ATTY. ANNIELYN A. IGNES, PhD.

Professor
ANTI-MONEY LAUNDERING LAW
( REPUBLIC ACT NO. 11521, January 29, 2021 )
• Money laundering involves disguising
financial assets so they can be used
without detection of the illegal
activity that produced them.
• Through money laundering, the
criminal transforms the monetary
proceeds derived from criminal
activity into funds with an apparently
legal source.
• Money laundering is an illegal activity that
makes large amounts of money generated by
criminal activity, such as drug trafficking or
terrorist funding, appear to have come from a
legitimate source.
• The money from the criminal activity is
considered dirty, and the process “launders” it
to look clean.
• Financial institutions employ anti-money
laundering (AML) policies to detect and
prevent this activity.
• acting as (or arranging for another person to act as) a nominee
shareholder for another person.
• c. Persons, including lawyers and accountants, who provide any of the
following services:
• Managing of client money, securities or other assets;
• ii. Management of bank, savings, securitieas or other assets;
• iii. Organization of contributions for the creation, operation or
management of companies; and
• iv. Creation, operation or management of juridical persons or
arrangements, and buying and selling business entities.
• (a) “Covered institution” refers to:
• (1) banks, non-banks, quasi-banks, trust
entities, and all other institutions and
their subsidiaries and affiliates
supervised or regulated by the Bangko
Sentral ng Pilipinas (BSP);
• (2) insurance companies and all other
institutions supervised or regulated by
the Insurance Commission;
andsupervised or regulated by
Securities and Exchange Commission.
 (i) securities dealers, brokers, salesmen, investment houses and other
similar entities managing securities or rendering services as investment
agent, advisor, or consultant,

(ii) mutual funds, closed-end investment companies, common trust

funds, pre-need companies and other similar entities,

• (iii) foreign exchange corporations, money changers,

money payment, remittance, and transfer companies and
other similar entities, and (iv) other entities administering
or otherwise dealing in currency, commodities or financial
derivatives based thereon, valuable objects, cash
substitutes and other similar monetary instruments or
property supervised or regulated by Securities and
Exchange Commission.
Company service providers which, as a business, provide any
of the following services to third parties:
i. acting as a formation agent of juridical persons;
ii. acting as (or arranging for another person to act as) a
director or corporate secretary of a company, a partner of a
partnership, or a similar position in relation to other juridical
persons;

iii. providing a registered office; business address or

accommodation, correspondence or administrative address for
a company, a partnership or any other legal person or
arrangement; and
• Notwithstanding the foregoing, lawyers and
accountants who are: (1) authorized to practice
their profession in the Philippines; and (2) engaged
as independent legal or accounting professionals, in
relation to information concerning their clients, or
where disclosure of information would compromise
client confidences or the attorney-client
relationship, are not covered persons.
• Single Transactions: Any single transaction in
cash or other monetary instruments exceeding
Php 500,000 (approximately USD 10,000)
within a single business day.

• Series or Aggregate Transactions: A series of

transactions or an aggregate amount
exceeding Php 500,000 within a single business
day.
• Suspicious Transactions: Regardless of the
amount, transactions that are deemed
suspicious must be reported. These
transactions often exhibit unusual patterns or
lack an apparent legal or economic purpose.
Covered Transactions:
1. A transaction in cash or other
equivalent monetary instrument
exceeding Five Hundred Thousand
pesos (Php500,000.00)
2. A transaction exceeding One Million
pesos (Php1,000,000.00) in cases of
jewelry dealers, dealers in precious
metals and dealers in precious stones.
Suspicious Transactions:

1. There is no underlying legal or trade obligation, purpose or economic justification;

"2. The client is not properly identified;
"3. The amount involved is not commensurate with the business or financial capacity of the client;
"4. Taking into account all known circumstances, it may be perceived that the client's transaction is structured in order to avoid being the subject of reporting
requirements under the Act
"5. Any circumstance relating to the transaction which is observed to deviate from the profile of the client and/or the client's past transactions with the covered
person;
"6. The transaction is in any way related to an unlawful activity or offense under this Act that is about to be, is being or has been committed; or

"7. Any transaction that is similar or analogous to any of the foregoing.

