MORNBFI Vol. 1 - Planters Development Bank

§ 4803Q11.12.319) Swindling under Article 315 of theRPC, as amended;(10) Smuggling under R.A. Nos. 455and 1937;(11) Violations under R.A. No. 8792 ,otherwise known as the ElectronicCommerce Act of 2000;(12) Hijacking and other violationsunder R.A. No. 6235; destructive arson andmurder, as defined under the RPC, asamended, including those perpetrated byterrorists against non-combatant personsand similar targets;(13) Fraudulent practices and otherviolations under R.A. No. 8799, otherwiseknown as the Securities Regulation Codeof 2000; and(14) Felonies or offenses of a similarnature that are punishable under the penallaws of other countries.(G) Customer - refers to any person orentity that keeps an account, or otherwisetransacts business, with a coveredinstitution and any person or entity onwhose behalf an account is maintained ora transaction is conducted, as well as thebeneficiary of said transactions. A customeralso includes the beneficiary of a trust, aninvestment fund, a pension fund or acompany or person whose assets aremanaged by an asset manager, or a grantorof a trust.(H) Shell company - Legal entities whichhave no business substance in their ownright but through which financialtransactions may be conducted.(I) Shell bank - a shell companyincorporated as a bank or made to appearto be incorporated as a bank but has nophysical presence and no affiliation with aregulated financial group. It can also be abank that:(a) does not conduct business at afixed address in a jurisdiction in whichthe shell bank is authorized to engage;(b) does not employ one or moreindividuals on a full time basis at this fixedaddress;(c) does not maintain operating recordsat this address; and(d) is not subject to inspection by theauthority that licensed it to conductbanking activities.(J) Beneficial owner - refers to naturalperson(s) who ultimately owns or controlsa customer and/or the person on whosebehalf a transaction is being conducted.It also incorporates those persons whoexercise ultimate effective control over alegal person or arrangement.(K) Politically exposed person or PEP- an individual who is or has beenentrusted with prominent public positionsin the Philippines or in a foreign state,including heads of state or of government,senior politicians, senior national or localgovernment, judicial or military officials,senior executives of government or stateowned or controlled corporations andimportant political party officials.(L) Correspondent banking - refers toactivities of one bank (the correspondentbank) having direct connection or friendlyservice relations with another bank (therespondent bank).(M) Fund/wire transfer - refers to anytransaction carried out on behalf of anoriginator (both natural and juridical)through an FI (Originating Institution) byelectronic means with a view to making anamount of money available to a beneficiaryat another FI (Beneficiary Institution). Theoriginator person and the beneficiary personmay be the same person.(N) Cross border transfers - any wiretransfer where the originating andbeneficiary institutions are located indifferent countries. It shall also refer to anychain of wire transfer that has at least onecross-border element.(O) Domestic transfer - any wiretransfer where the originating andManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart VIII - Page 3