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ar

TRAINING AND ORIENTATION ON ANTI-

MONEY LAUNDERING / COMBATING THE
FINANCING OF TERRORISM

Conducted by:
1
COMPLIANCE OFFICE
2

WHAT IS AMLA?
3 Philippine Legal Framework
 The AML Act (AMLA) of 2001
RA No. 9160 (Date of Effectivity: 17 October 2001)
 Amendatory Laws:
RA No. 9194 (Date of Effectivity: 23 March 2003)
RA No. 10167 (Date of Effectivity: 06 July 2012)
RA No. 10365 (Date of Effectivity: 07 March 2013)
RA No. 10927 (Date of Effectivity: 09 August 2017)
RA No. 11521 (Date of Effectivity: 01 February 2021)
RA No. 10168 (Terrorism Financing Prevention and Suppression Act of

2012)
 OBJECTIVE

Promoting Awareness Inform Participants of Penalties

Knowledge of the
their role
Rules and Regulations

4
5

5
6
WHAT IS MONEY LAUNDERING?
 is an act to disguise “dirty money” (criminal proceeds) as
“clean money” (legitimate earnings/lawful income)
 to “launder” means to “wash”
 “cleaning” dirty money
7 DEFINITIONS OF MONEY LAUNDERING
 processing of criminal proceeds in order to
disguise their illegal origin.
 legitimization of proceeds of specified
unlawful activity.
 crime whereby the proceeds of an unlawful
activity are transacted, thereby making them
appear to have originated from legitimate
sources.
8 UNLAWFUL ACTIVITY
 Refers to any act or omission or series or combination
thereof involving or having direct relation to the
following:
 RA 9160 – 14 Unlawful Activities Identified
 RA 10167 – 1 Unlawful Activity Added
 RA 10365 – 19 Unlawful Activity Added

Note: Refer to the Current MTPP for the Detailed List of Unlawful
Activity. Compliance Office will provide you copy of the policy.
9 ANTI-MONEY LAUNDERING COUNCIL
(AMLC)
o Financial Intelligence Unit of the Philippines
o Created pursuant to R.A. 9160
o Composition

BSP Governor Chairman

SEC Chairperson IC Commissioner

Member
 34 UNLAWFUL ACTIVITIES
10
1. Kidnapping for Ransom 10. Smuggling

2. Drug Trafficking 11. Violations of Electronic Commerce Act

3. Graft and Corruption 12. Hijacking, destructive arson and murder

4. Plunder 13. Terrorism

5. Robbery and Extortion 14. Financing of Terrorism

6. Jueteng and Masiao 15. Bribery and Corruption of Public Officer

7. Piracy 16. Frauds and illegal extractions and

transactions
8. Qualified Theft 17. Malversation of public funds

9. Swinding 18. Forgeries and counterfeiting

 34 UNLAWFUL ACTIVITIES
11
19. Trafficking of persons 27. Anti-fencing law

20. Illegal forestry 28. In violation on migrant workers and

overseas Filipino
21. Illegal fishing 29. In violations of intellectual property rights

22. Illegal mining 30. In violation on photo and video voyeurism

23. Illegal wildlife resources 31. Child pornography

24. Illegal use of National Caves and Cave 32. Abuse, exploitation and discrimination of
Resources children
25. Carnapping 33. Fraudulent practices

26. Illegal production and distribution of 34. Felonies or offenses of a similar nature
firearms, ammunitions and explosives
12 STAGES OF MONEY LAUNDERING
13 Money from illegal activities is deposited in numerous legitimate
accounts making it difficult to trace so the money can be used
freely.

 PLACEMENT – involves initial placement or introduction of the

illegal funds into the financial system. Financial institutions are
usually used at this point.

 LAYERING – involves a series of financial transactions during

which the dirty money is passed through a series of
procedures, putting layer upon layer of persons and financial
activities into the laundering process. (e.g. wire transfers)
14

 INTEGRATION – the money is once again

made available to the criminal with the
occupational and geographic origin
obscured or concealed. The laundered
funds are now integrated back into the
legitimate economy through the purchase
of properties, businesses and other
investments.
 TERRORIST
15 FINANCING

USE

COLLECTION
STORAGE

MOVEMENT
 TERRORIST FINANCING
16
Financing of terrorism
 is a crime committed by a person who, directly or indirectly,
willfully and without lawful excuse, possesses, provides, collects or
uses property or funds or makes available property, funds or
financial service or other related services, by any means with the
unlawful and willful intention that they should be used or with the
knowledge that they are to be used, in full or in part
(1) to carry out or facilitate the commission of any terrorist act;
(2) by a terrorist organization, association or group;
(3) by an individual terrorist
 RA 10168 Terrorism Financing Prevention
and Suppression Act of 2012
17

Terrorist refers to any natural person who:

