rfb - amla

• By the authority vested in me by the Anti-Money Laundering Council (AMLC), pursuant to AMLC Resolution No. 109 dated 26 May 2021, the following set of guidelines is hereby promulgated:
• Policies to Combat Money Laundering and Terrorism Financing

  DNFBPs, as covered persons, are to be regulated for anti-money laundering (AML) and counter-terrorism financing (CTF) proportionate to the nature, scale and complexity of the DNFBP's operations in order to prevent criminals from exploiting them
• Principles DNFBPs must apply throughout their businesses

  • Conform with high ethical standards and observe good corporate governance
  • Know sufficiently their customers and clients to prevent criminal elements and suspicious individuals or entities from transacting with, or establishing or maintaining relationship with the DNFBPs
  • Adopt and effectively implement an appropriate AML/CTF risk management system
  • Comply fully with existing laws and regulations aimed at combating money laundering and terrorist financing
  • Cooperate fully with the AMLC for the effective implementation of the AMLA, RA No. 10168, and directives and guidance from the AMLC and relevant government agencies
• Account


  A business relationship between a DNFBP and a customer/client
• Appropriate Government Agency (AGA)


  The Philippine Amusement and Gaming Corporation (PAGCOR), Cagayan Economic Zone Authority (CEZA), Aurora Pacific Economic Zone and Freeport Authority (APECO), or other government agency, as may be determined by law, which may authorize casinos to engage in gaming operations
• Anti-Money Laundering Act (AMLA)


  Republic Act (RA) No. 9160, as amended by RA Nos. 9194, 10167, 10365, 10927, 11521 or other laws that may subsequently amend the AMLA
• Anti-Money Laundering Council (AMLC)

  The Philippines' central AML/CTF authority and financial intelligence unit, mandated to implement the AMLA and TFPSA
• AMLC Registration and Reporting Guidelines (ARRG)

  The primary administrative issuance of the AMLC on matters pertaining to registration of covered persons and the reporting of covered and suspicious transactions
• Beneficial Owner


  Any natural person who ultimately owns or controls the customer and/or on whose behalf a transaction or activity is being conducted, or has ultimate effective control over a legal person or arrangement
• Covered Persons


  The covered persons under Section 1 of Rule 4 of the 2018 Implementing Rules and Regulations of Republic Act No. 9160, as amended by AMLC Regulatory Issuance (ARI), A, B, and C, No. 1, Series of 2020 and 2021
• Covered Transaction

  • A single transaction involving an amount in excess of Five Hundred Thousand Pesos (Php500,000.00) or its equivalent in any other currency
  • A transaction exceeding One Million pesos (Php1,000,000.00) or its equivalent in any other currency, in the case of jewelry dealers, dealers in precious metals and dealers in precious stones
  • A cash transaction with or involving real estate developers or brokers exceeding Seven Million Five Hundred Thousand Pesos (P7,500,000.00) or its equivalent in any other currency
• Customer/Client


  Any person who transacts or attempts to transact with a DNFBP
• Dealer


  An individual or entity who buys and/or sells precious metals, precious stones, and/or jewelry in the course of its business activities
• Identification Document


  • For Filipino citizens: those issued by the Government of the Republic of the Philippines, its political subdivisions, agencies, and instrumentalities; Government-Owned or -Controlled Corporations (GOCCs); and covered persons registered with and supervised or regulated by the Bangko Sentral ng Pilipinas (BSP), the Insurance Commission (IC) and the Securities and Exchange Commission (SEC)
  • For foreign nationals: Passport, Alien Certificate of Registration, and Alien Employment Permit
• Jewel


  Organic substances that have a market-recognized gem level of quality, beauty and rarity, such as pearl, amber and coral
• Jewelry


  Finished goods deriving fifty percent (50%) or more of their value from jewels, precious metals or precious stones constituting, forming part of, or attached to said finished goods
• Monetary Instrument


  Coins or currency of legal tender, negotiable checks, and other similar instruments where title thereto passes to another by endorsement, assignment or delivery
• Offshore Gaming Operator (OGO)


  An entity engaged in offering online games of chance or sporting events via the internet using a network and software program, by themselves or through local service providers
• Offshore Gaming Operator Service Provider (OGO-SP)


  A duly constituted business corporation who provides components of offshore gaming operations to offshore gaming operators
• Politically Exposed Person (PEP)


  As defined under Section 1 of the 2018 IRR and amendments thereto
• Precious metals


  Gold, silver, platinum, palladium, rhodium, ruthenium, iridium, and osmium at a level of purity of five hundred (500) parts per one thousand (1,000), singly or in any combination, and alloys of precious metals, solders, and plating chemicals
• Precious stones


