Money Laundering and Terrorist Financing Prevention Program

Money Laundering and Terrorist Financing Prevention Program.

Objectives. Protect the integrity and confidentiality of bank accounts and ensure that the Philippines in general and BSP covered institutions in particular are not used as a money laundering site and conduit A pply the following basic principles: Conduct business in conformity with high ethical standards Know your customer at all times Adopt and implement a sound AML and TF risk management system Fully comply with AML rules by raising the level of awareness of all responsible personnel Fully cooperate with the AMLC.

Legal Framework. The goal of a large number of criminal acts is to generate a profit for the individual or group that carries out the act. Money laundering is the processing of these criminal proceeds to disguise their illegal origin. This process is of critical importance, as it enables the criminal to enjoy these profits without jeopardising their source.

Covered Persons. Covered Persons (CPs) which are mandated by the AMLA, to submit covered and suspicious transaction reports (CTRs/STRs) to the AMLC are as follows: Banks, non-banks, quasi-banks, trust entities, foreign exchange dealers, pawnshops, remittance and transfer companies and other similar entities and all other persons and their subsidiaries and affiliates, supervised and regulated by the Bangko Sentral ng Pilipinas (BSP). Insurance companies, pre-need companies and all other persons supervised or regulated by the Insurance Commission (IC). Securities dealers, brokers, salesmen, investment houses and other similar persons managing securities or rendering services as investment agent, advisor, or consultant, mutual funds, close-end investment companies, common trust funds, and other similar persons, and other entities administering or otherwise dealing in currency, commodities or financial derivatives based thereon, valuable objects, cash substitutes and other similar monetary instruments or property supervised or regulated by the Securities and Exchange Commission (SEC)..

The following Designated Non-Financial Businesses and Professions (DNFBPs): o Jewelry dealers, dealers in precious metals, and dealers in precious stones o Company service providers which, as a business, provide any of the following services to third parties: > acting as a formation agent of juridical persons; > acting as (or arranging for another person to act as) a director or corporate secretary of a company, a partner of a partnership, or a similar position in relation to other juridical persons; > providing a registered office, business address or accommodation, correspondence or administrative address for a company, a partnership or any other legal person or arrangement; and > acting as (or arranging for another person to act as) a nominee shareholder for another person. o Persons, including lawyers and accountants, who provide any of the following services: > managing of client money, securities or other assets; > management of bank, savings or securities accounts; > organization of contributions for the creation, operation or management of companies; and > creation, operation or management of juridical persons or arrangements, and buying and selling business entities..

Casinos, including internet and ship-based casinos, with respect to their casino cash transactions related to their gaming operations. Real estate developers Offshore gaming operators, as well as their service providers, supervised, accredited or regulated by the PAGCOR or any government agency.

Philippines Anti-Money Laundering and Counter-Terrorist Financing Laws.

Philippines Anti-Money Laundering and Counter-Terrorist Financing Laws.

Salient Features of Philippines AML/CTF Laws. Criminalizes money laundering, penalties for its commission Prevent Philippines from becoming haven for money laundering, preserve integrity and confidentiality of good bank accounts Creates AMLC to oversee implementation of law and act as FIU Established rules and administration process for prevention, detection and prosecution of money laundering activities Relaxes deposit secrecy laws authorizing AMLC and BSP access to deposit and investment accounts.

Requires CPs to report covered and suspicious transactions, cooperate in prosecuting offenders, know customers and keep all records of transactions Protect innocent parties by providing penalties for causing disclosure to public of confidential information.

The Anti-Money Laundering Council (AMLC) Anti-Money Laundering Council • Created p"suart to Act 9160. ottwrvis• as -Arti-Money Laundering Act (AWAY • milic»ines' Intelt•ence urut tasked to the as amended Pepu*c Act tbs. 9194. 10167. md 10365. as - Terrceizm Fharxinq Prevention Swpressim Act ot 201?. Organization of the AMLC Attw B- Execut:.w Atty. B. WLC History of the Act 10167. Act Act An t• Atty. Ate C.

