Anti-Money Laundering Act Compliance

Republic Act No. 9160, as amended, imposes obligations that bind entities supervised and/or regulated by the Insurance Commission.
The circular requires compliance with the Anti-Money Laundering Act and its implementing rules, including rules that define “Suspicious” and “Covered” transactions.
Rule 3.b.1 of the AMLA implementing rules defines “Suspicious” transactions.
Rule 3.b of the AMLA implementing rules defines “Covered” transactions.

All entities supervised and/or regulated by the Insurance Commission must comply with four (4) major legal responsibilities under the Anti-Money Laundering Act and its implementing rules.
Entities must ensure (a) reporting of all “Suspicious” transactions as defined under rules 3.b.1 of the AMLA rules.
Entities must ensure (b) reporting of all “Covered” transactions as defined under Rule 3.b of the AMLA rules.
Entities must ensure (c) client identification responsibility (KYC) by securing required minimum disclosure data and requiring presentation of the necessary identification documents from all clients, regardless of the amount and nature of insurance transactions.
Entities must ensure (d) record keeping by safely keeping all clients’ identification data and transaction records for a total period of five (5) years, or until final resolution of any related laundering court case, as applicable.

Entities must secure minimum information from all clients, for both identification and KYC compliance.
Entities must require presentation of original documents to establish and/or verify the information supplied by clients.
For individual clients, entities must secure the following minimum information:
- Name;
- Present Address;
- Permanent Address;
- Date and Place of Birth;
- Nationality;
- Nature of work and name of employer or nature of self-employment/business;
- Contact Numbers;
- Tax Identification Number, Social Security System number or Government Service and Insurance System number;
- Specimen signature;
- Source of fund(s); and
- Names of beneficiaries, whenever applicable (Rule 9.1.c).
For corporate/juridical entity-clients, entities must secure the following minimum information:
- Articles of Incorporation/Partnership;
- By-laws;
- Official address or principal business address;
- List of directors/partners;
- List of principal stockholders owning at least two percent (2%) of the capital stock;
- Contact Numbers;
- List of principal officers;
- Beneficial owners, if any; and
- Verification of the authority and identification of the person purporting to act on behalf of the client (Rule 9.1.d).

The circular directs insurance entities to comply with these AMLA responsibilities.
The circular specifically enjoins compliance by insurance intermediaries and insurance or reinsurance companies with common clients.
Insurance entities, particularly those with common clients, must closely collaborate.
Insurance entities must devise effective ways and means among themselves to ensure efficient and full compliance with the AMLA responsibilities.

Entities must report Suspicious transactions that meet the definition under rules 3.b.1 of the AMLA rules.
Entities must report Covered transactions that meet the definition under Rule 3.b of the AMLA rules.
Entities must conduct KYC by securing the required minimum disclosure data and requiring presentation of necessary identification documents from all clients, regardless of the amount and nature of insurance transactions.
Entities must keep client identification data and transaction records for five (5) years, or until final resolution of any related laundering court case, whichever applies under the circular’s stated rule.

The circular is adopted on 27 February 2004 and is signed by EDUARDO T. MALINIS, Officer-in-Charge.
The circular appears in NAR under VOL. 15 NOS. 1-2 / APRIL - JUNE 2004, and thereby is disseminated for compliance guidance for the regulated sector.