Internal Rules of Procedure Governing Investigations by AMLC Secretariat

July 6, 2007 AMLC RESOLUTION NO. 060-07 INTERNAL RULES OF PROCEDURE GOVERNING INVESTIGATIONS BY THE ANTI-MONEY LAUNDERING COUNCIL SECRETARIAT Acting on the memorandum dated 22 June 2007 of the Executive Director, Anti-Money Laundering Council Secretariat submitting for this Council's consideration and approval the Internal Rules of Procedure Governing Investigations by the Anti-Money Laundering Council Secretariat, the Council Resolved to APPROVE the same. Adopted: July 6, 2007. (SGD.) AMANDO M. TETANGCO, JR. Chairman (Governor, Bangko Sentral ng Pilipinas) (SGD.) FE B. BARIN Member (Chairperson, Securities and Exchange Commission) (SGD.) EVANGELINE CRISOSTOMO-ESCOBILLO Member (Commissioner, Insurance Commission) INTERNAL RULES OF PROCEDURE GOVERNING INVESTIGATIONS BY THE ANTI-MONEY LAUNDERING COUNCIL SECRETARIAT Pursuant to the authority vested in the Anti-Money Laundering Council (AMLC) under Republic Act No. 9160, otherwise known as the Anti-Money Laundering Act of 2001 (AMLA) as amended, and its Revised Implementing Rules and Regulations, the following Internal Rules of Procedure Governing Investigations by the AMLC Secretariat are hereby prescribed and promulgated. RULE I Preliminary Matters SECTION 1. Title. These Rules shall be known as the INTERNAL RULES OF PROCEDURE GOVERNING INVESTIGATIONS BY THE ANTI-MONEY LAUNDERING COUNCIL SECRETARIAT. SECTION 2. Coverage. Subject to AMLC Resolution No. 6, Series of 2006, these Rules shall apply to all investigations of the following: a. Suspicious transactions reported by covered institutions; b. Covered transactions reported by covered institutions and deemed suspicious after an investigation by the AMLC Secretariat; c. Money laundering activities and other violations of the AMLA which are the subject of referrals, complaints or media reports; d. Requests for mutual assistance by foreign states; e. Compliance matters concerning covered institutions and their personnel (Administrative Investigations); and f. Such other matters as the AMLC may determine in an appropriate resolution. SECTION 3. Form of Referrals or Complaints That May Be Investigated. Referrals by Supervisory Authorities, law enforcement and other agencies relating to money laundering and other violations of the AMLA should be in writing, duly signed by the head of the agency or by his officially designated representative. TCcIaA A complaint by a person relating to money laundering or other violations of the AMLA shall be in writing and under oath. SECTION 4. Order of Priority. The investigation of the matters enumerated under Section 2 shall be conducted based on the following order: a. Suspicious transactions, covered transactions deemed suspicious after investigation and referrals/sworn complaints/media reports of money laundering activities regardless of the amount involved where the unlawful activity is any of the following: kidnapping for ransom, violations of the Comprehensive Dangerous Drugs Act of 2002; graft and corruption, plunder, syndicated estafa/swindling, smuggling and acts of terrorism; b. Suspicious transactions, covered transactions deemed suspicious after investigation and referrals/sworn complaints/media reports of money laundering offenses involving unlawful activities other than those mentioned in the preceding paragraph; and c. Suspicious transactions, covered transactions deemed suspicious after investigation and referrals/sworn complaints/media reports involving other violations of the AMLA. RULE II Procedure in the Compliance and Investigation Staff SECTION 1. Referral by the Executive Director. Upon receipt by the AMLC Secretariat of any matter that may be investigated under Section 2 of Rule 1, the Executive Director shall refer the matter to the Compliance and Investigation Staff (CIS) for appropriate action. SECTION 2. Action by the Deputy Director, CIS. The Deputy Director shall assign the matter to a particular Investigation Officer who shall investigate the same within a period of fifteen (15) working days from receipt thereof, unless a longer period is justified under the circumstances. TAIEcS SECTION 3. Investigation . Upon investigation of the matter, the Investigation Officer shall recommend that: a. the case cannot be given due course for lack of merit; b. the case be referred to the government agency concerned for further investigation or other appropriate action; c. a complaint for money laundering or other violations