Filing of 2015 Annual Statements

March 23, 2016 INSURANCE CIRCULAR LETTER NO. 018-16 TO : All Life Insurance Companies Authorized to Do Business in the Philippines SUBJECT : Filing of 2015 Annual Statements In connection with the filing of the 2015 Annual Statements, the following guidelines are hereby issued: 1. Submission of three (3) sets blue Annual Statement of life insurance companies as of December 31, 2015 shall be signed and sworn to by the president, chief operating officer/general manager, secretary, treasurer, actuary and chief accountant and shall be on legal size bond paper (8 1/2 x 14 inches), using either the Times New Roman font size #12 or Arial font size #10 printed at 100 percent normal size; 2. The Annual Statement should be "Soft Cover Binding", permanent adhesive; 3. Annex "A" is the updated list of the required documents and other schedules which shall form part as attachments in the submission of Annual Statements. THIS MUST BE SUBMITTED IN SEPARATE FOLDER; 4. Annex "B" is the Anti-Money Laundering Compliance Form, which MUST BE COMPLETELY ACCOMPLISHED. 5. The exact formats, columnar headings and footnote instructions found in every page of the blank forms of the prescribed Annual Statement including those required formats attached to Annex "A" shall be STRICTLY OBSERVED; 6. Any Annual Statement not in accordance with the required format and with missing data/information and incomplete attachments SHALL NOT BE ACCEPTED. HTcADC Please file your 2015 Annual Statements on or before April 30, 2016 to avoid penalty . (SGD.) EMMANUEL F. DOOC Insurance Commissioner ANNEX A Name of Company: _____________________ List of Documents to be Submitted to Form Part of the Annual Statements of Life Insurance Companies : For the Year Ended December 31, 2015 Note: Please check if the life insurance company has microinsurance business before receiving the Annual Statement (A/S). There is a revised A/S intended for those companies with MI operation. A. To be Submitted to Life/MBAs/Trust Division ____ 1. 2015 Audited Financial Statements with comparative figures for 2014, signed by an external auditor accredited by this Commission. ____ 2. Reconciliation Statement of the Audited Financial Statements versus the Annual Statement figures. ____ 3. Reconciliation of figures/accounts in the Adjusted Trial Balance (breakdown/groupings) to tally with the figures/accounts in the Annual Statement. ____ 4. Adjusted Trial Balance as of December 31, 2015 signed by the Chief Accountant. ____ 5. Income Statement for the year ended December 31, 2015. ____ 6. Soft copy of the Annual Statement (in USB). ____ 7. Computation of Risk Based Capital Ratio of the company. ____ 8. For foreign companies, Annual Statement on Worldwide Business and Statement of Receipts and Disbursements as of year-end. ____ 9. List of current members of board of directors, independent directors, their respective addresses, positions and also the chairman and members of Audit, Remuneration and Nomination committees. ____ 10. 2015 General Information Sheet filed with SEC. ____ 11. Minutes of meetings of the board and executive committees, including a copy of board resolutions made during the year. ____ 12. Amended Articles of Incorporation relative to the increase of authorized capital stock. ____ 13. Certification on the balances of all actuarial accounts and a statement of opinion on Policy Loans by the Company's Actuary duly accredited by this Commission. ____ 14. Soft copy of detailed schedule of the following actuarial accounts with printed copies of the 1st and last page showing the total of the said schedules. ____ a. Seriatim list of all policyholders indicating therein the basic information (i.e., policy number, policy holders, age, issue date, plan, amount of insurance, reserves, cash values etc. using the attached Life Required Format No. 5; ____ b. Schedule of policy loans indicating policy number, policyholders, outstanding balance as of December 31, 2015, interest both earned and unearned; ____ c. Schedule of net premiums, due and uncollected; ____ d. Schedule of premium deposit fund indicating the policy number, plan, amount of insurance, issue date, maturity date of the plan, annual premium, outstanding premium deposit fund amount of the plan, to be signed by the Comptroller with rank of at least Vice President; ____ e. Detailed Schedule of amount recoverable from accepting companies; and ____ f. Schedule of Claims Payable as of 2015 and schedule of all claims filed for the 1st quarter of 2016. ____ 15. Schedule showing balance sheet items in foreign currency and their peso equivalent, including a sub-schedule showing the currency breakdown in case an account consists of multiple currencies. ____ 16. Confirmation of sales of investments in Bonds and Treasury Bills, together with Statement of Securities Account of BTR-ROSS as of December 31, 2015. ____ 17. Certification from the custodian bank for dollar-denominated Bonds as of year-end. ____ 18. Schedule of dollar denominated bonds using the attached Life-Required Format No. 1. ____ 19. Detailed schedules, together with the supporting documents of all investments and other asset accounts. ____ 20. Certification from Phil. Depository & Trust Co. for the scriptless stocks certificates as of December 31, 2015. ____ 21. Breakdown/Computation/Schedule of Education Reserve-Bonds/Stocks and Revaluation Reserve-Real Estate as reported in the Annual Statement. ____ 22. Breakdown/Computation/Schedule of Unrealized Gain/Loss-Bonds/ Stocks that are closed to Retained Earnings. ____ 23. Documents supporting Mortgage Loans, Guaranteed