Professional Documents
Culture Documents
Dear Sir,
We would like to respectfully file our application to establish and operate a new pawnshop as a
result of our failure to re-register our present pawnshops as mandated by the BSP. We would deeply
apologize for our inability to re-register. I have been diagnosed with cardiomyopathy following my
heart-bypass that i was remised of my responsibility as owner of the pawnshop. Words could not
describe our irresponsibility. No justification or rationalization for our wrongdoings. Mea culpa sir. We
would like to thank you for giving us another chance to re-apply as you suggested in your letter dated
December 23, 2020 wherein we were given 60 banking days from receipt (Jan. 17, 2021)to furnish your
office the requirements..
Inasmuch as we will be applying for a new pawnshop, we would like to apply as a corporation
and to consolidate the two (2) pawnshops if possible, sir namely the VPConcepcion Pawnshop,
registered under my name, and VPCon Pawnshop registered under the name of my brother, Vicente P.
Concepcion. The later will be a branch of VPConcepcion Pawnshop (as the Corporation).
1. Business Plan
2. Personal Data and Authorization Form, Licensing Form 01-004
3. NBI Clearances
4. Bank Certification/Treasurer’s Certificate
5. Duly Notarized Certification that the funds were not derived from borrowings, unlawful
Activity or any money laundering activity
6. Proof of provisional registration with the Anti- Money Laundering Council Secretariat.
7. Official Receipt of Filing Fee
8. Description of our In-House Stand-alone Database System which will generate Daily Reports i.e
Loans Granted (New), Loan Renewed and Loans Paid with all the details, and Exportable
Schedule in Excel Form the inventory of Loans Outstanding Real Time and the Maturity Patterns
( 30 days maturity, 90 days maturity, 180 days maturity and over 180 days maturity). It likewise
includes the Daily Cash Position at the end of day.
This Letter of Application forms part of the Stage 1 of the approval process. Please acknowledge
receipt hereof. Please inform us sir, of other lacking requirements/documents to process our
application. Thank you and more power to the BSP.
VERANIO P. CONCEPCION
VPConcepcion Pawnshop
VPcon Pawnshop
BUSINESS PLAN
PURPOSE:
VPConcepcion Pawnshop aspires to emerge as a leading local pawnshop in our community with
the aim in view of giving interim financing to our town mates most especially to our agri-based clientele
namely the tobacco and rice farmers and all others which are not given access to traditional lenders
such as banks due to their lack of education, real estate collaterals and tedious procedures in applying
with these financial institutions.
VISION:
MISSION:
To provide our customers with the best product possible without compromising sustainability
and profitability.
To remain true to our commitment that our customer’s pledged possessions are secured.
To share the success with our employees and provide them opportunities for career growth in
an environment built in openness, trust and integrity.
To give back to the community part of our blessings in the practice of our corporate social
responsibility with emphasis on education and environmental protection.
1. Offering a more humane product line by giving better terms in our pawning operations.
Customers are given 7 days grace period wherein the pawner may pay within 7 days from the
maturity date without any penalty or extra one month interest unlike other pawnshops which
collect extra one month and penalty charges even with just one day lapse from maturity date.
2. Giving discounts on interests which is not a regular practice in the pawning industry.
3. Lower interest rate on short term loans at 2% per month.
To remain true to our commitment that our customers’ pledged possessions are secured.
1. To secure the pawned items by providing the vault with two vault doors and One grill door in
addition to the safe. Unlike banks and other pawnshops, VPConcepcion Pawnshop uses two (2)
vault doors making it more difficult for robbers to get the pawned items. As such, it will entail
four combination locks before anybody could enter the vault in addition to the safe.
2. Security Measures of the combination lock numbers are instituted.
3. Security Providers like the Trace Alarm and 911 Security which monitor real time the activities of
the pawnshop.
4. In house CCTV system in Place with remote visibility through Smart Phone/s.
5. Motion Cameras are in place especially at night.
6. Strong Coordination with the Local Police
To share our success with our employees and provide them opportunities for career growth in an
environment built in openness, trust and integrity.
1. Employee Performance and Reward System. Employees are given a midyear bonus equivalent
to one month gross, and a one month bonus on December plus 13 month pay as provided by
law.
2. Out-of-the-Country and local trips as a reward system for annual budget attainment
3. Regular employee benefits like Philhealth, SSS and Pag-ibig.
To give back to the community part of our blessings in the practice of our corporate social
responsibility (CSR) with emphasis on education and environment.
