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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.