Unregistered entities may face more stringent AMLC sanctions

MANILA, Philippines — Unregistered designated non-financial businesses and professions (DNFBPs) that failed to register on time could face more stringent sanctions from the financial intelligence unit, according to the Anti-Money Laundering Council (AMLC).

The regulator said 11 entities still failed to register despite the reminders sent to several DNFBPs through letters and notices of non-compliance.

“This public advisory is an action taken pursuant to the AMLC Enforcement Action Guidelines (ARI 5, Series of 2020). These DNFBPs are enjoined to register without further delay, otherwise, a more stringent enforcement action may be taken,” the AMLC said.

Of the 11 unregistered DNFBPs, 10 are jewelry dealers, namely, AGT Classic Jewelry, Enzima International, Glory Jewelry & Tools Supply, Jewels and Gems, Lili Jewelry, Oversea Jewelry and Gift Shop, Pandora, RL Jewelry Repair Shop, Silverworks as well as Wellmanson.

The list also includes V.V. Soliven Realty Corporation, a real estate developer.

According to the AMLC, non-registration is considered a serious violation under the Rules of Procedure in Administrative Cases. It may also result in a covered person’s failure to submit suspicious and covered transaction reports, which is a criminal offense under section four of the AML Act (AMLA).

“DNFBPs, just like all other covered persons, as enumerated under the AMLA, as amended, are required to register with the AMLC and perform their statutory obligations, which include customer due diligence, record-keeping, and reporting of covered and suspicious transactions,” the AMLC said.

The registration of DNFBPs is required under section four of the 2021 anti-money laundering/counter-terrorism financing (AML/CFT) guidelines, it said.

Covered persons should also cooperate with the AMLC to protect their businesses and professions from being used in money laundering and terrorism financing, the AMLC added.

They are also 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, these entities are required to undertake institutional risk assessment and at the same time develop sound risk management policies and practices.

In February, the Philippines failed anew to exit the gray list or list of jurisdictions under increased monitoring after falling short in addressing the remaining concerns on its AML/CFT regime.

The Financial Action Task Force (FATF) has urged the Philippines to swiftly implement its action plan to address the strategic deficiencies as soon as possible as all deadlines expired in January 2023.

The Philippines is targeting to exit the FATF’s gray list by October this year. The Philippines has been in the gray list since June 2021.