BSP reviews anti-money laundering compliance of banks
The Bangko Sentral ng Pilipinas (BSP) is conducting an assessment of the exposure of domestic banks and other stakeholders of the financial sector to money laundering and its related offenses, terrorism and terrorist financing.
BSP Deputy Governor Chuchi Fonacier said the regulator is conducting the third anti-money laundering and combating the financing of terrorism (AML/CFT) sectoral risk assessment to identify and assess the current money laundering, terrorism financing, and proliferation financing risk and context information in the industry.
Fonacier has issued Circular
Letter 2020 – 032 directing all BSP-supervised financial institutions to participate in the sectoral risk assessment which will cover accounts and transactions from Jan. 1, 2017 to Dec. 31, 2019.
According to the BSP, the exercise would involve the use of both quantitative and qualitative data or information from existing reports, as well as the responses to the AML/CFT template and questionnaire, among others.
Fonacier said the sectoral risk assessment would identify money laundering, terrorism financing, and proliferation financing threats and vulnerabilities in the sector, and the assessment of their impact on the BSP supervised financial institutions, banking industry, and financial system.
“It will cover priority areas such as cash, cross-sector and cross-border transactions, and other key emerging risks as part of the recommended actions in the 2019 Philippines’ mutual evaluation report,” Fonacier said.
Fonacier said the results of the sectoral risk assessment would inform the BSP’s riskbased AML/CFT supervisory activities and the respective money laundering, terrorism financing, and proliferation financing institutional risk assessment of BSP supervised financial institutions.
The regulator said the assessment would cover banks, quasi banks, non-stock savings and loan associations, electronic money issuers, stand-alone credit card issuers, virtual currency exchanges, trust entities and legal arrangements, and other financial institutions subject to BSP supervision and regulation by special laws.
The BSP is also conducting a separate risk assessment for the money service business sector.
Fonacier said all covered institutions are required to accomplish and submit the AML/CFT template and questionnaire before Sept. 15.
“The selected BSP supervised financial institutions shall also be required to provide other data and information in connection with the sectoral risk assessment,” Fonacier added.