Powers and functions of the AMLC As per Rule 6 Section 1 ot the 2018 Revised Implementing Rules and Regulations of Republic Act No. 9160. otherwise known as the Anti•Money Laundering Act of 2001. as Amended. the following are the powers and functions of the Anti-Money Laundering Council: Government Representative Central AML/CTF Authority AML/CTF Supervisor and Enforcer Lead Agency on AML/CTF Matters Authority to Resolve Administrative Cases International Cooperation Advocate AML/CTF Educator Financial Intelligence Unit National Center for Receipt and Analysis of CTRs and STRs National Center for Receipt and Analysis of RTRs ML/TF Investigator Identity Verifier Financial Investigator • In ML/TF cases Initiator of Freeze Order Proceedings Initiator of Civil Forfeiture Proceedings Complainant in ML/TF Cases.

Supervising agencies of the AMLC. Bangko Sentral ng Pilipinas • The Bangko Sentral nq Pilipinas (BSP) is the central bara of Republic of the Philippines. • It was established on 3 July 1993 pursuant to the provisions Of the 1987 PNlippine Constitution and the New Central Bank Act of 193, Under the Rule 4 Section No. 9160, otherwise known as the AntFMoney Laundering Act of 2001. as Amended, these are the persons stvervlsed ond/or reølated by BSP. including their subs14aries and affiliates. which are dso covered persons, supervised and/or regulated by the BSP: Banks Ouasi-banks Trust entities Pawnshops Non•stock savings and Iom associations Other nan-bank financial institutions which i$lder speci* laws are subject to BSP supervision and/or regulation • Electronic money issuers • Fore" exchange dealers, money changers. and remittance and transfer companies Law and regulatory Issuances specific to BSP Pott 9 of the Umual Rcguatiorg for (UORB) 901010030, 601s«ms, 601 P, at 01 RNJotE.gxs lot I nonool (UORNTI) OSP Circul.v No. 1076 ot 2020: Ampovjrn•rds to the ong Wolchlbling 01 A MLC RcqWatory Issuance (AR') A J • Amendments to the Rc•qtstratnn Rcporljnq m Non ow Rig Jran.-tions ot Mmcy Scr•acc busncss BSP CitculY I No. force (FAT) Ptmotxjns I .-RBA Other Mry.itoted Jurodctms NO Additiona Is Allected try to Vitus Lhsease 2019 (COVID•t9) Situ,gjon and its Iteatth Resas No. Series 2020. Rcmndcr Sound Uanmcmnt Practice to Mtvq.tc Risks from Scams or frauds utrq Servoccs BSP Ucmctandum No. "•2020•066: SYtS•Based Attacks Customers of Firono* Imttltons.

Primary duties of the bank. To Comply with all the requirements under AMLA, TFPSA, their IRR and other AML Issuances, covered persons must develop policies and procedures. Compliance Management Structure Covered persons shall designate a compliatre officer or create a comprnncc unit. wm shall bc responsiNc tcg tte covercd person's day-to-day comcortce with AMLC issuances. (Ruk 16 ot 2018 IRR) Rcportir,g to ond filirn pry:tices relatbX) to cowred and susviciotß transactions. (Puce 22 of 2018 IRR) KYC/CDD/EDD • 01 ion of the (dlowirvj: • Mcntiticatbn Process • Cust(yrvrt I)iiqrncr Mocutoti Includ,ng Mtff'. a written mternd g»licies to combat associal«j tAdawIul mtivities in tie ocæratkrtal level. (eute 16 08 2018 Record and Retention Covered mrsons sh mahtain ard sofr•lv stoge five (b) rats from dates or all cust and trans.rtron documents. Annual Training CP must have annual training on the tur•damentals of ML/tr. am' dl reqjisite knoøledqe. skills abWilies 10 able to discfiarqe thei tury:tions cffectivcly and continuing training (hh/c 6 of 20 J8 Risk Governance Indcpcndcnf tcsfinq and NJdit fury-mms. Transaction Morütoring Monttonnq end 'dentitYit•g suspictous customter act•vttjes. (Rule 18 of 2018.