 (1) commits, or attempts, or conspires to

commit terrorist acts by any means, directly or

indirectly, unlawfully and willfully;
 (2) participates, as a principal or as an

accomplice, in terrorist acts;

 (3) organizes or directs others to commit

terrorist acts; or
 RA 10168 Terrorism Financing Prevention
and Suppression Act of 2012
18

 (4) contributes to the commission of terrorist

acts by a group of persons acting with a common
purpose where the contribution is made
intentionally and with the aim of furthering the
terrorist act or with the knowledge of the
intention of the group to commit a terrorist act.
 RA 10168
19
Terrorist acts refer to the following:
(1) Any act in violation of Section 3 or Section 4 of the Human
Security Act of 2007;
a. Piracy in General and Mutiny in the Philippine
Waters);
b. Rebellion or Insurrection;
c. Coup d' Etat, including acts committed by private
persons;
d. Murder;
e. Kidnapping and Serious Illegal Detention);
f. Crimes Involving Destruction, or under
20 RA 10168
(2) Any other act intended to cause death or serious
bodily injury to a civilian, or to any other person not
taking an active part in the hostilities in a situation
of armed conflict, when the purpose of such act, by
its nature or context, is to intimidate a population,
or to compel a government or an international
organization to do or to abstain from doing any act;
 BASIC PRINCIPLES AND POLICIES TO COMBAT MONEY
LAUNDERING
21
A. 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;
B. 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 opening or maintaining an account or
transacting with the covered institution by himself or otherwise;
C. Adopt and effectively implement a sound AML and terrorist financing risk mgmt
system that identifies, assesses, monitors, and controls risk associated with money
laundering and terrorist financing;
D. Comply fully with these rules and existing laws aimed at combating money
laundering and terrorist financing by making sure that officers and employees are
aware of their respective responsibilities and carry them out in accordance with
superior and principled culture of compliance;
E. Fully cooperate with Anti-Money Laundering Council (AMLC) for the effective
implementation and enforcement of the AMLA, as amended and its Implementing
rules and Regulations (IRR).
22 MONEY LAUNDERING RISK MANAGEMENT PRACTICES

All covered persons (CPs) shall develop sound risk

management policies and practices to ensure:

 Reputational, operational, and compliance risks are

identified, assessed, monitored, mitigated and
controlled
 Effective implementation of these regulations to the
end that CP’s shall not be used as a vehicle to
legitimate proceeds of unlawful activity or to
facilitate or finance terrorism.
 MONEY LAUNDERING RISK MANAGEMENT PRACTICES
23
4 Areas of Sound ML Risk Management System

Board & Senior

Money Laundering and
Management Terrorist Financing
Oversight and Prevention
Program (MTPP)
Compliance Office
24 Board Oversight

 Ultimate responsibility of the

Board to fully comply with
AMLA and its RIRR, and
BSP rules/regulations
 Ensure that oversight on the
Bank’s compliance
management is adequate
25 Senior Management Oversight
 Oversee the day-to-day management of the covered person;

 Ensure effective implementation of Board-approved AML

policies;

 Alignment of activities with the strategic objectives, risk profile

and corporate values set by the Board

 Establish a management structure that promotes accountability

and transparency and upholds checks and balances
26 COMPLIANCE OFFICE

 Manage implementation of MTPP

 Ensure independence of the office, shall have direct reporting
line to the Board or any board level or approved committee on
all matters related to AML and TF compliance and their risk
management.
 Ensure compliance by all responsible officers and employees by
conducting compliance checking
 Ensure that infractions, discovered either by internally initiated
audits or by special or regular examination conducted by the
BSP or other applicable regulators, are immediately corrected.
27 COMPLIANCE OFFICE
 Inform all responsible officers and employees of all resolutions,
circulars and other issuances by the BSP/ AMLC in relation to matters
aimed at preventing ML/TF

 Alert senior management, the Board, or the board-level or approved

committee if it believes that the covered person is failing to
appropriately address AML/CFT issues. Organize timing and content of
AML training of officers and employees including regular refresher
trainings

 Monitor corrective actions taken by different business units

concerned on the results of audit and regularly submit reports to the
board to inform them of the management’s action to address
deficiencies noted in the audit.
 MONEY LAUNDERING AND TERRORIST FINANNCING PREVENTION
28
PROGRAM (MTPP)
 Comprehensive and risk-based
 Promote high ethical and professional standards to prevent use of CPs from
ML/TF activities
 Consistent w/ the AMLA, TFPSA and BSP regulations
 Designed according to CPs corporate structure and risk profile
 In writing and approved by the BOD
 Policies and procedures on:
• Customer Identification Process
• On-going monitoring process
• Covered and Suspicious Transaction reporting including reporting chain and
system to flag and monitor transactions
• Record keeping and retention
 Effective and continuous AML Training Program
 Regular updating at least once every 2 years
29 2022 APPROVED GUIDELINES,
POLICIES AND PROCEDURES ON