Loans, Collateral Loans, Chattel Mortgage loans, Salary Loans and Other Loans accounts. ____ 24. Bank statements/passbooks of all current, savings and time deposit accounts as of December 31, 2015 and January 31, 2016, together with the pertinent bank reconciliation statements. ____ 25. Detailed schedule of deposit in transit showing in columns the official receipts number, date, date deposited, name of depository bank and to be supported with Official Receipts and Validated Deposit Slips. ____ 26. Detailed schedule of undeposited collections, if any, showing in columns the official receipts number, date, date deposited, name of depository bank and to be supported with Official Receipts and Validated Deposit Slips. ____ 27. Certification of receivables from government agencies/ government-owned and controlled corporations. ____ 28. Detailed Schedule of EDP for the last five (5) years together with the sales invoices and official receipts to support purchases of EDP Equipment during the year. ____ 29. Computation of Premium Tax during the year, using the attached Life-Required Format No. 2. ____ 30. Computation of DST in accordance with BIR RA 10001 using the attached Life-Required Format No. 3 (number of policies issued and total sum insured should tally with the figures in the Annual Statement) ____ 31. Official receipts to support payments of Premium Tax, Documentary Stamps Tax and Real Estate Tax during the year 2015. ____ 32. LOA from BIR Tax Assessment and proof of payments (BIR Form No. 0605). ____ 33. For companies with Variable Contracts: ____ a. Separate Annual Statement for each variable account; ____ b. Schedule showing balance sheet items in foreign currency and their peso equivalent, including a sub-schedule showing the currency breakdown in case an account consists of multiple currencies; ____ c. Confirmation of sales of investments in Bonds and Treasury Bills, together with the year-end Statement of Securities Account of BTr-ROSS; ____ d. Certification of investments as of year-end from custodian bank for the company's dollar-denominated Bonds; ____ e. Schedule of dollar denominated bonds using the attached Life-Required Format No. 1; ____ f. Statement of Account as of year-end from Philippine Depository & Trust Corp. for scriptless equity investments; ____ g. Bank statements/passbooks of all current, savings and time deposit accounts as of December 31, 2015 and January 2016, together with the pertinent bank reconciliation statements; and ____ h. Detailed schedule of deposit in transit showing in columns the official receipts number, date, date deposited, name of depository bank and to be supported with Official Receipts and Validated Deposit Slips. ____ 34. For companies with Microinsurance business: ____ a. Performance Standard (SEGURO); and ____ b. Soft Copy of the following: ____ Production : Schedule showing separately in columns the name of the assured, policy number, certificate number, sum assured, premium, premium tax, DST and other taxes (per product line) ____ Collections : Schedule showing separately in columns the name of the assured, policy number, certificate number, sum assured, premium, premium tax, DST, other taxes, amount collected, date and number of official receipt. ____ Claims Paid : Schedule showing separately in columns the name of assured/claimant, Claim no., date filed, policy number, sum insured, date of loss, amount of loss, nature of claim, date paid and voucher number. ____ 35. For companies with OFW business ____ a. Computation of legal Reserve; and ____ b. Soft Copy of the following: ____ Production : Schedule showing separately in columns the name of the assured, policy number, certificate number, sum assured, premium, premium tax, DST and other taxes (per product line) ____ Collections : Schedule showing separately in columns the name of the assured, policy number, certificate number, sum assured, premium, premium tax, DST, other taxes, amount collected, date and number of official receipt. ____ Claims Paid : Schedule showing separately in columns the name of assured/claimant, Claim no., date filed, policy number, sum insured, date of loss, amount of loss, nature of claim, date paid and voucher number. B. To be Submitted to the Statistics & Research Division ____ 1. 2015 Audited Financial Statements with comparative figures for 2014, signed by an external auditor accredited by this Commission. ____ 2. Reconciliation Statement of the Audited Financial Statements versus the Annual Statement figures. ____ 3. Reconciliation of figures/accounts in the Adjusted Trial Balance (breakdown/groupings) to tally with the figures/accounts in the Annual Statement. ____ 4. Adjusted Trial Balance as of December 31, 2015 signed by the Chief Accountant. ____ 5. Income Statement for the year ended December 31, 2015. ____ 6. Soft copy of the Annual Statement and attachments (in USB). ____ 7. Computation of Risk Based Capital Ratio of the company. ____ 8. Schedule V-Premiums & Claims by Market Segment & Region. ____ a. No. of Policyholders should tally with Outstanding at Yearend (Exhibit 15 column 2); ____ b. Sum Assured should tally with Outstanding at Yearend (Exhibit 15 column 4); ____ c. Total Premiums should tally to Direct Premiums (Exhibit 1A item 25 column 1); and ____ d. Claims Incurred/Benefit Payments should tally with the Benefit Payments on SIS (Page 4, Total of items 8 to 17 plus items 29-31 column 1). ____ 9. Extra copy each of Pages 1, 3, 4, 7A, 7B, 9A, 9B, 16, 17, 20 and 46 ____ a. Figures on Page 7A (Exhibit 1A) Total Premiums shall be gross of loading; and ____ b. Figures on Page 7B (Exhibit 1B) Total Premiums Collected should tally with Total Premiums and considerations (page 7A column 1) and In Force/Active at Yearend should tally with Exhibit 15. ____ 10. Separate Analysis of Operations (Page 4) for Variable Contracts. ____ 11. List of current members of board of directors, independent directors, their respective addresses, positions and also the chairman and members of Audit, Remuneration and Nomination committees. ____ 12. Certification on the balances of all actuarial accounts and a statement of opinion on Policy Loans by the Company's Actuary duly accredited by this Commission. ____ 13. Computation of Premium Tax during the year, using the attached Life-Required Format No. 2. ____ 14. Computation of DST in accordance with BIR RA 10001 (number of policies issued and total sum insured should tally with the figures in the Annual Statement) using the attached Life-Required Format No. 3. ____ 15. For companies with Variable Contracts: ____ a. Separate Annual Statement for each variable account; and ____ b. Exhibit II Statement of Changes in Net Assets and Exhibit III Unit Movement for the year, using the attached Life-Required Format No. 4. ____ 16. For companies with Microinsurance business: ____ a. Performance Standard (SEGURO); and ____ b. Soft Copy of the following: ____ Production : Schedule showing separately in columns the name of the assured, policy number, certificate number, sum assured, premium, premium tax, DST and other taxes (per product line) ____ Collections : Schedule showing separately in columns the name of the assured, policy number, certificate number, sum assured, premium, premium tax, DST, other taxes, amount collected, date and number of official receipt. ____ Claims Paid : Schedule showing separately in columns the name of assured/claimant, Claim no., date filed, policy number, sum insured, date of loss, amount of loss, nature of claim, date paid and voucher number. ____ 17. For companies with OFW business Soft Copy of the following: ____ Production : Schedule showing separately in columns the name of the assured, policy number, certificate number, sum assured, premium, premium tax, DST and other taxes (per product line) ____ Collections : Schedule showing separately in columns the name of the assured, policy number, certificate number, sum assured, premium, premium tax, DST, other taxes, amount collected, date and number of official receipt. ____ Claims Paid : Schedule showing separately in columns the name of assured/claimant, Claim no., date filed, policy number, sum insured, date of loss, amount of loss, nature of claim, date paid and voucher number. C. To be Submitted to the Microinsurance Division Soft copy of the following to be submitted (in USB): ____ a. 2015 Annual Statement; ____ b. Adjusted Trial Balance as of December 31, 2015; ____ c. Income Statement of the year ended December 31, 2015; ____ d. Computation of Risk Based Capital Ratio of the company; ____ e. List of current members of board of directors, independent directors, their respective addresses, positions and also the chairman and members of Audit, Remuneration and Nomination committees; ____ f. Schedule of Claims Payable as of 2015 and all claims for the 1st quarter of 2016; and ____ g. Schedule of Claims paid/denied during the year (New Format No. 6). Submitted by: __________________ Date ____________ Received by: __________________ Life-Required Format No. 1 Dollar Denominated Bonds Face Value Acquisition Cost Price Dollar Rate at the Description Peso Dollar Peso Dollar (%) Time of Acquisition ___________ ______ _______ ______ _______ _____ ________________ ___________ ______ _______ ______ _______ _____ ________________ ___________ ______ _______ ______ _______ _____ ________________ ___________ ______ _______ ______ _______ _____ ________________ ___________ ______ _______ ______ _______ _____ ________________ ___________ ______ _______ ______ _______ _____ ________________ Total ______ _______ ______ _______ _____ ________________ Life-Required Format No. 2 Computation of Premium Tax Column 1 Column 2 Column 1 Minus Particulars (Traditional) (Variable) Column 2 Exhibit IA of the Annual Statement __________ __________ __________ Line 4 - Collected during the year - direct business, __________ __________ __________ 1st year Line 11 - Single premium & consideration, direct __________ __________ __________ business Line 18 - Collected during the year - direct business, __________ __________ __________ renewal Total __________ __________ __________ Add/Deduct adjustments: __________ __________ __________ 1 Cost of Insurance __________ __________ __________ 2 Zero Rated Premiums __________ __________ __________ 3 __________ __________ __________ 4 __________ __________ __________ 5 __________ __________ __________ 6 __________ __________ __________ 7 __________ __________ __________ Total - tax base __________ __________ __________ Multiply by the tax rate __________ __________ 2% Premium Tax during the year __________ __________ __________ Note:Please refer to your AS on Exhibit 1A lines 4, 11 & 18 of columns 1 & 2 to fill up the space provided above. All the adjustments are to be supported and subject to verification. Life-Required Format No. 3 Computation of DST No. of Policies Bracket Rate Issued Sum DST Insured If the amount of insurance does not Exempt _______ _______ _______ exceed Php100,000.00 If the amount of insurance exceeds Php10.00 _______ _______ _______ Php100,000.00 but does not exceed Php300,000.00 If the amount of insurance exceeds Php25.00 _______ _______ _______ Php300,000.00 but does not exceed Php500,000.00 If the amount of insurance exceeds Php50.00 _______ _______ _______ Php500,000.00 but does not exceed Php750,000.00 If the amount of insurance exceeds Php75.00 _______ _______ _______ Php750,000.00 but does not exceed Php1,000,000.00 If the amount of insurance exceeds Php100.00 _______ _______ _______ Php1,000,000.00 Total xxxxx xxxxx xxxxx Note: The total number of policies issued and sum insured should tally with the AS figures. Life Required Format No. 5 ANNEX B Anti-Money Laundering Compliance Form _______________________ Name of Company Compliance Area Practices and Acts Required under AMLA, Yes No Explanation/Reason for Its IRR and Operating Manual Non/Compliance I. ADOPTION OF THE MANUAL Anti-Money Laundering Operating Manual 1 Do you have an Anti-Money Laundering (AML) _______ _______ _____________________ Operating Manual? 2 Did you submit your AML Operating Manual to _______ _______ _____________________ the Insurance Commission? 3 Is your AML Operating Manual being followed _______ _______ _____________________ by your personnel in your day-to-day operations? II. CUSTOMER DUE DILIGENCE OR KNOW-YOUR-CUSTOMER RULE A. Questions Applying to All Covered Institutions Regulated by the Insurance Commission 4 Do you obtain the following information from your _______ _______ _____________________ customer (i.e., client/member)? 4.1 Complete name(s) used? _______ _______ _____________________ 4.2 Present address or residence in the _______ _______ _____________________ Philippines, or abroad, if customer is a non-resident? 4.3 Residence telephone numbers? _______ _______ _____________________ 4.4 Permanent address for both resident and _______ _______ _____________________ non-resident? 4.5 Mailing address, if different from 4.2 and _______ _______ _____________________ 4.4? 4.6 Birth date and birth place? _______ _______ _____________________ 4.7 Nationality? _______ _______ _____________________ 4.8 Nature of work or occupation of the customer _______ _______ _____________________ e.g., attorney, cashier, physician (do not use non-descript terms such as businessman, employee, merchant, store owner (unless name of store is provided)? 4.9 Name of employer, if employed, and the _______ _______ _____________________ complete address and telephone numbers of the employer? 4.1 Nature of self-employment or business, or _______ _______ _____________________ name of the single proprietorship and its complete address and telephone numbers? 4.11 Customer's Tax Identification Number? _______ _______ _____________________ 4.12 Customer's Social Security Numbers or _______ _______ _____________________ Government Service Insurance System Numbers? 4.13 Sources of funds? _______ _______ _____________________ 4.14 Complete name, address and contact _______ _______ _____________________ information of beneficial owner? 5 In addition to No. 4, do you require the following _______ _______ _____________________ information in cases where the applicants are acting in a representative capacity? 5.1 Legal capacity of the customer? _______ _______ _____________________ 5.2 Identity of the principal owner or beneficiary, _______ _______ _____________________ including information from 4.1 to 4.14? 5.3 If customer is a legal entity such as a _______ _______ _____________________ corporation, the identity of the person authorized, including information from 4.1 to 4.9? 5.4 Is there a designated officer or staff _______ _______ _____________________ authorized to obtain from the customers the abovementioned information or documents relevant thereto? If yes, specify below the rank, office or designation: _________________________________ B. Questions on Documentations B.1 Individuals as Clients 6 For purposes of No. 4, do you require from the _______ _______ _____________________ customer the original copy of any of the following identification documents before opening of an account? 6.1 Philippine passport or passport issued by a _______ _______ _____________________ foreign government? 6.2 Driver's license? _______ _______ _____________________ 6.3 Any official original identity card issued by _______ _______ _____________________ the National Government of the Republic of the Philippines, its political subdivisions or instrumentalities, or government-owned and controlled corporations? 7 Do you obtain from the customer prior to the _______ _______ _____________________ opening of an account the following: 7.1 Notarized special authorizations, for the _______ _______ _____________________ representatives? 7.2 Trust agreement, if acting as a trustee? _______ _______ _____________________ 7.3 Other pertinent and reasonable documents _______ _______ _____________________ deemed necessary under the circumstances? Specify below the documents, if applicable. ___________________________________ ___________________________________ ___________________________________ B.2 Corporate/Partnership/Single Proprietors as Clients 8 Do you obtain from your client copies of the _______ _______ _____________________ following documents: 8.1 Certificate of registration issued by the _______ _______ _____________________ Securities and Exchange Commission (SEC), for corporation or partnership, or by the Department of Trade and Industry, for single proprietorship, including the Articles of Incorporation or Partnership? 8.2 Latest General Information Sheet (GIS) and _______ _______ _____________________ other documents such as clearance from the SEC that the company is active and compliant with reportorial requirements? 8.3 Appropriate board resolution? _______ _______ _____________________ 8.4 For customers who are non-residents, do you _______ _______ _____________________ require that the documents under No. 7 be duly authenticated by the Philippine Embassy or Consulate where said companies are located? C. Questions on Prohibited Accounts 9 Do you maintain accounts only in the names of the _______ _______ _____________________ policyholders? 10 Do you allow the opening, keeping or maintaining _______ _______ _____________________ any of the following accounts: 10.1 Anonymous accounts? _______ _______ _____________________ 10.2 Fictitious names accounts? _______ _______ _____________________ 10.3 Incorrect name accounts? _______ _______ _____________________ 10.4 Accounts similar to the foregoing _______ _______ _____________________ 11 Have you refused opening of accounts under any _______ _______ _____________________ of the following circumstances: 11.1 Those covered under No. 10 hereof? _______ _______ _____________________ 11.2 If customer fails to provide the requested _______ _______ _____________________ evidence of identity? 11.3 If contrary to the established policies and _______ _______ _____________________ procedures of the covered institution? Specify below said policy or procedure, if applicable. _________________________________ _________________________________ _________________________________ 12 Have you closed prohibited accounts after the _______ _______ _____________________ adoption of the AMLA, as amended, and its Implementing Rules and Regulations? 13 How many prohibited accounts have been closed? _______ _______ _____________________ D. Questions on Accounts without Face-to-Face Contacts 14 Are your prospective clients interviewed personally? _______ _______ _____________________ 15 Do you allow the opening of accounts thru any of _______ _______ _____________________ the following circumstances: 15.1 Internet? _______ _______ _____________________ 15.2 Post? _______ _______ _____________________ 15.3 Telephone? _______ _______ _____________________ 15.4 Other instances such as: ________________ _______ _______ _____________________ ____________________________________ 16 Do you have policies and procedures specifying _______ _______ _____________________ reliance on an intermediary or third party for your Know-Your-Customer (KYC) or customer due diligence requirements? 17 Is the intermediary or third party referred to in _______ _______ _____________________ No. 16 a covered institution under the AMLA, as amended, or as defined and identified by foreign jurisdiction in so far as covered institutions in their respective jurisdictions are concerned? 18 Where reliance is permitted, do you undertake the _______ _______ _____________________ following: 18.1 Immediately take adequate steps to satisfy _______ _______ _____________________ yourself that copies of identification data and other relevant documentation relating to the customer due diligence requirements are available from the intermediaries or third parties upon request without delay? 18.2 Satisfy yourself that the intermediaries or _______ _______ _____________________ third parties are regulated and supervised, and have measures in place to comply with customer due diligence requirements? 18.3 Ensure that the customer identification _______ _______ _____________________ program of the intermediaries or third party is similar to or equivalent to your customer identification program? 18.4 That the ultimate responsibility for customer _______ _______ _____________________ and/or beneficial owner identification and verification remains with you? E. Questions on New Technologies 19 Do you pay special attention to any money _______ _______ _____________________ laundering threats that may arise from new or developing technologies that might favor anonymity? 20 Do you take measures to prevent money _______ _______ _____________________ laundering schemes? F. Policy Not to Transact 21 Do you inform your clients of your explicit _______ _______ _____________________ policy that business transactions will not be conducted if they fail to provide sufficient evidence of their identity? G. Renewal or Identification 22 Do you regularly update or renew identification _______ _______ _____________________ of your clients particularly under any of the following situations: 22.1 Changes of the applicable information _______ _______ _____________________ required under Nos. 4 to 8, except No. 6? 22.2 When there is doubt as to the identity of _______ _______ _____________________ your client, beneficial owner, or the principal it purports to represent? 22.3 Whenever necessary pursuant to your _______ _______ _____________________ established policies and procedure? H. Old Accounts 23 Have you taken actions to clean out old accounts? _______ _______ _____________________ 24 What actions have you taken to clean out old _______ _______ _____________________ accounts? ___________________________________ ___________________________________ I. Simplified or Reduced Customer Due Diligence 25 Do you apply simplified or reduced customer due _______ _______ _____________________ diligence to the following customers: 25.1 Financial institutions where they are subject _______ _______ _____________________ to requirements to combat money laundering and the financing of terrorism consistent with the Recommendations of the Financial Action Task Force (FATF) and are supervised for compliance with those controls? 25.2 Public companies that are subject to regulatory _______ _______ _____________________ disclosure requirements? 25.3 Government institutions and its _______ _______ _____________________ instrumentalities? J. Verification J.1 Accounts without Face-to-Face Contacts 26 Do you ensure that the customer identification _______ _______ _____________________ procedures for non-face-to-face verification be as stringent as those for face-to-face verification? 27 Do you have the following as risk mitigating _______ _______ _____________________ measures: 27.1 Certification by appropriate authorities and _______ _______ _____________________ professionals of the documents provided? 27.2 Requisition of additional documents to _______ _______ _____________________ complement those which are required for face-to-face customers? 27.3 Independent contact with the customer? _______ _______ _____________________ 27.4 Third party introduction, e.g., by an _______ _______ _____________________ intermediary? 27.5 Requiring the first payment to be carried out _______ _______ _____________________ through an account in the customer's name with a bank subject to similar customer due diligence standards? 28 Do you require that documents under Nos. 7 and 8 _______ _______ _____________________ be authenticated by the Philippine Embassy or Consulate for those non-residents opening an account without face-to-face contact? J.2 Corporate Accounts 29 Before establishing business relationship, do you _______ _______ _____________________ ensure that corporate client or other kind of business applicant has not been, or is not in the process of being dissolved, struck off, wound-up or terminated? J.3 Trust, Nominee and Fiduciary Accounts 30 Do you determine whether your customer is _______ _______ _____________________ acting in behalf of another person as trustee, nominee or agent? 31 Do you establish the identities of the agent/s and _______ _______ _____________________ the authorized signatories, as well as the nature of their trustees or nominee capacity and duties? 32 In case you suspect that the trustee, nominee or _______ _______ _____________________ agent is only a dummy, do you undertake further verification to verify the business relationship between the parties? 33 In case satisfactory evidence of the beneficial _______ _______ _____________________ owners cannot be obtained, do you proceed to: 33.1 Conduct or continue transacting with the _______ _______ _____________________ client? 33.2 Stop transacting with such account? _______ _______ _____________________ 34 For purposes of 33.1, do you undertake the _______ _______ _____________________ following: 34.1 Record any misgivings? _______ _______ _____________________ 34.2 Monitors said account? _______ _______ _____________________ 35 Do you conduct reasonable inquiries on the _______ _______ _____________________ transactions whenever these transactions pass through accounts opened by a law firm or accountants that give cause for concern? 36 Do you report to AMLC transactions under Nos. _______ _______ _____________________ 33 and 34, pursuant to the provisions of the AMLA, as amended, and your established policies and procedures, if you have a basis for reporting under the provisions of the AMLA, as amended? J.4 High Risk Customers 37 Do you give special attention to business _______ _______ _____________________ relationships and transactions with persons, including companies and financial institutions, from countries which do not or insufficiently apply _______ _______ _____________________ the FATF Recommendations? 38 Do you ensure that the principles applicable to _______ _______ _____________________ your institution are also applied to your branches and majority owned subsidiaries located abroad, especially in countries which do not or insufficiently apply the anti-money laundering measures implemented in the Philippines? 39 Do you consider costumers from countries which _______ _______ _____________________ do not have or insufficiently apply anti-money laundering measures as high risk customers? 40 Do you establish the source of wealth of higher _______ _______ _____________________ risk customers? 41 Are decisions on business relations with higher _______ _______ _____________________ risk customers taken by your senior management? III. MONITORING, RECORDING AND REPORTING A. Monitoring 42 Do you conduct monitoring of the following _______ _______ _____________________ business relationships and transactions: 42.1 Transactions involving trust, nominee and _______ _______ _____________________ fiduciary accounts? 42.2 Transactions involving shell companies _______ _______ _____________________ which have been allowed to transact after undertaking necessary verifications? 42.3 Complex, unusual large transactions, or _______ _______ _____________________ unusual patterns of transactions? 42.4 Business relationships and transactions with _______ _______ _____________________ persons, whether natural or juridical, from countries which do not or insufficiently apply the FATF Recommendations? 42.5 Transactions which are suspected to be made _______ _______ _____________________ by a person included in the list of suspected terrorists, or terrorist organizations that may be furnished by the AMLC or by any other law enforcement agency or pursuant to internal policies and procedures? 42.6 Transactions made by persons, whether _______ _______ _____________________ individuals or corporate, who had been subjected to further verifications but nonetheless required to be monitored by the covered institution as part of its enhanced KYC application or AMLA compliance procedure? 42.7 Any other transaction which you may deem _______ _______ _____________________ necessary to be monitored based on surrounding facts or circumstances and your established policies and procedure? 43 Is there a designated specific officer or staff _______ _______ _____________________ authorized to monitor any of the transactions referred to above? Specify the rank, office or designation: ___________________________________ ___________________________________ B. Recordkeeping 44 Do you keep and maintain documentations on the _______ _______ _____________________ following: 44.1 Customer relationships, identification and _______ _______ _____________________ other pertinent data? 44.2 Transactions? _______ _______ _____________________ 45 Is there documentation sufficient to permit _______ _______ _____________________ reconstruction of individual transaction which will enable the AMLC to compile an audit trail should there be a report made pursuant thereto? 46 Does the documentation include information on _______ _______ _____________________ the customer/beneficiary's name, address, nature and date of transaction, type and amount of currency involved, the type and identifying number of account, and information on whether a particular person is a customer or beneficial owner of the transactions? 47 Are the documents referred to under Nos. 44 and _______ _______ _____________________ 45 including recordings made under No. 34.1 and any analysis made to detect unusual or suspicious transactions available to the Commission and to the AMLC for its inspection? 48 In case the company's recordkeeping is fully _______ _______ _____________________ computerized, do you have an automatic back-up system which is maintained within the prescribed period? 49 Do you apply the five (5) year retention period for _______ _______ _____________________ purposes of recordkeeping? 50 Do you maintain a complete file on all transactions _______ _______ _____________________ that have been brought to the attention of your Compliance Officer, including transactions that are not reported to the AMLC? 51 Do you require the production of the original _______ _______ _____________________ documents referred to herein and do you retain certified copies of said documents, with the name of your employee certifying the documents clearly recorded? 52 If the original copies of the documents cannot be _______ _______ _____________________ produced or certified copies cannot be retained, do you record the reasons therefor? 53 Is there a designated officer or staff authorized to _______ _______ _____________________ keep or maintain the records referred to herein? Specify below the rank, office or designation: ____________________________________ C. Reporting to the AMLC C.1 General Provisions 54 Do you have a system of mandatory reporting of _______ _______ _____________________ both covered transactions and suspicious transactions? 55 Have you appointed a senior officer at _______ _______ _____________________ management level with relevant qualifications and experience as Compliance Officer? 56 Do you report to the AMLC all covered and _______ _______ _____________________ suspicious transactions within ten (10) working days from occurrence thereof? 57 Do you inform your customers when information _______ _______ _____________________ relating to them or whenever their transaction is being reported to the AMLC? 58 Do you have a system of ensuring confidentiality _______ _______ _____________________ of the reports made to the AMLC? 59 Whenever any of your officer or employee knows _______ _______ _____________________ that the client has engaged in any of the predicate crimes under the AMLA, do you promptly make a report to the AMLC? C.2 Covered Transaction Reports 60 Do you report to the AMLC transactions in cash _______ _______ _____________________ or other equivalent monetary instrument involving a total amount in excess of the threshold of Five Hundred Thousand Pesos (PHP500,000.00) within one (1) banking day? C.3 General Provisions 61 Do you report to the AMLC transactions, _______ _______ _____________________ regardless of the amounts involved, where any of the following circumstances exists: 61.1 There is no underlying legal or trade _______ _______ _____________________ obligation, purpose or economic jurisdiction? 61.2 The client is not properly identified; _______ _______ _____________________ 61.3 The amount involved is not commensurate _______ _______ _____________________ with the business or financial capacity or your client? 61.4 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? 61.5 Any circumstances relating to the transaction _______ _______ _____________________ which is observed to deviate from the profile of the clients and/or past transactions with you? 61.6 The transaction is in any way related to an _______ _______ _____________________ unlawful activity or offense under the AMLA, as emended, that is about to be, is being or has been committed. 61.7 Do you inform your customers when information _______ _______ _____________________ relating to them or whenever their transaction is being reported to the AMLC? IV. INTERNAL CONTROL AND PROCEDURES, COMPLIANCE AND TRAINING A. Internal Control and Procedure 62 Do you have internal control and procedures _______ _______ _____________________ aimed at preventing an impending money laundering? 63 Are your internal policies and procedures on _______ _______ _____________________ dealing with money laundering clearly set out and reflected in your Operating Manual? 64 Does your internal written internal reporting _______ _______ _____________________ procedure include the following? 