Anti-Money Laundering Council (AMLC) Resolution No. 38 dated 26 April 2011

BANOKO SENINAL NO PILIPINAg OFFICE OF THE DEPUW GOVERNOR SUPERVISION AND EHMINATION SECTOR ctRcutAR TETTER No. ct-2011- i3,5- To All Banks and Non-Bank Financial Institutions Under BSP Supervision Subject Anti-Money Laundering Council (AMtCl Resolution No. 38 dated 26 April 2011 The Anti-Money Laundering Council (AMLC), in its Resolution No. 38 dated 26 April 2011, resolved to adopt the following policies on the submission of Covered Transaction Report (CTR) on transactions settled via fund transfers between existing bank accounts of the brokers/dealers and their customers, to wit: 1) The filing of a CTR by a broker is deferred when the mode of payment is by checks inasmuch as these checks will ultimately pass through banks which are mandated to file the required CTR thereon. 2) In the same manner, if the settlement between the brokers/dealers and their customers is made through fund transfers or "debiting and oediting" of their respective accounts (in which case there is no physical movement of funds but only a book-entry transfer of funds), the broker need not file a CTR thereon inasmuch as the said transactions are akin to a transaction in check, the reporting of which pertains to the concerned bank/s. Attached is a copy of AMLC Resolution No. 38 dated 25 April 2011 for your guidance and strict implementation. I [J- <,--!a INESTOR A. SPEN|IrA ?..S May 2011 Att.: A/S

Anti-Mo ney Laundering Cou ncil Bangko Sentral ng Pilipinas Gomplex Manila, Philippines RESOLUTION No.38 Series of 2OtL In its Memorandum dated 25 April 20LL, the secretariat reported that: AMLC Resolution No. 292, Series of 2003 provides that: "3. Covered institutions, other than banks, sholl file covered transaction reports (CTRs) on transactions in cosh or foreign currency or other monetary instruments (other than checks) or properties. Due to the nature of the tronsactions in the stock exchange, only the brokers-deolers shall be required to file CTRs ond STRs. They, are however, required to file STRs when the transoctions that pass through them are deemed to be suspicious." (Emphasis supplied) Relative to the aforequoted provision, the AMLC Secretariat has been receiving requests for clarification on whether transactions settled via fund transfers, or "debiting and crediting" of the respective occounts of brokers ond customers within the same bonk, are also included among the covered transactions the reporting of which is deferred pursuant to the soid Resolution No. 292, Series of 20O3. To finally settle the issue, it is deemed best to adopt a policy on the matter. The Council resolved to adopt the following policies on the submission of Covered Transaction Reports (CTR) on transactions settled via fund transfers between existing bank accounts of the brokers/dealers and their customers, to wit: (1) The filing of a Covered Transaction Report (CTR) by a broker is deferred when the mode of payment is by checks inasmuch as these checks will ultimately pass through banks which are mandated to file the required CTR thereon.

(2) ln the same manner, if the settlement between the brokers/dealers and their customers is made through fund transfers or "debiting and crediting,, of their respective accounts (in which case there is no physical movement of funds but only a book-entry transfer of funds), the broker need not file a CTR thereon inasmuch as the said transactions are akin to a transaction in check the reporting of which pertains to the concerned bank/s. The Council further resolved to request the Supervising Authorities to disseminate this Resolution to all covered institutions under their respective ju6isdictions. 'LApril 2011, Manita, Acting Chairman n-Charge, Bangko Sentral ng Pilipinas) S#nfrn' Member Membdr (Chairman, Securities and Exchange Commission) (Commissioner, ln(urance Commission)