• Real Estate Transactions: Real
estate transactions involving a
single cash transaction exceeding
Php 7.5 million must be reported.

• Cross-Border Transfers: Transfers of

funds across borders that involve
substantial sums are closely
monitored and may be reported if
they exceed certain thresholds or
raise red flags.
• “Client/Customer” refers to any person who keeps an account,
or otherwise transacts business with a covered person. It
includes the following:
• 1. any person or entity on whose behalf an account is
maintained or a transaction is conducted, as well as the
beneficiary of said transactions;
• 2. beneficiary of a trust, an investment fund or a pension fund;
• 3. a company or person whose assets are managed by an
asset manager;
• 4. a grantor of a trust; and
• 5. any insurance policy holder, whether actual or prospective.
 “Politically Exposed Person” (PEP) refers to an individual who is or has been entrusted with prominent public position in (a) the Philippines with substantial authority over policy, operations or the use or allocation of
government-owned resources; (b) a foreign State; or (c) an international organization.

The term PEP shall include immediate family members, and close relationships and associates that are reputedly known to have:

1. Joint beneficial ownership of a legal entity or legal arrangement with the main/principal PEP; or

2. Sole beneficial ownership of a legal entity or legal arrangement that is known to exist for the benefit of the main/principal PEP.

K. “Immediate Family Member” refers to spouse or partner; children and their spouses; and parents and parents-in-law.
• Unlawful activity' refers to any act or omission or series or
combination thereof involving or having relation to the
following:
• "(33) Fraudulent practice and other violations under Republic
Actr No. 8799, otherwise known as "The Securities Regulation
Code of 2000;
• "(34) Violation of Section 9 (a)(3) of Republic Act No. 10697,
otherwise known as the "Strategic Trade Management Act",
in relation to the proliferation of weapons of mass destruction
and its financing pursuant to United Nations Security Council
Resolution Numbers 1718 of 2006 and 2231 of 2015";
• "(35) Violation of Section 254 of Chapter II, Title X
of the National Internal Revenue Code of 1997, as
amended, where the deficiency basic tax due in
the final assessment is in excess of Twenty-five
million pesos (P25,000,000.00) per taxable year,
for each tax type covered and there has been a
finding of probable cause by the competent
authority:
• Provided,further, That there must be a finding of fraud,
willful misrepresenting or malicious intent on the part of the
taxpayer:

• Provided, finally, That in no case shall the AMLC institute

forfeiture proceedings to recover monetary instruments,
property or proceeds representing, involving, or relating to a
tax crime, if the same has already been recovered or
collected by the Bureau of Internal Revenue (BIR) in a
separate proceeding.
Felonies and offenses of a similar nature that are punishable under the penal laws of other countries.

"(4) 'Offshore gaming operator' refers to an entity engaged in offering online games of chance or sporting events via the
internet using a network and software program, by themselves or through local service providers.

"(5) 'Service providers' refer to duly constituted business corporations who provide components of offshore gaming
operations to offshore gaming operators.
Section 3 paragraphs b, c, e, g, h and i of Republic Act No. 3019, as amended, otherwise known as the “Anti-Graft and Corrupt Practices Act”;

4. “Plunder” under Republic Act No. 7080, as amended;

5. “Robbery” and “Extortion” under Articles 294, 295, 296, 299, 300, 301 and 302 of the Revised Penal Code, as amended;

6. “Jueteng” and “Masiao” punished as illegal gambling under Presidential Decree No. 1602;

7. “Piracy on the High Seas” under the Revised Penal Code, as

amended
, and Presidential Decree No. 532:

8. “Qualified Theft” under Article 310 of the Revised Penal Code,

as amended;
9. “Swindling” under Article 315 and “Other Forms of Swindling” under Article 316 of the Revised Penal Code, as amended:

