Law Summary
Definition of Terms
- Customer records include:
- Customer identification files with minimum required information.
- Official identification or equivalent documents.
- Account files, business correspondence, and due diligence documentation.
- Account transaction histories or statements in any currency.
- Other terms follow definitions under the AMLA and its related issuances.
Duties of Covered Persons
- Act promptly and maintain strict confidentiality in responding to AMLC information requests.
- Digitize all customer records within prescribed timelines except closed accounts older than five years.
- Money service businesses are generally exempt unless electronic accounts are maintained.
- Develop and maintain a central database at head offices or main branches with unrestricted access to compliance officers.
- Ensure database complies with data privacy and protection laws.
- Store records in court-admissible formats as prescribed by AMLC.
- Update the Money Laundering and Financing of Terrorism Prevention Program (MLPP) to incorporate duties and controls, subject to board approval and dissemination.
Submission of Digitized Customer Records to AMLC
- Submit requested customer records extracted from central databases via AMLC's File Transfer and Reporting Facility.
- Ensure submissions are complete, accurate, timely, and secure, consistent with AMLA rules and AMLC issuances.
Compliance Checking
- AMLC will conduct compliance checks on covered persons to enforce these guidelines.
- Supervising authorities and government agencies must enforce compliance within their jurisdictions through own regulations or circulars.
Implementation
- Within six months, covered persons must update MLPP to comply with guidelines.
- Immediately upon MLPP update effectivity (not exceeding six months), digitize all new customer records.
- Complete digitization of all existing records and establish central database within two years after new records digitization starts.
- Digitization efforts run concurrently with regular monitoring and updating of customer information.
Compliance with Record-Keeping Requirements
- Digitization does not affect obligations to comply with AMLA record-keeping and retrieval mandates.
Sanctions and Penalties
- Non-compliance results in administrative sanctions classified as grave violations under AMLC’s administrative sanctions rules.
- Breaches of confidentiality in financial investigations may lead to criminal liability under AMLA provisions.
- Unauthorized disclosure of information on suspicious transactions or investigations is prohibited and punishable.
Amendment of Administrative Sanctions Rules
- Existing administrative sanctions rules are amended to include violations of these digitization guidelines as grave offenses.
Separability Clause
- If any provision is invalidated, remaining provisions remain unaffected and enforceable.
Effectivity Clause
- Guidelines take effect fifteen days after publication in a newspaper of general circulation.