The database program incorporates a seven (7) days grace period wherein pawners may
pay/renew without penalty and without additional one month interest to allow our pawners some
flexibility since cash may not always be available exactly on the maturity date. Additional interest and
penalty charges may only be charged after 7 days. But in some instances, we allow up to 10 days
depending on our relationship with the pawner.
The authorized Capital will be TWO MILLION PESOS (P2,000,000) and a fully paid up
capitalization of Two Million Pesos (P2,000,000). The funding is sourced from the Retirement benefits of
the Owner, Veranio P. Concepcion from Traders Royal Bank as a former Assistant Vice President-
Regional Head in 2001 and with Bank of Commerce, Head Office as Area Head-Mindanao. Other
Incorporators sourced the funds from their personal savings and income from their other businesses.
Additional funding will be infused when needed to address the financing need of the pawnshop.
The schedule on the capital contribution of the Corporation is attached for your reference.
TARGET MARKET:
Tobacco and Rice Farmers: Our community is predominantly agri-based. The economy
depends on tobacco industry. The town of Balaoan is one of the leading tobacco producers in the
whole country and has the distinction of having the best quality of tobacco due to the land adaptability
to the product and topography. The production of tobacco is a long process, from farm preparation,
seedling propagation, transplanting of seedlings, growing period, harvesting and post-harvesting
processes like slow-baking thru “pugon” which is a wood-fired clay oven. The cycle is about 4 to 5
months starting early January to May of every year.
Within the time frame that they are tilling tobacco, they initially need fertilizers and funds for
tractor rental for the ploughing of their fields in preparation for the transplanting of the seedlings.
While growing, they spend manpower cost since it calls for watering each plant twice a day. This is
manpower intensive. Some use water pumps to water the plant every day. Upon harvesting, tobacco
leaves are baked thru “pugon oven” which is wood-fueled. The cost of hardwood with high BTU cost the
farmers a big chunk of their expense. Along the way, they seek for funding on these production inputs
and expenses not to mention the fact that these farmers need money for their daily sustenance.
VPConcepcion Pawnshop has always been their refuge. As Ilocano farmers, they are prudent in
borrowing money. They use the funds really for production purposes such that repayment is almost
100%.
RICE FARMERS: Rice production comes next after tobacco season. 95% of the agricultural
fields are not irrigated such that farmers depend on rains to soften their rice fields. The cycle starts June
to November. During these times, the farmers need again financing for the schooling of their children
like tuition fees, uniforms and other school requirements. VPConcepcion Pawnshop fills in the gap.
Through the years, many children of these farmers are now educated and some go to State-colleges to
graduate thereby improving their lives. We are grateful that the pawnshop has in a small way help in the
lives of our farmers-clientele.
OVERSEAS FILIPINO WORKERS (OFW)- The town of Balaoan has a sizeable amount of OFWs in
Hongkong, Singapore, Malaysia and the Middle East working as Domestic Workers and construction
workers. They regularly send their remittances monthly such that when their remittances are delayed
due to unavoidable circumstances in the location of their employ, the beneficiaries come to the
pawnshop for their interim funding.
OTHERS: All other clients not categorized as Tobacco Farmers, Rice Farmers or OFWs which
need financial assistance such as but not limited to augment tuition fees, unexpected hospital expenses,
agency fees for possible overseas jobs, transportation to seek employment in Manila/Baguio, or even
additional working capital for small and medium-sized entrepreneurs.
OTHER SALIENT FEATURES: VPConcepcion Pawnshop follows our slogan, “Mataas ang appraisal,
mababa ang interest at pwede makiusap, at may 7 days na grace period pa”. In practice, we adhere
great understanding to the predicament of our pawners. We cannot just foreclose at the end of the 90
day expiry date. In case they request to withhold the foreclosure and the ultimate auction of their
pawned items, we allow them to delay auction especially if the appraised value still covers the extension
period. The extension is usually not more than 1 month from date of Letter of Advise or 1 month from
expiry date whichever is later. In our experience, majority pay or renew their pawns at extension date.
The pawnshop mindset is not always centered in profits on the pawned item but we give them chance
to redeem their jewelries, the family heirloom or the fruits of their labor. Money is not everything. We
value relationship.
TARGET NETWORK (i.e. number of branches/offices)
If approved by the BSP, VPConcepcion Pawnshop envisions to have the following offices, to wit:
Initial number of transactions is projected at 2,000 transactions a year. This is expected to increase as
time goes by when new customers are expected to be generated.
3. On New Pawns
Request any Government ID: SSS, GSIS, Voter’s ID, Philhealth, Drivers License,
Philippine Passport , Professional Regulations Commision, Senior Citizen Card only if
locally issued, Gov’t. IDs issued by Government-Owned and Controlled such as Armed
Forces of the Philippines, Bangko Sentral ng Pilipinas and Pag-ibig as Primary ID.
