Question & AnswerQ&A (CIRCULAR LETTER)
The main purpose of the Circular Letter is to require banks and non-bank financial institutions (NBFIs) to submit reports of suspicious transactions directly to a special committee for evaluation, investigation, and maintenance of a suspicious transaction database according to Circular No. 253 dated July 31, 2000.
The special committee, through its Chairman Atty. Melpin A. Gonzaga of the Office of the General Counsel and Legal Services, is responsible for receiving the reports of suspicious transactions.
The reports on suspicious transactions are mandated under Section 1 of Circular No. 253 dated July 31, 2000.
Banks and NBFIs must submit their reports directly to the special committee through its Chairman, Atty. Melpin A. Gonzaga.
Both banks and non-bank financial institutions (NBFIs) are covered by this Circular Letter and are required to report suspicious transactions.
The special committee is tasked with the evaluation, investigation, and maintenance of a database of suspicious transactions reported by banks and NBFIs.
The Circular Letter took effect immediately upon its issuance on January 2, 2001.
Circular No. 253, issued on July 31, 2000, pertains to the submission of reports on suspicious transactions by banks and NBFIs for monitoring and investigation purposes.
Deputy Governor Alberto V. Reyes, who signed the Circular Letter, acts with regulatory authority over banks and financial institutions under the central banking system of the Philippines.
Requiring direct submission ensures greater transparency, quicker investigation, and centralized monitoring of suspicious transactions to prevent potential financial crimes such as money laundering and fraud.