Rules and regulations for banks, offshore banking units, quasi-banks, trust entities, non-stock savings and loan associations, pawnshops and all other institutions

CIRCULAR NO. 333 Series of 2002

Pursuant to Monetary Board Resolution No. 809 dated May 30, 2002, the following rules and regulations for banks, offshore banking units, quasi-banks, trust entities, non-stock savings and loan associations, pawnshops, and all other institutions, including their subsidiaries and affiliates supervised and/or regulated by the Bangko Sentral ng Pilipinas (BSP), otherwise known as “Covered Institutions” are hereby issued:

Section 1.  All covered institutions enumerated above shall comply with the provisions of R.A. No. 9160, otherwise known as the “Anti-Money Laundering Act of 2001” and its Implementing Rules and Regulations (IRRs). (copies attached)

Section 2.  The second paragraph of item No. 6 of Circular No. 251 dated 7 July 2000 is hereby amended to read as follows:

“If there is reasonable ground to believe that the funds are proceeds of an unlawful activity as defined under R.A. No. 9160, otherwise known as the “Anti-Money Laundering Act of 2001” (AMLA) and/or its Implementing Rules and Regulations (IRRs), the transactions involving such funds or attempts to transact the same, should be reported to the Anti-Money Laundering Council (AMLC) in accordance with Rules 5.2 and 5.3 of the AMLA IRRs.”

Section 3.  The opening paragraph of Section 1 of Circular No. 253 dated 31 July 2000 is hereby amended to read as follows:

“Banks and non-bank financial institutions (NBFIs) shall report all covered transactions and suspicious transactions, as defined in Rules 5.2 and 5.3 of the AMLA IRRs, to the AMLC using the forms prescribed by the AMLC. Reportable transactions shall include the following:

x x x”

Section 4.  The first sentence in paragraph No. 1 of the Reporting Procedure in the BSP Anti-Money Laundering Model Operating Manual for Banks and Other Covered Institutions is hereby amended to read as follows:

“All covered transactions and suspicious transactions should be reported by the staff to the Branch Manager or to the staff’s superior officer using the forms prescribed by the AMLC. x x x”

Section 5.  Paragraph No. 3 of the Reporting Procedure in the BSP Anti- Money Laundering Model Operating Manual for Banks and Other Covered Institutions is hereby amended to read as follows:

“If the Money Laundering Committee decides that there is reasonable basis for considering a covered transaction or suspicious transaction or any other unlawful activity, the appropriate report must be made to the AMLC using its prescribed forms.”

Section 6.  Appendix G and Appendix H of the BSP Anti-Money Laundering Model Operating Manual for Banks and Other Covered Institutions are hereby revised by the report forms shown in Annexes “A” and “B”.

Section 7. Paragraph No. 4 of the Reporting Procedure in the BSP Anti-Money Laundering Model Operating Manual for Banks and Other Covered Institutions is hereby amended to read as follows:

“If applicable, a covered transaction or a suspicious transaction or any other illegal activity should also be reported to the Regional Head of Investigations.  The report should be made in the forms prescribed by the AMLC.  The report should be given to the local Head of Investigation, if there is one.  If there is no local Head of Investigations, the report to the Regional Head of Investigations should be made by the Compliance Officer.”

Section 8.  Repealing Clause. Item No. 7 of Circular No. 251 dated 7 July 2000, Section 2 of Circular No. 253 dated 31 July 2000, Circular-Letter dated 2 January 2001, Paragraph No. 5 of the Reporting Procedure in the BSP Anti-Money Laundering Model Operating Manual for Banks and Other Covered Institutions and all other provisions of BSP circulars, circular-letters, office orders and other issuances inconsistent with the provisions of this Circular, R.A. No. 9160, otherwise known As “The Anti-Money Laundering Act of 2001” (AMLA) or its Implementing Rules and Regulations (IRRs) are hereby repealed.

This Circular shall take effect immediately.

FOR THE MONETARY BOARD:

RAFAEL B. BUENAVENTURA Governor