SANA CREDIT

Securities and Exchange Commission ILIPPINES

BACONG PILIPINAS

FINANCING AND LENDING COMPANIES DEPARTMENT

IN THE MATTER OF: FLCD CDO Case No. 07

SANA CREDIT Respondent. CIRCULAR N0.19,SERIES 0F 2019 FOR: VIOLATION OF SEC MEMORANDUM Series of 2025.

X MEMORANDUM CIRCULAR NO.1O,SERIES

OF 2021, AND FINANCIAL PRODUCTS AND SERVICES CONSUMER PROTECTION ACT

CEASEANDDESISTORDER

presence at Apple Play Store, LoanPHI, and Similarweb. Platform ("OLP) named SANA CREDIT (the "Respondent") reported by EIPD showing virtual ("Commission" or "SEC") concerning the alleged operation of an unrecorded Online Lending This refers to the information received by the Securities and Exchange Commission

ANTECEDENTS

disclosure was filed in accordance with Memorandum Circular No.19,Series of 2019("MC 19") A review of the Respondent's records on file with the Commission reveals that no

which requires the reporting of any OLPs.

Respondent has been operating OLP without proper disclosure, in violation of the following: Additionally, verified information received by the Commission confirms that the

Reporting of Online Lending Platforms; MC 19 - Disclosure Requirements on Advertisements and

Platforms: Memorandum Circular No. 10, Series of 2021 ("MC 10") Moratorium on the Registration of New Online Lending

Products and Services Consumer Protection Act ("FCPA"). Republic Act No. 11765, otherwise known as the Financial

ISSUE

Whether a Cease and Desist Order (CDO) should be issued against the Respondent fo violations of MC 19,MC 10, and the FCPA?

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Page 2 of 3 SANA CREDIT RE: Cease and Desist Orde

RULING

Order against the Respondent is warranted and necessary. After due consideration, the Commission finds that the issuance of a Cease and Desist

including: of the above-cited regulations. By operating an unregistered and undisclosed online lending platform, the Respondent effectively circumvents the Commission's regulatory and supervisory authority. Consequently, the general public particularly borrowers are exposed to potential risks, The Respondent's failure to disclose the operation of its OLP constitutes a clear violation

Abusive and unfair debt collection practices;

Unjust interest rates;

Violation of data privacy rights.

the FCPA or its Implementing Rules and Regulations (IRR), or may unjustly cause grave or irreparable injury to financial consumers. No. 5, Series of 2023, the Commission is empowered to issue a CD0 without the necessity of a prior hearing if,in its judgment,the act or practice,unless restrained,constitutes fraud,violates Pursuant to Section 6(d)(4) of the FCPA, as implemented by SEC Memorandum Circular

"RULE 6

Powers of the SEC

against financial service providers for noncompliance with the Section 1. Powers of the Commission -- The Commission shall in the implementation of these Rules and the provisions of the FCPA, have the authority to impose enforcement actions FCPA, its IRR, and other applicable laws.

Such enforcement actions may include:

the SEC FCPA IRR, or may unjustly cause grave or irreparable injury or prejudice to financial consumers. A CDO is service provider without the necessity of a prior hearing if, in the Commission's judgment, the act or practice, unless immediately executory upon service or publication on the "Issuance of a cease and desist order ('CDo') to a financial restrained, amounts to fraud or a violation of the FCPA and/or Commission's website." (Emphasis supplied)

finds it necessary to issue this Cease and Desist Order in order to prevent further harm or lending companies. prejudice to the public, and to safeguard the integrity of the regulatory framework governing In light of the Respondent's continued unauthorized operation of its OLP, the Commission

hereby DIRECTED TO IMMEDIATELY CEASE AND DESIST from engaging in,conducting promoters, representatives, agents, and any and all persons claiming or acting on its behalf, are promoting, or facilitating any lending-related activities or through any similar or relate WHEREFORE, premises considered, SANA CREDIT including its owners, operators

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Page 3 of 3 SANA CREDIT RE: Cease and De'sist Order

platforms, whether online or offline, without the necessary registration and approval from the Commission.

publication on the Commission's official website. Let this Order be served immediately and be deemed executory upon service or

SO ORDERED. &July 2025, Makati City.

dmmk MN

Kenneth Joy A.Quimio OIC Director /

mnvo

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