Online lending companies looking to publish their apps in Google’s Google Play Store are now required to submit documents issued by the Securities and Exchange Commission (SEC) .
This was a result of the SEC’s own recommendation for Google to have a more stringent approval process for online lending apps in the Philippines.
The Philippines is only the third country where Google will implement the additional requirements for developers of personal loan apps to curb the proliferation of illegal and abusive lending activities online, the other two being India and Indonesia.
The SEC said the policy will take effect May 11, 2022, where online lending apps will now be required to submit a Personal Loan App Declaration and other documentation before their apps could published on Google Play Store.
“In the declaration form, developers shall state that they are registered with and duly licensed by the SEC Philippines to operate an online lending platform (OLP), or to perform lending-based crowdfunding activities, such as peer-to-peer lending, or to act as a crowdfunding intermediary,” the SEC said.
“Also, developers shall confirm that they are engaged in a lawful business activity and are undertaking the same in compliance with the applicable laws,” it added.
Personal loan apps operating in the Philippines without proper declaration and license attribution will then be removed from the Play Store, the SEC said.
In the event where the submitted license, registration or declaration is no longer valid under the applicable laws, the developers are required to promptly remove the app from Google Play Store.
In November 2021, the SEC imposed a moratorium on new OLPs while it drafts guidelines on the registration and licensing of OLPs. Under SEC Memorandum Circular No. 10, Series of 2021, only those registered as of November 2, 2021 may operate and be used for online lending or financing, subject to strict monitoring.
“Aside from reporting and requesting for the removal of unlicensed lending apps from Google Play Store, the Commission has enjoined the US-based technology giant to verify the legitimacy of lending and financing companies looking to develop and publish their apps,” said
Emilio Aquino, SEC chairman, adding the Commission has been in correspondence with Google since May 2019 to address the proliferation of unregistered personal loan apps.
Aquino said the SEC regularly monitors lending and financing companies for their compliance with applicable laws, rules and regulations, in a bid to protect borrowers from abusive, unethical, and illegal lenders.
“To date, the Commission has revoked the Certificates of Registration of more than 2,000 lending and financing companies, which failed to secure their requisite CA, and canceled the CA of 37 financing and lending companies due to various violations of applicable rules and regulations,” he said.
“In addition, the Commission has ordered 72 OLPs to cease operations for lack of authority to operate as a lending or financing company,” Aquino said.