of the AMLA be filed with the Department of Justice or the Office of the Ombudsman, as the case may be; a petition for inquiry, freeze order or civil forfeiture be filed in court; or a bank inquiry be conducted in proper cases; or d. appropriate sanction/s be imposed. The Investigation Officer shall, within five (5) working days from the termination of his investigation, submit his findings and recommendation in a memorandum to the Deputy Director for review. SECTION 4. Findings and Recommendation. In cases falling under Section 3 (a) and (b) of this Rule, the Deputy Director shall submit to the Executive Director the CIS findings and recommendation within ten (10) working days from receipt of the Investigation Officer's memorandum for approval. In cases falling under Section 3 (c) and (d) of this Rule, the Deputy Director shall transmit to the Legal Evaluation Staff (LES) the CIS findings and recommendation within ten working days from receipt of the Investigation's Officer's memorandum for evaluation. RULE III Procedure in the Legal Evaluation Staff SECTION 1. Action by the Deputy Director, LES. Upon receipt of the CIS memorandum, the Deputy Director shall assign the same to an Evaluating Attorney who shall evaluate the findings and recommendation of the CIS within fifteen (15) working days from receipt thereof. SECTION 2. Evaluation. Should the Evaluating Attorney concur in the findings and recommendation of the CIS, he shall submit a memorandum to the Deputy Director stating his concurrence and the reasons therefor, together with the proposed AMLC Resolution. In case of conflicting findings, the CIS and the LES shall exert utmost efforts to resolve the matter, in the event the CIS and the LES fail to reach an agreement, the Evaluating Attorney shall submit his findings and recommendation in a memorandum to the Deputy Director for review, together with the proposed Resolution, if necessary. EScIAa SECTION 3. Findings and Recommendation. a. Should the Deputy Director concur in the findings and recommendation of the CIS, he shall sign and submit to the Executive Director the CIS memorandum, within ten (10) working days from receipt of the Evaluating Attorney's memorandum, together with the proposed Resolution prepared by the LES. b. Should the Deputy Director disagree with the CIS findings and recommendation, he shall submit the LES findings and recommendation in a memorandum to the Executive Director and the CIS memorandum within ten (10) working days from receipt of the Evaluating Attorney's memorandum. The LES shall also furnish the CIS with a copy of its memorandum. Thereupon, the CIS shall submit to the Executive Director its proposed Resolution based on its findings and recommendation. RULE IV Procedure in the Office of the Executive Director SECTION 1. Review by the Executive Director. Should the Executive Director approve the findings and recommendation of the CIS in cases falling under Section 3 (a) and (b) of Rule II, he shall report the matter to the AMLC for its information. Otherwise, he shall return the case to the CIS for further investigation or take other appropriate action. The Executive Director shall review the joint findings and recommendation of the CIS and the LES in cases falling under Section 3(a) of Rule III. Should the Executive Director concur in their joint findings and recommendation, he shall sign and submit the memorandum, together with the proposed Resolution to the AMLC for approval. Otherwise, he shall submit his findings in a memorandum to the AMLC for its information. In cases falling under Section 3 (b) of Rule III, the Executive Director shall review the findings and recommendation of the CIS and the LES and submit the appropriate memorandum, together with the proposed Resolution, if necessary, to the AMLC for approval. EcDSHT RULE V Council Resolution SECTION 1. Resolution. The AMLC Resolution shall be transmitted by the AMLC Secretary to the Executive Director who shall refer the same to the unit concerned for implementation/information. RULE VI Effectivity SECTION 1. Date of Effectivity. These Internal Rules of Procedure shall take effect immediately. Adopted: July 6, 2007. (SGD.) AMANDO M. TETANGCO, JR. Chairman (Governor, Bangko Sentral ng Pilipinas) (SGD.) FE B. BARIN Member (Chairperson, Securities and Exchange Commission) (SGD.) EVANGELINE CRISOSTOMO-ESCOBILLO Member (Commissioner, Insurance Commission) Published in the National Administrative Register , Vol . XVIII, No. 3 (July-September 2007) .