In the absence of Primary ID, presentation of 2 other secondary IDs such as Postal ID,
Senior Citizen Card if other towns, Tax Identification ID, Overseas Filipino Worker (OFW)
ID , ID issued by the National Council of Disability Affairs, Integrated Bar of the
Philippines ID , National Bureau of Investigation (NBI) clearance, Barangay Certification ,
Seaman’s Book, DSWD Certification, Professional IDs like Maritime Industry Authority
(Marina), Picpa or nationally-accepted Professional Groups, among others.
IDs will be photocopied and will be stored in the database along with the facial photo.
Filling up of the Loan Application Form to include the Name, full and complete address,
telephone number/cell phone number, description of pawn (ring, college ring, bracelets,
earrings, bangles, etc), with full signature. Birthday, name of the Barangay Captain and
Maiden name of the mother will also be included which will serve as security questions
when renewing/redeeming the pawns.
Appraisal of the pawn items and valuation of the pawn value by the Appraiser.
Manager: After appraisal, the Manager will scrutinize the pawn items, application form
and the computation of the appraised value and after which he approves the pawn. The
Manager has the option to re-appraise the offered item especially if the pawn is
substantial.
Confirmation of the pawn value by the Teller/Front Officer with the pawner if
acceptable.
If acceptable: filing up of the Pawn Ticket and the scanning of the IDs and the picture-
taking of the full face of the pawner. After the pawner checks the details on the Pawn
Ticket, he/she will sign the Pawn Ticket to be given to the Manager for his signature.
Signing of the Pawn Ticket by the Manager, scrutinizing the details of the pawn ticket
vis-a-vis the application form and the Valuation Ticket made by the Appraiser.
Together with the signed Pawn Ticket, the Teller hands the pawned items to the
Manager. Seals the pawned items in the envelope with the application form. Sealing
the items in the envelope will jointly be done by the Manager, Vault Custodian and the
Appraiser.
Cash payment/disbursement upon signature of the Manager in the Pawn Ticket.
Handing out the original copy of the Pawn Ticket, the IDs and cash to the Customer
Manager to hand the sealed envelope to the Vault Custodian. The vault Custodian
simultaneously signs the duplicate copy of the Pawn Ticket signifying and acknowledging
his/her receipt of the pawned items for custody. Vault Custodian records the details to
his Ledger Record/Registry to be co-signed by the Manager and Appraiser.
Encoding the Pawn Ticket to the Database by the Bookkeeper. Validates the signature of
the Vault Custodian on the duplicate copy of the Pawn Ticket for his
acknowledgement/Receipt of the pawned items (envelop).
Bookkeeper/Encoder will generate the Report New Loans Granted for the day. Print and
give 1 copy to the Bookkeeper and One to the Manager for their files.
At the end of the day, the Vault Custodian and Manager collates all the envelope of all
pawned items and compare it with the database report as to the New Loans Granted for
the Day. This way, all loans granted for the day are all accounted.
Vault Custodian will file the envelope inside the safe vault properly and chronologically
as to Pawn Ticket Number.
4. On Renewal of Pawns
Presentation of the Original Copy of the Pawn Ticket to be renewed by the Pawner.
If the pawner is the one personally renewing the pawn, retrieve the picture from the file
and compare. If it is not recognizable, request an ID. And ask the three security
questions: 1. Birthday 2. Name of Barangay Captain 3. Maiden Name of the mother.
If a representative will renew the pawn, the Teller will check and confirm the signature
of the pawner on the front page of the pawn ticket, the back side and the Application
Form for security reasons.
1. Request a Primary ID and/or 2 secondary ID of the representative.
2. Facial Picture Taking of the representative.
3. Photocopy the IDs and the facial picture to be stored to database.
4. Compares the signature of the representative on the submitted IDs from the
signature at the backside of the Pawn ticket.
Teller to request the envelope containing the pawned items by presenting the Pawn
Ticket being renewed to the Vault Custodian
Vault Custodian will request approval to the Manager. Vault Custodian takes out the
envelope, records the acknowledgement of the pawned item in his Record Register.
Both Vault Custodian and Teller sign in the Record Register and approved/validated by
the manager.
Ensure that the details as indicated on the front of the envelope like pawn ticket
number, name of the pawner, address, telephone/cell phone number, description of
the pawned items are the same as indicated in the Original Pawn ticket being renewed.
Once validated, compute the interest and penalty if there is. Accept the money
(interests and penalty charges, if any from the Pawner.