What is money-laundering. Money laundering is committed by any person who, knowing that any monetary instrument or property represents, involves, or relates to the proceeds of any unlawful activity: (1) transacts said monetary instrument or property; (2) converts, transfers, disposes of, moves, acquires, possesses or uses said monetary instrument or property; (3) conceals or disguises the true nature, source, location, disposition, movement or ownership of or rights with respect to said monetary instrument or property; (4) attempts or conspires to commit money laundering offenses referred to in Items “(1)”, “(2)” or “(3)” above; (5) aids, abets, assists in or counsels the commission of the money laundering offenses referred to in Items “(1)”, “(2)” or “(3)” above; and (6) performs or fails to perform any act as a result of which he facilitates the offense of money laundering referred to in Items “(1)”, “(2)” or “(3)” above..

Money Laundering under AMLA, as amended Committed by - Cleaning of dirty money - transacts knowing that any - converts, property transfers, represents, disposes of, involves, or moves, acquires, relates to the possesses or uses proceeds of any - conceals or unlawful activity disguises Attempt or cons ires to commit Aids, Abets, Assist in, counsels Facilitates Intentionally fails to submit CTR or STR to the AMLC.

STAGES OF MONEY LAUNDERING. PLACEMENT – initial placement or introduction of the illegal funds into the financial system. Banks and other financial institutions are usually used at this point. LAYERING - series of financial transactions wherein the dirty money is passed through a series of procedures, putting layer upon layer of persons and financial activities into the laundering process. INTEGRATION - the money is once again made available to the criminal with the occupational and geographic origin obscured or concealed. The laundered funds are now integrated back into the legitimate economy through the purchase of properties, businesses and other investments..

ILLICIT SOURCES INCOME PLACEMENT GOAL: Ceposit Criminal Proceeds irto Finmcial • CurtÜE•y • of Oenorrinicns • Of LAYERING GOAL: Comeal the Criminal Onon of Proceeds • Transes • Ca-•i • 1>sh in Bank • and Wege Bank INTEG RATION en.JST GOAL: Create an A ppa-ent Legal tor Crn-inal • Creating Long. Gang. Fhn:ial • Drsgiæ of • Crirr" FtÄds in Thid Party INTEGRATION INVEST MENT GOAL: Use Criminal Proceeds fcr Personal Benefit • Cai.

Financing of Terrorism. is a crime committed by a person who, directly or indirectly, willfully and without lawful excuse, possesses, provides, collects or uses property or funds or makes available property, funds or financial service or other related services, by any means, with the unlawful and willful intention that they should be used or with the knowledge that they are to be used, in full or in part: (1) to carry out or facilitate the commission of any terrorist act; (2) by a terrorist organization, association or group; or (3) by an individual terrorist..

Terrorist Financing Process. COLLECTING GOAL: Collect nuncts • Donatins"iæct Support • Chatf&NPO Grats PrcceeOs of Crime • Paræ&Abwe by Terotrst Organcabon • State-Spcrrso.l F uns STORING GOAL: Store runes BaritFinanOlAccmnE • Buk C a; h ng- • • Ot & Other Corrnoditæs • AJVAntiquties • Other Stores of Valtr • Cryptocurrenc*s B MOVING GOAL: tunas Intra. account T' ars • Wre Tr.sfes • Mooey Ser.•ice Btsnmses • CæhCoues H. ala • Stores of Value • CrotocunenciB USING GOAL: u se n.nas Reauirg & Tranng • • Persomel& Deperdents • Media & Messagng Trarsporüton & Housing Weapors & Materid Cornmunicatiors • Equ•ptTiEIt & SuppEB Plmnng & Preparaorrs •.