10. “Smuggling” under Republic Act No. 455, and Republic Act No. 1937, as amended, otherwise known as the “Tariff and Customs Code of the Philippines”;

11. Violations under Republic Act No. 8792, otherwise known as the “Electronic Commerce Act of 2000”;

12. “Hijacking” and other violations under Republic Act No. 6235, otherwise known as the “Anti-Hijacking Law”; “Destructive Arson”;
and “Murder”,
as defined under the Revised Penal
Code, as amended;
“Bribery” under Articles 210, 211 and 211-A of the Revised Penal Code, as amended, and “Corruption of Public Officers” under Article 212 of the Revised Penal Code, as amended;

16. “Frauds and Illegal Exactions and Transactions” under Articles 213, 214, 215 and 216 of the Revised Penal Code, as amended;

17. “Malversation of Public Funds and Property” under Articles 217 and 222 of the Revised Penal Code, as amended;

18. “Forgeries” and “Counterfeiting” under Articles 163, 166, 167, 168, 169 and 176 of the Revised Penal Code, as amended;

19. Violations of Sections 4 to 6 of Republic Act No. 9208, otherwise known as the “Anti-Trafficking in Persons Act of 2003, as amended”;
 Violations of Sections 78 to 79 of Chapter IV of Presidential Decree No. 705, otherwise known as the “Revised Forestry Code of the Philippines, as amended”;

21. Violations of Sections 86 to 106 of Chapter IV of Republic Act No. 8550, otherwise known as the “Philippine Fisheries Code of 1998”;

22. Violations of Sections 101 to 107, and 110 of Republic Act No. 7942, otherwise known as the “Philippine Mining Act of 1995”;

23. Violations of Section 27(c), (e), (f), (g) and (i) of Republic Act No. 9147, otherwise known as the “Wildlife Resources Conservation and Protection Act”;

24. Violations of Section 7(b) of Republic Act No. 9072, otherwise known as the “National Caves and Cave Resources Management Protection Act”;
Violation of Republic Act No. 6539, otherwise known as the “Anti-Carnapping Act of 2002, as amended”;

26. Violation of Sections 1, 3, and 5 of Presidential Decree No. 1866, as amended, otherwise known as the decree “Codifying the Laws on Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition or
Disposition of Firearms, Ammunition or Explosives”;

27. Violation of Presidential Decree No. 1612, otherwise known as the “Anti-Fencing Law”;

28. Violation of Section 6 of Republic Act No. 8042, otherwise known as the “Migrant Workers and Overseas Filipinos Act of 1995, as amended”;

29. Violation of Republic Act No. 8293, otherwise known as the “Intellectual Property Code of the Philippines, as amended”;

30. Violation of Section 4 of Republic Act No. 9995, otherwise known as the “Anti-Photo and Video Voyeurism Act of 2009”;
Violation of Section 4 of Republic Act No. 9775, otherwise known as the “Anti-Child Pornography Act of 2009”;

32. Violations of Sections 5, 7, 8, 9, 10 (c), (d) and (e), 11, 12 and 14 of Republic Act No. 7610, otherwise known as the “Special Protection of Children Against Abuse, Exploitation and
Discrimination”;

33. Fraudulent practices and other violations under Republic Act No. 8799, otherwise known as the “Securities Regulation Code of 2000”;

34. Felonies or offenses of a nature similar to the aforementioned unlawful activities that are punishable under the penal laws of other countries.