AMLA
1. Revised Guidelines on Customer Acceptance and Identification, Risk Classification, Risk
Assessment and Application of Due Diligence

 2. Revised Customer Risk Profiling Procedures and its Templates

 3. Guidelines and Procedures in Handling Subject to Targeted Financial Sanctions (TFS)

Related to Terrorism, Terrorism Financing and Proliferation Financing

 4. New Database on Sanctions Screening (UNSC/TFS/OFAC)

DATE OF BOARD APPROVAL: 28 NOVEMBER 2022

30

Revised Guidelines on Customer

Acceptance and Identification, Risk
Classification, Risk Assessment and
Application of Due Diligence
31  To effectively implement the enhanced Know-Your-Client (KYC)
policies and procedures of the Bank, the following revised guidelines are
hereby issued:

GENERAL GUIDELINES:
 The identity of the customer or his/her/its representative who enters into
a business relationship or conducts a transaction with the Bank shall be
established from official documents in accordance with the Bank's
existing policy. In case of corporate clients, their legal existence and
organizational structure as well as the authority and identification of all
persons purporting to act on their behalf shall also be verified.
32  The Bank shall implement its Know Your Customer (KYC) Policy before
establishing a business relationship to:

 Ensure that only legitimate and bona fide customers are accepted;
 Ensure that customers are properly identified and that it understands
the risks they may pose;
 Verify the identity of customers using reliable and independent
documentation;
 Determine any unusual transaction activity or activity that is not
commensurate with the client's known business or financial capacity or
a deviation from client's profile and past transaction; and
 Prevent the creation of fictitious account.
33 I. CUSTOMER ACCEPTANCE
 The following are eligible to open an account with the Bank:

 Any persons who are not suffering from any legal disability, and are not included
in the Sanction Screening Database and other Sanctions Lists of individuals and
entities engaged in illegal activities or terrorist-related activities as circularized
by the Bangko Sentral ng Pilipinas; however, specific conditions apply to the
following customers:

1. Blind or visually impaired

2. Minor – customer who are below 18 years old
3. Foreign nationals with Passport and Alien Certificate of Registration
4. Bank personnel and their relatives
34 I. CUSTOMER ACCEPTANCE
5. Overseas Filipinos, which include:

 Filipino migrants or those who hold permanent residence or immigrant

status in a foreign country and whose stay does not depend on work
contracts
 Overseas contract workers who may be land-based or sea-based and
whose stay overseas is determined by a formal or informal contract of
employment
 Other Filipinos, who reside, study or work overseas and hold a valid
passport or any valid ID issued by the host country which states their
Filipino citizenship, or any Philippine company or government entity.
35 I. CUSTOMER ACCEPTANCE
 Single proprietorship, partnership, cooperative, corporation (private
or government), other forms of organizations registered with the
supervising government agency concerned.

 Constitutional Commissions, Legislative units, Judicial units, Local

Government Units (LGUs), State Universities and Colleges (SUCs),
National Government Agencies (NGAs), government
instrumentalities, including the unincorporated units/non-juridical
entities.
36 II. CUSTOMER IDENTIFICATION
 The following procedures must be observed when establishing a business
relationship:

a. Personal appearance of the account holder;

b. Verification of the photograph appearing on the ID card presented with the
person presenting such document;
c. Scrutiny of original identification documents presented;
d. Comparison of signatures with live signatures;
e. Completion of the account opening form;
f. Checking of the completeness, accuracy and authenticity of documents and
information; and
g. Risk profiling and due diligence.
37 II. CUSTOMER IDENTIFICATION
 Valid ID’s include the following:

a. Passport including those issued by i. Barangay Certification

foreign governments
b. Driver’s License j. GSIS ID e-Card

c. PRC ID k. SSS ID

d. NBI Clearance l. Senior Citizen card

e. Police Clearance m. PhilHealth Insurance Card ng Bayan

f. Postal ID n. OWWA ID

g. Voter’s ID o. OFW ID

h. Tax Identification Number (Tin) ID p. Seaman’s Book

38
II. CUSTOMER IDENTIFICATION
q. Alien Certificate of Registration/Immigrant Certificate of Registration
r. Government office and GOCC ID (e.g. AFP, HDMF IDs)
s. Certification from the National Council on Disability Affairs
t. DSWD Certification
u. IBP ID
v. For Filipino citizens, company IDs issued by covered persons registered with or supervised
or regulated either by the BSP, SEC or IC
w. For Filipino students, school ID signed by the school principal or head of the educational
institution
x. For foreign nationals, passport or Alien Certificate of Registration
y. Philippine Identification System (PhilSys)
39
II. CUSTOMER IDENTIFICATION
 For low risk customers, any written document or information reduced in writing may
be accepted in establishing their true identity provided the following conditions are
complied with:

