MORNBFI Vol. 1 - Planters Development Bank

§§ 4805Q - 4805Q.211.12.31and controlled, as well as to ensure effectiveimplementation of this Part, to the end thatcovered institutions shall not be used as avehicle to legitimize proceeds of unlawfulactivity or to facilitate or finance terrorism.The four (4) areas of sound riskmanagement practices are adequate andactive Board and Senior Managementoversight, acceptable policies andprocedures embodied in a moneylaundering and terrorist financingprevention compliance program,appropriate monitoring and ManagementInformation System and comprehensiveinternal controls and audit.(As amended by Circular No. 706 dated 05 January 2011)§ 4805Q.1 Board and seniormanagement oversight. Notwithstandingthe provisions specifying the duties andresponsibilities of the compliance office andinternal audit, it shall be the ultimateresponsibility of the board of directors tofully comply with the provisions of this Part,the AMLA, as amended, and its RIRR. Forthis reason, it shall ensure that oversight onthe institution’s compliance management isadequate.(As amended by Circular No. 706 dated 05 January 2011)§ 4805Q.1.a Compliance OfficeManagement of the implementation of thecovered institution’s Money Laundering andTerrorist Financing Prevention Program(MLPP) shall be a primary task of theCompliance Office. To ensure theindependence of the Office, it shall have adirect reporting line to the board ofdirectors or any board-level or approvedcommittee on all matters related to AML andterrorist financing compliance and their riskmanagement. It shall be principallyresponsible for the following functionsamong other functions that may be delegatedby senior management and the board, towit:1. Ensure compliance by allresponsible officers and employees with thisPart, the AMLA, as amended, the RIRR andits own MLPP. It shall conduct periodiccompliance checking which covers, amongothers, evaluation of existing processes,policies and procedures including on-goingmonitoring of performance by staff andofficers involved in money laundering andterrorist financing prevention, reportingchannels, effectivity of the electronic moneylaundering transaction monitoring systemand record retention system through sampletesting and review of audit or examinationreports. It shall also report compliancefindings to the board or any board-levelcommittee;2. Ensure that infractions, discoveredeither by internally initiated audits or byspecial or regular examination conductedby the BSP, are immediately corrected;3. Inform all responsible officers andemployees of all resolutions, circulars andother issuances by the BSP and the AMLCin relation to matters aimed at preventingmoney laundering and terrorist financing;4. Alert senior management, the boardof directors, or the board-level or approvedcommittee if it believes that the institutionis failing to sensibly address anti-moneylaundering and terrorist financing issues; and5. Organize the timing and content ofAML training of officers and employeesincluding regular refresher trainings asstated in Sec. 4809Q.(Circular No. 706 dated 05 January 2011)§ 4805Q.2 Money laundering andterrorist financing prevention program. Allcovered institutions shall adopt acomprehensive and risk-based MLPP gearedtoward the promotion of high ethical andprofessional standards and the preventionof the bank being used, intentionally orunintentionally, for money laundering andManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart VIII - Page 5