In determining whether or not a felony or offense punishable under the penal laws of other countries is “of a similar nature”, as to constitute an unlawful activity under the AMLA, the
nomenclature of said felony or offense need not be identical to any of the unlawful activities listed above.
 “Terrorism” and “Conspiracy to Commit Terrorism” as defined
and penalized under Sections 3 and 4 of Republic Act No. 9372;

“Financing of Terrorism” under Section 4 and offenses

punishable under Sections 5, 6, 7 and 8 of Republic Act No.
10168, otherwise known as the “Terrorism Financing Prevention
and Suppression Act of 2012”;
SEC. 4. Money Laundering Offense. — Money laundering is a crime whereby the
proceeds of an unlawful activity are transacted, thereby making them appear to have
originated from legitimate sources. It is committed by the following:

(a) Any person knowing that any monetary instrument or property represents, involves, or relates to, the proceeds of any unlawful activity, transacts or attempts to transact said monetary instrument or
property.

(b) Any person knowing that any monetary instrument or property involves the proceeds of any unlawful activity, performs or fails to perform any act as a result of which he facilitates the offense of money
laundering referred to in paragraph (a) above.

(c) Any person knowing that any monetary instrument or property is required under this Act to be disclosed and filed with the Anti-Money Laundering Council (AMLC), fails to do so.
transacts said monetary instrument or property;
2. converts, transfers, disposes of, moves, acquires, possesses or
uses said monetary instrument or property;

3. conceals or disguises the true nature, source, location,

disposition, movement or ownership of or rights with respect to said
monetary instrument or property;
4. attempts or conspires to commit money laundering offenses
referred to in (1), (2), or (3) above;
5. aids, abets, assists in, or counsels the commission of the money
laundering offenses referred to in (1), (2), or (3) above; and
6. performs or fails to perform any act as a result of
which he facilitates the offense of money laundering
referred to in (1), (2), or (3) above.

B. Any covered person who, knowing that a

covered or suspicious transaction is required under
the AMLA to be reported to the AMLC, fails to do so.
Jurisdiction over Money Laundering Cases. -

A. Regional Trial Court. - The regional trial courts shall

have jurisdiction to try money laundering cases committed
by private individuals, and public officers not covered by the
jurisdiction of the Sandiganbayan.

B. Sandiganbayan. - The Sandiganbayan shall have

jurisdiction to try money laundering cases committed by
public officers under its jurisdiction, and private persons
who are in conspiracy with such public officers.
• Prosecution of Money Laundering Cases. -
• A. Independent Proceedings. - The prosecutions of money laundering and the
unlawful activity shall proceed independently. Any person may be charged with and
convicted of both money laundering and the unlawful activity.
• B. Separate and Distinct Elements. - The elements of money laundering are
separate and distinct from the elements of the unlawful activity. The elements of the
unlawful activity, including the identity of the perpetrators and the details of the
commission of the unlawful activity, need not be established by proof beyond
reasonable doubt in the case for money laundering.
• C. Knowledge. - The element of knowledge may be established by direct or
circumstantial evidence.

• D. Rules of Procedure. - The Rules of Court shall govern all proceedings concerning
the prosecution of money laundering.
Targeted financial sanctions' refer to both asset freezing and
prohibition to prevent funds or other assets from being made available,
directly or indirectly, for the benefit of any individual, natural or legal
persons or entity designated pursuant to relevant United Nations
Security Council resolution and its designation processes.
"(p) 'Proliferation financing' refers when a person:
"(1) Makes available an asset; or
"(2) Provides a financial service; or
"(3) Conducts a financial transaction; and the person knows that, or is
reckless as to whether, the asset, financial service or financial
transaction is intended to, in whole or in part, facilitate proliferation of
weapons of mass destruction in relation to UN Security Council
Resolution Number 1718 0f 2006 and 2231 of 2015."
"Section 7. Creation of Anti-Money Laundering Council (AMLC).
- The Anti-Money Laundering Council
- composed of the Governor of the Bangko Sentral ng Pilipinas
as Chairman,
- the Commissioner of the Insurance Commission and the
Chairman of the Securities and
- Exchange Commission, as members.
- The AMLC shall act unanimously in the discharge of its
functions as defined hereunder:
"(1) to investigate suspicious transactions and
covered transactions deemed suspicious after
determination by AMLC, money laundering
activities and other violations of this Act.
"(16) to preserve, manage or dispose assets
pursuant to a freeze order, asset preservation
order, or judgment of forfeiture: Provided,
however, That pending their turnover to the
national government, all expenses incurred in
relation to the duties herein mentioned shall
be deducted from the amount to be turned
over to the national government."
"(13) in the conduct of its investigation, the AMLC shall apply for the
issuance of a search and seizure order with any competent court;