COVERED TRANSACTION (CT). refers to a transaction in cash or other equivalent monetary instrument exceeding P500,000 within 1 banking day.

(1) There is no underlying legal or trade obligation, purpose or economic justification; (2) The client is not properly identified; (3) The amount involved is not commensurate with the business or financial capacity of the client; (4) Taking into account all known circumstances, it may be perceived that the client’s transaction is structured in order to avoid being the subject of reporting requirements under the AMLA, as amended; (5) Any circumstance relating to the transaction which is observed to deviate from the profile of the client and/or the client’s past transactions with the covered person; (6) The transaction is in any way related to an unlawful activity or any money laundering activity or offense, that is about to be committed, is being or has been committed; or (7) Any transaction that is similar, analogous or identical to any of the foregoing..

Any unsuccessful attempt to transact with a covered person, the denial of which is based on any of the foregoing circumstances, shall likewise be considered as ST..

Unlawful activity refers to any act or omission or series or combination thereof involving or having direct relation to the following:.

(11) Violations under R.A. No. 8792, otherwise known as the Electronic Commerce Act of 2000; (12) Hijacking and other violations under R.A. No. 6235, otherwise known as the "Anti-Hijacking Law"; "Destructive Arson"; and "Murder", as defined under the RPC, as amended; (13) Terrorism and conspiracy to commit terrorism as defined and penalized under Sections 3 and 4 of R.A. 9372; (14) Financing of terrorism under Section 4 and offenses punishable under Sections 5, 6, 7 and 8 of R.A. No. 10168, otherwise known as the Terrorism Financing Prevention and Suppression Act of 2012; (15) Bribery under Articles 210, 211 and 211-a of the RPC, as amended, and Corruption of Public Officers under Article 212 of the RPC, as amended; (16) Frauds and illegal exactions and transactions under Articles 213, 214, 215 and 216 of the RPC, as amended; (17) Malversation of public funds and property under Articles 217 and 222 of the RPC, as amended; (18) Forgeries and counterfeiting under Articles 163, 166, 167, 168, 169 and 176 of the RPC, as amended; (19) Violations of Sections 4 to 6 of R.A. No. 9208, otherwise known as the Anti-trafficking in Persons Act of 2003, as amended; (20) Violations of Sections 78 to 79 of Chapter IV, of Presidential Decree No. 705, otherwise known as the Revised Forestry Code of the Philippines, as amended;.

(21) Violations of Sections 86 to 106 of Chapter IV, of R.A. No. 8550, otherwise known as the Philippine Fisheries Code of 1998; (22) Violations of Sections 101 to 107, and 110 of R.A. No. 7942, otherwise known as the Philippine Mining Act of 1995; (23) Violations of Section 27(C), (E), (F), (G) and (I), of R.A. No. 9147, otherwise known as the Wildlife Resources Conservation and Protection Act; (24) Violation of Section 7(B) of R.A. No. 9072, otherwise known as the National Caves and Cave Resources Management Protection Act; (25) Violation of R.A. No. 6539, otherwise known as the Anti-Carnapping Act of 2002, as amended; (26) Violations of Sections 1, 3 and 5 of P.D. No. 1866, as amended, otherwise known as the Decree Codifying the Laws on Illegal/Unlawful Possession, Manufacture, Dealing in, Acquisition or Disposition of Firearms, Ammunition or Explosives; (27) Violation of P.D. No. 1612, otherwise known as the Anti-Fencing Law; (28) Violation of Section 6 of R.A. No. 8042, otherwise known as the Migrant Workers and Overseas Filipinos Act of 1995, as amended by R.A. No. 10022; (28) Violation of R.A. No. 8293, otherwise known as the Intellectual Property Code of the Philippines, as amended; (30) Violation of Section 4 of R.A. No. 9995, otherwise known as the Anti-photo and Video Voyeurism Act of 2009;.

