Transactions of a bank/NBFI covered by reporting requirements of the Anti-Money Laundering Act of 2001

Bangho Sentral ng Pi binas

SUPERVISION AND EXAMINATION SECTOR

CIRCULAR-LETTER

To ALL BaNKS ANd nON-BANK FiNANCiAL iNStitUtiONS

by reporting requirements of Republic Act No. 9160, otherwise known as the institution (NBFI), whether conducted by its regular banking unit, trust department, Foreign Currency Deposit Unit (FCDU) or any other unit are covered "Anti-Money Laundering Act of 2001", as amended by R. A. No. 9194. This is to remind you that all transactions of a bank/non-bank financial

Pertinent provisions of said law are guoted hereunder:

N Section 3. Definitions

X X X

" (b) excess of Five hundred thousand pesos (P500,000) within one (1) banking day. Covered transaction is a transaction in cash or other equivalent monetary instrument involving a total amount in

"(b-1) Suspicious transactions are transactions with covered institutions regardless of the amounts invoived, where any of the foilowing circumstances exist:

1 there is no underlying legal or trade obiigation. purpose or economic justification;

2 the client is not properiy identified;

3 business or financial capacity of the client: the amount invoived is not commensurate with the

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4 taking into account ali known circumstances, it may

in order to avoid being the subject of reporting be perceived that the client's transaction is structured requirements under the Act;

5 any circumstance reiating to the transaction which is observed to deviate from the profile of the client and/or the client's past transactions with the covered institution;

6 the transaction is in any way related to an uniawfut being, or has been committed; or activity or offense under this Act that is about to be, is

7 the foregoing. any transaction that is similar or analogous to any of

2} Section 9 Prevention of Money Laundering

"x X x

ab. stored for five (5) years from the dates of transactions. With respect to closed accounts, the records on customer identification, account files and safely stored for least five (5) years from the dates when they were closed. Record Keeping. covered institutions shall be maintained and safely business correspondence, shall be preserved and All records of ali transactions of

"C. Reporting of Covered and Suspicious Transactions

occurrence thereof, unless the Supervising Authority concerned prescribes a longer period not exceeding Covered institutions shall report to the AMLC alt ten (10) working days. covered transactions within five (5) working days from

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covered institution shall be required to report the same as a suspicious transaction." Should a transaction be determined to be both a covered transaction or a suspicious transaction, the

For your guidance.

ALBERTO VVREYES Deputy Governor

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