IN MEMORIAM

Photo BSP Corporate Affairs Office

Nestor A. Espenilla Jr.

1958-2019

The Anti-Money Laundering Council (AMLC) and its Secretariat deeply mourn the passing of its Chairman and Bangko Sentral ng Pilipinas (BSP) Governor, Nestor A. Espenilla Jr., on 23 February 2019. He was 60 years old.

Appointed head of the country’s central bank by President Rodrigo Roa Duterte on 3 July 2017, Chairman Espenilla was the ex-officio Chairman of the AMLC, the Philippine International Convention Center (PICC), and the Financial Stability Coordination Council (FSCC).

Under Chairman Espenilla’s leadership, the AMLC saw the passage of Republic Act (RA) No. 10927 or “An Act Designating Casinos as Covered Persons under the RA No. 9160, otherwise known as the Anti-Money Laundering Act of 2001 (AMLA), as amended,” placing casinos as covered persons under the AMLA, as amended. Subsequently, the AMLC, together with Philippine Amusement and Gaming Corporation (PAGCOR), Aurora Pacific Economic Zone and Freeport (APECO), and Cagayan Economic Zone Authority (CEZA) signed the Casino Implementing Rules and Regulations (CIRR) of RA No. 10927, to prevent the Philippine casino industry from becoming venues for money laundering and terrorist financing.  

As an experienced and learned policymaker, Chairman Espenilla oversaw the adoption of significant regulations, such as the AMLC Registration and Reporting Guidelines (ARRG) and its amendments as well as ARRG for Casinos to ensure proper and timely compliance with reporting procedures; the Digitization of Customer Records (DIGICUR); the AML/CFT Guidelines for Designated Non-Financial Businesses and Professions (DNFBPs); the Guidelines on Identifying Beneficial Ownership; and the 2018 Implementing Rules and Regulations (IRR).

Other milestones under Chairman Espenilla's guidance were the approval of the Second National Risk Assessment Report, which evaluated the overall threat and effectiveness of the country’s anti-money laundering and counter-terrorism financing mechanisms, covering the years 2015 and 2016; and the approval of the National Anti-Money Laundering and Counter-Financing of Terrorism Strategy (NACS). Largely driven by the Second NRA, the NACS laid out seven concrete objectives, ranging from enhancement of Philippine laws and regulations, strengthening the AMLC’s investigations and prosecutions, coordination among government agencies, development of mechanisms to deter money laundering and financing of terrorism, improved supervision of covered persons, international cooperation, and information dissemination to combat money laundering and terrorism financing.

Read more: IN MEMORIAM

RESULTS OF THE RISK ASSESSMENT OF THE NON-PROFIT ORGANIZATION (NPO) SECTOR

In its Resolution No. 195, Series of 2018 dated 28 November 2018, the Anti-Money Laundering Council (AMLC) approved the Report on the Risk Assessment of the NPO Sector, and authorized its dissemination to all stakeholders.

The AMLC organized the NPO Risk Assessment per Recommendation 8 of the Financial Action Task Force’s (FATFs) 40 Recommendations, which provide international standards on the adequacy and effectiveness of rules, regulations, mechanisms and coordination, among others, to combat money laundering and terrorism financing. The FATF is an international standard-setting body that studies money laundering trends, monitors legislative, financial and law enforcement activities at the national and international levels, and reporting on compliance.

In the conduct of said Risk Assessment, particularly data gathering and regulatory information, the AMLC was supported by the Securities and Exchange Commission (SEC), and the Department of Social Welfare and Development (DSWD). The Philippine Council for NGO Certification (PCNC) and the Caucus for Development NGO Networks (CODE-NGO) also gave valuable inputs in said effort.

The Report on the Risk Assessment of the NPO Sector presents and analyzes the money laundering (ML) and terrorism financing (TF) risks posed by NPOs, based on investigations and actual cases, transaction report analyses, and inputs from sector representatives.

 The ML threats for the sector were assessed as Medium; TF threats were assessed as High-Low. Vulnerability assessment for both ML and TF was rated Medium. Although regulatory framework was generally effective, enforcement of laws and regulations presented some issues.

