BSP to Consolidate All Anti-Money Laundering Regulations

Article excerpt

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) is reviewing proposals to consolidate all rules and regulations on anti-money laundering to give it more teeth, a senior BSP official revealed.

The proposal, as prepared by the BSP's Supervision and Examination Sector (SES), is to issue a consolidated anti-money laundering rules and regulations to be called CARR, which will encompass all covered institutions under the central bank's supervision and regulation.

CARR will unite all existing BSP circulars, circular letters, and other issuances related to anti-money laundering and also enhance the BSP's supervision, said sources.

The SES, headed by Deputy Governor Nestor A. Espenilla Jr., submitted the proposal in mid-October. The Monetary Board held a special meeting last Tuesday, November 2, to take up the proposal, which was deferred the first time it was presented to the Monetary Board last month.

Based on the SES proposal, CARR will also enhance the existing framework as well as conform with the rules and regulations of the international standards as per the special recommendations on terrorist financing of the Financial Action Task Force.

BSP sources said the proposed CARR will cover risk management, customer identification process, covered and suspicious transaction reporting, record keeping and retention, training program and BSP authority and enforcement actions.

The CARR will apply to all of BSP's covered institutions such as banks, quasi-banks, offshore banking units, trust entities, non-stock savings and loan associations, pawnshops, foreign exchange dealers, money changers, remittance agents, electronic money issuers and other financial institutions which are 'under special laws' and subject to BSP authority. …