a. The customer has no valid IDs at the time of account opening or commencement of
business relation;

b. The data in the written document had been validated by the branch or unit from a
reliable source; and

c. The customer shall obtain a valid ID within 12 months from account opening;
otherwise the account shall be closed and the remaining balance therein shall be
returned to the customer. An extension of another 12 months may be allowed;
provided, that the customer is able to show to the unit or branch a proof of
application for a valid ID.
40 II. CUSTOMER IDENTIFICATION
 In case of a disastrous calamity, any requirement for the presentation of valid ID shall be
relaxed provided there is a declaration by the BSP on this effect, subject to the following
conditions:
a. The number of transactions shall not exceed Php50,000 per day;

b. The customer is either a permanent or temporary resident or who conducts business in a

severely affected area which has been declared to be under the state of calamity by a
competent authority;

c. The customer shall submit a written certification, which need not be notarized, that he/she is a
victim of the subject disastrous calamity and has lost his/her valid IDs; and

d. The customer’s account activities shall be subject to strict monitoring by the Bank to identify
potential abuse of the relaxed requirement and any suspicious transactions shall be reported to
the AMLC within the prescribed period.
41 II. CUSTOMER IDENTIFICATION
 In customer identification process, the Bank shall implement
appropriate systems of data collection and recording, such as:

 Photocopying/scanning of identification document presented;

 Using Information and Communication Technology (ICT) to capture
and record the biometric and other personal information of
customers; and/or
 Manual recording of identification information.
42 III. CUSTOMER DUE DILIGENCE
 Customer due diligence shall be undertaken when the Bank:

a. Establishes business relations with any customer;

b. Undertakes any occasional but relevant business transactions for any

customer who has not otherwise established relations with the Bank;

c. There is suspicion of money laundering or terrorism financing; or

d. There is doubt about the veracity or adequacy of previously obtained

customer identification data.
43 III. CUSTOMER DUE DILIGENCE
 Customer due diligence on customer opening an account or
commencing a transaction shall be conducted by the following:

a. The branch banking personnel, BLU staff included, for deposit

accounts or transactions, except loans originated in the branch;

b. The Credit Operations Group personnel for loan-related

transactions except those originated in the branch; and

c. The ROPA Department personnel for ROPA-related transactions.

44 III. CUSTOMER DUE DILIGENCE
 All prospective clients shall be required to fill out the
Customer Information Form (CIF) where the minimum
information shall be indicated.

 The minimum information and other identification documents

required from individual clients shall also be required from
signatory/ies.
44 III. CUSTOMER DUE DILIGENCE

 Signature Card
44 III. CUSTOMER DUE DILIGENCE

 Data Privacy Consent

 III. CUSTOMER DUE DILIGENCE
44

 Customer Information
File
 III. CUSTOMER DUE DILIGENCE
44

 Customer Risk
Profiling Sheet

 Corporate (New)  Corporate (Post-Opening)

 III. CUSTOMER DUE DILIGENCE
44

 Customer Risk
Profiling Sheet

 Individual (New)  Individual (Post-Opening)

 III. CUSTOMER DUE DILIGENCE
44

 Targeted Financial
Sanctions
45 III. CUSTOMER DUE DILIGENCE
 Photocopies of documentary requirements submitted by clients shall be
authenticated and verified against original prior to the processing of
application for the opening of account. Photocopies must be stamped “Original
Copy Seen” or other similar notation and signed by the Bank personnel who
authenticated the same.

 Based on the CIF and identification documents submitted, the branch or unit
shall check if the name of the client, be it an individual or a corporate/juridical
entity, beneficial owner and its signatory/ies are included in the Sanction
Screening database.

 The new accounts clerk shall indicate on the CIF that client’s and signatories’
names have been checked against the watch lists as proof of procedure.
46 III. CUSTOMER DUE DILIGENCE
 The name of individual client, beneficial owner and signatory/ies of corporate client
shall be checked if they are politically exposed persons or PEPs. If the individual client
is PEP, his/her account shall be considered as high risk and enhanced due diligence
shall be applied. Likewise, it shall be reported to the Compliance Office on a monthly
basis through the use of Monthly Monitoring of High Risk Clients form. Compliance
Office will, in turn, report the same to the Management.

 Where the branch/unit has no reportable PEP or high risk clients, it shall inform the
Compliance Office by sending an e-mail for the Certification that it has none to report
for the given month.

