QuestionsQuestions (BSP CIRCULAR LETTER NO. CL-2014-050)
It reminds banks and NBFIs to strictly comply with the AML-related provisions of the MORB and MORNBFI on customer identification for new corporate/juridical entities, especially foreign remittance companies, including requirements for authenticated documents and risk-based customer acceptance.
It cites Subsection X806.2.b and Subsection X806.1 of the MORB and MORNBFI.
The minimum required information and/or documents must be obtained and duly authenticated by the Philippine Consulate where the entities are registered.
It refers to the specific baseline customer identification requirements imposed by the MORB/MORNBFI under the AML framework, which must be secured before establishing a business relationship, especially for new corporate/juridical entities.
To ensure that the customer identification documents submitted by entities registered outside the Philippines are verified/authenticated through the appropriate Philippine authority, supporting compliance with AML due diligence and identity verification.
The circular is meant to help banks and NBFIs effectively implement the AML Act’s customer identification and due diligence requirements through compliance with the MORB/MORNBFI provisions.
They must formulate and implement a risk-based tiered customer acceptance policy and customer identification process that includes enhanced due diligence for higher-risk accounts.
It means customer acceptance and due diligence procedures must be tiered based on risk level, requiring enhanced due diligence for higher-risk customers/accounts.
The circular mentions obtaining additional information for due diligence, conducting required validation procedures, and obtaining senior management approval for establishing the business relationship.
Senior management approval is required.
Banks and NBFIs should avoid engaging in business relationships with foreign remittance companies that do not comply with the stated AML regulations.
Any violation shall be subject to the applicable sanctions and penalties under Section X811 of the MORB.
It applies to both banks and NBFIs, as it explicitly reminds both entities to comply with the MORB and MORNBFI provisions.
Implementing the customer identification process that requires obtaining minimum information and/or documents before establishing business relationships.
The bank/NBFI should avoid establishing or engaging in business relationships with foreign remittance companies that do not comply with the AML requirements, including the authenticated-document requirement.
It treats proper customer identification (including consular authentication and risk-based enhanced due diligence) as a mechanism to effectively implement the AML law’s requirements.