Lawyers, accountants told to report suspicious transactions

MANILA, Philippines — The Anti-Money Laundering Council (AMLC) has directed designated non-financial businesses and professions (DNFBPs) led by lawyers and accountants to tighten the filing of suspicious transaction reports to strengthen the country’s fight against dirty money.

AMLC executive director Matthew David said the financial intelligence unit issued Resolution 242 on Nov. 10 amending the anti-money laundering and counterterrorism financing guidelines for DNFBPs.

Under the amendments, DNFBPs are required to file covered transaction reports and suspicious transaction reports in accordance with the registration and reporting guidelines of the AMLC.

“Suspicious transaction reports shall cover all transactions, whether completed or attempted,” David said.

According to David, lawyers should report to the AMLC any transaction or unlawful activity that is required to be reported under Republic Act 9160 or the Anti-Money Laundering Act of 2001 and RA 10168 or the Terrorism Financing Prevention and Suppression Act of 2012, including covered transaction reports and suspicious transaction reports or STR, pursuant to Section 12, Canon 2 of the Code of Professional Responsibility and Accountability.

He added that the same rules apply to the transaction reporting requirements of accountants.

The directive covers company service providers such as lawyers and accountants who provide and offer services, whether to the public or select customers on a regular or continuing basis, for a fee or for free or as a means of livelihood.

The financial intelligence unit said DNFBPs should report to the AMLC all covered transactions within five working days, unless the AMLC prescribes a different period not exceeding 15 working days from the occurrence.

“DNFBPs shall promptly file STRs, including attempts thereof, to the AMLC within the next working day from the occurrence thereof. For suspicious transactions, occurrence shall refer to the date of establishment of suspicion or determination of the suspicious nature of the transaction,” David said.

The AMLC official pointed out that DNFBPs should decide with finality whether to file a suspicious transaction report should the suspicion or suspicious nature of the transaction or activity be duly established or determined, or otherwise to document the non-filing.

“Should a transaction be determined to be both a covered transaction and a suspicious transaction, it shall be reported as a suspicious transaction,” he said.

On the other hand, the AMLC said lawyers and accountants working in a private firm or a sole practitioner who, by way of business or occupation, provides purely legal or accounting services to their clients, are not required to file covered transaction reports and suspicious transaction reports.

David added that under the safe harbor provision, no administrative, criminal or civil proceedings should lie against any person for having made a covered transaction or suspicious transaction report in the regular performance of his or her duties in good faith, that results in any criminal prosecution under the AMLA.

“When disclosing or reporting covered and suspicious transactions to the AMLC, lawyers engaged in the services covered under Title I, Sections 2(b) and (c) hereof shall not be deemed to have violated the lawyer’s duty of confidentiality,” David concluded.

Global dirty money watchdog Financial Action Task Force (FATF) has given the Philippines until next month to address the remaining gaps in its regime to counter money laundering as well as terrorist and proliferation financing.

The Paris-based body reincluded the Philippines in the gray list or jurisdictions under increased monitoring in June 2021.