CHAPTER 3

BASIC PRINCIPLES AND POLICIES TO COMBAT MONEY LAUNDERING

Section 3.1     The Commission seeks to combat money laundering by requiring Regulated Intermediaries to apply the following principles:

i.    Know your customer: Regulated Intermediaries shall obtain satisfactory evidence of the customer's identity, and have effective procedures for verifying the bona fides of new customers.

ii.   Compliance with laws: Regulated Intermediaries shall ensure that business is conducted in conformity with high ethical standards, that laws and regulations are adhered to, and that service is not provided where there is good reason to believe that transactions are associated with money laundering activities.

iii.   Co-operation with law enforcement agencies: within the legal constraints relating to customer confidentiality, Regulated Intermediaries shall co-operate fully with law enforcement agencies. This includes taking appropriate measures allowed by law if there are reasonable grounds for suspecting money laundering. Disclosure of information by Regulated Intermediaries for the purposes of the Act regarding suspicious transactions shall be made to Executive Director, Anti-Money Laundering Council, Bangko Sentral ng Pilipinas. 

iv.   Policies, procedures and training: Each Regulated Intermediary shall adopt policies consistent with the principles set out in this Manual, and ensure that its staff, wherever located, are informed of these policies and adequately trained in matters covered herein. To promote adherence to these principles, Regulated Intermediaries shall implement specific procedures for customer identification (Chapter 4), record keeping and retention of transaction documents (Chapter 5), and reporting of covered and suspicious transactions (Chapter 6).

Chapter 2     Chapter 4