AMLC tells banks to update laundering prevention program

MANILA, Philippines — The Anti-Money Laundering Council (AMLC) yesterday reminded banks and financial institutions to update their relevant anti-money laundering policies and procedures, particularly the prompt reporting of suspicious transactions.

In its website, the body said covered persons and institutions should begin the implementation of amendments to the 2018 Implementing Rules and Regulations (IRR) of the Anti-Money Laundering Act of 2001 (AMLA), as amended, approved by the AMLC in end-January.

“The 2018 IRR amendments intend to raise the Philippines’ level of technical compliance, bringing it in line with international standards on combating money laundering and terrorism financing,” the AMLC said.

The Philippines, which is in danger of being included in the gray-list of Paris-based Financial Action Task Force (FATF), was dragged into the $2.1 billion missing funds of German financial technology leader Wirecard AG wherein two of the country’s largest banks – BDO Unibank and Ayala-led Bank of the Philippine Islands (BPI) – vehemently denied any involvement.

The country was previously entangled in the Bangladesh central bank cyber heist involving $81 million stolen by hackers that entered the Philippine financial system through a local bank.

The AMLC said covered persons and institutions should update their money laundering and terrorism financing prevention programs to align with the revised IRR that took effect on Feb. 1.

The substantive changes in the procedures include the imposition of the three -day requirement from receipt of request from the beneficiary institution or appropriate authorities, for the ordering institution to make available the information accompanying the domestic wire transfer, as well as prompt filing suspicious transaction reports within the next working day from occurrence thereof or the date of establishment of suspicion or determination of the suspicious nature of the transaction.

Covered institutions and persons, the AMLC said, are also required to include attempted transactions in suspicious transaction reporting and apply manage risks to close relationships or associates of politically exposed persons.

Likewise, the new IRR required covered institutions and persons to subject customers who are legal persons from higher risk countries to enhanced due diligence.

The AMLC also requires covered person to ensure that the information and documents collected in the customer due diligence process are kept updated whenever beneficial ownership information changes and at the same time the scope of a related account are clarified.