MORNBFI Vol. 1 - Planters Development Bank

§§ 4801Q - 4803Q11.12.31PART EIGHTANTI-MONEY LAUNDERING REGULATIONSSec. 4801Q Declaration of PolicyThe BSP adopts the policy of the State toprotect the integrity and confidentiality ofbank accounts and to ensure that thePhilippines in general and the coveredinstitutions herein described in particularshall not be used respectively as a moneylaundering site and conduit for the proceedsof an unlawful activity as hereto defined.(As amended by Circular Nos. 706 dated 05 January 2011, 612dated 13 June 2008, 564 dated 03 April 2007 and CL-2007-010dated 28 February 2007)Sec. 4802Q Scope of Regulations. Theseregulations shall apply to all coveredinstitutions supervised and regulated bythe BSP. The term “covered institution”shall refer to banks, OBUs, QBs, trustentities, NSSLAs, pawnshops, FX dealers,money changers, remittance agents,electronic money issuers and other FIswhich under special laws are subject toBSP supervision and/or regulation,including their subsidiaries and affiliatesas herein defined wherever they may belocated:a. A subsidiary means an entity morethan fifty percent (50%) of the outstandingvoting stock of which is owned by a bank,QB, trust entity or any other institutionsupervised and/or regulated by the BSP.b. An affiliate means an entity thevoting stock of which, to the extent of fiftypercent (50%) or less, is owned by a bank,QB, trust entity, or any other institutionsupervised and/or regulated by the BSP.Pursuant to Section 20 of the GeneralBanking Law of 2000, a bank authorizedby BSP to establish branches or otheroffices within or outside the Philippinesshall be responsible for all businessconducted in such branches and officesto the same extent and in the same manneras though such business had all beenconducted in the head office. A bank andits branches and offices shall be treated asone (1) unit.Whenever local applicable laws andregulations of a branch, office, subsidiaryor affiliate based outside the Philippinesprohibit the implementation of these Rulesor any of the provisions of the AMLA, asamended, its RIRR, and the supervisingauthority in that foreign country issues adirective forbidding said branch, office,subsidiary or affiliate, the coveredinstitution shall notify the BSP of thissituation and furnish a copy of thesupervising authority’s directive.(Circular No. 706 dated 05 January 2011)Sec. 4803Q Definitions of Terms. Exceptas otherwise defined herein, all terms usedshall have the same meaning as those termsthat are defined in the AMLA, as amended,and its RIRR.(A) Money laundering - is a crimewhereby the proceeds of an unlawfulactivity as herein defined are transacted;thereby making them appear to haveoriginated from legitimate sources. It iscommitted by the following.(1) Any person knowing that anymonetary instrument or property represents,involves, or relates to, the proceeds of anyunlawful activity, transacts or attempts totransact said monetary instrument orproperty;(2) Any person knowing that anymonetary instrument or property involvesthe proceeds of any unlawful activity,performs or fails to perform any act as aManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart VIII - Page 1