Reminder on Account Opening Process, Verification Procedures and Ongoing Monitoring

EIANCKO SENTRAL NO PILIPINAS OFFICI OF THE DE?UW GOVERNOR SUPERVISIOIT At{D EXAM]TTATTOIY SECTOR MEMORANDUM NO. M-2015-i,lZ To : AIL BANKS Subiect : Rerninder on Aocount Opening Process, Verification Procedures and Ongoing Monitoring The Bangko Sentral ng Pilipinas received information on the unusually high number of individual accounts being opened in certain banks, which, reportedly, will be used for grants or donations that will be provided by certain organization or foundation. Banks are reminded to exercise caution and conduct appropriate customer due diligence procedures based on the risk posed by the customer. Under Subsection XB0G.1 of the Manual of Regulations for Banks (MORB), the customer acceptance poliry of the bank should consider, among others, the background and source of funds. Whenever enhanced due ditigence is warranted, Subsection X806.1.b of the MORB requires obtaining additional informationl other than the minimum information and/or documents required for the conduct of average due diligence, performing validation procedures on any or all of the information provided and obtaining senior management approval for establishing business relationship. tn this case, relevant vatidation procedures include, among others, establishing the legitim aey andlor validity of the source of funds of applicants who are opening accounts under similar circumstances. ln the event that the bank's validation yields an unsatisFactory result, the bank shafl deny banking refationship with the applicanf. tf the accounts already exist, the Bank may tag these accounts, closely monitor movements or transactions and verifu the source/s of funding or deposits. These are without prejudice to filing of a suspicious transaction report (STR) to the Anti-Money Laundering Council, if any of the circumstances under Section X803 of the MORB exists. For guidance. I lFl-1-A ilESTOR A. SPENIII.A Deputy Governor l0 ruou.mber 2015 r Such as nature and intended purpose for establishing the account or relationship 2 Subsection X806.1.b of the MORB