Banks told to con­sider NRA data in risk re­view

Manila Bulletin - - Business - By LEE C. CHIPONGIAN

The Bangko Sen­tral ng Pilip­inas (BSP) said all banks’ risk re­view process should in­clude the Na­tional Risk Assess­ment (NRA) on money laun­der­ing and ter­ror­ist fi­nanc­ing (ML/TF) for a com­pre­hen­sive eval­u­a­tion of fi­nanc­ing risks.

BSP Deputy Gov­er­nor Chuchi G. Fonacier, in a memo, is­sued a re­minder to BSP su­per­vised fi­nan­cial in­sti­tu­tions to have NRA re­sults as part of risk anal­y­sis, that banks “take into con­sid­er­a­tion the (NRA) re­sults on ML/TF in the risk assess­ment process and in im­ple­ment­ing risk-based mea­sures to man­age and mit­i­gate iden­ti­fied risks.”

Banks are strictly re­quired to iden­tify, un­der­stand and as­sess their money laun­der­ing ML/TF risks “aris­ing from cus­tomers, coun­tries or geo­graphic ar­eas of op­er­a­tions, prod­ucts, ser­vices, trans­ac­tions or de­liv­ery chan­nels and ap­ply ap­pro­pri­ate mea­sures to man­age and mit­i­gate the ML/TF risks,” said Fonacier in BSP Mem­o­ran­dum M-2018-029, signed this week.

Since 2014, banks are re­quired to sub­mit data and in­for­ma­tion in aid of the govern­ment’s ef­forts to ap­por­tion re­sources to fight against ML/TF.

The BSP is part of the NRA Work­ing Group through the Anti-Money Laun­der­ing Coun­cil (AMLC). Fonacier said the NRA ex­am­ines the over­all ex­po­sure of the coun­try to money laun­der­ing, and its re­lated pred­i­cate of­fenses, ter­ror­ism and ter­ror­ist fi­nanc­ing.

“lt is a com­pre­hen­sive process of iden­ti­fli­ing and an­a­lyz­ing the ML/TF risks within the realm of the su­per­vised sec­tors, fi­nan­cial in­sti­tu­tions, and cov­ered per­sons and en­ti­ties un­der the AMLA, as amended,” she ex­plained in the memo.

The first NRA re­sults cov­ered the pe­riod 2011-2014 while the sec­ond re­port for the 2015-2016 was re­leased in 2017.

The in­ter agency-NRA is one of the Fi­nan­cial Ac­tion Task Force (FATF) rec­om­men­da­tions to en­hance anti-money laun­der­ing en­force­ment.

The NRA iden­ti­fies and eval­u­ate the sources and meth­ods of ML/TF, the weak­nesses in the Anti-Money Laun­der­ing/ Com­bat­ing the Fi­nanc­ing of Ter­ror­ism (AML/CFT) sys­tems and other vul­ner­a­bil­i­ties that have an im­pact, ei­ther di­rect or in­di­rect, on the coun­try con­duct­ing the assess­ment.

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