Anti-Money Laundering Compliance Form

2011 SEC NOTICE SECURITIES AND EXCHANGE COMMISSION ANTI-MONEY LAUNDERING COMPLIANCE FORM 1. ____________________________________________________________________ Date 2. SEC Registration Number ____________ 3. BIR Tax Identification No. _______ 4. ____________________________________________________________________ Exact name of the covered institution as specified in its Certificate of Registration 5. _______________________________ _________________________________ Secondary License Date Granted 6. ____________________________________ 7. [ ] (SEC Use Only) Province, country or other Industry Classification Code: jurisdiction of incorporation 8. ____________________________________________________________________ Address of principal office 9. _______________________________ 10. _____________________________ Company's telephone number Name of Compliance Officer 11. ____________________________________________________________________ Former name or former address, if applicable Signature After reasonable inquiry and to the best of our knowledge and belief, the undersigned certify that the responses and explanations set forth in the attached AML-CF are true, complete and correct. Signed in the City of _________________ on the ________ of _____________ 2011. By: ______________________ Compliance Officer _____________________ President Republic of the Philippines Securities and Exchange Commission SEC Building EDSA, Greenhills, Mandaluyong City Anti-Money Laundering Compliance Form General Instructions (1) Purpose/objective (a) This Anti-Money Laundering Compliance Form (AML-CF) was adopted in order to effectively implement the provisions of the Anti-Money Laundering Act (AMLA), as amended, and its Revised Implementing Rules and Regulations (RIRR), as well as to determine extent of compliance therewith by the covered institutions supervised by the Commission as supervising authority under the AMLA. TAacHE (2) Preparation of this Filing (a) This document may be considered as a blank form to be filled up, except if the responses would require more spaces in which case, separate pages with the proper captions shall be submitted with the form. (b) This page containing the general instructions is not to be filed with the form. (c) Topics or subjects in the blank form are divided into three (3) parts: (i) Customer Due Diligence, (ii) Monitoring, recording and reporting, and (iii) Training of the covered institution's personnel and staff. Prefaced to the first part is a general provision relating to the adoption of the Anti-Money Laundering Operating Manual by the covered institution. (3) Institutions covered (a) This form applies to the following covered institutions defined by way of enumeration under SEC Memorandum Circular No. 2, Series of 2010, the "Revised Guidelines in the Preparation of the Anti-Money Laundering Operating Manual for SEC Covered Institutions" and pursuant to the provisions of Sec. 3 (a) (3) of R.A. 9160, as amended by R.A. 9194: (a) Securities Brokers, Dealers and Salesmen, Associated Person of a broker or dealer; (b) Investment Houses and other similar entities managing securities or rendering services as Investment Agent, Advisor or Consultant; (c) Mutual Fund Companies, Closed-End Investment Companies; (d) Common Trust Fund Companies, closed-end investment companies; (e) Financing companies and lending companies, both with more than 40% foreign participation in its voting stock or with paid-up capital of Php10 Million or more; (f) Other entities administering or otherwise dealing in currency, commodities or financial derivatives based thereon, cash substitutes and other similar monetary instruments or property, supervised or regulated by the Commission. CaAIES (4) Signature and Filing (a) This blank form is to be filled up by the covered institution and submitted to the Commission within a period of ten (10) working days from receipt, order or directive for its submission, and which will be signed by the officers listed therein. (b) Non-submission of this form within the prescribed period shall warrant the on-site examination or audit by the Commission of the covered institution to verify its compliance with the provisions of the AMLA, as amended, the RIRR and the circulars or orders issued by the Anti-Money Laundering Council or by the Commission. (c) Submitted forms shall be assessed to determine whether on-site examination or audit of a covered institution/s is necessary or a random validation process will suffice. The on-site audit or examination shall be conducted either during the performance of the respective regular audit by the operating department of the Commission or during a thematic audit for the specific purpose of determining compliance with the AMLA, as amended. (5) Period Covered (a) This form shall cover the period from the time of the adoption of the Operating Manual by the covered institution pursuant to SEC Memoranda Circulars No. 1 Series of 2002, No. 12 Series of 2004, and No. 2, Series of 2010, up to the time of filing of this Form. aEcADH ANTI-MONEY LAUNDERING COMPLIANCE FORM ________________________________________________ NAME OF COMPANY Compliance Area Yes No Explanation/Reason for Practices and Acts Required Non-Compliance Under AMLA, its IRR, and Operating Manual Adoption of the Manual: AML Operating Manual 1. Do you have an Anti-Money Laundering (AML) Operating Manual? 2. Did you submit your AML Operating Manual to the Commission? 3. Is your AML Operating Manual being followed by your personnel in your day to day operations? I. Customer Due Diligence or Know-your-customer rule A. Questions Applying to All Covered Institutions Regulated by the Commission 4. Do you obtain the following information from your client or customer? 4.1 Complete name or names 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 nondescript 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? 4.10 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 and Social Security Numbers? 4.13 Sources of funds? 4.14 Complete name, address and contact information of beneficial owner? 4.15 For broker dealers, whether the customer is an institutional customer? 4.16 For broker dealers, the customer's investment objective? 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. n 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 or 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 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 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 clients or customers who are non-residents, do you require that the documents under No. 7 be duly authenticated by our 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 account holders? 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 client 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 you 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 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 of 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? E. n Old Accounts 23. Have you taken actions to clean out old accounts? 24. What actions have you taken to clean out old accounts? ___________________________________ F. Simplified or Reduced CDD 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 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? G. Verification: G.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 & 8 be authenticated by the Philippine Embassy or Consulate for those non-residents opening an account without face-to-face contact? G.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? G.3. Trust, Nominee and Fiduciary Accounts 30. Do you determine whether your client 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 trustee 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 Monitor 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? G.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 Financial Action Task Force (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? II. 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 Financial Action Task Force 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 Know-your-customer (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. Record Keeping 44. Do you keep and maintain documentations on the following: 44.1 Customer relationships, identification and other pertinent data? 44.2 Transactions? 45. Is the 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 record keeping is fully computerized, do you have automatic back-up system which is maintained within the prescribed period? 49. Do you apply the five (5)-year retention period for purposes of record keeping? 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 Suspicious Transaction Reports 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 justification? 61.2 The client is not properly identified; 61.3 The amount involved is not commensurate with the business or financial capacity of 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 circumstance relating to the transaction which is observed to deviate from the profile of the clients and/or the client's past transactions with you? 61.6 The transaction is in any way related to an unlawful activity or offense under the AMLA, as amended, that is about to be, is being or has been committed? 61.7 Any transaction that is similar or analogous to any of the foregoing? III. Internal Control and Procedures, Compliance and Training A. Internal Control and Procedure 62. Do you have internal control and procedures aimed at preventing and impeding 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 AMLA, 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 Commission 75. Do you need the 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 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 _______________________________ _______________________________________ Footnotes n Note from the Publisher: Copied verbatim from the official document. n Note from the Publisher: Copied verbatim from the official document .