Money-Changer / Money Service Business (MSB) Guide (Philippines)
Practical, Philippines-focused step-by-step guide with fee and capital notes to start a money-changer or money service business (MSB), covering BSP authority, AMLC registration, company registration, tax, and local permits.
What you'll learn in this MSB / money-changer guide
This money-changer / money service business guide explains the legal and compliance path you must follow in the Philippines: corporate setup, BSP MSB authority, AMLC registration, tax registration, local permits, and ongoing reporting obligations.
For complementary legal topics, you may also want to read our SEC Partnership/Corporation Registration Guide, BIR Business Registration Guide, and Digital Tax Filing (eBIRForms) Guide.
Para ma-planong mabuti ang capital, security setup, at monthly compliance costs, puwede mong gamitin ang Budget Calculator para sa capital at gastos, ang Task Management System para sa reporting deadlines at AML tasks, at ang Fieldperson Location Tracking kung may roving staff ka for cash runs and branch checks.
Quick summary (high-level)
- Decide your business structure and register with DTI (sole prop) or SEC (corporation).
- Apply to the Bangko Sentral ng Pilipinas (BSP) for authority to establish and operate as an MSB (money-changer / FX dealer).
- Register as a covered person with AMLC and set up AML/CFT compliance (officer, training, reporting systems).
- Register with BIR, obtain barangay and mayor’s permits, and secure lease, staffing, and security systems.
- Maintain ongoing BSP/AMLC/BIR reporting and renew permits as needed.
Detailed step-by-step with fees & notes
1) Decide business structure & reserve name
Decide whether to operate as a sole proprietorship or a corporation/partnership. Many MSBs prefer a corporation for governance and capital reasons.
If sole prop, register your business name with DTI. If corporation/partnership, prepare Articles and register with SEC.
SEC fee note (for corporations):
SEC government fees depend heavily on authorized capital. Examples show combined filing, legal research, and documentary fees in the ₱3,000–₱30,000 range for many small corporations. Name reservation is often around ₱100.
2) BSP: Apply for authority to establish & operate as an MSB
The Bangko Sentral ng Pilipinas (BSP) supervises MSBs (remittance agents, money changers, foreign exchange dealers). You must get BSP approval before operating your money-changer.
Multi-stage BSP process (summary):
- Stage 1: Submit application and initial documents to BSP.
- Stage 2: BSP may issue a Letter of No Objection or conditional authority to proceed with SEC registration and other steps.
- Stage 3: Issuance of the Certificate of Authority to operate as an MSB.
BSP provides detailed checklists and templates for each stage on its MSB pages; always follow the latest circulars and guidelines.
Capital requirements (very important):
Recent BSP rules introduced higher minimum capitalization for certain large-scale MSBs (example public guidance: around ₱50,000,000 for some large remittance operators). Smaller money changers and FX dealers have lower thresholds, but the exact minimum depends on your category and the latest BSP circulars.
Action: contact BSP’s Financial Supervision Sector (FSS) / Licensing Unit to confirm the current minimum capital and documentary checklist for your planned MSB type.
3) AMLC registration & AML/CFT compliance
Money changers and MSBs are covered persons under the Anti-Money Laundering Act. You must register with the Anti-Money Laundering Council (AMLC) and comply with AML/CFT rules.
Key AML actions:
- Register the entity and your Primary Designated Officer / Compliance Officer via the AMLC online portal.
- Attend mandatory AML/CFT training or accredited seminars for key staff.
- Draft and approve written AML policies: KYC/CDD procedures, recordkeeping, STR/CTR reporting, risk assessment.
- Set up systems to file Suspicious Transaction Reports (STRs) and Covered Transaction Reports (CTRs) electronically.
AMLC registration is typically administrative, but training, IT systems, and compliance setup can create significant costs that vary widely by size and complexity.
4) Local permits, business tax, and BIR registration
After you have progressed with BSP (typically after a Letter of No Objection), you’ll proceed to complete corporate registration and local permits:
- SEC registration finalized (for corporations).
- BIR registration (COR, books, receipts; choose tax types and register branches as needed).
- Barangay clearance for your office or branch location.
- Mayor’s/business permit from the LGU where you operate, including applicable business taxes and inspections.
Estimated local costs (very variable):
Combined Mayor’s permit, barangay clearance, and community taxes can fall in the ₱5,000–₱30,000 range or higher depending on LGU, declared capital, and space.
5) Operational & compliance buildout (non-government costs)
Beyond government fees, expect significant private-sector costs to run a compliant MSB:
- Lease and shopfit (secure counters, bullet-resistant glass if applicable, CCTV, vaults, secure doors).
- Bank relationships for FX liquidity and deposit management.
- IT and reporting systems for AML monitoring, transaction recording, and BSP/AMLC reporting.
- Insurance, security guards, and cash-in-transit arrangements.
Initial capex plus working capital typically reach hundreds of thousands to millions of pesos depending on branch size, location, and risk appetite.
6) Ongoing compliance & reporting
Once operating, you must maintain regular reporting and compliance with several regulators:
- BSP reports (prudential and statistical reports to the relevant BSP department).
- AMLC STR/CTR filings and AML/CFT program reviews.
- BIR tax filings (monthly/quarterly/annual returns) and bookkeeping.
- LGU permit renewals (Mayor’s permit, barangay clearance) and regulatory inspections.
Non-compliance can lead to administrative sanctions, closure orders, and even criminal liability, so budgeting for ongoing compliance is essential.
Typical documents you’ll prepare
- Company documents: Articles of Incorporation/Partnership, By-laws, and board resolutions.
- Ownership and beneficial owner information; proof of paid-in capital or financial capacity.
- BSP Personal Data & Authorization Forms (PDAF) for owners and qualified persons.
- AMLC registration acknowledgment and AML training certificates for key staff.
- Lease contract, local permits, and bank reference letters.
- Formal AML/CFT policies and evidence of Compliance Officer appointment.
Where fees are uncertain & must be confirmed
- BSP: confirm exact filing fees (if any) and the minimum capitalization for your MSB type from current BSP circulars.
- SEC: use the SEC fee schedule or a corporate services provider to estimate fees based on your authorized capital.
- LGU: contact your city/municipal business permit office for accurate Mayor’s/Barangay permit costs and local taxes.
Practical next actions (what to do now)
- Decide on business form (sole prop vs corporation) and estimate authorized capital.
- Draft Articles (if corporation) and check SEC fee estimates using their schedule or a corporate secretary.
- Contact BSP’s Financial Supervision Sector / Licensing Unit for the latest MSB checklist and minimum capital requirements.
- Register with the AMLC online portal and schedule AML training for your designated Compliance Officer.
- Plan your local permits (barangay and Mayor’s), BIR registration, and corporate bank account setup.