 Where a signatory of a corporate client is PEP, the account shall not be automatically
reported as high risk but such fact shall be considered in determining the risk
classification of the corporate client.
47 III. CUSTOMER DUE DILIGENCE
 Politically Exposed Person (PEP)

Individual who is or has been entrusted with prominent

public position in:
 The Philippines with substantial authority over policy,
operations or the use of or allocation of government-
owned resources
 Foreign state
 An International organization
48 III. CUSTOMER DUE DILIGENCE
 It shall be mandatory to tag the following as PEPs:

 President/monarch/prime minister/head of state;

 Judicial officers from judges of municipal trial courts to Justices of the Supreme Court;

 Ombudsman and Deputy Ombudsmen;

 Members of Constitutional Commissions (i.e., Civil Service Commission, Commission on

Elections and Commission on Audit);

 Executive department secretary, undersecretary, commissioner and deputy commissioner;

 Elected officials from city/municipal mayors to the President;

49 III. CUSTOMER DUE DILIGENCE
 Member of the military with a rank of colonel to general and their equivalent in
Navy, Air Force and the Philippine National Police;

 Directors and top management of publicly owned or government-owned or

controlled corporations;

 Public officers in foreign countries holding a position equivalent or similar to the

items (a) to (h)

 High risk officials of an international organization; and

 Legal or common-law spouse, children and their spouses, parents, and parents and
parents-in-law.
50 III. CUSTOMER DUE DILIGENCE
 The following may also be classified as PEPs:

 Public officials and employees whose positions are not included in the enumeration above
taking into consideration, among others, their seniority, prominence, importance, influence,
official functions, nature or title, level of authority over governmental activities and over other
officials and employees, degree of individual access to significant government assets and
funds, or the ability to direct the awards of government tenders or contracts e.g., vice mayor
of a highly urbanized city, president of the League of Cities of the Philippines, etc.);

 Who are widely and publicly known as close business colleagues, associates or personal
advisors of PEPs (e.g., financial advisors, persons acting in a financial fiduciary capacity, etc.);
and

 Legal or common-law spouse, children and their spouses, parents, and parents and parents-
in-law.
51 Below is the list of unacceptable customers. Opening of an account with these
undesirable individuals and entities shall, as a general rule, not be allowed:

1. Client is included in the watch list of individuals and entities engaged in illegal
activities or terrorist related activities as posted by the PNP, NBI, PDEA, BI, etc., and
those circularized by BSP, AMLC, other international entities or organizations such
as the Office of Foreign Assets Control (OFAC) of the U.S. Department of the
Treasury and UN Security Council;

2. Client is a known suspect in a criminal investigation or an accused party in court;

3. 3.Client’s occupation/business is ascertained or commonly held to be one of the

illegal activities included in the list of AML unlawful activities;
52 4.Client is a shell bank .

5.Amount of initial deposit is grossly disproportionate to the small to medium-sized-business

representation of the client without satisfactory documents as justification (e.g.
donation/inheritance documents, deed of sale, etc.);

6.Initial deposit of the new client is in unusually large; or

7. Present and/or permanent personal/business address is located unreasonably far from the
branch or in a locality with a high crime rate, especially AML related offenses.

Any deviation from the above policy shall be adequately justified, properly documented subject
to the approval of the AML Committee.
 The initiating employee usually the teller/new account shall
53 conduct an initial evaluation to determine if the customer/
beneficial owner, whenever applicable will be allowed to open an
account. An evaluation shall be made whether the personal
circumstances and reasonable needs of the client are consistent
with the following:
1. Type of account to be opened;
2. Type of deposit;
3. Source/s of funds, source of wealth/ nature of
business activities, employment; and
4. IDs presented.

Prospective clients without acceptable IDs shall not be allowed to

open an account.
 The initiating employee usually the teller/new account for branches or assigned
54 officer for particular corporate office unit are required to perform the name
searching against the Bank’s Watch List Data Base, before proceeding with the
creation of customer information file or opening of account.

NOTE: The Bank’s Watch List Data Base is a list that contains Politically Exposed
Persons (PEP) list, the Office of Foreign Control (OFAC) list and the internal
watchlist. The internal watchlist is a list of individuals and entities with negative
information and per reliable sources are engaged in illegal or terrorist-related
activities or improper business conduct. The sources of information consist of
issuances by the Bangko Sentral ng Pilipinas (BSP), Anti-Money Laundering
Council (AMLC), Al-Qaeda, Sanctions List, Taliban List and United Nations (UN)
Sanction List. It also includes information derived from newspaper reports,
Suspicious Transaction Reports and Reports on Crimes and Losses filed by the
Bank automatically subjected to enhanced due diligence.
55 SECOND ENDORSED CHECKS
The Bank shall:
 Adhere with the board-approved guidelines in the acceptance of
second-endorsed checks.

 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.

