BSP warns versus unauthorized deposit-taking activities

MANILA, Philippines – The Philippine central bank warned the public against transacting with unscrupulous individuals or entities who engage in unauthorized deposit-taking activities. 

“Only banks are allowed to accept deposits from the public,” Bangko Sentral ng Pilipinas (BSP) reiterated on Monday, April 6.

Deposits of up to P500,000 ($11,235.93) per depositor per bank are insured by the Philippine Deposit Insurance Corporation (PDIC).

BSP said that non-stock savings and loan associations (NSSLAs) are also allowed to accept deposits, but only from their eligible members.

“They are not authorized to accept deposits from non-members,” BSP said.

Also, deposits with NSSLAs are not insured by the PDIC.

An NSSLA’s membership is also confined to a “well-defined group” of persons as defined in its by-laws. 

“An individual may not transact with a NSSLA if he or she is not a member,” BSP said.

Protect your money

BSP has previously issued stern warnings and even went to court against unauthorized deposit-taking activities.

In 2013, BSP launched its Protect Your Money (PYM) campaign, telling the public that they must ensure that their bank is licensed by the central bank and that they only transact directly with authorized bank employees.

In 2012, the Regional Trial Court (RTC), Fifth Judicial Region, Branch 4 of Legazpi City, Albay, convicted all the members of the board of directors of a lending company based in Camalig, for engaging in illegal banking activity as it was accepting deposits from the public without authority from BSP.

As a lending company, Chantael Lending Corporation (Chantael) was allowed by the Securities and Exchange Commission (SEC) to only accept deposits from up to 19 depositors. BSP filed the case with RTC after it found out that Chantael accepted deposits from more than 20 depositors and issued certificate of time deposits (CTD) to them.

In 2010, BSP issued a stern warning following complaints on the unauthorized activities of certain individuals or groups posing as employees of banks, offering jobs as bank collectors or directly soliciting bank deposits from the public.

For the public’s protection, BSP said they should only transact directly with bank employees within the premises of the bank or with banks known to you. 

“Always keep in a safe place the proof of your deposit such as passbooks, copies of deposit slip, and certificate of time deposit,” BSP advised.

The BSP thus warning the public against illegal and unauthorized banking activities and the central bank will prosecute anyone found engaging in such illegal activities.

If you doubt about the safety of your deposit, you may contact:

Financial Consumer Protection Department
Supervision and Examination Sector
Bangko Sentral ng Pilipinas
5/F, Multi-Storey Building, BSP Complex
A. Mabini Street, Malate, 1004 Manila
Email: consumeraffairs@bsp.gov.ph
Telephone: +632 708 7087 (direct line); +632 708-7701 local 2584 (trunk line)

– Rappler.com

US$1 = P44.50