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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Bangko Sentral ng Pilipinas – Regulations
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:. Justifies re-classification of the customer from low or normal risk to high-risk pursuant to these Rules or by its own criteria; or. For corporate or juridical entities, validation procedures shall include but is not limited to be the following:.
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, or b a financial institution operating outside the Philippines that is other than covered institutions referred to in a but conducts business operations and activities similar to them.
For covered institution counter-party: The provisions of existing law to the contrary notwithstanding, anonymous accounts, accounts under fictitious names, numbered checking accounts and all other similar accounts shall be absolutely prohibited.
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; circilar. 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 the normal and reasonable account activity of customers and detect unusual or suspicious patterns of account activity.
In case of violation thereof, the concerned officer and employee of the covered institution and media shall be held criminally liable. 70 the counter party is an entity other than a covered institution as herein defined, covered institutions shall ensure that the employees or representatives of the counter-party conducting the face-to-face contact undergo equivalent training program as that of its front-liners undertaking a similar activity.
For corporate, partnership, and sole proprietorship entities, and other entities such as banking circupar, trust entities and quasi-banks authorized by the BSP to operate as such, publicly listed companies subject to regulatory disclosure requirements, government agencies including GOCCs, a covered institution may open an account under the official name of these entities with only no.
Investigation – checks for given names throughout the history of payment stored in the system. Where resources of the covered institution do not permit the hiring of an AML compliance officer, bs; Compliance Officer 076 also assume the responsibility of the former. True and full name of the buyer or the applicant if buying on behalf of an entity; 2.
Inform all responsible officers and employee of all resolutions, circulars and other issuance by the BSP and the AMLC in relation to matters aimed at preventing money laundering and terrorist financing; 4. A covered institution may rely on the customer identification process undertaken by the respondent bank. For this purpose, they shall be given ninety 90 days from effectivity of this Circular within which to make their bs; fully operational and automated with all the functionalities stated above.
It circulwr committed by the following: Circhlar 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.
Inform fircular responsible officers and employee of all resolutions, circulars and other issuance by the BSP circulzr the AMLC in relation to matters aimed at preventing money laundering and terrorist financing. Correspondent banking – Because of the risk associated with dealing with correspondent accounts where it may unknowingly facilitate the transmission, or holding and management of proceeds of unlawful activities or funds intended to finance terrorist activities, covered institutions shall adopt policies and procedures for correspondent banking activities and designate an officer responsible in ensuring compliance with these policies and procedures.
Any transaction that is similar or analogous to any of the foregoing. K Politically Exposed Person or PEP – an individual who is or has been entrusted with prominent public positions in the Philippines or in a foreign state, including heads of state or of government, senior politicians, senior national or local government, judicial or military officials, senior executives of government circulr state owned or controlled corporations and important political party officials.
Internal operating expenses of banks; 4. O Domestic Transfer – any wire transfer where the originating and beneficiary institutions are located in the same country. The counter-party has a reliable and acceptable customer bxp system and training program in place; and. Obtaining bank references; 4.
Circular No. – The Lawphil Project
Valid Ids include the following: Confirming the date of birth from a duly authenticated official document; 2. Record Keeping – All customer identification records of covered institutions shall be maintained and safely stored as long as circuar account exists.
R Intermediary institution – refers to the entity utilized by the originating and beneficiary institutions where both have no correspondent banking relationship with the intermediary institution.
All covered institutions that have previously registered need not re-register. 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. Where the Customer Transacts Through a Trustee, Nominee, Agent or Intermediary which is a bzp party as herein defined Third Party Reliance – A covered institution may rely on the customer identification process undertaken by a third party.
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. The counter-party has a reliable and acceptable customer identification system and training program in place; and 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. 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.
Watch list monitoring – checks transfer parties originator, beneficiary, and narrative fields and the existing customer database for any listed undesirable individual or corporation; 3.
It shall also refer to any chain of wire transfers that has at least one cross-border element. The ST reporting shall include a reporting chain under which a suspicious transaction will be processed and the designation of a Board level or approved Committee who will ultimately decide whether or not the covered institution should file a report to the AMLC. Date and place of birth; 4. Senior Citizen card In addition, the correspondent bank shall:.
It shall be principally responsible for the following functions among other functions that may be delegated by Senior Management and the Board, to wit: Foreign exchange dealers, money changers and remittance agents customers presenting greater risk, such as shell companies shall be subject to enhanced due diligence.
Where additional information cannot be obtained, or nay information or document provided is false or falsified, or result of the institution shall immediately 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. 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.
Results of the audit shall likewise be promptly communicated to the Compliance Office for its appropriate corrective action. Because of the dubious nature of shell banks, no shell bank shall be allowed to operate or be established in the Philippines.