Entities without AML plans face fines Lawrence agcaoili

MANILA, Philippines — Covered entities that fail to submit anti-money laundering (AML) plans on time face hefty fines from the country’s sole financial intelligence unit, according to the Anti-Money Laundering Council (AMLC).

The body, through Resolution 241, issued last Nov. 16, approved the assessment for late submission of action plans or updates on actions taken on AMLC directives.

The AMLC, through Republic Act 9160 or the Anti-Money Laundering Act of 2001, as amended, is mandated to implement measures necessary and justified to counteract money laundering in the Philippines.

“Action plans and/or updates in actions taken by covered persons, pursuant to a directive by the AMLC in an AMLC resolution approving the compliance checking reports, shall be submitted within the approved timelines,” the financial intelligence unit said.

Covered persons and entities include banks, trust entities, pawnshops, foreign exchange dealers, money changers, non-stock savings and loan associations, securities dealers and brokers, investment houses, mutual funds, jewelry dealers, real estate brokers, Philippine offshore gaming operators (POGOs) and its service providers, among others.

Covered persons failing to comply with the timelines face monetary sanctions of P2,500 per day or up to P120,000 for those considered as micro, small and medium  and up to P240,000 for those considered as large covered persons.

If the covered person is a juridical entity, the AMLC said the penalty level would be based on the total asset size as shown in the audited financial statements of the assessed year.

On the other hand, the AMLC said the penalty would be based on the net taxable income reflected in the latest Income tax return filed if the covered person is a private individual practitioner.

For those with assets of up to P200 million, covered persons under AML Risk Rating System (ARRS) rating 1 face a fine of P5,000 per day and those under ARRS rating 2 are subjected to a lower rate of P2,500 per day.

The fine increases to P10,00 and P5,000 for those with assets of above P200 million and not exceeding P500 million; P15,000 and P7,500 for P500 million, but not exceeding P1 billion; P20,000 and P10,000 for P1 billion to P10 billion; P25,000 and 12,500 for P10 billion to P50 billion; and P30,000 and P15,000 for those with assets of more than P50 billion.

The AMLC said entities that fail to submit action plans or updates on actions for a period of one year are considered serious violations under the law with a penalty ranging from P10,000 to P200,000 per violation, but not exceeding P5 million.

“Other enforcement actions may be considered as may be warranted under the circumstances, including revocation of the AMLC registration of the concerned covered persons, and a negative public advisory,” it warned.