Anti-Money Laundering Council (AMLC) 2021 Sanctions Guidelines: Targeted Financial Sanctions Related to Terrorism, Terrorism Financing and Proliferation Financing

2021 SEC NOTICE TO ALL SEC COVERED PERSONS SUBJECT : Anti-Money Laundering Council (AMLC) 2021 Sanctions Guidelines: Targeted Financial Sanctions Related to Terrorism, Terrorism Financing and Proliferation Financing AMLC Regulatory Issuances on the Amendments to Certain Provisions of the 2018 ImplementingRules and Regulations (IRR) of the A ML A, as Amended, Targeted Financial Sanctions (Related to Proliferation of Weapons of Mass Destructions and Proliferation Financing), and Amendments to Certain Provisions of ARI No. 4, Series of 2020 This is to disseminate to all SEC Covered Persons the 2021 Sanctions Guidelines and the following AMLC regulatory issuances (ARI) relative to the amendments to certain provisions of the 2018 IRR of the AMLA, as amended, Targeted Financial Sanctions (TFS) related to Proliferation of Weapons of Mass Destruction (WMD) and Proliferation Financing (PF), and amendments to certain provisions of ARI No. 4, series of 2020 (click the titles to view the documents) a. The Anti-Money Laundering Council issued the 2021 Sanctions Guidelines, incorporating amendments brought about by the enactment of Republic Act No. (RA) 11479 or the Anti-Terrorism Act of 2020; and RA 11521 or An Act Further Strengthening the Anti-Money Laundering Law, amending for the Purpose RA 9160, otherwise known as the Anti-Money Laundering Act of 2001, as amended The guidelines now cover targeted financial sanctions related to terrorism, terrorism financing, and proliferation financing, including remedies and relevant links to the appropriate United Nations Security Council Sanctions Committee. Two (2) chapters have been added to the guidelines: Chapter 9 (Request for De-listing from Anti-Terrorism Council Designations) and Chapter 10 (Targeted Financial Sanctions related to Proliferation Financing). b. ARI A, B, and C No. 1, Series of 2021 Amendments to Certain Provisions of the 2018 Implementing Rules and Regulations (IRR) of the AMLA, as amended This contains amendments to the 2018 IRR of the AMLA, as amended, which include the following, among others: (i) expansion of the list of covered persons to include real estate developers and brokers as well as the offshore gaming operators and their service providers; (ii) inclusion in the list of unlawful activities the violations of Section 19 (A) (3) of Republic Act No. 10697, otherwise known as the "Strategic Trade Management Act," in relation to the proliferation of weapons of mass destruction (WMD) and its financing and Section 254 of Chapter II, Title X of the National Internal Revenue Code of 1997, as amended; and (iii) the additional authority of the AMLC to apply for the issuance of a search and seizure order or a subpoena ad testificandum and/or subpoena duces tecum with any competent court, in the conduct of its investigation; and to implement TFS in relation to the proliferation of WMD and its financing, including ex parte freeze. c. TFS related to Proliferation of WMD and PF This requires all covered persons (CPs) to implement TFS relating to proliferation of WMD and its financing against all funds and assets that are owned or controlled, directly or indirectly, including those derived or generated therefrom by individuals or entities designated and listed under United Nations Security Council (UNSC) Resolution Nos. 1718 (2006) (concerning the Democratic People's Republic of Korea) and 2231 (2015) (concerning the Islamic Republic of Iran) and their successor resolutions under the UNSC Consolidated List. The AMLC issued the TFS related to proliferation of WMD and PF specifically directing CPs to: (i) incorporate UNSC Resolution Nos. 1718 (2005) and 2231 (2015), and their successor resolutions in their Customer Due Diligence/Risk Profiling policies and procedures; (ii) freeze the properties or funds of designated persons or entities or those whose identities match with all the information in the Consolidated List (Target Match) ; and freeze or put on hold (for a period not exceeding 36 hours) property or funds owned or controlled by persons or entities whose identity matches most, but not all, of the identifier information in said list (Potential Target Match) ; (iii) submit a return to the AMLC within twenty-four (24) hours from effecting the TFS; (iv) prohibit from dealing with properties or funds of designated persons or entities; (v) file suspicious transaction report (STR) for attempted transactions or dealings; (vi) immediately inform the AMLC of any temporary freeze or hold against a potential target match in addition to the filing of an STR; and (vii) permit addition to the accounts frozen of interest or other earnings due on those accounts or payments due under contracts, agreements or obligations that arose prior to the date on which those accounts became subject to the TFS, provided that any such interest, other earnings and payments continue to be frozen. d. ARI No. 2 dated 31 January 2021 Amendments to certain provisions of ARI No. 4, Series of 2020, also known as "Freeze Order for Potential Target Matches under the UNSC Consolidated Lists (Targeted Financial Sanctions)" This amends ARI No. 4, specifically incorporating provisions relating to the implementation of TFS for PF, such as the legal basis of TFS related to terrorism and terrorist financing, list of AMLC resolutions/freeze orders (FOs) to implement TFS, directive and coverage of the FOs, who needs to comply with the TFS, and filing of detailed return before the AMLC. It also provides new chapters to cover administrative remedies (Chapter 5), authorized dealings and exemptions (Chapter 6), TFS related to PF (Chapter 7), and sanctions (Chapter 8). All covered persons are required to download the latest version of the guidelines to be disseminated to their respective offices and personnel for reference and proper guidance. For information and strict compliance.