Anti-Money Laundering Council (AMLC) Regulatory Issuance (ARI) No. 6, Series of 2021- Final Extension of the Deadline for Compliance with the Guidelines on Digitization of Customer Records (DIGICUR)

CIRCULAR LETTER NO. CL-2021-__ 072 OFFICE OF THE DEPUTY GOVERNOR FINANCIAL SUPERVISION SECTOR To : All BSP-Supervised Financial Institutions (BSFIs) Subject : Anti-Money Laundering Council (AMLC) Regulatory Issuance (ARI) No. 6, Series of 2021- Final Extension of the Deadline for Compliance with the Guidelines on Digitization of Customer Records (DIGICUR) This is to disseminate to all BSFIs the ARI No. 6, Series of 20211 (copy attached) on the final extension of the deadline for compliance with ARI A, B, and C, No. 2, Series of 20182, also known as the Guidelines on Digitization of Customer Records (DIGICUR). Specifically, ARI No. 6 informs that all covered persons (CPs) are: 1. Granted a final extension of the deadline for compliance with the DIGICUR to a non-extendable period of one year from 30 September 2021, or until 30 September 2022; 2. Required to submit to the AMLC, through email/AMLC portal, a Quarterly DIGICUR Status Report of Compliance (QUADSREC), which shall be certified correct by the Chief Compliance Officer, and attested by the President or Chief Executive Officer or its equivalent. CPs shall submit QUADSREC within fifteen (15) calendar days after each reference quarter (except that the first status report shall be submitted on or before 31 October 2021) until such time that CPs have fully completed and complied with all the requirements of the DIGICUR. For CPs that have fully complied with the DIGICUR, a one-time submission of the QUADSREC, on or before 31 October 2021, shall be sufficient; 3. Warned that failure to submit the QUADSREC shall constitute a Serious Violation (i.e., penalty between Php15,000.00 to Php150,000.00 per account) under Item C.25, Table A, Section 2, 1 http://www.amlc.gov.ph/images/PDFs/2021%20SEP%20ARI%20FINAL%20DIGICUR%20EXTEN SION%20(ORIGINAL%20SIGNED)2.pdf, 2 http://www.amlc.gov.ph/images/PDFs/DIGICUR%20ARI%20(ORIGINAL%20SIGNED).pdf

Rule IV of the Rules of Procedure in Administrative Cases (RPAC) for violation of orders, resolutions, and issuances of the AMLC; and 4. Reminded that non-compliance with the DIGICUR is a Grave Violation (i.e., penalty between Php37,500.00 to Php375,000.00 per customer) under Item A.4, Table A, Section 2, Rule IV of the RPAC. All BSFIs are reminded that ARI No. 6, Series of 2021 covers prior and subsequent requests for extension of DIGICUR compliance and its implementation took effect on 1 October 2021. For information and strict compliance/implementation. Digitally signed by Chuchi G. Fonacier Date: 2021.10.05 15:04:30 +08'00' CHUCHI G. FONACIER Deputy Governor 05 October 2021 ___

AMLC REGULATORY ISSUANCE (ARI) NO. 6 Series of 2021 Subject: Final extension of the deadline for compliance with AMLC Regulatory Issuance (ARI) A, B and C, No. 2, Series of 2018, also known as the Guidelines on Digitization of Customer Records (DIGICUR) By the authority vested upon the Anti-Money Laundering Council (AMLC) to implement measures as may be necessary and justified to counteract money laundering, in accordance with Section 7(7) of Republic Act (RA) No. 9160, also known as the Anti-Money Laundering Act of 2001, as amended (AMLA), the Council in its Resolution No. 205, dated 22 September 2021, all concerned Covered Persons are: 1. GRANTED a final extension of the deadline for compliance with the DIGICUR to a non-extendable period of one year from 30 September 2021, or until 30 September 2022. For this purpose, all prior and subsequent requests for extension shall be covered by this ARI; 2. REQUIRED to submit to the AMLC, through email/AMLC portal, a Quarterly DIGICUR Status Report of Compliance (QUADSREC) to be certified correct by the Chief Compliance Officer, and attested by the President or Chief Executive Officer or its equivalent. For this purpose, the QUADSREC template is hereto attached as Annex “A”, which shall be submitted within fifteen (15) calendar days after each reference quarter, except that the first report shall be submitted on or before 31 October 2021. Submission of the QUADSREC shall continue until such time that such covered persons have fully completed and complied with all the requirements of the DIGICUR. For fully complied Covered Persons, a one-time submission of the QUADSREC is sufficient, which shall be submitted on or before 31 October 2021; 3. WARNED that failure to submit the QUADSREC shall constitute a Serious Violation (i.e., penalty between Php15,000.00 to Php150,000.00 per account) under Item C.25, Table A, Section 2, Rule IV of the Rules of Procedure in Administrative Cases (RPAC) for violation of orders, resolutions, and issuances of the AMLC; and

4. REMINDED that non-compliance with the DIGICUR is a Grave Violation (i.e., penalty between Php37,500.00 to Php375,000.00 per customer) under Item A.4, Table A., Section 2, Rule IV of the RPAC. This ARI supplements ARI A, B and C, No. 2, Series of 2018, also known as the Guidelines on Digitization of Customer Records (DIGICUR), and shall take effect on 1 October 2021, following its publication in a newspaper of general circulation, or in the Official Gazette. BY AUTHORITY OF THE AMLC: (ORIGINAL SIGNED) MEL GEORGIE B. RACELA Executive Director Anti-Money Laundering Council Secretariat 24 September 2021

ANNEX “A” QUARTERLY DIGICUR STATUS REPORT (QUADSREC) Name of the Covered Person __ Quarter, 202_ Target Completion Date Obligations under the % of Completion as of Ongoing Issues DIGICUR Completion Measures (must be on or before DIGICUR _________ 30 September 2022) Updating of the Money · · Revision of the MTPP to Laundering/Terrorism incorporate the requirements Financing Prevention Program under the DIGICUR (MTPP) · Approval of the updated MTPP by the Board of Directors/ Senior Management (for partnerships, sole corporations or sole proprietorships) Development of a central · Indicate details and amount of database of customer records investment in the following: · Capital Expenditures; · IT equipment; · System upgrades; · Training; and · Other measures. Digitization of existing · Number of digitized Indicate details and amount of customer accounts prior to existing customer investment in the following: the effectivity of the DIGICUR accounts prior to the · Capital Expenditures; effectivity of the · IT equipment; DIGICUR/total · System upgrades; number of existing

ANNEX “A” customer accounts · Training; and prior to the effectivity · Other measures. of the DIGICUR = % Digitization of new accounts · Number of digitized Indicate details and amount of opened after the effectivity of new customer investment in the following: the DIGICUR accounts opened after · Capital Expenditures; the effectivity of the · IT equipment; DIGICUR/total · System upgrades; number of new · Training; and customer accounts · Other measures. opened after the effectivity of the DIGICUR = % Certified correct: Attested bv: ___________________________ _______________________ Chief Compliance Officer President/CEO