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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For this reason, it shall ensure that oversight on the institution’s compliance management is adequate.
Covered and suspicious transaction monitoring – performs statistical analysis, profiling and able to detect unusual patterns of account activity. 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 bssp of account activity.
Address or in its absence the national circylar number or date and place of birth of the originator; and 3.
Purpose of such transaction. An independent audit program with written scope of audit that will ensure the completeness and accuracy of the information and identification documents obtained from clients, the covered and suspicious transactions reports submitted to the AMLC, and the records retained in compliance with these rules as well as adequacy and effectiveness of the training program on the prevention of money laundering and terrorism financing.
Exemption from Bank Secrecy Laws – When reporting covered or suspicious transactions to the AMLC, covered institutions and their officers and employees shall not be deemed to have violated Republic Act No. 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 the Philippines that is other than covered institutions referred to in a but conducts business operation and activities similar to them.
Account opened through a trustee, agent, nominee, or intermediary – Where the account is opened through a trustee, agent, nominee or intermediary, the covered institution shall establish and record the true and full identity and existence of both the a trustee, nominee, agent or intermediary and b trustor, principal, beneficial owner, or person on whose behalf the account is being opened. Valid Ids include the following: Any of the circumstance for the filing of a suspicious transaction exists such as but not limited to the following:.
Address or in its absence the national identity number or date and place of birth of the originator; and.
Roll-overs of placement of time deposit; and 6. The transaction is cirxular 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.
They shall require their clients to submit an updated photo and other relevant information on the basis of risk and materiality. Source of funds and nature of business; 8. Name of circulr originator; 2.
BSP Circular No. 706 – Updated Anti-Money Laundering Rules and Regulations
It shall also refer to any chain of corcular transfers that has at least one cross-border element. Covered institutions shall likewise monitor and review annually the performance of the counter-party to assist it in determining whether or not to continue with the arrangement. It shall likewise apply enhanced due diligence to establish the true and full identity and existence of the beneficiary.
There is no underlying legal or trade obligation, purpose or economic justification; 2. Third Party is covered institution specifically defined by these Rules and as generally defined by AMLA, as amended, and its RIRR – A covered institution may rely on the identification process conducted by this third party provided that the covered institution shall obtain from the third party a written sworn certification containing the following: High risk customer – A customer from a country that is recognized as having inadequate internationally accepted anti-money laundering standards, or does not sufficiently apply regulatory supervision or the Financial Circluar Task Force FATF recommendations, or presents greater risk for crime, corruption or terrorist financing is considered a high risk customer.
Covered institutions therefore shall endeavor to establish and record the true and full identity of these customers and establish a ciruclar on what standard of due diligence will apply to them. Must provide a complete audit trail; 6. In designing a customer acceptance policy, the following factors shall be taken into account: A covered institution shall refuse to enter cirular, or continue, correspondent banking relationship with them.
It shall likewise guard against establishing relations with foreign financial institutions that permit their accounts to cirrcular used by shell banks. Conduct business in conformity with high ethical standards in order to protect its safety and soundness as well as the integrity of the national banking and financial system:.
The originator person and the beneficiary person may be the same person. In line with requirement no. C Suspicious transactions ST are transactions with covered institutions, regardless of the amount involved, where any of the following circumstances exist:. Adopt and effectively implement a sound AML and terrorist financing risk management system that identifies, assesses, monitors and controls risks associated with money laundering and terrorist financing.
The training program shall also include refresher trainings to remind these individuals of their obligations and responsibilities as well as update them of any changes in AML laws, rules and internal policies and procedures.
Contacting the customer by phone, email or letter such as sending of “thank you letters” ; and 4. The client is not properly identified; 3.
Circular No. – The Lawphil Project
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.
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.
The counter-party has a reliable and acceptable customer identification system and training program in place; and. Form of Records – Records 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.
The four areas of sound risk management practices are adequate and active Board and Senior Management oversight, acceptable policies and procedures embodied in a money laundering and terrorist financing prevention compliance program, appropriate monitoring and Management Information System and nsp internal controls and audit.
Internal operating expenses vircular banks; 4. Name, present address, date and place of birth, nature of work and source of funds of beneficial owner or beneficiary, if applicable; and.
The deposit of said instruments shall be subject to the same requirements of scrutiny applicable to cash deposits; and 6.