Anti-Money Laundering Council (AMLC) Resolution No. 10 dated 31 January 2007

Bangko Sentral ng P thinas

SUPERVISION AND EXAMINATION SECTOR OFFICE OF THE dEPUTY GOVERNOR

CIRCULAR LETTER NO. CL --2007- 010

TO ALL BANKS

Subject Anti-Money Laundering Council (AMLC) Resoiution No. 10 dated 31 January 2007

Attached is the Anti-Money Laundering Councit (AMLC) Resolution No.

requirement on reporting suspicious transactions and reminding them of the 10 dated 31 January 2007 enjoining all banks to strictfy compiy with the following:

1. A bank through which a frauduient or spurious check passes, either

as depository, presenting, or drawee bank, shall file the corresponding Suspicious Transaction Report (STR) pursuant to Section 9 (c) of R.A. No. 9160, as amended.

2. The STR shall be fiied within five (5) working days from the

occurrence of the transaction, or from the time the concerned bank is notified or becomes aware of the spurious character of the check or the fraudulent nature of the transaction.

3. The filing with the Bangko Sentral ng Pilipinas of a Report' on

Crimes and Losses relating to the deposit of a fraudulent or

Anti-Money Laundering Council pursuant to Section 9 (c) of R.A. spurious check does not dispense with the filing of an STR with the

No. 9160, as amended.

For your guidance and strict compliance

NESTOR A. ESPENILLA/JR Deputy Governc

February 2007

Att.: AS

Pananalaping Matatag, Bansang Panatag

A. Mabini St., Malate 1004 Manila, Philippines Trunktine (632) 524-70-11. URL:www.bsp.gov.ph e-mait: [email protected]

Anti-Money Laundering Council Bangko Sentral ng Pilipinas Complex Manila, Philippines

RESOLUtION NO. 10 Series of 2007

depository bank or the drawee bank has the obligation to file the required STR Suspicious Transaction Reports (STRs) in cases involving deposit of fraudulent or spurious checks based on the impression that only either the original It has come to the Council's attention that a number of banks failed to file

fraudulent or spurious checks dispenses with the filing of STR with the Anti- Sentrai ng Pilipinas (BSP) of Reports on Crimes and Losses involving deposit of Money Laundering Council (AMLC}. Some banks are also of the impression that the filing with the Bangko

individual "transactions", as defined under Section 3 (h) of R.A. 9160, as contractual relationship between the transacting parties, i.e., between the depositor and the depository bank: between the depository bank and the another bank (in case the original depository bank has no clearing facilities), and its presentment to the drawee bank for payment are all deemed separate or has no clearing facilities, the check is deposited to another bank (presenting bank) which has ciearing facilities, which shall then present the check to the drawee bank for payment. Necessarily, each movement of the check creates a presenting bank; and between the presenting bank and the drawee bank. In other words, the initial deposit of a check with a depository bank, its deposit with amended. depository bank and the drawee bank. In cases where the depository bank A check deposit usually involves three parties: the depositor, the

of the dishonor of the check. Evidently, all the transacting banks are actually informed of the fraudulent character of the check. the presenting bank of the dishonor of the check and the reason for such dishonor. it becomes incumbent upon the drawee bank to report to the AMLC the frauduient transaction. The presenting bank, in turn, informs the depository bank detects the frauduient issuance and/or negotiation thereof, it necessarily informs In case a fraudulent or spurious check is deposited and the drawee bank

pursuant to Section 9 (c) of the AMLA. from occurrence thereof, or from the time they are notified or become aware of the fraudulent or spurious character of the check involved in the transactions, unlawful activity of Estafa, such transactions are deemed suspicious and all transacting banks should file STRs with the AMLC within five (5) working days As the deposit and presentment of the fraudulent check are related to the

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requirement on reporting of suspicious transactions and remind them of the following: The Council resoived to enjoin all banks to strictly comply with the

1. A bank through which a fraudulent or spurious check passes, either as depository, presenting, or drawee bank, shall file the corresponding STR pursuant to Section 9 (c) of R.A. No. 9160, as amended.

2. The STR shail be filed within five (5) working days from the occurrence of the transaction, or from the time the concerned bank is notified or becomes aware of the spurious character of the check or the fraudulent nature of the transaction.

3. The filing with the Bangko Sentral ng Pilipinas of a Report on Crimes Laundering Council pursuant to Section 9(c) of R.A. 9160, as does not dispense with the filing of an STR with the Anti-Money and Losses relating to the deposit of a fraudulent or spurious check amended.

circularize this Resolution to all banks under its supervision. The Council further resolved to reguest the Bangko Sentral ng Pilipinas to

31_January 2007, Manila, Philippines.

(Governor, Bangko Sentral ng Pilipinas) Amando M. tetangco, Jr. Chairman

(Chairman, Securities & Exchange Commission) De B. Barin + t+ Member EVANGELINE CRISOSTOMO-ESCOBILLO UAA (Commissioner, Insurance Commission) A rdo Member A

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