BANGKO Sentral ng Pilipinas reminded remittance companies, money changers and foreign exchange dealers in the country to observe proper record maintenance and adopt minimum internal control standards to safeguard their business.
Bangko Sentral issued a memorandum signed by Deputy Governor Chuchi Fonacier containing guidelines that must be followed by those engaged in the money service business.
Money service business operators must ensure proper records maintenance and conform to the Philippine financial reporting standards.
“It shall maintain proper and adequate accounting records… It shall also ensure that all business transactions [cash and non-cash] are properly recorded and accounted for and reconciled with all relevant source documents,” it said.
Bangko Sentral said records, ledgers, books and documents, including those in electronic media, must also be made available for examination upon request.
“Refusal to permit examination shall include any act of refusing to present the pertinent record upon request by any duly authorized BSP officer or examiner,” the regulator said.
Money service business operators must also adopt adequate and effective internal control measures to safeguard their assets, through proper segregation of duties and functions for critical operational functions, including cash handling and record keeping, to prevent the likelihood of mismanagement or fraud.
“No individual shall have complete authority and responsibility for handling all phases of any transaction from beginning to end, without some check or balance from some part of the organization,” it said.
In addition, no employee will be allowed to process a transaction in which he is either a beneficiary/remitter or buyer/seller of currency.