Law Summary
Key Provisions on Acceptance of Pawn Items
- Pawnshops must verify that the pawner is the legitimate owner of the items offered for pawn (Subsection 4301P.1 of MORNBFI-P).
- Shops must ensure there is no reasonable suspicion that the items are stolen or otherwise illegally obtained.
Identification Requirements
- Pawners must present a valid photo-bearing identification document (ID) as a prerequisite for transactions (Subsection 4301P.3 of MORNBFI-P).
- This requirement is in addition to customer identification under Rule 9.1.c of the Revised Implementing Rules and Regulations of R.A. 9160 (Anti-Money Laundering Act), as amended.
- These measures are meant to prevent illegal activities such as money laundering.
Enforcement and Penalties
- Violations of these rules by any pawnshop entity—including owners, partners, board members, management, or employees—will attract sanctions.
- The applicable sanctions and penalties are established under various laws including:
- Sections 17 and 18 of Presidential Decree No. 114 (Pawnshop Regulation Act)
- Sections 4199P and 4399P of MORNBFI-P
- Section 14 of Republic Act No. 9160 (Anti-Money Laundering Act)
- Section 36 of Republic Act No. 7653 (New Central Bank Act)
Legal and Regulatory Framework
- The memorandum reinforces existing regulations to promote lawful pawnshop operations and protect public interest.
- It serves as a reminder to uphold regulatory compliance and prevent involvement in criminal activities.
Administrative Authority
- Issued by the Bangko Sentral ng Pilipinas (BSP), reinforcing its supervisory role over pawnshop operations as part of the financial system.
Summary
- Pawnshops must strictly verify ownership and detect stolen items.
- Valid photo ID from pawners is mandatory.
- Non-compliance will result in penalties under multiple laws.
- This memorandum aims to strengthen regulatory adherence and prevent abuse within pawnshop transactions.