(31) Violation of Section 4 R.A. No. 9775, otherwise known as the Anti-child Pornography Act of 2009; (32) Violations of Sections 5, 7, 8, 9, 10 (C), (D) and (E), 11, 12 and 14 of R.A. No. 7610, otherwise known as the Special Protection of Children against Abuse, Exploitation and Discrimination; (33) Fraudulent practices and other violations under R.A. No. 8799, otherwise known as the Securities Regulation Code of 2000; (34) Violation of Section 19 (a)(3) of RA 10697, otherwise known as the “Strategic Trade Management Act”;.

(35) Violations of Section 254 of Chapter II, Title X of the National Internal Revenue Code of 1997, as amended, where the deficiency basic tax due in the final assessment is in excess of 25M per taxable year, for each tax type covered and there has been a finding of probable cause by the competent authority; and (36) Felonies or offenses of a nature similar to the aforementioned unlawful activities that are punishable under the penal laws of other countries..

Customer Due Diligence (CDD) and Ongoing Monitoring.

30. CUSTOMER IDENTIFICATION PROCESS Customer Risk Profiling Customer Due Diligence (Average and Enhance) Face-to-face contact requirement Gathering of minimum information Valid identification documents / business papers.

MIN. INFO ID FACE TO FACE RISK PROFILE LOW/NORMAL/HIGH CUSTOMER DUE DILIGENCE.

Name of customer; Date and place of birth; Name, present address, date and place of birth, nationality, nature of work and source of funds of beneficial owner, whenever applicable; Present address; Permanent address; Contact number or information; Civil Status; Office Address; Email Address; Nationality; Specimen signature or biometrics of the customer; Nature of work, name of employer or nature of self-employment/business; Source/s of funds; and Tax identification number (TIN) and social security system (SSS) number or Government Service Insurance system (GSlS) number, as may be applicable..

Cert. of Registration (DTI, SEC, or BSP for money changers/FX dealers and remittance agents) Articles of Incorporation Latest Gen. Information Sheet with list of directors/trustees/partners, principal stockholders owning at least 20% of OCS, & primary officers (Pres. & Treas.) Beneficial owners and beneficiaries of the corporate &/or juridical entities Board/Partners’ Resolution/Secretary’s Certificate authorizing the signatory to sign on behalf of the entity For entities registered outside of the Philippines, similar documents and/or info shall be obtained duly authenticated by the Philippine Consulate where said entities are registered. (Rule 9.a.5).

Alerts and Red flags. Covered persons should have systems in place that would alert its responsible officers of any circumstance or situation that would give rise to a suspicion of a money laundering activity or transaction. The following is a list of non-exhaustive examples of situations that might give rise to a suspicion in certain circumstances: 1. transactions or instructions which have no apparent legitimate purpose and/or appear not to have a commercial rationale; 2. transactions, instructions or activity that involve apparently unnecessary complexity or which do not constitute the most logical, convenient or secure way to do business; 3. where the transaction being requested by the customer, without reasonable explanation, is out of the ordinary range of services normally requested, or is outside the experience of the financial services business in relation to the particular customer;.

4. where, without reasonable explanation, the size or pattern of transactions is out of line with any pattern that has previously emerged; 5. where the customer refuses to provide the information requested without reasonable explanation or who otherwise refuses to cooperate with the CDD and/or ongoing monitoring process; 6. where a customer who has entered into a business relationship uses the relationship for a single transaction or for only a very short period without a reasonable explanation; 7. the extensive use of trusts or offshore structures in circumstances where the customer’s needs are inconsistent with the use of such services; 8. transfers to and from high risk jurisdictions without reasonable explanation, which are not consistent with the customer’s declared business dealings or interests; and 9. unnecessary routing of funds or other property from/to third parties or through third party accounts. Covered persons are encouraged to develop their own list of alerts or red flag indicators taking into account the nature of their business, type of customers and risks involved..