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 kept for five (5) years.
 CUSTOMER DUE DILIGENCE
56
Risk Profile CDD Required Bank Action
Verification of the identity of the customer, beneficial owner or
authorized signatory can be made after the establishment of the
LOW REDUCED Due Diligence
business relationship

 Obtain upon account opening or before establishing

business relationship all applicable minimum information.
NORMAL Average Due Diligence  Confirm these information with valid identification
documents

 Obtain additional customer information/documents

 Conduct minimum validation procedures
 Secure senior management approval
 Conduct enhanced ongoing monitoring of business
relationship;
 Require the first payment to be carried out through an
HIGH Enhanced Due Diligence account in the customers name with a bank, where
applicable
 Perform such other measures as the covered person may
deem reasonable or necessary
57

COVERED
AND
SUSPICIOUS
TRANSACTIONS
 COVERED TRANSACTIONS (R.A. 11521)
58

 is
a transaction in cash or other equivalent
monetary instrument involving a total
amount in excess of Five Hundred
Thousand Pesos (Php500,000.00) within
one (1) banking day.
 COVERED TRANSACTIONS
59

A transaction with or involving jewelry

dealers, dealers in precious metals and
dealers in precious stones in cash or other
equivalent monetary instrument exceeding
One Million pesos (Php1,000,000.00)
 COVERED TRANSACTIONS (R.A. 11521)
60
FOR COVERED PERSONS UNDER SECTION 3 (a)(9)- REAL
ESTATE DEVELOPERS AND BROKERS
A single cash transaction involving an
amount in excess of Seven Million Five
Hundred Thousand Pesos
(Php7,500,000.00) or its equivalent in any
other currency.
61
COVERED TRANSACTION REPORTING
 Branches, Branch Lite-Units (BLUs) and concerned head office units shall submit to Compliance
Office their CTRs within one (1) working day from date of transaction.

 Compliance Office shall consolidate the CTRs and report to the AMLC within five (5) working days,
from the occurrence thereof.

 Submission of CTRs beyond 12:01 am of the day following the 5th working day from occurrence of
the transaction shall be considered as non-compliance with the requirement to file CTRs in
accordance with the standard set by the AMLA, and may be subject to appropriate administrative
sanctions, if circumstances so warrant.

 All Branches, BLUs and concerned units through the Compliance Office shall report to the AMLC all
covered transactions, regardless of the mode of payment used in the settlement thereof, including
transactions in checks, fund transfers, and/or debiting or crediting of accounts, except those
transactions that are deferred for reporting to the AMLC and covered under the low-risk
transactions.

The AMLC, through the Executive Director, may direct the bank to submit all covered transactions,
including low risk, of persons subject of AMLC investigation
62
COVERED TRANSACTION REPORTING
Deferred Reporting of Covered Transactions
AMLC Registration and Reporting Guidelines
1. Transactions between BSP supervised CP and the BSP
2. Transactions between banks operating in the Philippines.
3. Transactions involving transfer of funds from one deposit
account to another deposit account of the same person within
the same bank, limited to checking and savings account only.
4. Roll-overs of placements of time deposit and/or other clients
investment, provided there is no change in account number.
63
COVERED TRANSACTION REPORTING
Deferred Reporting of Covered Transactions
AMLC Registration and Reporting Guidelines
5. Bank-initiated (transactions of the bank) or system generated transactions
a. Internal operating expenses and capital expenditures of Covered Persons
b. Payments of dividend/interest on investment provided that the principal
investment was previously reported
c. Remittance by a bank, acting as a collecting agent of taxes and other
government fees collected from the public, to the BIR and other government
agencies
d. Remittance by a bank, acting as a collecting agent of customers bills and
payment (e.g. Utilities)
e. Adjusting entries or reclassification of accounts;
64
COVERED TRANSACTION REPORTING
Deferred Reporting of Covered Transactions
AMLC Registration and Reporting Guidelines
5. Bank-initiated (transactions of the bank) or system generated
transactions
f. Service fees proprietary revenue fees, arrangement fees, loan
syndication fees and other form of fees incidental to loans
granted or investments sold, provided that the loans granted or
the sale of investment was reported at gross or at its principal
amount and
g. Investments of covered persons in government securities, or in
companies listed in the local or international Stock Exchanges.
65
COVERED TRANSACTION REPORTING
Deferred Reporting of Covered Transactions
AMLC Registration and Reporting Guidelines

6. Reclassification of loan to ROPA provided that the loan availment

was previously reported.

7. Loan repricing, loan renewal, loan restructuring, provided that

there is no change in borrowers name, otherwise, the loan shall
be considered as new loan, hence, reportable;
66
COVERED TRANSACTION REPORTING
Deferred Reporting of Covered Transactions
AMLC Registration and Reporting Guidelines
8. Withdrawal of investment/Contribution from Personal Equity Retirement Account (PERA)
Providers, provided that the withdrawal was reported by the PERA Administrators;
9. Transaction of government agencies with banks, except the ff:
a. Disbursements of government agencies that passed through the Modified
Disbursement Scheme, which disbursements are payable to private entities; non-
governmental organizations (NGOs), non-profit, charitable or religious
foundation; or to individual persons;
b. Disbursements of government agencies coursed through other depository banks,
other than the MDS accounts, that are payable to private entities; non
governmental organizations (NGOs), non-profit, charitable or religious
foundations; or to individual persons.
67
COVERED TRANSACTION REPORTING
Deferred Reporting of Covered Transactions
AMLC Registration and Reporting Guidelines

c. Government agency refers to any of the various units of the

Government, including a department bureau, office, instrumentality, or
government-owned or controlled corporations, or a local government or a distinct unit.

