AMLC Resolution No. 58 25 May 2005

OFFICE OF THE DEPUTY GOVERNOR SUPERVISION AND EXAMINATION SECTOR

CIRCULAR LETTER

TO All Banks and Non-Bank Financial Institutions Under BSP Supervision

authority under Sections 7(1) and 9 of Republic Act No. 9160. otherwise knowr as the "Anti-Money Laundering Act of 2o01, as amended, and its Revised The Anti-Money Laundering Council (AMLC), in the exercise of its

Implementing Rules and Regulations, resolved to:

1 no/iow risk covered transactions: Defer reporting by covered institutions to AMLC of the following "non-cash,

Transactions between banks and the BSP Transactions between banks operating in the Philippines;

G Internal operating expenses of the banks: Transactions between banks and government agencies;

to another deposit account of the same person within the same bank; Transactions involving transfer of funds from one deposit account Roll-overs of placements of time deposits; and

account maintained with the lending bank. Loan interest/principal payment debited against borrower's deposit

2 identified categories of "non-cash, no/low risk" covered transactions. Request the BSP-supervised institutions, through the Association of Bank Compliance Officers (ABCOMP), to determine and report to AMLc the specific transactions falling within the purview of the aforesaid Bsp-

guidance and implementation. Attached is a copy AMLC Resolution No. 58 dated 25 May 2005 for your

2 EStor A. eSPENIL JF

Deputy'Governof

Att.: AS

I( June 2005

PANANALAPING MATATAG, BANSANG PANATAG

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

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

RESOLUTION NO Series of 2005 58

believes that reducing the number of CTRs wouid allow the Anti-Money Laundering Council ta more effectively analyze the STRs and CTRs received: "enomous amount" of covered transaction reports (CTRs) that are not retated to cash is seriously hampering the overalt suspicious transaction reporting' (STR) regime in the Philippines and Whereas, the Financial Action Task Force (FATF) President expressed conce'n that

transactions, the reporting of which may be deferred by the AMLC: Whereas, the Bsp has identified nine (9) categories of nor-cash, no/low risk covered

cash, no/low risk covered transaction categories; Whereas, the ABCOMP has agreed to the deferment of reporting of BSP-identified non-

falling under seven (7) of the nine (9) BSP-identified non-cash, no/low risk covered transaction categories; Whereas, the Councit has found meritorious the deferment of reporting of transactions

amended, and its Revised Implementing Rules and Regulations, resolves to: Repubiic Act No. g160, otherwise known as the Anti-Money Laundering Act of 2001. as Wherefore, the Council in the exercise of its authority under sections 7(1) and 9 of

Defer reporting by covered institutions to AMLC of the following "non-cash, no/iow risk covered transactions":

Loan interest/principal payment debited against borrowers deposit account Roll-overs of placements of time deposits; and maintained with the iending bank. Transactions between banks operating in the Philippines: Intemal operating expenses of the banks: Transactions involving transfer of funds from one deposit account to another deposit account of the same person within the same bank; Transactions between banks and the BSP: Transactions between banks and govermment agencies;

2 Reguest the BSP-supervised institutions, through the Association of Bank Compliance within the purview of the aforesaid BSP-identified categories of "non-cash no/low risk covered transactions. Officers {ABCOMP). to determine and report to AMLC the specific transactions falling

25 May 2005, Manila, Philippines

AMANDO M. tEtANGCO J (OIC, Bangko Sentrat ng Pitipinas) Acting Chairman

(Chairperson, Securities and Exchange Commission) SE B: BARIN Member (Commissioner, Insurance Commission) BENJAMIN S. SANTOS Member