"(14) in the conduct of its investigation, the AMLC shall apply for the
issuance of subpoena ad testificandum and/or subpoena duces tecum with
any competent court;

"(15) to implement targeted financial sanctions in relation to proliferation

of weapons of mass destruction and its financing, including ex parte freeze,
without delay, against all funds and other assets that are owned and
controlled, directly or indirectly, including funds and assets derived or
generated therefrom, by individuals or entities designated and listed under
United Nations Security Council Resolution Numbers 1718 of 2006 and
2231 of 2015 and their successor resolutions as well as any binding
resolution of the Security Council; and
 to develop educational programs, including awareness campaign on the
pernicious effects, the methods and techniques used, and the viable means of
preventing money laundering and the effective ways of prosecuting and
punishing offenders;
10. to enlist the assistance of any branch, department, bureau, office,
agency or instrumentality of the government, including government-owned
and -controlled corporations, in undertaking any and all anti-money
laundering operations, which may include the use of its personnel, facilities
and resources for the more resolute prevention, detection and investigation
of money laundering offenses and prosecution of offenders.
Preventive Measures. -

A. Customer Due Diligence. - Covered persons shall establish and record the true identity of their clients based on official documents,
- They shall maintain a system of verifying the true identity of their clients based on reliable, independent source, documents, data, or information. In case of corporate clients, covered persons are
required to maintain a system of verifying their legal existence and organizational structure, as well as the authority and identification of all persons purporting to act on their behalf.
- Covered persons shall establish appropriate systems and methods, and adequate internal controls, compliant with the AMLA, this RIRR, other AMLC issuances, the guidelines issued by the Supervising
Authorities, and internationally accepted anti-money laundering standards, for verifying and recording the true and full identity of their customers.
 Customer Identification. -
a. Face-to-Face Contact. - Covered persons shall conduct face-
to-face contact at the commencement of the relationship, or as
reasonably practicable so as not to interrupt the normal conduct of
business, taking into account the nature of the product, type of
business and the risks involved; provided that money laundering
risks are effectively managed.

