Question & AnswerQ&A (AMLC REGULATORY ISSUANCE NO. 1, S. 2018)
The primary purpose of these Guidelines is to ensure that DNFBPs understand and comply with the obligations imposed on them under the Anti-Money Laundering Act (AMLA) and related laws, to prevent and combat money laundering and terrorism financing effectively.
DNFBPs include jewelry dealers, dealers in precious metals and stones, company service providers providing formation and management services to juridical persons, and persons like lawyers and accountants who manage client money, securities or other assets, provide account management, organize contributions for companies, or engage in creation or management of juridical persons or business entities.
DNFBPs must conform to high ethical standards, know their customers sufficiently, adopt an AML/CFT risk management system, comply fully with laws, ensure personnel responsibility and awareness, and cooperate fully with the AMLC and other government agencies.
A Beneficial Owner is any natural person who ultimately owns or controls a customer or on whose behalf a transaction is conducted, or who has ultimate effective control over a legal person or arrangement.
DNFBPs must identify and verify the identity of their customers and, where applicable, the beneficial owners, understand the purpose and nature of the business relationship, conduct ongoing due diligence, and apply risk-based enhanced or reduced measures as required by the customer's risk profile.
DNFBPs must obtain the name, date and place of birth, present and permanent address, contact information, nationality, proof of identification and identification number, and nature of work/employment/business of the individual customer.
DNFBPs are required to keep records of customer identification documents and transactions for at least five (5) years from the date of the transaction or the termination of the business relationship.
DNFBPs must report all covered and suspicious transactions within five (5) working days from the occurrence of the transaction, or from the determination of suspicious activity within ten (10) calendar days of the transaction, with a reasonable period (not exceeding 60 calendar days) to gather necessary facts for meaningful reporting.
Any DNFBP personnel or media entity found to have disclosed information about covered or suspicious transaction reports, the fact of report, or content thereof, shall be held criminally liable under the law, as such information is strictly confidential.
Lawyers and accountants authorized to practice in the Philippines and engaged as independent professionals are generally exempt from filing CTRs and STRs related to client information protected by privileged communication, but they may report knowledge of money laundering or terrorism financing in utmost confidentiality.