locally incorporated subsidiary. An existing foreign RPP has two years to incorporate; in the meantime it must constitute a resident agent liable for its Philippine obligations.

A Remittance Sub-Agent (RSA) no longer registers with the BSP. The accrediting RTC is responsible for the RSA's compliance with anti-money laundering and counter-terrorism financing rules.

Step 1: Determine your classification and capital

The BSP classifies RTCs into types, and minimum capitalization follows the classification:

• Type A (Large-Scale Operator) — Remittance Agent with or without money changing or foreign exchange dealing, average monthly network volume of at least P75.00 million: at least P50.00 million capital.
• Type B (Small-Scale Operator) — same activities, average monthly volume below P75.00 million: less than P50.00 million capital.
• Type C (E-Money Issuer) — capitalization as prescribed for e-money issuers under the applicable BSP regulations.
• Type D (Remittance Platform Provider) — P10.00 million.

Step 2: File the registration application

Submit the Application for Registration and a Notarized Deed of Undertaking (Appendix M-2) to the appropriate supervising department of the BSP, following the registration procedures in Appendix M-3.

The BSP will not issue a COR if required documents are incomplete, or if any proprietor, partner, director, or principal officer is not fit and proper. Fitness and propriety consider integrity or probity, market reputation, competence, and financial capacity.

Before operations begin, the proprietors, partners, directors, the president or officer of equivalent rank, the over-all head of the MSB operation, and the head of the compliance unit must attend a seminar on AML/CFT laws, rules, and regulations conducted by the BSP, the Anti-Money Laundering Council, or a reputable training provider.

Step 3: Pay the registration and annual fees

The one-time, non-refundable registration fee depends on type:

• Type A, C, D — P100,000
• Type B — P20,000

Except for EMIs, a non-refundable supplemental registration fee of P1,000 applies for each office other than the head office.

Annual service fees, payable not later than March of every year, are P100,000 for Type A and Type D, P20,000 for Type B, and P300,000 and/or as determined by the Monetary Board for Type C. A P1,000 processing fee applies for replacement of the COR.

Step 4: Commence operations and notify the BSP

Within three months from issuance of the COR, the registered RTC must commence operations; otherwise the COR is cancelled. A metal plate bearing the unique registration number is issued to each head office.

The RTC must notify the BSP within five business days of several events: commencement of operations, transfer of location, and closure of office. New branches and accredited RSAs must be listed monthly within five business days from the end of the reference month, and new or terminated tie-up partners must be reported within the same period.

Ongoing requirements after registration

The RTC must maintain an internal control system commensurate to the nature, size, and complexity of its business. Required reports include a semestral report of operating and closed offices, audited financial statements, quarterly reports on the total value of foreign and domestic remittance transactions, and a Report on Crimes/Losses.

Large value pay-outs of more than P500,000, or its foreign currency equivalent, in any single transaction with customers or counterparties, must be made only by check payment or direct credit to a deposit account.

Any change in ownership of a sole proprietorship or partnership, or control of a corporation, requires prior BSP approval. Failure to seek prior approval may result in cancellation of registration.

Frequently asked questions

Do I need a BSP license to put up a remittance business in the Philippines? Yes. RTCs must be registered with the Bangko Sentral before they can operate, and a COR is issued upon fulfillment of the registration requirements.

How much capital does a remittance company need? A Type A Remittance Agent needs at least P50.00 million; a Type B operator falls under P50.00 million; a Remittance Platform Provider needs P10.00 million.

Do remittance sub-agents need their own BSP registration? No. An RSA is no longer required to register with the BSP. The accrediting RTC accredits its own RSAs, conducts due diligence, and is responsible for their AML/CFT compliance.

Practical takeaways

• Register with the BSP before operating — an RTC cannot lawfully commence remittance business without a COR.
• Match your capital and fees to your classification, since Type A, B, and D carry different benchmarks and registration fees.
• Complete the mandatory AML/CFT seminar for owners, directors, and key officers before operations start.
• Commence operations within three months of the COR, or the certificate is cancelled.
• File the required reports and secure prior BSP approval for changes in ownership or control.

Primary sources

The rules discussed above are drawn from the following primary sources. Where the firm's library holds the document as a PDF it is embedded here in full; the rest are cited by title.

Consolidated Rules for Money Service Businesses (MSBs) under the New "Manual of Regulations for Non-bank Financial Institutions (MORNBFI)-M"Open in Law LibraryDownload PDF

• REPUBLIC ACT NO. 11127 - AN ACT PROVIDING FOR THE REGULATION AND SUPERVISION OF PAYMENT SYSTEMS

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.