How to Apply for a Money Service Business (MSB) License

The first step is to identify the specific type of money service business you want to operate. This decision will determine your capital requirements, documentary requirements, and the specific BSP regulations you must comply with. BSP classifies MSBs into three main categories:

• Remittance Agent/Transfer Company: If you plan to facilitate money transfers for customers, whether domestic or international. This is the most common type of MSB in the Philippines, with thousands of remittance centers serving OFW families nationwide.
• Money Changer: If you plan to buy and/or sell foreign currencies. You must choose between Type A (buying only) and Type B (buying and selling) operations.
• Foreign Exchange Dealer: If you plan to engage in broader foreign exchange transactions including forwards, swaps, and other derivative instruments. This type requires the highest capital requirements and is subject to more stringent regulations.

Consider your target market, location, available capital, and business expertise when choosing your MSB type. Many operators start as remittance agents and later expand into money changing or FX dealing as their business grows.

Before you can apply for a BSP MSB license, your business must first be legally registered with the appropriate government agencies. The specific registration depends on your business structure:

• Corporation or Partnership: Register with the Securities and Exchange Commission (SEC). Your articles of incorporation or partnership must include money service business operations in its primary or secondary purpose.
• Single Proprietorship: Register with the Department of Trade and Industry (DTI). Your business name must be registered and your DTI certificate must reflect money service business as your line of business.
• Local Government Unit (LGU): Obtain a Mayor's Permit / Business Permit from the city or municipality where your MSB will operate. This requires barangay clearance, zoning clearance, and other local requirements.
• Bureau of Internal Revenue (BIR): Register with BIR for your Tax Identification Number (TIN), Certificate of Registration (COR/Form 2303), official receipts, and books of accounts.

Ensure that all your business registrations are current and valid before proceeding to the BSP application. BSP will verify the authenticity of all submitted registration documents.

BSP imposes strict minimum capital and net worth requirements for MSBs to ensure financial stability and capacity to serve the public. The requirements vary by MSB type and business structure:

• Remittance agents organized as corporations must have a minimum paid-up capital of ₱10,000,000 (ten million pesos). Single proprietorships must have at least ₱5,000,000 (five million pesos) in capital.
• Money changers must have a minimum paid-up capital of ₱1,000,000 (one million pesos) per head office. Each additional branch requires an incremental capital allocation.
• Foreign exchange dealers must have a minimum paid-up capital of ₱10,000,000 (ten million pesos) or higher, depending on the scope of their FX dealing operations.
• The net worth requirement means your total assets must exceed your total liabilities by at least the minimum capital amount. This is verified through audited financial statements.

You must provide proof of capitalization through bank certificates, audited financial statements, and SEC/DTI registration documents showing your authorized and paid-up capital.

Gather all the required documents for your BSP application. Incomplete or improperly prepared documents are the most common cause of application delays. Ensure all documents are original or certified true copies as required by BSP.

• Duly accomplished BSP Application Form for MSB Registration (available at BSP offices or the BSP website)
• SEC Certificate of Registration and Articles of Incorporation/Partnership (for corporations) or DTI Certificate of Business Name Registration (for sole proprietors)
• Valid Mayor's Permit / Business Permit from your LGU
• BIR Certificate of Registration (Form 2303)
• Audited Financial Statements (AFS) for the most recent fiscal year, audited by a CPA accredited by the Board of Accountancy
• Bank certificate of deposit showing the minimum required capital
• Anti-Money Laundering (AML) Compliance Program — a written manual detailing your customer identification, transaction monitoring, suspicious transaction reporting, and record-keeping procedures
• Fit and Proper documentation for all owners, directors, and officers: NBI clearance, police clearance, and sworn statement of no pending criminal cases
• Proof of office address: lease contract or property title, plus photos of the business premises
• Organizational chart and list of all officers, directors, and key personnel with their respective government-issued IDs
• Board resolution authorizing the filing of the MSB application and designating an authorized representative (for corporations)
• Detailed business plan including projected financial statements, target market analysis, and operational procedures

Once all documents are complete, submit your application to the BSP. Applications are processed by the Financial Supervision Sector, specifically the Supervisory Policy and Research Department (SPRD) for initial applications and the appropriate supervising department for renewals.

• Submit your application in person at the BSP Main Office in Manila, or at the BSP Regional Office that has jurisdiction over your principal place of business
• BSP Main Office: A. Mabini Street corner P. Ocampo Street, Malate, Manila 1004
• BSP Regional Offices are located in Cebu, Davao, and La Union for applicants outside Metro Manila
• Prepare at least two (2) sets of your complete documentary requirements — one for BSP and one for your own records
• BSP will issue an acknowledgment receipt upon acceptance of your application. Keep this receipt as proof of filing.
• Some applications may also be submitted electronically through the BSP online submission portal, subject to BSP advisories and guidelines

BSP charges registration and application fees for MSB licensing. The exact fees may vary based on the type of MSB and the scope of operations. Payment details are as follows:

• Remittance Agent Registration Fee: ₱15,000 for the head office, plus ₱5,000 per branch or sub-agent
• Money Changer Application Fee: ₱10,000 for the head office, plus ₱3,000 per branch
• FX Dealer Application Fee: ₱25,000 for the head office
• Fees are paid through the BSP Cashier's Office via Manager's Check, Cashier's Check, or bank transfer to the designated BSP account
• Annual renewal fees are also required and must be paid before the expiration of the current registration
• Retain all official receipts as proof of payment — BSP will require these for processing

Note: Fees are subject to change. Always verify the current fee schedule with BSP before submitting your application. You may check the BSP website or contact the BSP hotline for the latest fee schedule.

After receiving your application, BSP will conduct a thorough evaluation of your documents, financial capacity, and compliance readiness. This process includes several stages:

• Document Review: BSP examiners will verify the completeness, accuracy, and authenticity of all submitted documents. If any documents are missing or deficient, BSP will issue a deficiency notice and you will be given a period to comply.
• Financial Assessment: BSP will verify your capitalization, net worth, and financial capacity to operate an MSB. This includes reviewing your audited financial statements and bank certificates.
• Fit and Proper Evaluation: BSP will evaluate the background, integrity, and competence of all owners, directors, and key officers. This includes checking for any criminal records, pending cases, or adverse regulatory findings.
• AML Compliance Review: BSP will review your Anti-Money Laundering Compliance Program to ensure it meets the minimum standards set by the AMLA and BSP regulations. Your program must include customer identification procedures (KYC), transaction monitoring, suspicious transaction reporting, record-keeping, and training for employees.
• Site Inspection: BSP may conduct a physical inspection of your business premises to verify the adequacy of your facilities, security measures, and operational readiness.
• The evaluation process typically takes 30 to 90 business days, depending on the completeness of your application and BSP's workload.

Upon successful completion of the evaluation and compliance check, BSP will issue your Certificate of Registration or Authority to Operate as a Money Service Business. This certificate is your official authorization to commence MSB operations.

• The BSP Certificate of Registration must be prominently displayed at your business premises at all times
• The certificate specifies the type of MSB operations you are authorized to conduct, the address of your head office, and the validity period
• You may only begin operations AFTER receiving the certificate — do not operate while your application is pending
• If you plan to open branches or sub-agents, you must apply for separate branch approvals from BSP before commencing branch operations
• The certificate is valid for one (1) year and must be renewed annually by filing a renewal application with BSP at least 30 days before expiration
• BSP may revoke or suspend your certificate at any time for violations of AMLA, BSP regulations, or any applicable laws