The use of Information and Communication Technology in the

conduct of face-to-face contact may be allowed, provided that the
covered person is in possession of and has verified the
identification documents submitted by the prospective client prior to
the interview and that the entire procedure is documented.
 Minimum Customer Information and Identification Documents. -
i. For individual customers and authorized signatories of juridical entities, covered persons
shall gather the following customer information:
a. Name of customer;
b. Date and place of birth;
c. Name of beneficial owner, if applicable;
d. Name of beneficiary (in case of insurance contracts or remittance transactions);
e. Present address;
f. Permanent address;
g. Contact number or information;
h. Nationality;
i. Specimen signatures or biometrics of the customer;
j. Nature of work and name of employer or nature of self‐employment/ business, if
applicable;
k. Sources of funds or property; and
l. Tax Identification Number (TIN), Social Security System (SSS) number, or Government
Service Insurance System (GSIS) number, if applicable.
Customers who engage in a transaction with a covered person for the
first time shall be required to present the original and submit a clear
copy of at least one (1) official identification document.
Where the customer or authorized representative is a foreign national,
covered persons shall require said foreign national to present passport
or Alien Certificate of Registration issued by the Bureau of Immigration.
ii. For business entities, covered persons shall gather the following
customer information, and shall obtain all of the following official
documents:
(a) Customer Information (b) Identification Documents
i. Name of entity;
ii. Name of authorized signatory;
iii. Name of beneficial owner, if applicable;
iv. Official address;
v. Contact number or information;
vi. Nature of business; and
. Specimen signatures or biometrics of the authorized
signatory. i. Certificates of Registration issued by the
Department of Trade and Industry (DTI) for sole proprietors,
or Certificate of Incorporation issued by the Securities and
Exchange Commission (SEC) for corporations and
partnerships, and by the BSP for money changers/foreign
exchange dealers and remittance agents;
ii. Secondary License or Certificate of Authority issued by
the Supervising Authority or other government agency;
iii. Articles of Incorporation/Partnership;
iv. Latest General Information Sheet;
v. Corporate/Partners’ Secretary Certificate citing the
pertinent portion of the Board or Partners’ Resolution
authorizing the signatory to sign on behalf of the entity; and
For entities registered outside of the Philippines, similar documents and/or
information duly authenticated by a senior officer of the covered person
assigned in the country of registration; in the absence of said officer, the
documents should be authenticated by the Philippine Consulate, company
register or notary public, where said entities are registered.
c. Third Party Reliance. - A covered person may rely on a third party to
perform customer identification, including face-to-face contact. The third
party shall be:
1. A covered person; or
2. A financial institution or DNFBP operating outside the Philippines that is
covered by equivalent customer identification and face-to-face requirements.
Notwithstanding the foregoing, the ultimate responsibility for identifying the
customer remains with the covered person relying on the third party.
Provided that, in cases of high risk customers, the covered person relying on
the third person shall also conduct enhanced due diligence procedure.
Outsourcing the Conduct of Customer Identification. - Covered persons may outsource the
conduct of customer identification, including face-to-face contact, to a counter-party,
intermediary or agent.
The outsource, counter-party or intermediary shall be regarded as agent of the covered
person—that is, the processes and documentation are those of the covered person itself.
The ultimate responsibility for identifying the customer and keeping the identification
documents remains with the covered person.
The covered person outsourcing the conduct of customer identification, including face-to-
face contact, shall ensure that the employees or representatives of the counter-party,
intermediary or agent undergo equivalent training program as that of the covered person’s
own employees undertaking similar activity.
e. Identification and Verification of a Beneficial Owner, Trustee, Nominee, or Agent. -
Where an account is opened or a transaction is conducted by any person in behalf of
another, covered persons shall establish and record the true and full identity and existence
of both the account holder or transactor and the beneficial owner or person on whose
behalf the transaction is being conducted.
The covered person shall determine the true nature of the parties’ capacities
and duties by obtaining a copy of the written document evidencing their
relationship and apply the same standards for assessing the risk profile and
determining the standard of due diligence to be applied to both. In case it
entertains doubts as to whether the account holder or transactor is being used
as a dummy in circumvention of existing laws, it shall apply enhanced due
diligence or file a suspicious transaction report, if warranted.
2. Risk Assessment. - Covered persons shall develop clear, written and
graduated customer acceptance policies and procedures, including a set of
criteria for customers that are likely to pose low, normal, or high risk to their
operations. The criteria may include: (1) the nature of the service or product to
be availed of by the customers; (2) the purpose of the account or transaction;
(3) the amount of funds to be deposited by a customer or the size of
transactions undertaken; (4) the regularity or duration of the transaction; (5)
the fact that a customer came from a high risk jurisdiction; (6) the existence of
suspicious transaction indicators; and (7) such other factors the covered
persons may deem reasonable or necessary to consider in assessing the risk of
a customer to money laundering
Covered persons shall set the standards in applying reduced, normal, and enhanced customer due diligence, including a set of conditions for the
denial of account opening or services.

a. Reduced Due Diligence. - Where lower risks of money laundering and terrorist financing have been identified, through an adequate analysis of risk
by the covered persons, reduced due diligence procedures may be applied. The reduced due diligence procedures should be commensurate with the
lower risk factors, but are not acceptable whenever there is suspicion of money laundering or terrorist financing, or specific higher risk scenarios apply.
In strictly limited circumstances and where there is proven low risk of money laundering and terrorist financing, the Supervising Authorities may issue guidelines allowing certain exemptions,
taking into account the nature of the product, type of business and the risks involved; provided that money laundering risks are effectively managed.

b. Enhanced Due Diligence. - Covered persons shall examine the background and purpose of all complex, unusually large transactions, all unusual patterns of transactions, which have no
apparent economic or lawful purpose, and other transactions that may be considered suspicious.

