AMLC Resolution No. 002-05

January 20, 2005 HON. FE B. BARIN Chairperson Securities and Exchange Commission Mandaluyong City Dear Madam : Please be informed that the Anti-Money Laundering Council, in its Resolution No. 2, Series of 2005, dated 12 January 2005, approved policies and guidelines in reckoning covered institution's compliance with the prescribed reporting period under Republic Act No. 9160, as amended, otherwise known as the Anti-Money Laundering Act of 2001. In this connection, may we request the Securities and Exchange Commission to circularize the attached AMLC Resolution. Thank you. Very truly yours, (SGD.) VICENTE S. AQUINO Executive Director AMLC RESOLUTION NO. 002-005 Pursuant to Section 9-c of the Anti-Money Laundering Act, as amended, covered institutions (CIs) shall report to the AMLC all covered transactions and suspicious transactions within five (5) working days from occurrence thereof, subject to the circumstances described in Resolution No. 292 dated October 24, 2003 which remains in full force and effect. WHEREFORE, the Council, resolves as it hereby resolved, to approve the following policies and guidelines in reckoning CIs' compliance with the prescribed reporting period. 1. The following non-working days are excluded from the counting of the prescribed reporting period: DaCTcA weekend (Saturday and Sunday) official regular national holiday officially declared national holiday (special non-working day nationwide) officially declared local holiday in the locality where AMLC Secretariat Office is located 2. A "non-reporting day" may be declared by the AMLC Secretariat when the File Transfer and Reporting Facility (FTRF), used by the CIs in transmitting their electronic reports to AMLC, is unavailable to all CIs for at least five (5) consecutive hours during the day. AMLC-declared "non-reporting day" is excluded from the counting of the prescribed reporting period. The Executive Director of the AMLC Secretariat (or the Officer-in-charge) is authorized to declare such day as a "non-reporting" day upon notification and justification by the Deputy Director of IMAS AMLC Secretariat. 3. Local holidays, except for officially declared local holidays in the locality where the AMLC Secretariat Office is located are treated as working days even for CIs located in such locality declared as on holiday, and hence, included in the counting of the prescribed reporting period. However, the CIs affected may file a deviation request with the AMLC Secretariat. CI's request for deviation shall be subject to approval of the Executive Director of the AMLC Secretariat (or the Officer-in-charge) upon recommendation of the Deputy Director of IMAS AMLC Secretariat. It shall be the basis of manually recomputing whatever penalties that would be automatically computed by TMAS. 4. Officially-declared non-working days in localities or regions affected by natural calamities such as flood, typhoon, earthquake, etc. may be excluded from the counting of the prescribed reporting period for CIs located in affected localities or regions subject to submission of deviation request by the CI. AcHEaS CI's request for deviation shall be subject to approval of the Executive Director of the AMLC Secretariat (or the Officer-in-charge) upon recommendation of the Deputy Director of IMAS AMLC Secretariat. It shall be the basis of manually recomputing whatever penalties that would be automatically computed by TMAS. WHEREFORE, the Council, resolves as it hereby resolved, to consider and include the foregoing policies and guidelines in the ongoing development and implementation of AMLC's Transaction Monitoring and Analysis System (TMAS) and specifically, for the computation of the penalty for delayed reporting by the CIs. 12 January 2005, Manila, Philippines (SGD.) RAFAEL B. BUENAVENTURA Chairman (Governor, Bangko Sentral ng Pilipinas) (SGD.) FE B. BARIN (SGD.) BENJAMIN S. SANTOS Member Member (Chairman, Securities and Exchange Commission) (Commissioner, Insurance Commission)