MORNBFI Vol. 1 - Planters Development Bank

§§ 4806Q.2.j.2. - 4806Q.2.m.11.12.315. The deposit of said instruments shallbe subject to the same requirements ofscrutiny applicable to cash deposits; and6.Transactions involving saidinstruments should be accordingly reportedto the AMLC if there is reasonable groundto suspect that said transactions are beingused to launder funds of illegitimate origin.(Circular No. 706 dated 05 January 2011)§ 4806Q.2.k. Second-endorsed checksA covered institution shall enforce stricterguidelines in the acceptance of second-endorsed checks including the applicationof enhanced due diligence to ensure thatthey are not being used as instruments formoney laundering or other illegal activities.For this purpose, a covered institutionshall limit the acceptance ofsecond-endorsed checks from properlyidentified customers and only afterestablishing that the nature of the businessof said customer justifies, or at least makespractical, the deposit of second-endorsedcheck. In case of isolated transactionsinvolving deposits of second-endorsedchecks by customers who are not engagedin trade or business, the true and fullidentity of the first endorser shall beestablished and the record of theidentification shall also be kept for five (5)years.(Circular No. 706 dated 05 January 2011)§ 4806Q.2.l. Foreign exchange dealers/money changers/remittance agentsA covered institution shall require theircustomers who are foreign exchangedealers, money changers and remittanceagents to submit a copy of the certificate ofregistration issued to them by the BSP aspart of their customer identificationdocument. The certificate of registration shallbe for each head office, branch agent,sub-agent, extension office or businessoutlet of foreign exchange dealers, moneychangers and remittance agents.Foreign exchange dealers, moneychangers and remittance agents customerspresenting greater risk, such as shellcompanies shall be subject to enhanced duediligence.(Circular No. 706 dated 05 January 2011)§ 4806Q.2.m. High risk customerA customer from a country that isrecognized as having inadequateinternationally accepted anti-moneylaundering standards, or does notsufficiently apply regulatory supervisionor the Financial Action Task Force (FATF)recommendations, or presents greater riskfor crime, corruption or terrorist financingis considered a high risk customer.Information relative to these are availablefrom publicly available information suchas the websites of FATF, FATF StyleRegional Bodies (FSRB) like the AsiaPacific Group on Money Laundering andthe Egmont Group, national authoritieslike the OFAC of the U.S. Department ofthe Treasury, or other reliable third partiessuch as regulators or exchanges, whichshall be a component of a coveredinstitution’s customer identificationprocess.When dealing with high riskcustomers, a covered institution shouldtake extreme caution and vigilance. Inno case shall reduced diligence beapplied to high risk customers. On theother hand, in case the covered institutiondetermines, based on its standards, thatdealing with the high risk customer callsfor, or this Part requires, the applicationof enhanced due diligence, it shall applythe minimum requirements for enhanceddue diligence in accordance with Subsec.4806Q.1.b. In all instances of acceptanceof a high risk customer, approval of thecovered institution’s senior officer shallbe necessary.(Circular No. 706 dated 05 January 2011)Q RegulationsPart VIII - Page 18Manual of Regulations for Non-Bank Financial Institutions