The Securities and Exchange Commission (SEC) of the Philippines revoked the license of Robocash Finance Corporation for running several branches that are not approved by the authorities.
Robocash is a financing company from Russia that expanded in Southeast Asia. In 2017, it was launched in the Philippines and earned customers’ satisfaction for its simple and easy loan process.
Unfortunately, the country’s corporate regulator said Robocash violated the Financing Company Act of 1998 (FCA).
The company has also admitted that it has operated branches without legal certifications despite knowing the requirements but has defended that it did not violate the law with malicious intent.
This claim was only dismissed by SEC saying that it has no merit as Robocash was able to secure the necessary authorizations for some 32 branches. SEC’s Corporate Governance and Finance department furthered that the microlending firm “knowingly and willingly committed repeated violations thereof.”
The law states that the SEC may suspend or revoke the license of any erring financing company after proper notice and hearing. To date, a total of 2,081 lending and financing firms were already terminated by SEC as part of its massive crackdown of unlawful corporations.