QuestionsQuestions (IC CIRCULAR LETTER NO. 4-2004)
They are: (a) reporting all “Suspicious” transactions; (b) reporting all “Covered” transactions; (c) client identification responsibility (KYC) and securing the required minimum disclosure data and identification documents regardless of the amount/nature of insurance transactions; and (d) record keeping/safe keeping of clients’ identification data and transaction records for five (5) years or until final resolution of related money laundering court cases.
It is triggered when a transaction is considered “Suspicious” as defined under Rule 3.b.1 of the AMLA implementing rules referenced by the Circular. Entities must report all such suspicious transactions.
Both are reportable, but they are defined differently under the AMLA implementing rules: “Suspicious” transactions follow Rule 3.b.1, while “Covered” transactions follow Rule 3.b under the same rules. The Circular instructs entities to report both categories separately.
Entities must secure minimum information and require presentation of necessary identification documents from all clients regardless of amount or nature of insurance transactions. For individuals, required data include: name; present and permanent addresses; date and place of birth; nationality; nature of work and employer or nature of self-employment/business; contact numbers; TIN/SSS/GIS number; specimen signature; source of funds; and beneficiaries’ names whenever applicable.
Required documents/data include: Articles of Incorporation/Partnership; by-laws; official/principal business address; list of directors/partners; list of principal stockholders owning at least 2% of capital stock; contact numbers; list of principal officers; beneficial owners, if any; and verification of authority and identification of the person purporting to act on behalf of the client (Rule 9.1.d).
No. The Circular explicitly states that the client identification responsibility applies to all clients regardless of the amount and nature of their insurance transactions.
Five (5) years, or until final resolution of any related laundering court case, whichever is applicable as stated in the Circular.
It is based on the Philippine Anti-Money Laundering Act (RA No. 9160, as amended) and its implementing rules, as referenced throughout the Circular.
To establish and/or verify the information supplied by clients. The Circular mandates that entities require the presentation of original documents supporting the data furnished.
They are enjoined to closely collaborate and devise effective ways and means among themselves to ensure efficient and full compliance with the AMLA legal responsibilities.
Rule 3.b.1.
Rule 3.b.
Rule 9.1.d.
It requires the names of beneficiaries whenever applicable (as stated in the minimum information for individual clients).
First, comply with KYC by securing minimum client data and requiring original identification documents; second, maintain complete client identification and transaction records for at least five years (or until final resolution of any related case); then, use this verified information and transaction monitoring to determine whether transactions are “Suspicious” (Rule 3.b.1) or “Covered” (Rule 3.b) and report accordingly.