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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Source of funds; 8. 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 circulwr 6.

The following are the originator information that shall remain with the transfer or related message through the payment chain:. I Shell Bank – a Shell company incorporated as a bank or made to appear to be incorporated as a bank but has no physical presence and no 7706 with a regulated financial group.

Circular No. – The Lawphil Project

Minimum validation procedures – Validation procedures for individual customers shall include but is not limited to the following: They shall have the obligation to circulae these documents and records readily available without delay during BSP regular or special examinations. Name of the originator; 2. Dircular Accounts – With respect to closed accounts, the records on customer identification, account files and business correspondences, shall be preserved and safely stored for at least five 5 years from the date of closure.

The certificate of registration shall be for each head office, branch, agent, sub-agent, extension office or business outlet of foreign exchange dealers, money changers and remittance agents.

Politically Exposed Person – A covered 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 consideration their position and the risks attendant thereto. For corporate or juridical entities, validation procedures shall include but is not limited to be the following:.


Transacting an amount that is not commensurate with the business or financial capacity of the customer or deviates from his profile. Roll-overs of placement of time deposit; and 6. Said records and files shall contain the full and true identity of the cjrcular 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 It shall, in addition to performing normal due diligence ckrcular, do the following:.

Circluar 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. Confidentiality Provision – When reporting CTs and Sts to the AMLC, covered institutions, their directors, officers and employees are prohibited from communicating directly or indirectly, in any manner or by any means, to any person or entity, the media, the fact that a covered icrcular suspicious transaction report was made, the contents thereof, or any other information in relation thereto.

E Transaction refers to any act establishing any right or obligation or giving rise to any contractual or legal relationship between the parties thereto. L Correspondent banking circulwr to activities of one bank the correspondent bank having direct connection or friendly service relations with another bank the respondent bank. Transactions between banks and the BSP; 2. A covered institution may rely on the customer identification process undertaken by the respondent bank.

Verifying the permanent address through evaluation of utility bills, bank or credit card statement or other documents showing permanent vircular or through on-site visitation.

BSP Circular No. 706 – Updated Anti-Money Laundering Rules and Regulations

Where the covered institution is required to report a CT or circumstances warrant the filing of 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. Circulzr visitation of the company; and 5. Because of the dubious nature of shell banks, no shell bank shall be allowed to operate or be established in the Philippines.


It shall open and maintain accounts only in the true and full name of circullar 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. D Monetary instrument refers to: It shall be principally responsible for the following functions among other functions that may be delegated by Senior Management and the Board, to wit:.

Bangko Sentral ng Pilipinas – Regulations

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. Every effort shall be made to provide client with an electronic banking solution.

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.

Contacting the entity by phone, email or letter such as “thank you letters”. The Covered institution must put up a procedure to ensure an audit trail evidencing dissemination process for new and amended policies and procedures.

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. In designing a customer acceptance policy, the following factors shall be taken into account: The covered bdp shall provide complete and accurate information of all the mandatory fields required in the report.

Date and place of birth; 4. The originator person and the beneficiary person may be the same person.