Amendment to Numbered Accounts Rule in BSP Circular 1389

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BSP CIRCULAR NO. 258: Amendment to Numbered Accounts Rule in BSP Circular 1389

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Title Supreme Court: Amendment to Numbered Accounts Rule in BSP Circular 1389

Law: Bsp Circular No. 258

Decision Date: Sep 6, 2000

BSP Circular No. 258 mandates authorized banks to implement a numbered account system while ensuring the verification of clients' true identities through reliable documentation.

foreign exchange

numbered accounts

administrative law

A

Client Identification Requirements

All banks and Non-Bank Financial Institutions (NBFIs) must establish and record the true identity of their clients.
Identification must be based on official or other reliable documents and records.
This is in compliance with Circular 251 dated July 7, 2000, to enhance transparency and prevent anonymity in transactions.

Regulatory Amendment and Implementation

The amendment specifically revises Section 77 of Circular No. 1389, which contains the consolidated foreign exchange rules and regulations.
The change was approved under Monetary Board Resolution No. 1409 dated August 18, 2000.
The amended provision took effect immediately upon issuance on September 6, 2000.

Legal and Compliance Implications

Banks/NBFIs using numbered account systems must implement procedures to verify and record client identities.
The measure is aimed at compliance with anti-money laundering, Know Your Customer (KYC) standards, and regulatory transparency.
Failure to comply may subject the institutions to regulatory sanctions by the Bangko Sentral ng Pilipinas (BSP).

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