Question & AnswerQ&A (IC CIRCULAR LETTER NO. 4-2004)
The four major legal responsibilities are: 1) Reporting all 'Suspicious' transactions, 2) Reporting all 'Covered' transactions, 3) Client identification responsibility (Know Your Customer or KYC), and 4) Record keeping of clients' identification data and transaction records for five years or until final resolution of any related laundering court case.
Client identification responsibility requires securing minimum disclosure data and requiring presentation of necessary identification documents from all clients regardless of the amount and nature of their insurance transactions.
Suspicious transactions refer to any transaction that lacks apparent lawful purpose or is unusual or suspicious under Rule 3.b.1 of the AMLA implementing rules, prompting the obligation to report them to the appropriate authorities.
'Covered' transactions are those transactions that meet the threshold amounts or criteria defined under Rule 3.b of the AMLA implementing rules, which must be reported to prevent money laundering.
Individual clients' minimum information includes: Name, Present and Permanent Address, Date and Place of Birth, Nationality, Nature of Work and Employer or Business, Contact Numbers, Tax Identification Number or Government IDs like SSS or GSIS, Specimen Signature, Source of Funds, and Names of Beneficiaries when applicable.
For corporate/juridical entities, required data includes: Articles of Incorporation or Partnership, By-laws, Official or Principal Business Address, List of Directors/Partners, List of Principal Stockholders with at least 2% capital stock, Contact Numbers, List of Principal Officers, Beneficial Owners if any, and Verification of authority of the person acting on behalf of the client.
Records must be kept for a total period of five (5) years or until the final resolution of any related money laundering court case, whichever is longer.
Entities must require the presentation of original documents supporting the information supplied by their clients for verification purposes.
Yes, the Insurance Commission encourages insurance intermediaries and companies with common clients to closely collaborate to devise effective ways to ensure compliance with AMLA legal responsibilities.
The Circular Letter aims to inform all entities supervised/regulated by the Insurance Commission of their AMLA obligations, specifically focusing on their responsibilities related to reporting transactions, client identification, and record keeping to combat money laundering.