Recognizing Suspicious or Unusual transactions. The key is knowing enough about the customer’s business to recognize that a transaction, or a series of transactions is unusual and, from an examination of the unusual, whether there is a suspicion of money laundering. Where a transaction is inconsistent in amount, origin, destination, or type with a customer’s known, legitimate business or personal activities, etc., the transaction should be considered unusual and the covered person should be put on alert. Where a responsible officer of the covered person conducts inquiries and obtains what it considers to be a satisfactory explanation of the activity or transaction, it may conclude that there are no grounds for suspicion, and therefore take no further action. However, where the inquiries do not provide a satisfactory explanation of the activity or transaction, an internal report should be made and be properly escalated to the designated compliance officer and/or review committee to determine if there are grounds for suspicion warranting the submission of the STR..

Internal Analysis, Investigations and Escalation.

Definition of terms:. Transaction refers to any act establishing any right or obligation or giving rise to any contractual or legal relationship between the parties thereto. It also includes any movement of funds by any means with a covered person. Proceed refers to an amount derived or realized from any unlawful activity..

Client/Customer refers to any person or entity who keeps an account, or otherwise transacts business with a covered person. It includes the following: (1) any person or entity on whose behalf an account is maintained or a transaction is conducted, as well as the beneficiary of said transactions; (2) beneficiary of a trust, an investment fund or a pension fund; (3) a company or person whose assets are managed by an asset manager; (4) a grantor of a trust; and (5) any insurance policy holder, whether actual or prospective. Shell company refers to a legal entity which has no business substance in its own right but through which financial transactions may be conducted. Shell bank refers to a shell company incorporated as a bank or made to appear to be incorporated as a bank but has no physical presence and no affiliation with a regulated financial group. It can also be a bank that (a) does not conduct business at a fixed address in a jurisdiction in which the shell bank is authorized to engage; (b) does not employ one (1) or more individuals on a full time basis at this fixed address; (c) does not maintain operating records at this address, and (d) is not subject to inspection by the authority that licensed it to conduct banking activities..

Beneficial owner refers to any natural person(s) who ultimately owns or controls the customer and/or on whose behalf a transaction or activity is being conducted; or those who has ultimate effective control over a legal person or arrangement. Ultimate effective control refers to situation in which ownership/control is exercised through actual or a chain of ownership or by means other than direct control..

Politically exposed person or PEP refers to an individual who is or has been entrusted with prominent public position in (1) the Philippines with substantial authority over policy, operations or the use or allocation of government-owned resources; (2) a foreign state, or (3) an international organization. The term PEP shall include immediate family members, and close relationships and associates that are reputedly known to have: (1) Joint beneficial ownership of a legal entity or legal arrangement with the main/principal PEP; or (2) Sole beneficial ownership of a legal entity or legal arrangement that is known to exist for the benefit of the main/principal PEP. Immediate family members of PEPs refer to spouse or partner, children and their spouses, and parents and parents-in-law; Close associates of PEPs refer to persons who are widely and publicly known to maintain a particularly close relationship with the PEP, and include persons who are in a position to conduct substantial domestic and international financial transactions on behalf of the PEP..

Correspondent banking refers to the provision of banking services by one (1) bank (the “correspondent bank”) to another bank (the “respondent bank”). Payable-through account refers to a correspondent account that is used directly by third parties to transact business on their own behalf. Fund/wire transfer refers to any transaction carried out on behalf of an originator (both natural and juridical) through an FI (originating institution) by electronic means with a view to making an amount of money available to a beneficiary at another FI (beneficiary institution). The originator person and the beneficiary person may be the same person..

Cross border transfer refers to any wire transfer where the originating and beneficiary institutions are located in different countries. It shall also refer to any chain of wire transfer that has at least one (1) cross border element. Domestic transfer refers to any wire transfer where the originating and beneficiary institutions are located in the same country. It shall refer to any chain of wire transfers that takes place entirely within the borders of a single country, even though the system used to effect the fund/wire transfer may be located in another country. Originating institution refers to the entity utilized by the originator to transfer funds to the beneficiary and can either be: (1) A covered person as specifically defined by this Part and as generally defined by the AMLA, as amended, and its RIRR; or (2) An FI operating outside the Philippines that is other than the covered persons referred to in Item “1” but conducts business operations and activities similar to them..

