Anti-Money Laundering Rules on Capital/Asset Infusion; Waiver of Bank Secrecy Law
Insurance Circular Letter No. 024-05, issued on September 2, 2005, establishes requirements for insurance companies in the Philippines seeking to address solvency deficiencies through capital or asset infusion. To comply, companies must submit an undertaking that waives the bank secrecy law, specifically Republic Act No. 1405, alongside a Sworn Declaration of Sources of Funds and supporting documents. The undertaking must be executed by relevant stockholders and the Board of Directors, with a certified true copy of the board resolution attached. If funds are sourced from a foreign parent company, a certified board resolution, authenticated by the Philippine Consul, is also required.
Law Information
- Reference Number
- Insurance Circular Letter No. 024-05
- Date Enacted
- Category
- Other Rules and Procedures
- Subcategory
- Money Laundering
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
September 2, 2005
INSURANCE CIRCULAR LETTER NO. 024-05
ANTI-MONEY LAUNDERING RULES ON CAPITAL/ASSET INFUSION; WAIVER OF BANK SECRECY LAW
Pursuant to the provisions of the Anti-Money Laundering Act of 2001 (Republic Act No. 9160, as amended by Republic Act No. 9194) and its Revised Implementing Rules and Regulations, and pursuant also to Circular Letter No. 9-2002, an insurance company seeking to infuse capital/asset to correct its margin of solvency deficiency and capital impairment must submit an undertaking waiving the provisions of the law on secrecy of bank deposits, particularly Republic Act No. 1405, as amended, and Republic Act No. 6426. THEcAS
The Undertaking shall be executed by the stockholder/s concerned and by the Board of Directors of the company. The board, through a special board resolution, may authorize the President/CEO to sign the undertaking. Certified true copy of the Board Resolution shall be attached to the undertaking and made an integral part thereof.
The company and the stockholder/s concerned are also directed to submit a Sworn Declaration of Sources of Funds together with all necessary supporting documents.
Additionally, when the fund is sourced from a parent company abroad, the company shall submit a certified true copy of the board resolution authorizing the infusion from the parent company to the domestic branch or entity. Copy of said Board Resolution must be authenticated by the Philippine Consul.
For your strict compliance.
Adopted: 02 September 2005
(SGD.) BENJAMIN S. SANTOS Commissioner
Cite This Law
Anti-Money Laundering Rules on Capital/Asset Infusion; Waiver of Bank Secrecy Law, Insurance Circular Letter No. 024-05, Sep 2, 2005 (Philippines)
Anti-Money Laundering Rules on Capital/Asset Infusion; Waiver of Bank Secrecy Law, Insurance Circular Letter No. 024-05 (Phil. 2005)
Related Laws
- Internal Rules of Procedure Governing Investigations by the Anti-Money Laundering Council SecretariatBSP Resolution No. 60-07 • Jul 6, 2007 • Other Rules and Procedures
- Guidelines on Deposit and Cash Servicing Outside of Bank PremisesBSP Circular No. 940-17 • Jan 20, 2017 • Other Rules and Procedures
- Amendments to Part Eight or the Anti-Money Laundering Regulations of the Manual of Regulations for Banks and Manual of Regulations for Non-Bank Financial InstitutionsBSP Circular No. 950-17 • Mar 15, 2017 • Other Rules and Procedures
- Revised Operating Manual in Combating Money-Laundering and Financing of Terrorism for Insurance Commission Covered InstitutionsInsurance Circular Letter No. 32-06 • Sep 18, 2006 • Other Rules and Procedures
- Further Expansion of the Coverage of Cases Cognizable by Special Commercial Courts to Include Anti-Money Laundering Cases and Civil and Criminal Forfeiture Cases under the Anti-Money Laundering Act of 2001, as Well as Other Commercial Cases under Various Special Laws<--!11092021-->A.M. No. 03-03-03-SC • Nov 9, 2021 • Supreme Court Issuances
- Resolution Dated 9 November 2021 in A.M. No. 03-03-03-SC (Inclusion of Anti-Money Laundering Cases in the Coverage of Cases Cognizable by Special Commercial CourtsOCA Circular No. 60-2022 • Mar 21, 2022 • Supreme Court Issuances
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