Question & AnswerQ&A (BSP MEMORANDUM NO. M-2013-020)
The memorandum emphasizes the strict adherence to the Know Your Pawner Policy and the requirement for valid identification documents in all pawnshop transactions.
Subsection 4301P.1 of the Manual of Regulations for Non-Bank Financial Institutions - P (MORNBFI-P) requires pawnshops to ascertain the true ownership of pawned articles and ensure they are not proceeds of robbery or theft.
Pawners must present a valid photo-bearing ID in addition to customer identification requirements under Rule 9.1.c of the Revised Implementing Rules and Regulations (RIRRS) of R.A. 9160, as amended (Anti-Money Laundering Act).
The pawnshop including its owners, partners, board of directors, management, and employees found to willfully or deliberately violate the rules and regulations shall be subject to sanctions and penalties.
Sanctions and penalties are provided under Sections 17 and 18 of Presidential Decree No. 114 (Pawnshop Regulation Act); Sections 4199P and 4399P of MORNBFI-P; Section 14 of R.A. 9160 (Anti-Money Laundering Act of 2001); and Section 36 of R.A. 7653 (New Central Bank Act).
The policy aims to ensure that pawnshops verify the identity of pawners and prevent acceptance of articles that are stolen or suspicious, thereby promoting transparency and preventing money laundering activities.
No, pawnshops are required to ascertain whether the pawner is the true owner of the pawned article and ensure there is no suspicion that the article is stolen or involved in robbery.
Deputy Governor Nestor A. Espenilla, Jr. signed the memorandum.
It applies specifically to pawnshops which are regulated as non-bank financial institutions under BSP rules.
Rule 9.1.c outlines customer identification requirements to combat money laundering, which pawnshops must adhere to alongside the presentation of valid ID documents.