Beneficiary institution refers to the entity that will pay out the money to the beneficiary and can either be: (1) A covered person as specifically defined by this Part and as generally defined by the AMLA, as amended, and its RIRR; or (2) An FI operating outside the Philippines that is other than the covered persons referred to in Item “1” but conducts business operations and activities similar to them. Intermediary institution refers to the entity utilized by the originating and beneficiary institutions where both have no correspondent banking relationship with each other but have established relationship with the intermediary institution. It can either be: (1) A covered person as specifically defined by this Part and as generally defined by the AMLA, as amended, and its RIRR; or (2) An FI operating outside the Philippines that is other than the covered persons referred to in Item “1” but conducts business operations and activities similar to them..

Official document refers to any of the following identification documents:.

Valid IDs. ID1 – Passport ID2 – Driver’s License ID3 – PRC ID ID4 – NBI Clearance ID5 – Police Clearance ID6 – Postal ID ID7 – Voter’s ID ID8 – TIN ID9 – Barangay Certification ID10 – GSIS e-Card/UMID ID11 - SSS ID12 – Senior Citizen Card ID13 – Overseas Workers Welfare Administration ( OWWA) ID ID14 – OFW ID ID15 – Seaman’s Book ID16 – Alien/Immigrant Certification of Registration.

Risk assessment. Covered Persons are required to identify, understand and assess their ML/TF risks, arising from customers, countries or geographic areas of operations and customers, products, services, transactions or delivery channels. The risk assessment shall (a) consider all relevant risk factors; (b) adequately document results and findings; and (c) be updated periodically or as necessary. Based on the risk assessment, the Bank shall take appropriate measures to manage and mitigate ML/TF risks..

2. Covered and Suspicious Transaction Reporting Covered persons shall report to the AMLC all covered and STs within five (5) working days, unless the AMLC prescribes a different period not exceeding fifteen (15) working days, from the occurrence thereof. For STs, “occurrence” refers to the date of determination of the suspicious nature of the transaction, which determination should be made not exceeding ten (10) calendar days from the date of transaction. However, if the transaction is in any way related to, or the person transacting is involved in or connected to, an unlawful activity or money laundering offense, the 10-day period for determination shall be reckoned from the date the covered person knew or should have known the suspicious transaction indicator. Should a transaction be determined to be both a covered and suspicious transaction, the covered person shall be required to report the same as an ST. Deferred reporting of certain covered transactions. Covered persons shall refer to the issuances of the AMLC from time to time on transactions that are considered as “non-cash, no/low risk covered transactions”, hence subject to deferred reporting..

Exemption from bank secrecy laws. When reporting covered or suspicious transactions to the AMLC, covered persons and their officers and employees shall not be deemed to have violated R.A. No. 1405, as amended, R.A. No. 6426, as amended, R.A. No. 8791 and other similar laws, but are prohibited from communicating, directly or indirectly, in any manner or by any means, to any person, the fact that a covered or suspicious transaction report was made, the contents thereof, or any other information in relation thereto. In case of violation thereof, the concerned officer and employee of the covered person shall be criminally liable in accordance with the provision of the AMLA, as amended..

Confidentiality provision. When reporting CTs and STs to the AMLC, covered persons, their directors, officers and employees, are prohibited from communicating, directly or indirectly, in any manner or by any means, to any person or entity, or the media, the fact that a covered or suspicious transaction report was made, the contents thereof, or any other information in relation thereto. Any information about such reporting shall not be published or aired, in any manner or form, by the mass media, or through electronic mail, or other similar devices. In case of violation thereof, the concerned director, officer and employee of the covered person shall be criminally liable..