A Detailed Analysis of Suspicious Transaction Reports Captured in the AMLC’s Year 2020 Internet-Based Casino Sector Risk Assessment
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Posted 16 November 2022
Rules and Regulations Implementing Section 9(d) of Republic Act No. 9208, as amended by Republic Act No. 11862, otherwise known as the Expanded Anti-Trafficking in Persons Act of 2022
The Anti-Money Laundering Council (AMLC) has promulgated the Rules and Regulations Implementing (RRI) Section 9(d) of Republic Act No. 9208, as amended by RA 11862, otherwise known as the Expanded Anti-Trafficking in Persons Act of 2022 (ATIP).
Section 9(d) of the Expanded ATIP Act of 2022 directed the AMLC to promulgate rules and regulations for the implementation of said provision within 90 days, or until 13 October 2022.
Salient Features of the RRI
In the drafting of the rules and regulations, careful attention was given to ensure that the new reportorial obligations and rules on bank inquiry would not give covered persons undue compliance burden. This is achieved by aligning the relevant provisions with the existing suspicious transaction reporting framework and procedure on bank inquiry under the Anti-Money Laundering Act of 2001 (AMLA), as amended. Even reportorial obligations to law enforcement agencies (LEAs) were aligned with reportorial obligations with the AMLC. Similarly, access to financial information not covered by bank deposit secrecy laws was aligned with the requirements on bank inquiry.
The set of rules focuses on two major items: (1) reporting of suspicious activities and transaction; and (2) bank inquiry and access to non-bank financial records.
As to the reportorial requirements, it is divided to three portions: (a) reporting of suspicious activities to LEAs, (b) reporting of suspicious transaction reports (STRs) to the AMLC, and (c) suspicious circumstances and red flag indicators.
For the reporting to LEAs, we are suggesting the creation of a centralized reporting portal, which shall be created by the LEAs in coordination with the Inter-Agency Council Against Trafficking and AMLC. Pending the creation of such portal, manual reporting to LEAs will be adopted. The AMLC shall prescribe a standard reporting template to make reporting easier to the financial intermediaries and other persons required to make reports.
For reporting to AMLC, we will adopt the same reporting requirements under the AMLA, noting that trafficking in persons (TIP) is a predicate offense to money laundering. AMLC, though, cannot share raw STRs to LEAs due to the strict confidentiality provision under the AMLA. What the AMLC may share is the report of its analysis, subject to a memorandum of agreement with the LEAs.
The suspicious circumstances and red flag indicators are intended to assist the reporting persons to in determining if the activity or transactions are probably related to TIP.
On the other hand, the access to financial records has two portions: (a) bank inquiry, and (b) access to financial records not covered by the bank deposit secrecy laws.
As to bank inquiry, the same requirements and procedures under the AMLA shall be adopted. The only difference is it is the LEAs who shall file the ex parte application for bank inquiry. The ex parte application shall be filed before the competent regional trial court.
Similar to bank inquiry, access to financial records not covered by bank deposit secrecy laws shall also be done ex parte.
The set of rules was published in Business World and filed in the Office of the National Administrative Register on 13 October 2022. It will take effect on 28 October 2022.
Posted 13 October 2022