Suspicious transactions under Anti Money Laundering Act (AMLA)
are financial transactions that happen in the following circumstances, regardless of the amount:1. There is no underlying legal or trade obligation, purpose or economic justification of the transaction.
2. The client is not properly identified.
3. The amount involved is not commensurate with the business or financial capacity of the client.
4. There's perception that the client’s transaction is structured in order to avoid being the subject of reporting
requirements under AMLA.
5. There's one or more circumstances relating to the transaction which deviate from the profile of the client and/or the client’s past transactions with the financial institution.
6. The transaction is related to an unlawful activity or offense under AMLA that is about to be, is being or has been committed.
7. Any transaction similar or analogous to the circumstances described above.
Remember that the amount involved is not a factor.
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What is a Covered Transaction under AMLA?
Any transaction in cash or other equivalent monetary instrument involving a total amount of more than 500,000 pesos within ONE banking day.What should be done to Suspicious Transactions and Covered Transactions?
The financial institution participating in the transaction should report the Suspicious or Covered Transaction to the Anti-Money Laundering Council (AMLC) within FIVE working days from the date the transaction occurred. The formal AMLC reporting form must be used.What Should Financial Institutions Do during Transactions to Prevent Money Laundering under AMLA?
Financial institutions should do the following:1. Require valid identification
They should require customers to present original documents of identification issued by an official authority and bearing a photograph of the customer. Examples are passports, driver's licenses, voter's IDs, SSS and GSIS IDs and senior citizen IDs.
2. Obtain Personal information
They should obtain the following information from the customer:
a. Name
b. Present address
c. Permanent address
d. Date and place of birth
e. Nationality
f. Nature of work and name of employer or nature of self-employment or business
g. Contact numbers
h. Tax identification number, SSS number or GSIS number
i. Specimen signature
j. Source of funds
k. Names of beneficiaries in case of insurance contracts and whenever applicable
What Financial Institutions Are Required to Comply with AMLA?
1. Banks All banks, offshore banking units, quasi-banks, trust entities, nonstock savings and loan associations, pawnshops, and all other institutions, including their subsidiaries and affiliates regulated by the Bangko Sentral ng Pilipinas (BSP)
2. Insurance companies and professionals
All insurance companies, insurance holding companies, insurance agents, insurance brokers, professional reinsurers, reinsurance brokers, and all other persons and entities regulated by the Insurance Commission (IC)
3. Securities companies and professionals
Securities dealers, brokers, salesmen, broker associates, dealer associates, investment houses, investment agents and consultants, trading advisors, and other securities entities regulated by the Securities and Exchange Commission (SEC)
4. Mutual funds and investment companies
Mutual funds or open-end investment companies, close-end investment companies, common trust funds, pre-need companies and other similar entities regulated by the Securities and Exchange Commission (SEC)
5. Foreign exchange companies
Foreign exchange businesses, money changers, money payment services, remittance services, transfer companies, and entities dealing in currency, commodities or financial derivatives, valuable objects, cash substitutes and other similar monetary instruments regulated by
the BSP.
References:
Anti-Money Laundering Act of 2001 (RA 9160)
suspicious transactions under Anti Money Laundering Act