Entities that failed to register on time face AMLC sanctions

MANILA, Philippines — The Anti-Money Laundering Council (AMLC) said real estate brokers and developers, Philippine offshore gaming operators (POGOs) and their service providers, jewelry dealers and dealers of precious metals, as well as lawyers and accountants that failed to register on time, are facing possible sanctions from the financial intelligence unit.

In an advisory, the AMLC said designated non-financial businesses and professions (DNFBPs) that failed to comply with the 2021 anti-money laundering/counter-terrorism financing (AML/CFT) guidelines, which require registration of new covered persons,  face possible consequences mandated under Republic Act 9160 or the Anti-Money Laundering Act (AMLA) of 2001, as amended.

Under the guidelines that took effect last June 21, DNFBPs are required to register new covered persons and existing ones within six months or until Dec. 21.

For newly established DNFBPs, the financial intelligence unit said registration must be done prior to the commencement of their operations. Likewise, access to the AMLC reporting portal will only be granted to registered DNFBPs.

“Non-registration with the AMLC may result in the imposition of enforcement actions under the enforcement action guidelines; and/or administrative sanctions against a non-registered DNFBP, as per the rules on the imposition of administrative sanctions under the AMLA,” the AMLC said.

If not registered, the AMLC pointed out a DNFBP would not be able to electronically submit covered (CTRs) and suspicious transaction reports (STRs).

“Non-submission of CTRs/STRs, knowing that such reports are required to be submitted, is penalized as a money laundering offense under the last paragraph of Section 4 of the AMLA, as amended,” it said.

Under RA 11521 or the amended AMLA, POGOs, real estate developers and brokers are classified as covered persons and are required to report covered and suspicious transactions to the AMLC.

Mel Georgie Racela, executive director of the AMLC Secretariat, earlier said the AMLC issued Resolution 109 on May 26 approving the 2021 anti-money laundering or counterterrorism financing guidelines for DNFBPs.

Through AMLC Regulatory Issuance 03, Racela said DNFBPs are covered persons regulated for anti-money laundering or counterterrorism financing to prevent criminals from exploiting them.

Aside from implementing appropriate anti-money laundering and counterterrorism financing risk management system, Racela said covered persons should also conform with high ethical standards and observe good corporate governance, know sufficiently their customers and clients to prevent transactions with criminal elements and suspicious individuals or entities, and cooperate with the AMLC for the effective implementation of the Anti-Money Laundering Act and the Terrorism Financing Prevention and Suppression Act.

“While the AMLC is mindful of concerns to minimize unnecessary regulatory burdens and compliance costs for business, money laundering is a serious crime that threatens the competitiveness and openness of the Philippine economy,” Racela said.

Covered persons are required to establish, implement, monitor, and maintain an effective money laundering and terrorism financing prevention program, as well as devise and implement relevant policies, procedures, processes, and controls designed to prevent and detect illegal activities.

Likewise, they are required to undertake institutional risk assessment and at the same time develop sound risk management policies and practices.

Aside from active board and management oversight, as well as the designation of compliance officers, Racela said the guidelines require covered persons to implement a money laundering and terrorism financing prevention program and establish internal controls and internal audit programs.

He said all DNFBPs are mandated to adopt a policy on customer due diligence, as well as a monitoring and reporting system for covered transaction reports and suspicious transaction reports.