BSP urges banks to strictly adopt anti-money laundering measures

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has reminded banks and non-bank financial institutions to strictly adhere to their respective money laundering and terrorist financing prevention programs.

BSP Governor Nestor Espenilla Jr. issued Circular 1022 containing the amendments to the manual of regulations for banks and manual of regulations for non-bank financial institutions regarding the protection and preservation of the integrity of the country’s financial system, particularly the confidentiality of bank accounts and to ensure that the Philippines will not be used as a money laundering site and conduit for proceeds of unlawful activities.

Espenilla said the government is also mandated to protect life, liberty and property from acts of terrorism and to condemn terrorism and those who support and finance it and reinforce the fight against terrorism by criminalizing the financing of terrorism and related offenses.

The Philippines is committed to adhere to international commitments to combat financing of terrorism, specifically the International Convention for the Suppression of the Financing of Terrorism, as well as other binding terrorism related resolutions of the United Nations Security Council.

Espenilla, who is also chair of the Anti-Money Laundering Council (AMLC), said all covered institutions should adopt a comprehensive and risk-based money laundering and terrorist financing prevention program (MTPP) geared toward the promotion of high ethical and professional standards and prevention of the covered person from being used, intentionally or unintentionally, for money laundering and terrorist financing activities.

The program should include policies, controls and procedures to enable the covered persons to manage and mitigate the risks that have been identified in their risk assessment, including taking enhanced measures for those classified as posing higher risks.

The MTPP should also be consistent with the Anti-Money Laundering Act (AMLA), as amended, the Terrorism Financing Prevention and Suppression Act (TFPSA), their respective implementing rules and regulations.

AMLC has taken the lead in the preparation of the third round of mutual evaluations to be undertaken by the Asia Pacific Group (APG) on Money Laundering this year to gauge its levels of compliance.

The review system among APG members is about intensifying the world’s fight against ML/TF through cooperation and commitment across borders and across cultures.