  All gems and stones used in jewelry making, such as gemstones, jewels, and those substances that have market-recognized gem level of quality, beauty, and rarity
• Proceeds of an Unlawful Activity


  An amount derived or realized from any unlawful activity
• Property


  Anything or item of value, real or personal, tangible or intangible, or any interest therein, or any benefit, privilege, claim, or right with respect thereto
• Real Estate


  The land and all those items which are attached to the land. It is the physical, tangible entity, together with all the additions or improvements on, above or below the ground
• Real Estate Broker


  A duly registered and licensed natural person who, for a professional fee, commission or other valuable consideration, acts as an agent of a party in a real estate transaction
• Real Estate Developer


  Any natural or juridical person engaged in the business of developing real estate development project for his/her or its own account and offering them for sale or lease
• Suspicious Transaction


  As defined under paragraph (b-1), Section 3 of the AMLA
• Terrorism Financing


  Those acts defined and punished under Sections 4, 5, 6, 7 and 8 of RA No. 10168
• Transaction


  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
• Unlawful activity


  The unlawful activities under Section 3(i) of the AMLA, as amended
• Issuance (ARI), A, B, and C, No. 1, Series of 2020 and 2021, not otherwise mentioned in these Guidelines are hereby adopted and deemed incorporated herein.
• Responsibilities of DNFBPs


  1. Establish, implement, monitor and maintain an effective Money Laundering and Terrorism Financing Prevention Program

  2. Devise and implement relevant policies, procedures, processes and controls to prevent and detect potential ML/TF activities

  3. Ensure relevant policies, procedures, processes and controls are communicated to all relevant employees

  4. Establish an ongoing employee training program

  5. Carry out independent review of their Money Laundering and Terrorism Financing Prevention Program
• Institutional Risk Assessment


  1. Take appropriate steps to identify, assess and understand its AML/CTF risks

  2. Document risk assessments and findings

  3. Consider all relevant risk factors before determining overall risk and appropriate mitigation

  4. Keep the assessment up-to-date through periodic review

  5. Ensure submission of the risk assessment information to the AMLC

  6. Maintain AML/CTF prevention policies, procedures, processes and controls that are relevant and up-to-date

  7. Establish, implement, monitor and maintain satisfactory controls commensurate with the level of AML/CTF risk

  8. Conduct additional assessment as required by the AMLC

  9. Conduct institutional risk assessment at least once every two (2) years or as determined by the AMLC
• Risk management policies


  Policies and practices to manage and mitigate the ML/TF risks that have been identified
• Active Board and Senior Management Oversight


  The DNFBP's Board of Directors or other governing body, or the partners or the sole proprietor, is ultimately responsible for ensuring compliance with the AMLA, its rules and regulations and directives and guidance from the AMLC
• Designation of a Compliance Officer and/or Office

  1. Designate a compliance officer of senior management status with authority and mandate to ensure day-to-day compliance

  2. Designate another officer responsible and accountable for all record keeping requirements
• Implementation of a Money Laundering and Terrorism Financing Prevention Program (MTPP)

  1. The DNFBP's Board of Directors, or other governing body, the partners or the sole proprietor, shall approve, and the compliance officer shall implement, a comprehensive, risk-based MTPP

  2. The MTPP shall include detailed procedures for compliance with customer identification, record keeping, covered transaction reporting, and suspicious transaction reporting

  3. The MTPP shall include an effective and continuous AML/CTF training program

  4. The MTPP shall include an adequate risk-based screening and recruitment process

  5. The MTPP shall include an internal audit system and independent audit program

  6. The MTPP shall include a mechanism to ensure deficiencies are immediately corrected

  7. The MTPP shall include cooperation with the AMLC

  8. The MTPP shall include the identification, assessment and mitigation of ML/TF risks from new business practices, services, technologies and products
• Internal Controls and Internal Audit Program

  1. Establish internal controls to ensure day-to-day compliance

  2. Conduct internal audits by qualified independent personnel

  3. Internal audit program shall include periodic and independent evaluation of risk management and compliance measures

  4. Internal audit results shall be communicated to Board/management and compliance officer

  5. Deficiencies shall be promptly remedied

  6. Audit results shall be made available to AMLC upon request

  7. Audit findings shall be periodically assessed by an independent third-party auditor accredited by the AMLC
• Customer Due Diligence


  1. Adopt a policy to identify customers and verify identity based on documents, data and information obtained from the customer and reliable independent sources

  2. Obtain information to assess the extent of risk the customer may expose the DNFBP to