AMLC eyes ‘suspicious’ transactions

The Anti-Money Laundering Council (AMLC) has approved the rules for the submission of reports on suspicious transactions in banks, insurance companies, stockbrokerage houses and pre-need firms.

The AMLC is headed by Bangko Sentral ng Pilipinas Governor Rafael Buenaventura. Sitting as members of the council are Securities and Exchange Commission Chairperson Lilia Bautista and Insurance Commission officer-in-charge Eduardo Malinis.

Under the rules, all covered institutions shall file suspicious transaction reports involving all kinds of monetary instruments and properties with the AMLC.

Suspicious transactions may involve any amount provided there seems to be no underlying legal or trade obligation for the transaction; the client is not properly identified; the amount involved is not commensurate with the financial capacity of the client; and the transaction may be related to unlawful activities.

The AMLC requires banks to file reports on transactions involving all kinds of monetary instruments or property, whether cash or non-cash and domestic or foreign currency. Covered transactions are those involving an amount exceeding P500,000 within one banking day.

Excluding banks, other institutions are only required to file covered transaction reports on transactions in cash, foreign currency, other monetary instruments or properties.

As for the stock exchange, only brokers and dealers are covered by the requirements to file reports. The Philippine Stock Exchange, Philippine Central Depository Inc., Securities Clearing Corp. of the Philippines and transfer agents are not required to file covered transaction reports although they may be required to file suspicious transaction reports.

Insurance companies, on the other hand, are required to file a report when the total annual amount of premiums exceeds P500,000 regardless of mode of payment and even if the amortization amount is less than the threshold amount.

They shall file the report only once every year until the policy matures or is rescinded, whichever comes first.

When a covered institution engages in bulk transactions it will still be required to file a covered transaction report on clients whose transactions exceeded P500,000 and are included in the bulk transactions.