In anticipation of the influx of financial activities that usually occur during the election period, and to ensure that proceeds from unlawful activities are not laundered during the campaign period, all covered persons are reminded of their obligations under the Anti-Money Laundering Act of 2001, as amended, and its Implementing Rules and Regulations to conduct appropriate customer due diligence measures, including ongoing monitoring, electronic or otherwise, of their customers’ transactions; and to file suspicious transaction reports, if warranted under the circumstances.
Covered persons must be mindful of the following red flag indicators and suspicious behaviors that are related/linked or are analogous to possible money laundering activities or any of its unlawful activities:
• Significant or large transactions occurring in a short period of time;
• Unjustified large cash deposits and withdrawals;
• Transactions seem to be inconsistent with the customer’s financial profile or declared business;
• Unusual transactions or activities compared with normal everyday trade or dealings;
• Structured cash deposits and money transfers;
• Use of multiple accounts by a single transactor; and
• Use of several money service businesses to send funds.
The Anti-Money Laundering Council remains steadfast in performing its functions as the country’s Financial Intelligence Unit and primary implementor of anti-money laundering laws and regulations.
Posted 14 February 2022
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The AMLC issues this advisory to covered persons (CPs) to be vigilant in dealing with, or accepting fenced items. "Fencing" is the act of any person who, with intent to gain for himself or for another, shall buy, receive, possess, keep, acquire, conceal, sell or dispose of, or shall buy and sell, or in any other manner deal in any article, item, object or anything of value which he knows, or should be known to him, to have been derived from the proceeds of the crime of robbery or theft. Fencing is an unlawful activity and is a Violation of Presidential Decree No. 1612, otherwise known as the Anti-Fencing Law.
CPs are advised to conduct proper due diligence of their customers/clients and monitor transactions to recognize when a transaction, or a series of transactions, are unusual. Should there be transactions that are suspicious, appropriate Suspicious Transaction Reports (STRs) should be promptly filed with the AMLC. STRs should be filed, including attempts thereof, to the AMLC within the next working day from the date of establishment of suspicion or determination of the suspicious nature of the transaction.
Under the Anti-Money Laundering Act (AMLA) as amended, Suspicious Transactions are transactions with CPs, regardless of the amount involved, where any of the following circumstances exist:
(1) There is no underlying legal or trade obligation, purpose or economic justification;
(2) The customer is not properly identified;
(3) The amount involved is not commensurate with the business or financial capacity of the customer;
(4) Taking into account all known circumstances, it may be perceived that the client’s transaction is structured in order to avoid being the subject of reporting requirements under the AMLA, as amended;
(5) Any circumstance relating to the transaction which is observed to deviate from the profile of the customer and/or the customer’s past transactions with the CP;
(6) The transaction is in any way related to an unlawful activity or offense under the AMLA, as amended, that is about to be, is being or has been committed; or
(7) Any transaction that is similar or analogous to any of the foregoing.
CPs are reminded that non-performance of their AML/CTF obligations such as customer due diligence, monitoring of transactions and filing of transaction reports, among others, are subject to enforcement actions under the Enforcement Action Guidelines, and/or administrative sanctions/penalties under the Rules of Procedure in Administrative Cases.