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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
The Anti-Money Laundering Council (AMLC) Regulatory Issuance No. 2, Series of 2023, amended the Guidelines for Designated Non-Financial Businesses and Professions (DNFBP Guidelines). Accordingly, all covered transactions must be reported to the AMLC within five (5) working days. Additionally, suspicious transactions, including attempted transactions, must be promptly filed to the AMLC by the next working day following their occurrence.
A covered transaction (CTR) is a transaction in cash or other equivalent monetary instrument involving a total amount in excess of PhP500,000.00 within one (1) banking day.
For casinos, including internet and ship-based casinos, a single casino cash transaction involving an amount in excess of PhP5,000,000.00 or its equivalent in any other currency.
For real estate developers and brokers, a single cash transaction involving an amount in excess of PhP7,500,000.00 or its equivalent in any other currency.
On the other hand, suspicious transactions (STR) are defined as transactions with covered persons, regardless of the amounts involved, where any of the following circumstances exist:
- There is no underlying legal or trade obligation, purpose, or economic justification;
- The client is not properly identified;
- The amount involved is not commensurate with the business or financial capacity of the client;
- Taking into account all known circumstance, it may be perceived that the client’s transaction is structured in order to avoid being the subject of reporting requirements under the Act;
- 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;
- 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
- Any transaction that is similar or analogous to the foregoing.
The Anti-Money Laundering Council (AMLC) issued Regulatory Issuance No. 2, Series of 2023, amending the Guidelines for Designated Non-Financial Businesses and Professions (DNFBP Guidelines)
Under the amended guidelines, DNFBPs shall file all CTRs and STRs, in accordance with the registration and reporting guidelines of the AMLC. STRs shall cover all transactions, whether completed or attempted.
Lawyers shall report to the AMLC any transaction or unlawful activity that is required to be reported under the AMLA and TFPSA, including CTRs and STRs, pursuant to Section 12, Canon 2 of the Code of Professional Responsibility and Accountability. Lawyers who are engaged in any of the covered services enumerated under Title I, Sections 2(b) and (c) hereof are required to file CTRs and STRs to the AMLC. The same rules apply to the transaction reporting requirements of accountants.
DNFBPs shall report to the AMLC all covered transactions within five (5) working days, unless the AMLC prescribes a different period not exceeding fifteen (15) working days, from the occurrence thereof.
DNFBPs shall promptly file STRs, including attempts thereof, to the AMLC within the next working day from the occurrence thereof.
For suspicious transactions, “occurrence” shall refer to the date of establishment of suspicion or determination of the suspicious nature of the transaction.
DNFBPs shall, through the duly designated approving authority and within the appropriate determination period provided under the ARRG, decide with finality whether to file an STR with the AMLC should the suspicion or suspicious nature of the transaction or activity be duly established or determined, or otherwise to document the non-filing thereof.
Should a transaction be determined to be both a covered transaction and a suspicious transaction, it shall be reported as a suspicious transaction.
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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