Teller to prepare the new Pawn Ticket. Pawner will check and confirm the details of the
pawn ticket and signs it. The name on the New Pawn Ticket is still the same as original.
Teller to give the New Pawn ticket for the signature of the Manager who will re-check.
Teller to hand out the original copy of the new Pawn Ticket and the IDs to the Customer.
Simultaneously, the Teller stamps the old Pawn Ticket “RENEWED” and the date of
renewal.
Manager to hand out the sealed envelope back to the Vault Custodian. The vault
Custodian simultaneously signs the duplicate copy of the Pawn Ticket signifying and
acknowledging his receipt of the pawned items. Vault Custodian records the details to
his Ledger Record/Registry to be co-signed by the Manager and Appraiser.
Encoding the Pawn Ticket to the Database by the Bookkeeper. Validates/Recheck the
signature of the Vault Custodian on the duplicate copy of the new Pawn Ticket signifying
his acknowledgement/Receipt of the pawn items under his custody.
Bookkeeper/Encoder will generate the Report on Renewed Loans for the day. Print and
give the same to the Manager. Collates all the Renewed Pawn Tickets for filing.
At the end of the day, the Vault Custodian and Manager collate all the envelopes of all
pawned items of renewed for the day, and compare it with Loans Renewed for the Day
Report generated from the database.
Vault Custodian will file the envelope inside the safe vault properly and chronologically
as per Pawn Ticket Number.
5. On Pawns Redeemed/Paid
Once validated, the Teller computes the interests and penalty if there is. Accept the
money from the Pawner.
Teller to request the envelope containing the pawned items by presenting the Pawn
Ticket being redeemed to the Vault Custodian
Vault Custodian will request approval to the Manager. Vault Custodian takes out the
envelope and records the acknowledgement of the pawned item in his Vault Registery.
Both Vault Custodian, Appraiser and Teller will sign in the Record Registery and
approved/validated by the manager and give the envelop to the Teller.
Teller ensures that the details as indicated on the front of the envelope like pawn ticket
number, name of the pawner, address, description of the pawned items are the same as
indicated in the Original Pawn ticket being redeemed. (2 nd check)
Teller will open the sealed envelope at the presence of the Pawner/his representative.
Pawner/Authorized Representative will sign the “received by” at the back of the Original
Pawn Ticket. Re-check both signatures, the authorization signature (if third party) and
the actual Received Signature. Both signatures have to be identical. Else, do not
transact.
Teller will inform the client as to the amount due, collect and then hand-over the
pawned item/s.
Teller will stamp “PAID” on the original Pawn ticket and the date of redemption.
Encoding the Pawn Ticket to the Database by the Bookkeeper/Encoder.
Validates/Recheck that the Pawn Ticket which is Stamped “Paid”, signifying the release
of the Pawned Item.
Bookkeeper/Encoder will generate the Report on PAWNS For the Day. Print two (2)
copies for the Manager and the Bookkeeper for their respective files. Compare the
Report on Paid Pawns for the Day with the Vault Registry (3 rd check)
At the end of the day, the Vault Custodian and Manager collates all the Pawn Tickets
Paid with Stamp “ PAID” and compare it with the database report on Pawns Paid for
the Day Report (4th Check)
Bookkeeper will file all the PAID pawn tickets properly for safe keeping according to the
chronology of the Report of Paid Pawns Today which is generated from Database.
ALBERT, PLS INSERT THE DIAGRAM ON PAWNS PAID
1. Consumer Complaints are addressed properly. Complaints can be avoided if transactions are
made with transparency and honesty, and if proper documentation is always followed.
Essentially, complaints are most common on the following:
All other complaints which cannot be addressed are encouraged to write/email to BSP
as the regulatory body governing pawnshops in the following avenues:
1. www.bsp.gov.ph
2. Physical Address:
Bangko Sentral ng Pilipinas
Financial Supervision Department IX
Financial Supervision Sector
14th Floor, Multi-Storey Building
A. Mabini Street, Malate
Manila 1004
3. Tel. No. +63 (2) 8706-7011
Direct Line: +63(2) 8708-7297
4. Email: FSD9@bsp.gpv.ph
The Database System is stand-alone system for VPConcepcion Pawnshop which was created for
the purpose of computerizing the daily transactions of the pawnshop including the retrieval process and
back-up system. This has been utilized by VPConcepcion Pawnshop since 2011.
The Database System could generate the following schedules at the end of every transaction
date, to wit:
1. On-the spot/Real Time Retrieval Process of each Pawn Ticket* by just encoding the PT. Number
in the supplied window. When retrieved and printed, the report is an exact replica of the
original Pawn Ticket which contain the following data:
Pawn Ticket No.
