AMLC APPROVES 2018 IMPLEMENTING RULES AND REGULATIONS OF THE AMLA

In an effort to enhance the country’s anti-money laundering and counter-financing of terrorism (AML/CFT) regime, the Anti-Money Laundering Council (AMLC) approved the 2018 Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9160 or the Anti-Money Laundering Act of 2001, as amended (AMLA).

Approval of the 2018 IRR came in the wake of the results of the Second National Risk Assessment, in which the AMLC spearheaded the evaluation of the country’s level of risks to money laundering and financing of terrorism, necessitating revisions to the 2016 Revised Implementing Rules and Regulations, and the need for continual improvement of the country’s AML/CFT’s policies. The 2018 IRR also represent a part of the country’s national AML/CFT strategy, a multi-agency collaboration involving the AMLC, financial regulators and law enforcement agencies. Notably, the 2018 IRR incorporate the amendments under Republic Act No. 10927, which included casinos as covered persons. However, implementation by casinos of the Anti-Money Laundering Act of 2001, will continue to be governed by the existing Casino Implementing Rules and Regulations.

In crafting the 2018 IRR, the AMLC consulted multiple stakeholders from both the public and private sectors. The AMLC, moreover, was conscious of the need to strengthen the financial system’s integrity, and bring the Philippines at par with prevailing rules in other countries. An improved AML/CFT policy has positive consequences for the Philippines’ credit rating, financial stability and investment climate.

The 2018 IRR feature new rules on the AMLC’s cooperation and coordination with law enforcement agencies, beneficial ownership, customer due diligence, AMLC supervision and compliance checking, and national risk management and assessment. Recently, the AMLC had also approved guidelines on digitizing customer records, registration and reporting, and equivalent rules and regulations for casinos, among others. Adoption of these measures, including the 2018 IRR, would enable the AMLC to catalyze observance of a compliance culture in the financial and business sectors.

 Established in 2001, the AMLC is a three-member body chaired by the Governor of the Bangko Sentral ng Pilipinas (BSP), with the Chairman of the Securities and Exchange Commission (SEC) and Insurance Commissioner as Members. The current AMLC Chairman is BSP Governor Nestor A. Espenilla, Jr., who took office in July 2017, with Insurance Commissioner Dennis B. Funa and SEC Chairman Emilio B. Aquino, as Members.

The 2018 IRR took effect on 27 November 2018.

To view the 2018 IRR, click this link.

• PUBLIC ADVISORY ON FRAUDULENT LETTERS OF GUARANTEES AND FACILITATION OF FUND TRANSFERS AND HOLD ON TAXES 
• New AMLC rules on beneficial ownership intended for financial transparency