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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The deposit of said instruments shall be subject to the same requirements of scrutiny applicable to cash deposits; and. A bank and its branches and offices shall be treated as one unit.
Foreign exchange dealers, money changers and remittance agents customers presenting greater risk, such as shell companies shall be subject to enhanced due diligence. The transaction is in any way related to an unlawful activity or any money laundering activity or offense under AMLA, as amended, that is about to be, is being or has been committed; or 7. The MLPP shall also be readily available in user-friendly form, whether in hard or soft copy.
The client is not properly identified; 3. Definition of terms – Excepts as otherwise defined herein, all terms used shall have the same meaning as those terms that are defined in the AMLA, as amended, and its RIRR. Capable of aggregating activities of a customer with multiple accounts on a consolidated basis for monitoring and reporting purposes; and 7. Criteria for type of customers: Know sufficiently your customer at all times and ensure that the financially or socially disadvantaged are not denied access to financial services while at the same time prevent suspicious individuals or entities from opening or maintaining an account or transacting with the covered institution by himself or otherwise: For this reason, it shall ensure that oversight on the institution’s compliance management is adequate.
Henceforth, each MLPP shall be regularly updated at least once every two years to incorporate changes in AML policies and procedures, latest trends in money laundering and terrorist financing typologies, and latest pertinent BSP issuances. 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.
Politically Exposed Person – A circula institution shall endeavor to establish and record the true and full identity of PEPs as well as their immediate family members and the entities related to them and establish a policy on what standard of due diligence will apply to them taking into circularr their position and the risks attendant thereto. Alert senior management, the board of directors, or the Board-level or approved committee if it believes that the institution is falling to sensibly address anti money laundering and terrorist financing issues; and.
Money Dircular and Terrorist Financing Prevention Program – All covered institutions shall adopt a comprehensive and risk-based MLPP geared toward the promotion of high ethical and professional standards and the prevention of the bank being used, intentionally or unintentionally, for money laundering and terrorism financing. Basic Principles and Policies to Combat Money Laundering – in line with the declaration of policy, covered institutions shall apply the following principles: Ensure that infractions, discovered either by internally initiated audits or by special or regular examination conducted by the BSP, are immediately corrected.
Name of the originator; 2. Can generate all the CTRs of the covered institutions accurately and completely with all the mandatory field properly filled up; 5. IBP ID; and Where the covered institution is required to report a CT or circumstances warrant the filing ciircular an ST, it shall obtain such other information on every trustor, principal, beneficial owner, or person on whose behalf the account is being opened in order that a complete and accurate report may be filed with AMLC.
Conduct business in conformity with high ethical standards in order to protect its safety and soundness as well cidcular the integrity of the national banking and financial system: True and full name of the buyer or the applicant if buying on behalf of an entity; 2. It shall open and maintain accounts only in the true and full name of the entity and shall have primary responsibility to ensure that the entity has not been, or is not in the process of being, dissolved, struck-off, wound-up, terminated, or otherwise placed under receivership or liquidation.
Circular No. – The Lawphil Project
Structuring of transactions in order to avoid being the subject of covered transaction reporting; or. P Originating institution – refers to the entity utilized by the originator to transfer funds 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, or b a financial institution operating outside circulag Philippines that is other than covered institutions referred to in a but conducts business operation and activities similar to them.
760 political subdivisions and instrumentalities; c. Said records and files shall contain the full and true identity of the owners or holders of the accounts involved in the transactions such as the ID card and photo of individual customers and the documents mentioned in Section X The system should be capable of generating timely, accurate and complete reports to lessen the likelihood of any reputational and compliance risks and to regularly appraise the Board of Directors and Senior Management on anti-money laundering and terrorist financing compliance.
Comply fully with these rules and existing laws aimed at combating money laundering and terrorist financing by making sure that officers nsp employee are aware of their respective responsibilities and carry them out in accordance with superior and principled culture of compliance; and 5. Along this line, it shall formulate a risk-based and tiered customer acceptance policy, customer retention policy and customer identification process that involves reduced Customer Due Diligence CDD for potentially low risk clients and enhanced CDD for higher risk accounts.
In case of violation thereof, the concerned officer and employee of the covered institution shall be criminally liable in accordance with the provisions of the AMLA, as amended. 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.
BSP Circular No. 706 – Updated Anti-Money Laundering Rules and Regulations
Ensure that infractions, discovered either by internally initiated audits or by special or regular examination conducted by the BSP, are immediately corrected; 3. Inquiring from the supervising cigcular the status of the entity; 3. Customer acceptance policy – Every covered institution shall develop clear, written and graduated acceptance policies and procedures that will ensure that the financially or socially disadvantaged are not denied access to financial services while at the same time prevent suspicious individuals or entities from opening an account.
Where additional information cannot be obtained, or any xircular or document provided is false or falsified, or result of the validation process is unsatisfactory, the covered institution shall deny banking relationship with the individual or entity without prejudice to the reporting of a suspicious transaction to the AMLC when circumstances warrant. Closed Accounts – With respect to closed accounts, the records on customer identification, account files and business correspondences, shall be preserved and safely cidcular for at least five 5 years from the date of closure.
Where additional information cannot be obtained, or nay information or document provided is false or falsified, or result of the institution shall circulxr close the account and refrain from further conducting business relationship with the customer without prejudice to the reporting of a suspicious transaction to the AMLC when circumstances warrant. D Monetary instrument refers to: New individual customers – Covered institutions shall develop a systematic procedure for establishing the true and full identity of new 7706 customers and shall open and maintain the account only in the true and full name of the account owner or owners.
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 circlar Board or a Board level Audit Committee.
In no ciruclar shall reduced diligence be applied to high risk customers. 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. Results of the audit shall likewise be promptly communicated to the Compliance Office for its appropriate corrective action. Business activities; and 7.
Date and place of birth; 4. In order to provide accurate information, the covered institution shall regularly update customer identification information at least once every three 3 years. The following are the originator information that shall remain with the transfer or related message through the payment chain: Address or in its absence the circlar identity number or date and place of birth of the originator; and 3.
Enhanced due diligence shall be applied to customers that are assessed by the covered institution or by these Rules as high risk for money laundering and terrorist financing. In addition, the correspondent bank shall: 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. Because of the dubious nature of shell banks, no shell bank shall be allowed circluar operate or be established in 760 Philippines.
It is committed by the following: