AMLC Forms for Covered Transaction Reports and Suspicious Transaction Reports for Covered Institutions

June 27, 2002 SEC MEMORANDUM CIRCULAR NO. 09-02 TO : All Concerned RE : AMLC Forms for Covered Transaction Reports and Suspicious Transaction Reports for Covered Institutions Pursuant to the Anti-Money Laundering Council's (AMLC) Resolution No. 086 dated May 29, 2002, providing for common forms for covered transaction reports and suspicious transaction reports for all covered institutions, attached are Annex "A" (Covered Transaction Report Form) and Annex "B" (Suspicious Transaction Report Form), as approved by the AMLC, which hereby supersede Annexes "A" and "B" of the Securities and Exchange Commission's Anti-Money Laundering Model Operating Manual for Covered Institutions under SEC Memorandum Circular No. 1, series of 2002. All covered institutions are hereby directed to use the herein attached forms in reporting covered transactions and suspicious transactions. This Circular shall take effect immediately. June 27, 2002, Mandaluyong City, Philippines. (SGD.) LILIA R. BAUTISTA Chairperson ATTACHMENT Covered Transaction Report (CTR) General Instructions Who Must File. Each covered institution must file AMLC Form No. _________ (CTR) for each transaction by, through, or to the covered institution which involves a transaction in Philippine currency or its equivalent in foreign currency of more than Php4,000,000.00. Multiple transactions must be treated as a single transaction if the covered institution has knowledge that (1) they are by or on behalf of the same person, and (2) they result in currency received (Cash In) or currency disbursed (Cash Out) by the covered institution totaling more than Php4,000,000.00 in a series of transactions. A business day is a calendar day. Identification Requirements. This is important! All individuals conducting a reportable transaction(s) for themselves or for another person must be identified by means of an official document(s) from the covered institution as the person/s authorized to make such a report. In completing the CTR, the covered institution must indicate on the form the method, type, and number of the identification of the account holder or customer used in the transaction. Statements such as "known customer" or "signature card on file" are not sufficient for form completion. When and Where To File. File this CTR within five (5) days from which the transaction occurred to: THE EXECUTIVE DIRECTOR ANTI-MONEY LAUNDERING COUNCIL BANGKO SENTRAL NG PILIPINAS COR. A. MABINI AND P. OCAMPO STS. MALATE, MANILA Penalties. Civil and criminal penalties are provided by the law for failure to file a CTR or to supply information or for filing a false or fraudulent CTR. Specific Instructions 1. Because of the limited space of the CTR, it may be necessary to submit additional information on attached sheets. Submit this additional information on plain paper attached to the CTR. Be sure to put the covered institution's, individual's or organization's name and identifying number (e.g., items 2, 3, 4, and 6 of the CTR) on any additional sheets so that if it becomes separated, it may be associated with the CTR. 2. Amounts may be aggregated. The threshold limit for mandatory filing of a covered transaction report is an amount in excess of Php4,000,000.00. This covers the following transactions: a. a single, series or combination of transactions a total amount in excess of Php4,000,000.00 or an equivalent in foreign currency based on the prevailing exchange rate within five (5) consecutive banking days where the client is not properly identified and/or the amount is not commensurate with his business or financial capacity, or is without any underlying legal or trade obligation, purpose, origin or economic justification. b. A single, series or combination or pattern of unusually large and complex transactions in excess of Php4,000,000.00 or an equivalent in foreign currency based on the prevailing exchange rate, especially cash deposits and investments having no credible purpose or origin, underlying trade obligation or contract. 3. Enter the full address of the covered institution where the transaction occurred. If there are multiple transactions, provide information on the office or branch where any one of the transactions has occurred. 4. The CTR shall be signed by the employee(s) who dealt directly with customer in the transaction and who made the initial internal report within the covered institution, the Compliance Officer of the covered institution, who made the necessary evaluation of the transaction and a senior official of the covered institution with a rank not lower than senior vice-president, who approved the filing of the CTR. ANNEX A Form for Information on Individuals ANNEX B Form for Individual Transaction in a Series Suspicious Transaction Report PART V: Suspicious Transaction Information Explanation/Description This section of the report is critical. The care with which it is written may make the difference in whether or not the described conduct and its possible criminal nature are clearly understood. If necessary, continue the narrative on a duplicate of this page. Guidelines for the preparation of your response are provided in Annex "C" hereof. Explanation/description of known or suspected violation of law or suspicious transaction . Description of the Suspicious Transactions and Chronology of Events Leading to the Suspicion Using the Guidelines Enumerated Above ANNEX C GUIDELINES FOR PART IV Your response to Part IV should include a chronological and complete account of the possible violation of law or what was considered unusual, irregular or suspicious about the transaction in question. The following is a checklist of the matters that should be included in your response. a. Describe supporting documentation and retain for 5 years. b. Explain who benefited, directly or indirectly, from the transaction, how much, and how. c. Retain any confession, admission, or explanation of the transaction provided by the suspect and indicate to whom and when it was given. d. Retain any confession, admission, or explanation of the transaction provided by any other person and indicate to whom and when it was given. e. Retain any evidence of cover-up or evidence of an attempt to deceive federal or state examiners or others. f. Indicate where the possible violation took place (e.g., main office, branch, other). g. Indicate whether the possible violation is an isolated incident or relates to other transactions. h. Indicate whether there is any related litigation; if so, specify. i. Recommend any further investigation that might assist law enforcement authorities. j. Indicate whether any information has been excluded from this report; if so, why? k. If you are correcting a previously filed report, describe the changes that are being made. l. Indicate whether currency and/or monetary instruments were involved. If so, provide the amount and/or description of the instrument (for example, bank draft, letter of credit, domestic or international money order, stocks, bonds, traveler's checks, wire transfers sent or received, cash, etc.). m. Indicate any account number that may be involved or affected.