Bangko Sentral ng Pilipinas (BSP)
Financing Company Act (Rep. Act No. 7906)
A corporation primarily engaged in extending credit facilities by
direct lending, discounting or factoring commercial papers or
accounts receivable, buying and selling evidences of
indebtedness, or financial leasing is required to be licensed as a
financing company under the Financing Company Act, unless the
corporation is a bank, investment house, insurance company, or
other financial institution with a secondary license. Foreigners are
allowed to own up to 60% of the voting stock of a financing
company.
Secrecy of Bank Deposits Act (Rep. Act No. 1405, as amended)
This law prohibits the examination and inquiry into all bank
deposits and investments in government securities with Philippine
banks by any person, government official, bureau, or office, and
prohibits the disclosure by any bank official or employee to any
unauthorized person of any information concerning the said
deposits, subject to certain exceptions as discussed in Section 12
below.
Anti-Money Laundering Act (Rep. Act No. 9160, as amended)
(“AMLA”)
The AMLA criminalizes money laundering and identifies the
predicate crimes from which money laundering can arise. In order
to prevent money laundering, the AMLA created the Anti-Money
Laundering Council (“AMLC”) and granted it such powers ranging
from requiring reports from covered institutions (including banks
and other financial institutions), rule-making, prosecution, and
actual imposition of sanctions. In addition, the AMLA requires
covered institutions to adopt Know-Your-Customer guidelines and
to report transactions involving at least PhP500,000 as well as
suspicious transactions to the AMLC.
Securities and Exchange Commission (SEC)
IMPLEMENTING RULES AND REGULATIONS OF THE SECURITIES
REGULATION CODE (Republic Act No. 8799)
SRC Rule 3.3-1 Definition of Broker Dealer. Broker Dealer means
any broker and/or dealer registered under Section 28 of the Code
to engage in broker and/or dealer activities
SRC Rule 3.7.1 Definition of Facility of an Exchange. Facility of an
Exchange includes systems, processes or services, tangible or
intangible property, whether or not in a specific physical location
or in an Exchange, for the purpose of effecting transactions
between buyers and sellers in a securities trading market, and
conveying any information required by the participants to effect
such transactions.
SRC Rule 7 Periodic Review of Commission Structure. The
Commission shall conduct, once every two (2) years, a review of
its organization and structure to achieve the goals of the Code and
more efficiently and effectively exercise its powers and functions
thereunder, without prejudice to its power to conduct yearly
merit reviews and provide increases in compensation based on
productivity and efficiency.
Bangko Sentral ng Pilipinas (BSP)
Financing Company Act (Rep. Act No. 7906)
A corporation primarily engaged in extending credit facilities by
direct lending, discounting or factoring commercial papers or
accounts receivable, buying and selling evidences of
indebtedness, or financial leasing is required to be licensed as a
financing company under the Financing Company Act, unless the
corporation is a bank, investment house, insurance company, or
other financial institution with a secondary license. Foreigners are
allowed to own up to 60% of the voting stock of a financing
company.
Secrecy of Bank Deposits Act (Rep. Act No. 1405, as amended)
This law prohibits the examination and inquiry into all bank
deposits and investments in government securities with Philippine
banks by any person, government official, bureau, or office, and
prohibits the disclosure by any bank official or employee to any
unauthorized person of any information concerning the said
deposits, subject to certain exceptions as discussed in Section 12
below.
Anti-Money Laundering Act (Rep. Act No. 9160, as amended)
(“AMLA”)
The AMLA criminalizes money laundering and identifies the
predicate crimes from which money laundering can arise. In order
to prevent money laundering, the AMLA created the Anti-Money
Laundering Council (“AMLC”) and granted it such powers ranging
from requiring reports from covered institutions (including banks
and other financial institutions), rule-making, prosecution, and
actual imposition of sanctions. In addition, the AMLA requires
covered institutions to adopt Know-Your-Customer guidelines and
to report transactions involving at least PhP500,000 as well as
suspicious transactions to the AMLC.
Securities and Exchange Commission (SEC)
IMPLEMENTING RULES AND REGULATIONS OF THE SECURITIES
REGULATION CODE (Republic Act No. 8799)
SRC Rule 3.3-1 Definition of Broker Dealer. Broker Dealer means
any broker and/or dealer registered under Section 28 of the Code
to engage in broker and/or dealer activities
SRC Rule 3.7.1 Definition of Facility of an Exchange. Facility of an
Exchange includes systems, processes or services, tangible or
intangible property, whether or not in a specific physical location
or in an Exchange, for the purpose of effecting transactions
between buyers and sellers in a securities trading market, and
conveying any information required by the participants to effect
such transactions.
SRC Rule 7 Periodic Review of Commission Structure. The
Commission shall conduct, once every two (2) years, a review of
its organization and structure to achieve the goals of the Code and
more efficiently and effectively exercise its powers and functions
thereunder, without prejudice to its power to conduct yearly
merit reviews and provide increases in compensation based on
productivity and efficiency.