Risk-Based Monitoring and Detection Systems
- Covered institutions must establish systems to understand customers' normal and reasonable account activities.
- Systems should detect unusual or suspicious transaction patterns.
- Monitoring must be risk- and materiality-based and ongoing as part of customer due diligence.
Customer Due Diligence for Beneficiaries
- Beneficiary institutions shall not pay-out fund transfers to non-customer beneficiaries without conducting full and true identity verification.
- Verification includes establishment of existence and identity of the beneficiary.
Enhanced Due Diligence for High-Risk Customers
- For cross-border transfers, if the originator is considered a high-risk customer, the beneficiary institution must conduct enhanced due diligence on both the originator and beneficiary.
Refusal of Transaction and Reporting Obligations
- Beneficiary institutions shall refuse to process fund/wire transfers or pay-out if:
- Additional information cannot be obtained.
- Provided information or documents are false or falsified.
- Validation process results are unsatisfactory.
- Such refusal shall not prejudice the reporting of suspicious transactions to the Anti-Money Laundering Council.
Information Requirements for Fund/Wire Transfers
- Cross-border and domestic transfers and related messaging must include accurate and meaningful originator information.
- This applies to transfers amounting to P50,000 or its equivalent and above.
Compliance and Enforcement
- Covered institutions are reminded to observe relevant prudential safeguards in processing fund/wire transfers.
- Compliance is overseen by Bangko Sentral ng Pilipinas as represented by the Deputy Governor.
This comprehensive regulatory framework serves as a preventive measure against money laundering and unlawful fund transfers through banking channels in the Philippines.