 The Report recommends specific strategies involving both the public and NPO sectors to mitigate the ML and TF risks associated with NPOs. These strategies include sustained outreach to regulators and the NPO sector, adoption of risk-based regulations and supervision of NPOs and stronger coordination between the government and the NPO sector.

 Regulatory agencies and the NPO sector are advised to study the Report for the adoption of, or enhancement of existing rules and regulations, and improved NPO governance.

 To view the Report on the Risk Assessment of the NPO Sector, please click this link.

PUBLIC ADVISORY ON FRAUDULENT LETTERS OF GUARANTEES AND FACILITATION OF FUND TRANSFERS AND HOLD ON TAXES 

The Anti-Money Laundering Council (AMLC) Secretariat has noted the inquiries it has received, both from the Philippines and abroad, on the authenticity of certain emails and letters, in which scammers pose as Members of the AMLC, or officers and personnel of the AMLC Secretariat. 

Typically, these scammers send emails or letters informing the potential victim to pay a certain amount of money (which they call “tax clearance”, “facilitation fee” or other similar terms) for him to receive an amount many times larger than this payment, supposedly “to release the hold on the funds” or “to guarantee safe and secure transfer of funds” to the victim’s account.  The scammers require the potential victim to deposit the “payment” to the scammers’ bank account, and disclose his bank account. Once the victim remits the “payment” to the scammers, the scammers cut off any communications with him, and the promised release of funds never materialize.

 The public is hereby informed that Republic Act No. 9160 or the Anti-Money Laundering Act of 2001, the law that created the AMLC, does not grant the AMLC any function or authority to hold an account for tax purposes, guarantee safe and secure transfer of funds or oversee economic transactions, or to engage in commercial transactions.

 Thus, the AMLC and its Members, as well as the AMLC Secretariat or any of its personnel, do not, and will never, contact the public for payment of any sum of money or disclose details of bank accounts. Any email or letter purportedly sent by the AMLC or any of its Members, and its Secretariat, or any officer or employee thereof cannot be genuine or authorized by the AMLC.

 The public is therefore warned to ignore emails, letters, and other documents of this tenor, as these are fraudulent.

 The AMLC further advises the public to report these fraudulent activities to the appropriate law enforcement agencies.

 If you have been victimized by scammers or have encountered or received fraudulent emails or letters, or information on scams of the above tenor or similar deceptive schemes devised by persons identifying themselves with the AMLC or its Secretariat, please e-mail the AMLC Secretariat at This email address is being protected from spambots. You need JavaScript enabled to view it..

Amendments to the Online Registration System

In its Resolution No. 192, Series of 2018, dated 23 November 2018, the Anti-Money Laundering Council (AMLC) approved certain amendments to Part 2 – Online Registration System (ORS) of the AMLC Registration and Reporting Guidelines (ARRG).

Pursuant to the same Resolution, the AMLC Secretariat issued said amendments as AMLC Regulatory Issuance (ARI) A and B, No. 3, Series of 2018. The AMLC adopted these amendments after noting that certain covered persons need additional time to complete all documentary requirements for registration with the AMLC.

 Accordingly, please be advised that under ARI A and B, No. 3, Money Service Businesses (MSBs), pawnshops, and Designated Non-Financial Businesses and Professions (DNFBPs) may now be issued Provisional Certificates of Registration (PCORs), valid for six (6) months, pending their completion of documentary requirements for registration.

A registering MSB or pawnshop may already be issued a PCOR upon compliance with Guidelines 1 to 3 of the ORS, namely: (1) uploading of the Department of Trade and Industry (DTI) and notarized document attesting to the designation of the Primary Designated Officer; (2) generation of the required public keys; and (3) online registration with the AMLC portal.

 On the other hand, a registering DNFBP must, in addition to its compliance with Guidelines 1 to 3, upload notarized Deeds of Undertaking signed by its authorized officer, who shall undertake to strictly comply with Republic Act No. 9160 or the Anti-Money Laundering Act of 2001, as amended (AMLA) and its Implementing Rules and Regulations, and to assume responsibility for any violation thereof.

To view the amendments to the ORS, please click this link.