10. Agrarian Reform Receivables;

11. Payment for agricultural lands under the Agrarian Reform Law
68
COVERED TRANSACTION REPORTING
Amendment on CTR/STR Submission per 2021 AMLC Registration and
Reporting Guidelines, effective 09 January 2022

 Lifting of Loan Payment as deferred reporting as CTR

 Part 4- Inclusion of the STR Trigger in the Header Record for Suspicious
Transaction Reports ( Letter U- Loan Availment Transactions wherein the
amount to be indicated in the transaction amount (D-7) is the amount
released to the borrower and approved loan amount at D-15 Field and
Letter V-Sale of ROPA, wherein the amount to be indicated in the
transaction amount (D-7) is the amount received from the buyer and the
amount of ROPA at D-15 Field and
 Updating of Country and Currency Codes
 SUSPICIOUS TRANSACTIONS (R.A. 11521)
69
 are transactions with covered
persons, regardless of the amounts
involved, where any of the
following circumstances exist:
 SUSPICIOUS TRANSACTIONS (R.A. 11521)
70

A. No underlying legal or trade obligation, purpose or

economic justification.
1. Usually for loans and loan related transactions, the
purpose is not indicated or the intended purpose is not
clearly stated or adequately justified.
2. Source of the funds is unclear or not consistent with the
customer’s apparent standing.
 SUSPICIOUS TRANSACTIONS (R.A. 11521)
71

B. Client is not properly identified.

1. A customer for whom verification of identity proves
unusually difficult and who is reluctant to provide details.
2. A group of unconnected customers who share a common
correspondence address.
3. A client who shows unusual concern for secrecy e.g. In the
identity of beneficial owner of the account, his
employment/business or assets or fails to indicate a legitimate
source of funds.
4. Denied appearance when called.
 SUSPICIOUS TRANSACTIONS (R.A. 11521)
72

C. The amount involved is not commensurate with the

business or financial capacity of the client;
1. Transactions that cannot be matched with the investment and
income levels of the customer.
2. Behaviour/demeanour of Bank’s employees. There may be
circumstances where the money laundering may involve
employees, if there is a change in the employees’ characteristics
e.g. lavish lifestyles, unexpected increase in performance, etc.
 SUSPICIOUS TRANSACTIONS (R.A. 11521)
73
D. Taking into account all known circumstances, it maybe
perceived that the clients transaction is structured in order to
avoid being the subject of reporting requirements under the
AMLA, as amended;
1. A client who authorizes fund transfer from his account to
another clients account.
2. In a situation where multiple accounts are used to transfer
funds between accounts by generating offsetting losses and
profits in different accounts.
3. Abnormal settlement instructions including payment to
apparently unconnected parties/individuals.
4. Conceals or disguises the true nature, source, location,
disposition, movement or ownership of or rights with respect to
said monetary instrument or property.
 SUSPICIOUS TRANSACTIONS (R.A. 11521)
74

E. Any circumstances relating to the transaction which is observed

to deviate from the profile of the client and/or the client’s past
transactions with the covered person;
1. Abnormal, significant movement of accounts without any just
explanation, and or explanation/reason cannot be adequately
justified.

F. The transaction is in any way related to an unlawful activity or

any money laundering activity or offense, that is about to be
committed, is being or has been committed; or

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 SUSPICIOUS TRANSACTIONS (R.A. 11521)
75

G. Any transaction that is similar, analogous or identical

to any of the foregoing.

Important:
Any unsuccessful attempt to transact with the Bank,
the denial of which is based on any of the foregoing
circumstances, shall likewise be considered an ST.

81
 SUSPICIOUS TRANSACTIONS REPORTING
76 RA9160 As Amended (ARI ) A, B and C No. 1 Series

Suspicious Transaction shall be promptly filed

 2020
of
within the next working day from the occurrence
thereof, which for purposes of this rule shall be the
date of establishment of suspicion or determination
of the suspicious nature of the transaction.

 STRs shall cover all transactions whether completed

or attempted.

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 COVERED AND SUSPICIOUS TRANSACTIONS
77
Electronic Submission of Reports

CTR and STR:

 Submitted to the AMLC in a secured
manner, electronic form and in accordance
w/ the prescribed reporting procedures.
 Covered Person shall provide complete and
accurate information of all the mandatory
fields required in the report.

