CHAPTER 7

REPORTORIAL REQUIREMENTS

Section 7.1. Each Regulated Intermediary shall institute a system for the mandatory reporting of covered transactions and suspicious transactions under Section 6. This may include appointing one or more senior persons (Reporting Officer/s), or an appropriate unit (Reporting Unit) responsible for reporting to the Council.  In the event that urgent disclosure is required, particularly when the account concerned is part of an on-going investigation, an initial notification should be made by telephone to the Executive Director, Anti-Money Laundering Council, Bangko Sentral ng Pilipinas.  

Section 7.2. The obligation to make the covered transaction and/or suspicious transaction report is on the employee, officer, and/or director of the Regulated Intermediary.  Such reporting must be done within five (banking) days after initial detection of facts that may constitute a basis for filing such reports. 

Section 7.3. Regulated Intermediaries, their directors, officers and employees shall not warn their customers when information relating to them is being reported to the council or communicate, directly or indirectly such information to any other person other than the Council.   Any violation of this confidentiality provision shall render them liable for criminal, civil and administrative sanctions under the Act.

Section 7.4.

(a)  Where any employee or personnel, director or officer of Regulated Intermediary knows that the client has engaged in any of the predicate crimes under the Act, the matter must be promptly reported to the Reporting Officer/s or Unit within the organization who, in turn, must immediately report the details to the Council.

(b)  If  there are  reasonable  grounds  to  suspect  that  the customer has engaged in an unlawful activity, the Reporting Officer/s or Unit, on receiving such a report, must promptly evaluate whether there are reasonable grounds for such belief and must then immediately report the case to the Council unless the officer/s or unit considers, and records an opinion, that such reasonable grounds do not exist.

Section 7.5. Each Regulated Intermediary shall maintain a complete file on all transactions that have been brought to the attention of the Reporting Officer/s or Unit, including transactions that are not reported to the Council.

Section 7.6. Under Section 13 of the Act, where Regulated Intermediaries disclose to an authorized officer a knowledge, suspicion or belief that any fund, property or investment is derived from or used in connection with any criminal conduct under the Act or any matter on which such a knowledge, suspicion or belief is based, such disclosure shall not be treated as a breach of any restriction upon the disclosure of information imposed by law, contract or by rules of professional conduct. Furthermore, under Section 13 of the Act, no administrative, criminal or civil proceedings shall lie against any person for having made a suspicious transaction report in the regular performance of his duties and in good faith, whether or not such reporting results in any criminal prosecution under this Act or any other Philippine law.  Regulated Intermediaries, its directors and employees shall likewise not be liable for any loss arising out of such disclosure, or any act or omission, in relation to the fund, property or investment in consequence of the disclosure, where such is made in good faith and in the regular performance of their duties under the Act.

Chapter 6     Chapter 8