Where the risks of money laundering or terrorist financing are higher, covered persons should be required to conduct enhanced due diligence measures, consistent with the risks identified.
For this purpose, covered persons shall perform the following:

i. gather additional customer information and identification documents, such as, but not limited to, occupation, volume of assets information available through public databases, internet, and updating more regularly the identification data of customer and beneficial owner;

ii. obtain additional information on the intended nature of the business relationship; the source of funds or wealth of the customer; and the reasons for intended or performed transaction;
iii. conduct validation procedures;

iv. secure the approval of senior management to commence or continue transacting with the customer;

v. conduct enhanced ongoing monitoring of the business relationship;

vi. require the first payment to be carried out through an account in the customer’s name with a bank subject to similar customer due diligence standards, where applicable; and
• such other measures as the covered persons may deem reasonable or necessary.

• 3. Ongoing Monitoring of Customers, Accounts and Transactions. – Covered persons shall, on

the basis of materiality and risk, update all customer information and identification documents of
existing customers required to be obtained under the AMLA, this RIRR, other AMLC issuances,
and the guidelines issued by the Supervising Authorities.

• Covered persons shall establish a system that will enable them to understand the normal and
reasonable account or business activity of customers to ensure that the customers’ accounts and
transactions are consistent with the covered person’s knowledge of its customers, and the latter’s
commercial activities, risk profile, and source of funds.

• Covered persons shall apply enhanced due diligence on the customer if it acquires information in
the course of its customer account or transaction monitoring that:
• Raises doubt as to the accuracy of any information or document provided or the
ownership of the entity;
• b. Justifies reclassification of the customer from low or normal risk to high risk
pursuant to these Rules;
• c. Indicates that any of the circumstances for the filing of a suspicious
transaction report exists.
• If the covered person:
• a. fails to satisfactorily complete the enhanced due diligence procedures; or
• b. reasonably believes that performing the enhanced due diligence process will
tip-off the customer,

• it shall file a suspicious transaction report, and closely monitor the account and
review the business relationship.

• Covered persons shall, on the basis of materiality and risk, update, no later than
• Prohibited Accounts. - The following accounts shall be prohibited and may be the
subject of the Supervising Authorities’ annual testing for the sole purpose of
determining the existence and true identity of their owners:
• a. Anonymous Accounts and Accounts under Fictitious Names. - Covered
persons shall maintain customers’ account only in the true and full name of the
account owner or holder. Anonymous accounts, accounts under fictitious names,
and all other similar accounts shall be absolutely prohibited.
• b. Numbered Accounts. - Numbered accounts, except non-checking numbered
accounts, shall not be allowed.
• Covered and suspicious transaction reports involving non-checking numbered
accounts shall contain the true name of the account holder.
• B. Record Keeping. - Covered persons shall maintain and safely store for five (5)
years from the dates of transactions all records of customer identification and
transaction documents.
Retention of Records Where the Account is the Subject of a Case. - If a case has been filed in court involving the account, records must be retained and safely kept
beyond the five (5)-year period, until it is officially confirmed by the AMLC Secretariat that the case has been resolved, decided or terminated with finality.
2 Closed Accounts. - Covered persons shall maintain and safely store for at least five (5) years from the dates the accounts were closed, all records of customer
identification and transaction documents.
3. Form of Records. - Covered persons shall retain all records as originals or in such forms as are admissible in court.
Covered persons shall, likewise, keep the electronic copies of all covered and suspicious transaction reports for, at least, five (5) years from the dates of submission to
the AMLC.