64.1 Information to all key staff as to whom they _______ _______ _____________________ should report any knowledge or suspicion or money laundering activity? 64.2 Clear reporting chain under which suspicions _______ _______ _____________________ of money laundering activity will be passed to the Compliance Officer? 64.3 Access of the Compliance Officer to any _______ _______ _____________________ other information which may be necessary in determining whether or not a suspicious transaction report is to be filed? 64.4 A provision that, upon determination of the _______ _______ _____________________ suspicious nature of the report, the information contained therein is promptly disclosed to AMLC? 64.5 Maintenance of a register of all reports, _______ _______ _____________________ including reports of suspicious transactions to the Compliance Officer but not reported to the AMLC, covered transactions which are not reported to the AMLC, details of the date on which the report is made, the person who made to the report to the Compliance Officer and information sufficient to identify the relevant papers related to the reports? 65 Have you instituted an audit function or procedure to test _______ _______ _____________________ the system to ensure adequate compliance with the program? 66 Do you have an adequate screening procedure to ensure _______ _______ _____________________ high standards in hiring employees? B. Compliance 67 Have you appointed one or more senior officers or _______ _______ _____________________ an appropriate unit to advise the management and staff on the issuance and enforcement of in-house instructions relative to the implementation of the AMLA, as amended, your Operating Manual, personnel training, reporting of covered and suspicious transactions? 68 Does your Compliance Officer have the following _______ _______ _____________________ duties? 68.1 Maintenance of a manual of compliance _______ _______ _____________________ procedures? 68.2 Ensure compliance by the staff with the _______ _______ _____________________ AMLC, its Implementing Rules and Regulations and your Operating Manual? 68.3 Act as liaison officer between you as a _______ _______ _____________________ covered institution and the AMLC relative to your compliance with the AMLA? 68.4 Dissemination to the Board, officers and all _______ _______ _____________________ employees, memoranda circulars, resolutions, instructions and policies issued by the AMLC or by the Commission in relation to money laundering prevention? 68.5 Prepare and submit to the AMLC written _______ _______ _____________________ reports of the covered institution's compliance with the AMLA and its Implementing Rules and Regulations? 69 If you are a branch, subsidiary or affiliate of a _______ _______ _____________________ foreign company which is a covered institution in its home country, do you observe anti-money laundering measures consistent with home jurisdiction requirements to the extent allowed by the local laws? C. Training 70 Do you provide education and training for all _______ _______ _____________________ your staff and personnel, including directors and officers? If you have conducted such training specify below topics presented, dates of the training and the names of the resource persons: 70.1 _________________________________ _______ _______ _____________________ 70.2 _________________________________ _______ _______ _____________________ 70.3 _________________________________ _______ _______ _____________________ 70.4 _________________________________ _______ _______ _____________________ 71 Do you provide trainings to all new employees, _______ _______ _____________________ regardless of level of seniority? 72 Do you provide continuous trainings to your _______ _______ _____________________ cashiers/dealers' representatives or investment representatives/advisory staff or "front-line" staff on matters such as, but not limited to, identification of suspicious transactions, the procedure to be adopted when a transaction is deemed suspicious, and your policy for dealing non-regular customers particularly where large case transactions or complex and unusual transactions are involved? 73 Do you provide trainings to your supervisors and _______ _______ _____________________ managers on matters such as, but not limited to, offenses and penalties under the AMLA, the procedures relating to service of production and restraint orders, internal reporting procedures, and the requirement for verification of identity and retention of records? 74 Do you provide, at least once a year, refresher _______ _______ _____________________ trainings, or do you conduct on-going training for your key staff on matters such as, but not limited to, updates or developments on money laundering techniques, methods and trends of money laundering and prevention, aspects of the AMLA and obligations thereunder, the requirements on customer identification and due diligence, covered transactions and suspicious transactions reporting? Assistance of the Insurance Commission 75 Do you need assistance of the Commission in _______ _______ _____________________ effectively implementing or complying with the AMLA, its Implementing Rules and Regulations, and Circulars issued by the AMLC and the Insurance Commission relative to the AMLA? 76 If you need the assistance of the Commission, _______ _______ _____________________ please specify below the kind or type of assistance you need: ________________________________ ________________________________________ ________________________________________ ________________________________________