Banks warned vs unauthorized e-money deals
The Bangko Sentral ng Pilipinas has warned banks and other regulated financial institutions against allowing unlicensed partners to provide electronic money (e-money) services, tightening oversight to ensure only authorized entities conduct regulated e-money activities.
Under Memorandum No. M-2026-030, the BSP said licensed e-money issuers must not enter into arrangements that allow another person or entity to conduct—or appear to conduct—regulated e-money activities without the central bank’s approval.
The regulator said only entities it has authorized may provide e-money services, adding that partnerships involving technology providers, platform access, co-branding, wallet provisioning and outsourcing must comply with existing laws and regulations.
In assessing such arrangements, the BSP said it would look beyond contractual agreements and consider factors such as the functions performed by each party, the allocation of responsibilities and risks, customer-facing roles, control over customer funds and accounts, and whether an unlicensed entity is effectively carrying out activities that require BSP authorization.
“The duly authorized entity shall remain fully responsible for the conduct of its regulated activities and for compliance with applicable laws, rules, and regulations,” the memo read.
Early this year, the BSP proposed tighter rules on electronic money (e-money) issuance to strengthen consumer protection, requiring nonbank companies like e-wallets to keep enough funds on hand to cover customer balances and have plans ready in case they run into financial trouble. Currently, these rules apply only to banks, which must hold at least 50 percent of outstanding e-money balances in trust.
