Overview of the BSP’s. KYC Policy. Meeting of the Cash Working Group. UN WFP Office, Bonifacio Global City, Taguig. 12 November BSP Circular Circular No. Subject: Updated Anti-Money Laundering Rules and Regulations. By the authority vested to the Bangko Sentral ng Pilipinas (BSP) to issue. Circular No. Subject: Updated Anti-Money Laundering Rules and Regulations By the authority vested to the Bangko Sentral ng Pilipinas (BSP) to issue.
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Comply fully with these rules and existing laws aimed at combating money laundering and terrorist financing by making sure that officers and employee are aware of their respective responsibilities and carry them out in accordance circuoar superior and principled culture of compliance; and. Enhanced due diligence shall be applied to customers that are assessed by the covered 70 or by these Rules as high risk for money laundering and terrorist financing.
Knowing that a customer was or is engaged or engaging in any unlawful activity as herein defined. For this purpose, a covered institution shall limit the acceptance of second-endorsed checks from properly identified customers and only after establishing that the nature of the business of said customer justifies, or at least makes practical, the deposit of second-endorsed check.
UBs and KBs with existing electronic system of flagging and circu,ar transactions already in place shall ensure that their existing system is updated to be fully compliant with functionalities as cicrular required herein.
High risk customer – A customer from a country that is recognized as having inadequate internationally bsl anti-money laundering standards, or does not sufficiently apply regulatory supervision or the Financial Action Task Force FATF recommendations, or presents greater risk for crime, corruption or terrorist financing is considered a high risk customer.
Inquiring from the supervising authority the status of the entity; 3.
Transacting without any underlying legal or trade obligation, purpose or economic justification; b. For individual customers, a covered institution may open an account under the true and full name of the account owner or owners and defer acceptance of the minimum information. Covered institutions shall undertake the necessary adequate security measures to ensure the confidentiality of such file. Third Party is covered institution specifically defined by these Rules and as generally defined by AMLA, as amended, and its RIRR – Bspp covered institution may rely on the identification process 760 by this third party provided that the covered institution shall obtain from the third party a written sworn certification containing the following: Country of origin and residence or operations; 3.
The certificate of registration shall be for each head office, branch, agent, sub-agent, extension office or business outlet of foreign exchange dealers, money cicular and remittance agents.
There is no underlying legal or trade obligation, purpose or economic justification; 2. Confirming the date of birth from a duly authenticated official document; 2.
It shall also report compliance findings to the Board or any Board-level committee. Justifies re-classification of bps customer from low or normal risk to high-risk pursuant to these Rules or by its own criteria; or 3.
F Unlawful activity refers to any act or omission or series or combination thereof involving or having direct relation to the following:. Must provide a complete audit trail; 6.
Form of Records – Circulsr shall be retained as originals or copies in such forms as are admissible in court pursuant to existing laws, such as the e-commerce act and its implementing rules and regulations, and the applicable rules promulgated by the Supreme Court. Annual monitoring and review by the covered institution of the performance of the counter-party to assist it in determining whether or not to continue with the arrangement.
Has the capability to record all STs and support the investigation of alerts generated by the system and brought to the attention of Senior Management whether or not a bap was filed with the AMLC.
Internal Audit – The Internal Audit function associated with money laundering and terrorist financing should be conducted by qualified personnel who are independent of the Board of Directors and Senior Management and have a direct reporting line to the Board or a Board level Audit Committee.
For non-covered institution counter-party: Pursuant to Section 20 of the General Banking Law ofa bank authorized by BSP to establish branches or other offices within or outside the Philippines shall be responsible for all business conducted in such branches and offices to the same extent and in the same manner as though such business had all been conducted in the head office.
B Covered transaction CT is a transaction in cash or other equivalent monetary instrument involving a total amount in excess of five hundred thousand pesos P, within on banking day. All conditions required for covered institution counter-party; 2. Covered institutions therefore shall endeavor to establish and record the true and full identity of these customers and establish a policy on what standard of due diligence will apply to them. Can generate all the CTRs of the covered institutions accurately and completely with all the mandatory field properly filled up; 5.
O Domestic Transfer – any wire transfer where the originating and beneficiary institutions are located in the same country.
Trustee, nominee, agent or intermediary account – Where any transaction is conducted by a trustee, nominee, agent or intermediary, either as an individual or through a fiduciary relationship, a corporate vehicle or partnership, on behalf of a trustor, principal, beneficial owner or person on whose behalf a 7706 is being conducted, covered institutions shall establish and record the true and full identity circualr existence of both the 1 trustee, nominee, agent or intermediary and the 2 trustor, principal, beneficial owner or person on whose behalf the transaction is being conducted.
Circular No. – The Lawphil Project
Ensure that infractions, discovered either by internally initiated audits or by special or regular examination conducted by the BSP, are immediately corrected; 3. Q Beneficiary institution – refers to the entity that will pay out the money to the beneficiary and can either be a a covered institution as specifically defined by these Rules and as generally defined by the AMLA, as amended, and its RIRR, bzp b a financial institution operating outside hsp Philippines that is other than covered institutions referred to in a but conducts business operations and activities similar to them.
The program shall embody the following at a minimum: Can generate all the CTRs of the covered institutions accurately and completely with all the mandatory field properly xircular up. With a respect to monitoring of transactions, in order that a covered institution may be able to control and reduce risk associated with money laundering and terrorist financing, it is necessary that it has a system that it will enable it to understand ciircular normal and reasonable account activity of customers and detect unusual or suspicious patterns of account activity.
On-going monitoring of customers, accounts and transactions – Covered institutions shall ensure that they have established the true and full identity of their customers and shall update all identification information and documents required to be obtained by the AMLA, as amended, its RIRR and these Rules of existing customers on the basis of materiality vircular risk. Safe Harbor Provision – No administrative, criminal or civil proceedings, shall lie against any person for having made a CTR or an STR in the regular performance of his duties in good faith, whether or not such reporting results in any criminal prosecution under the AMLA, cjrcular amended, its RIRR or any other law.
Bangko Sentral ng Pilipinas – Regulations
In case of isolated transactions involving deposits of second-endorsed checks by customer who are not engaged in trade or business, the true and full identity of the first endorser shall be established and the record of the identification shall also be circulxr for five 5 years.
It shall, in addition to performing normal due diligence measures, do the following:. Its political subdivisions and instrumentalities; citcular. IBP ID; and In all instances, the covered institution shall document how a specific customer was profiled low, normal or high and what standard of CDD reduced, average or enhanced was applied. Closed Accounts – With respect clrcular closed accounts, the records on customer identification, account files and business correspondences, shall be preserved and safely stored for at least five 5 years from the date of closure.
For corporate or juridical entities, validation procedures shall include but is not limited to be the following:. L Cirdular banking refers to activities of one bank the correspondent bank having direct connection or friendly service relations with another bssp the respondent bank. In case of several trustors, principals, beneficial owners, or persons on whose behalf the account are being opened where the trustee, nominee, agent or intermediary opens a single account but keeps therein sub-accounts that may be attributable to each trustor, principal, beneficial owner, or person on whose behalf the account is being opened, the covered institution shall, at the minimum, obtain the true and full name, place and date of birth or date or registration, as the case may be, present address, nature of work or business, and source of funds as if the account was opened by them separately.
For cirxular assessed to be of low risk such as an individual customer with regular employment or economically productive activity, small account balance and transactions, and a resident in the area of the covered institutions may apply reduced due diligence.