Name of Pawner
Address
Amount of Pawn
Interest Rate
Date Granted
Maturity Date
Expiry Date
Accrued Interest on a per month basis
Accrued Penalty on a per month basis
Total Interest and Penalty, as of date
Type of Pawned Items
Appraised Value
Weight
Karat
*This hard copy will be used by the Pawner in case the Pawn Ticket is lost. Prior to the
issuance of the hard copy, the pawner should sign the pro-forma letter requesting for the
details of his/her pawn ticket and after his/her presentation of a valid and other proper
identification/s. The signatures will be compared with the signature of the duplicate Pawn
Ticket in our file plus our Photo-File. Additionally, the pawner should also answer of our
security question like birthday of the pawner and/or the name of their Barangay Captain as
additional security measures. The details on the hard copy will be used as inputs to the
Affidavit of Loss duly notarized by a lawyer.
4. Exportable Excel on All Outstanding Pawns* segregated by Date of Grant which include
the following:
Date of of Pawn
PT Number
Principal
Name of Pawner
Quantity
Weight
Karat
Description of Pawned Items
*the excel file on all outstanding pawns will be used during our regular/random auditing.
The envelop chronologically arranged by date of grant will be checked from the
the excel schedule to attest the physical presence of the envelope containing the
pawned items.
5. The exportable Excel Schedule of the Outstanding Pawns could also be segregated as to
remaining life of the Pawn Ticket (Maturity Pattern) as part of our risk asset management.
6. The exportable Excel Schedule could also segregated/classified as to the amount of the
Principal, to wit: (also part of our Risk Management).
*This is our threshold amount for our report to the AMLA. Prior to granting of the said
Pawn, we require a submission of self-declaration of the fund utilization of the pawned
amount and an Affidavit of Ownership of said Pawned Item duly notarized by local
Notary Public. Thus far, in our past experience since the inception of the pawnshop, we
have not reached the P500,000 pawned amount by one pawn ticket or a accumulation
of Pawn Tickets by one single Pawner/family aggrupation.
2. DAILY CASH POSITION. This Report is generated to account the movement of cash from the daily
transactions. The Ending Cash in the Report will be used to balance with the actual/physical Cash
and Cash in Bank to signify that all transactions are fully accounted for. The Total physical cash and
Cash In Bank should be equal to the ending Cash Balance in the Daily Cash Position as validated by
the Bookkeeper, the Appraiser and Manager.
3. SECURITY MEASURES/BACK-UP FACILITY: The outstanding loans and details of the Pawn Tickets are
backed up thru a USB and DVD every other day in exportable excel form. Aside from the excel of all
outstanding loans, we maintain a cloned hard disk of the database as a backup in case of program
failure. The Hard disk, USB and DVP are stored in the other branch for safekeeping. Henceforth,
both the database system and the outstanding Pawns are fully backed up.
In our 10 years using the present system, we have not encountered any program failure. The PC
where the database is stored is exclusively used of this purpose. No other file is stored in the PC
allotted for the program to avoid virus. Our present personnel are equipped to undertake the
retrieval process, although our Programmer is always available to assist us.
FEATURES AND FUNCTIONALITIES of the database system will be demonstrated/walked-thru upon on-
site inspection by the representatives of the BSP. Sample copies/screen shots of the various output
reports maybe forwarded upon request.
OTHER SALIENT MATTERS: DUTIES AND RESPONSIBILITIES OF COMPLIANCE OFFICER FOR AMLA (KYC)
1. To ensure the proper and timey compliance with reporting procedures set by the AMLA Council,
taking into priority the thresholds and red flags for possible money laundering scheme/s.
2. To attend prescribed AMLA seminar/s and future seminars for updates and new AMLA policies.
3. To train and guide all the personnel to be vigilant on money laundering schemes and other
suspicious transactions whether fully transacted or not, and to document and report the same
to the Compliance Officer for reporting to AMLA with the set deadlines by the Council.3.
4. To implement the KYC standards set by Management and AMLA Policies.
5. To function all other works in compliance with all the other rules and regulations of AMLA.
RESPONSIBILITIES OF THE CORPORATION ON AMLA
1. To let the Compliance Officers and at least One Shareholder to attend to the Seminar of the
AMLA to conform with the requirement set by the Bangko Sentral ng Pilipinas.
2. To ensure that the reports are submitted properly and timely to the AMLA by the Compliance
Officer.
3. To ensure that continuous briefings and meetings are done regularly to all employees to attune
to the regulations of the AMLA including updates if there are.
4. To implement the KYC standards set by Management and other present and future policies of
the AMLA.