AMLC Issues New Rules in Administrative Cases
The Anti-Money Laundering Council (AMLC) has issued the Rules of Procedure in Administrative Cases under Republic Act No. 9160 or the Anti-Money Laundering Act of 2001, as Amended, and its Implementing Rules and Regulations, and Guidelines and Other Issuances of the Anti-Money Laundering Council and the Imposition of Administrative Sanctions (RPAC). The adoption of the RPAC supersedes the Rules on Imposition of Administrative Sanctions (RIAS).
The salient features of the proposed RPAC are as follows:
1. Application: The RPAC is intended to apply to administrative cases for non-compliance with, or violations of the AMLA, as amended, and its implementing rules and regulations, and guidelines and issuances of the AMLC.
2. Coverage of administrative cases: The RPAC covers not only administrative cases against covered persons, but also those against its individual officers, directors, and employees of the covered person.
3. Lower monetary sanctions: Monetary sanctions under the RPAC are based on the covered person’s asset size, and gravity of the violation/non-compliance, based on a graduated scale of the proportion or amount involved. For light violations of compliance with transaction reporting requirements, the minimum penalty that may be assessed is Php1,500.00 for non-compliance with covered transaction reporting requirements for covered persons with small asset sizes, on a per account basis.
4. Enumeration of covered persons: Unlike the RIAS, the RPAC identifies the type of covered person subject of administrative cases.
To view the RPAC, click this link.
A Risk Assessment on the Philippines’ Exposure to External Threats based on Submitted Suspicious Transaction Reports
The Anti-Money Laundering Council (AMLC) publishes strategic analysis papers that aim to provide insights and additional information on money laundering and terrorism financing risks, trends and methods.
The information provided in the study aim to assist the reporting entities by providing information that may be helpful in identifying and mitigating the risk of their business being misused by criminals.
The information can be relevant to their AML/CTF programs, policies and procedures. It may further help them inform their management on mitigation of ML/TF risk as well as enhance the quality of their reporting to the AMLC.
The material is provided for general information only. It may include views, recommendations or interpretations of third parties, and does not necessarily reflect the views of the AMLC, or indicate a commitment to a particular course of action. We further note that the statements in the study are not conclusive but are more descriptive on what has been observed on the gathered Suspicious Transaction Reports (STRs).
The AMLC Secretariat has prepared a risk assessment on the exposure of the Philippines to external threats based on the STRs submitted by various covered persons from 2013 to 2017. It is intended to measure the exposure of the country to the threats originating within and outside the Philippine jurisdiction; and to provide information on the generation, movement and behavior of illicit funds related to the top predicate crimes in the country specifically those crimes which are rated “High” and “Medium” in the second National Risk Assessment.
STRs are filed by various covered persons due to the existence of various suspicious indicators or possible commission of predicate offenses as defined under the Republic Act No. 9160, otherwise known as the “Anti-Money Laundering Act of 2001, as amended”.
The STRs involved in the study are purely domestic CASA (current account / savings account) transactions and international inward and outward remittances, which represents 21.40% of the total STRs received by the AMLCS for the years 2013 to 2017. These STRs need further verification and more in-depth investigation in order to substantiate likely linkage to a certain crime.
· Illicit funding generated from the (1) Violation of Environmental Laws, (2) Illegal Trafficking of Persons, (3) Kidnapping for Ransom, and(4) Terrorism and Conspiracy to Commit Terrorism, entered the Philippines.
· Illicit funds generated from Smuggling for the period under review originated from the Philippines.
· Majority of the illicit funds generated from other predicate offenses not mentioned in the foregoing items circulate within the Philippine Financial System.
· With regard to STR volume, the United States of America posed the highest threat for both inflows and outflows of all predicate crimes under review. In terms of peso amount, majority of the incoming criminal proceeds were coursed through various banks in the United Kingdom, while large amounts of outgoing illicit funds were mostly sent to Hong Kong.
· Suspected launderers in majority of the predicate crimes such as Illegal Drugs, Plunder and Corruption, Investment Scams and Estafa, Smuggling, IP Rights Violation, Illegal Manufacture and Possession of Firearms and Web-Related Crimes use commercial banks.
· Suspected perpetrators in other predicate crimes such as Environmental Crimes, Illegal Trafficking & Child Exploitation, Terrorism and Financing of Terrorism use Money Service Businesses in moving the illicit funds.
AMLC Secretariat Advisory
There will be a scheduled power source redirection of the AMLC Data Center on Saturday, 03 August 2019, from 8:00AM to 5:00PM. During this time, the AMLC Portal and Website will be unavailable.
Normal operations will resume at 5:01PM on Saturday, 03 August 2019.