History

The Precursor

As early as 2012, some money service business (remittance, foreign exchange dealing and money exchange) and pawnshops offering MSB services were hounded by ever-changing regulations and varied interpretations of regulatory registration and operational requirements.

The need to address these concerns through a platform and a unified voice were felt for the first time. MSB Compliance Officers (COs) started to gather informally and discuss important compliance matters and initially requested the regulators for conferences, individually, to raise their respective issues and concerns. The response of the regulators was gradual but sufficient, and the need to formally organize took a backseat.
In late 2015, MSBs were hit hard by new challenges emerged such as de-risking policies of the local banking sector mirroring international de-risking practices. There was again an impetus for the FXD/MC and RA industry to re-group and soon, talks on formally organizing started. The COs saw the need to improve the regulatory landscape, for MSB-specific regulations. This was the birth of the Association of Remittance Company Compliance Officers or ARCCO.

Formalizing ARCCO

2018 saw MSB in the limelight with the so-called Bangladesh heist, when an MSB was implicated. There was a push to amend BSP Circular 942 and to tighten supervision over MSBs. Formalizing ARCCO became a necessity, and on 18 September 2018 ARCCO was issued its SEC Certificate of Registration as a non-stock, non-profit entity as the Association of Remittance Company Compliance Officers –Philippines (ARCCO-Phil.), Inc.

The incorporators of ARCCO are all then-incumbent compliance officers of the following MSB industry members:

  1. P.J. Cebuana Lhuillier (CEBUANA LHUILLIER)
  2. Direct Agent 5, Inc. (DA5)
  3. Vantage Financial Corporation (EBIZ)
  4. LBC Express, Inc. (LBC)
  5. Michel J. Lhuillier Financial Services Pawnshops, Inc. (M LHUILLIER)
  6. Moneygram Payment Systems, Inc. (MONEYGRAM)
  7. Eight Under Par, Inc. (PALAWAN PAWNSHOP)
  8. PETNET, Inc. (PERAHUB)
  9. Western Union Financial Services, Inc. (WESTERN UNION)
  10. Pera Gram, Inc. (PERAGRAM)
  11. RD Pawnshop, Inc. (RD PAWNSHOP)
  12. Rural Net, Inc. (RURALNET)
  13. Universal Storefront Services Corporation (USSC)

THE OFFICIAL JOURNEY BEGINS

As an official association representing the MSB industry and in continuous support of the financial inclusion programs of the Bangko Sentral ng Pilipinas (“BSP”), ARCCO aims to:

  • act as a forum for discussion for Non-banking Financial Institutions (NBFI) on Money Service Business (MSB) regulations and issues, and to advocate for the improvement of the MSB industry;
  • liaise with the BSP, Anti-Money Laundering Council (AMLC) and its Secretariat, and all other regulatory, supervisory and government institutions governing the Money Service Business; and
  • provide training services for entities and persons engaging or planning to engage in the Money Service Business.

On a more practical approach, ARCCO members work on educating themselves and developing shared expertise of identifying best compliance practices and industry risks, including emerging fraud and industry trends.
The Official Journey Begins

Young as it is, ARCCO has cemented its role in shaping the MSB industry. It has rolled out training to equip COs and the MSB in general with knowledge and skills to adapt to the digital age challenges and gatekeeping that the industry is not infiltrated by money launderers or any other financial crime actors. ARCCO has taken to heart its mandate of gatekeeping the integrity and growth of the MSB industry, stressing the importance to strike a balance between financial inclusion vis-à-vis achieving a level of assurance that the industry will neither be used nor abused by money laundering and, financing of terrorism, the proliferation of weapons of mass destruction, defrauding of financial consumers, promoting criminalities, thus leading to the discredit of the financial system.

In unity, there is strength and so, through the continuous efforts from the members of ARCCO, the quest begins to widen its reach.

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