83
 ESCALATION OF ENFORCEMENT ACTION IN CASES
78 OF HEIGHTENED AML/CFT SUPERVISORY
Rules on the Imposition of Administrative Sanctions under RA
9160, as amended (Approved by AMLC on 24 May 2017)

Violations of similar nature committed within 2

year period immediately preceeding the
examination or investigation under consideration
concealment or deliberate effort to hide the
violation

Material misrepresentation or the act of misstating

the fact

84
 MONEY LAUNDERING OFFENSE AND PENALTIES
79
 WHO: Any person, knowing that any Monetary Instrument
(MI) or property represents, involves, or relates to the
proceeds of any unlawful activity.
 HOW:
a. Transacts MI or Property; Penalty
b. Converts, transfers, disposes of, 7 to 14 yrs
moves, acquires, possesses, uses imprisonment and a
MI/P; Fine of not less than
P3M but not more
c. Conceals, disguise the true than 2X the value of
nature, source, location, disposition, MI/P.
movement or ownership of rights
with respect to the MI/P;

85
 MONEY LAUNDERING OFFENSE AND PENALTIES

80
OFFENSE PENALTY
d. Attempts or conspires to 7 to 14 yrs imprisonment
commit money laundering and a Fine of not less than
offense referred to in P3M but not more than 2X
paragraph a – c. the value of MI/P.

86
 OTHER SPECIFIC AMLA VIOLATIONS
81
Failure to keep records for at least five (5) years
from the dates of transaction or closure of accounts.
Malicious Reporting or filing, with malice or bad
faith, completely unwarranted or false information
 Breach of Confidentiality – Covered persons and
their officers and employees are prohibited from
communicating directly or indirectly, in any manner
or by any means, the fact that a CTR and STR
report has been reported, or is about to be
reported, the contents or any other information
related thereto.
82 D. RECORD KEEPING (Section 924, MORB)

Identification records: Maintained and

safely stored as long as the account exists.

Transaction records: Maintained and safely

stored for 5 yrs. from date of transaction.
 RECORD KEEPING (Section 924, MORB)
83

Covered Persons shall:

Undertake the necessary adequate security
measures to ensure confidentiality.
Prepare and maintain documentation to enable
the AMLC and/ or the courts to establish an audit
trail.
 RECORD KEEPING (Section 924, MORB)
84
Closed Accounts and Terminated Relationships

Maintain and safely store:

Records of customer identification
Transaction documents

At least five (5) years from the date the account was
closed, termination of business relationship or after the
date of occasional transaction. (Cir. 1022)

90
 RECORD KEEPING (Section 924, MORB)
85

Retention of Records where the Account or Customer is the

Subject of a Case

Retained and safely kept beyond the five (5)-year retention

period
Until officially confirmed by the AMLC that the case has been
resolved, decided or terminated with finality.

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 RECORD KEEPING (Section 924, MORB)
86 Safekeeping of records and documents

Covered Persons shall:

Designate at least 2 officers, jointly responsible and
accountable.
Make documents and records available without delay
during BSP examinations.
Retain all records as originals or in such forms admissible
in court
Keep electronic copies of all CTRs and STRs for at least 5
year from the date of submission to AMLC

92
87 RECORD KEEPING (MTPP_series of 2021)

Digitization of Customer Records (DiGiCur)

AMLC Regulatory Issuance A, B and C no. 2, Series of 2018:
DiGiCur guidelines requires bank to digitize customer
records and to establish a central database where these
digitized records can be uploaded and retrieved.

Entails rendering customer records in digital format that

may be stored in the banks database, ad retrieved if the
AMLC requires the bank to submit the digitized customer
records.
93
88
RECORD KEEPING (MTPP_series of 2021)

Digitization of Customer Records (DiGiCur)

Customer Records under DiGiCur Guidelines refers to:
Customer Due Diligence (CDD) records/documents such as
customer information files, copies of official identification
documents that establish the true and full identity of
customers, account files and business correspondences,
results of the banks analysis to establish the background and
purpose of complex and large transactions;

94
89 RECORD KEEPING (MTPP_series of 2021)

Digitization of Customer Records (DiGiCur)

Customer Records under DiGiCur Guidelines refers to:
Account transaction histories or statement of accounts,
whether in Philippine pesos or other currency

95
 E. AML TRAINING PROGRAM (Sec.x809)
90

Annual

Efficient

Adequate

Continuous

96
 E. AML TRAINING PROGRAM (Section 931, MORB)
91

Includes awareness of respective duties and responsibilities under the

MTPP

Customer identification process;

Record keeping requirements;

CT and ST reporting; and

Internal processes - chain of command for the

reporting and investigation of suspicious and money laundering activities.

97
 AML TRAINING PROGRAM (Section 931, MORB)
92

Comprises of various focuses for different line of

work.
Provide regular refresher trainings
Compliance Office is the custodian of AML
training program and records.
To be made available during periodic or special
BSP examination.

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 THANK YOU!
93