Assessments on Late Submission of Action Plans and/or Updates on Actions Taken on AMLC Directives

November 17, 2021 AMLC REGULATORY ISSUANCE NO. 7, S. 2021 SUBJECT : Assessments on Late Submission of Action Plans and/or Updates on Actions Taken on AMLC Directives By the authority vested upon the Anti-Money Laundering Council (AMLC) to implement measures as may be necessary and justified to counteract money laundering, in accordance with Section 7 (7) of Republic Act (RA) No. 9160, also known as the Anti-Money Laundering Act of 2001, as amended (AMLA), the Council in its Resolution No. 241, dated 16 November 2021, approved the Assessments on Late Submission of Action Plans and/or Updates on Actions Taken on AMLC Directives with the following provisions: 1) Action plans and/or updates in actions taken by CPs, pursuant to a directive by the AMLC in an AMLC resolution approving the compliance checking reports, shall be submitted within the approved timelines. Delay in the submission of such action plans and/or updates shall be subject to an assessment for every day of delay starting from Php2,500.00 per day of delay based on the schedule below. The assessment shall be counted from the first day of delay until such time that the action plan or updates are submitted to the AMLC, but in no case shall the total assessment exceed Php120,000.00 1 or Php240,000.00 2 whichever is applicable. The imposition of assessment shall be in accordance with the following schedule: Assessment Level/Asset Size 3 High 4 Low 5 Up to P200 million 5,000 2,500 Above P200 million but not exceeding P500 million 10,000 5,000 Above P500 million but not exceeding P1 billion 15,000 7,500 Above P1 billion but not exceeding P10 billion 20,000 10,000 Above 10 billion but not exceeding P50 billion 25,000 12,500 Above P50 billion 30,000 15,000 2) Failure or late submission of action plans and/or updates on actions for a period of one (1) year shall be considered a serious violation under Section 2.A, Table A. C.25 of the RPAC, and carries a penalty ranging from Php10,000.00 to Php200,000.00 per violation, but not exceeding Php5 Million. Other enforcement actions may be considered as may be warranted under the circumstances, including revocation of the AMLC registration of the concerned CP, and a negative public advisory. This ARI shall take effect following its publication in a newspaper of general circulation, or in the Official Gazette. BY AUTHORITY OF THE AMLC: (SGD.) MA. RHEA M. SANTOS-MENDOZA Officer-in-Charge Anti-Money Laundering Council Secretariat Footnotes 1. For "Micro," "Small" and "Medium." 2. For Large A and Large B covered persons. 3. If the covered person is a juridical entity, the penalty level shall be based on the Total Asset size as shown in the Audited Financial Statements of the assessed year. If the covered person is a private individual practitioner, the penalty shall be based on the Net Taxable Income reflected in the latest Income Tax Return filed. In the absence of the said documents, the asset size will be based on any verified available information that would provide the AMLC with a reasonable estimation of the resources of the CP. If no such verified available information is available, the penalty shall be 1/2 of 1% or Php2,500 whichever is higher per day of the total amount of transactions based on total CTRs/STRs transactions. In the absence of any transaction, the penalty shall be Php2,500.00 per day of delay. 4. In cases where the CP subject of the AMLC directive has an ARRS rating of "1". 5. In cases where the CP subject of the AMLC directive has an ARRS rating of "2".