MORNBFI Vol. 1 - Planters Development Bank

§ 4803Q - 4805Q11.12.31beneficiary institutions are located in thesame country. It shall refer to any chain ofwire transfer that takes place entirely withinthe borders of a single country, even thoughthe system used to effect the fund/wiretransfer may be located in another country.(P) Originating institution - refers to theentity utilized by the originator to transferfunds to the beneficiary and can either be:(a) a covered institution as speciallydefined by this part and as generallydefined by the AMLA, as amended, and itsRIRR; or(b) an FI operating outside thePhilippines that is other than coveredinstitutions referred to in Item “(a)” butconducts business operations and activitiessimilar to them.(Q) Beneficiary institution - refers to theentity that will pay out the money to thebeneficiary and can either be:(a) a covered institution as specificallydefined by this Part and as generallydefined by the AMLA, as amended, and itsRIRR, or(b) an FI operating outside thePhilippines that is other than coveredinstitutions referred to in Item “(a)” butconducts business operations and activitiessimilar to them.(R) Intermediary institution - refers tothe entity utilized by the originating andbeneficiary institutions where both have nocorrespondent banking relationship witheach other but have established relationshipwith the intermediary institution. It caneither be:(a) a covered institution as specificallydefined by this Part and as generally definedby the AMLA, as amended, and its RIRR; or(b) an FI operating outside thePhilippines that is other than coveredinstitutions referred to in Item “(a)” butconducts business operations and activitiessimilar to them.(Circular No. 706 dated 05 January 2011)Sec. 4804Q Basic Principles and Policiesto Combat Money Laundering. In line withthe declaration of policy, coveredinstitutions shall apply the followingprinciples:1. Conduct business in conformitywith high ethical standards in order toprotect its safety and soundness as well asthe integrity of the national banking andfinancial system;2. Know sufficiently your customer atall times and ensure that the financially orsocially disadvantaged are not deniedaccess to financial services while at thesame time prevent suspicious individualsor entities from opening or maintaining anaccount or transacting with the coveredinstitution by himself or otherwise;3. Adopt and effectively implement asound AML and terrorist financing riskmanagement system that identifies,assesses, monitors and controls risksassociated with money laundering andterrorist financing;4. Comply fully with this Part andexisting laws aimed at combating moneylaundering and terrorist financing bymaking sure that officers and employees areaware of their respective responsibilities andcarry them out in accordance with superiorand principled culture of compliance; and5. Fully cooperate with Anti-MoneyLaundering Council (AMLC) for theeffective implementation and enforcementof the AMLA, as amended, and its RIRR.(As amended by Circular No. 706 dated 05 January 2011)A. RISK MANAGEMENTSec. 4805Q Risk Management. All coveredinstitution shall develop sound riskmanagement policies and practices to ensurethat risks associated with money-launderingsuch as counterparty, reputational,operational, and compliance risks areidentified, assessed, monitored, mitigatedQ RegulationsPart VIII - Page 4Manual of Regulations for Non-Bank Financial Institutions