The Anti-Money Laundering Council said it approved new guidelines that include the coverage of non-financial businesses and professions in the fight against dirty money and terrorism financing.
The council said in a resolution dated May 9, it approved the adoption of the anti-money laundering and counterterrorism financing guidelines for designated non-financial businesses and professions, or DNFBPs.
It said the guidelines were based on Republic Act 10365, which included as covered persons jewelry dealers in precious stones and metals; company service providers who deliver fund/securities management services for other persons; and persons and entities who, as a business, provide services to organize, create and manage companies and arrangements.
“The inclusion of DNFBPs as covered persons is something new to us. Businesses and professions that, until now, have played a marginal role in our fight against money laundering and terrorism financing, will find themselves heavily involved in it,” AMLC Secretariat executive director Mel Georgie Racela said in a statement.
The guidelines for DNFBPs were patterned largely after the Casino Implementing Rules and Regulations, which the AMLC approved on Oct. 11, 2017.
Republic Act 10927, approved on July 14, 2017, included casinos as covered persons under RA No. 9160, or the Anti-Money Laundering Act of 2001 and authorized the AMLC to adopt implementing rules and regulations.
Both casinos and non-financial businesses and professions are considered DNFBPs by the Financial Action Task Force, the international policy-making body that sets standards and promotes effective implementation of measures to combat money laundering and terrorism financing.
Under the guidelines, the AMLC oversees compliance by DNFBPs with the provisions of the AMLA, as amended.
“Interestingly, the guidelines that lawyers and accountants who provide the services enumerated under Section 3(a)(7) of the AMLA, as amended, are considered covered persons, and must, therefore, report covered and suspicious transactions to the AMLC,” the council said.
It said following the law, the guidelines would continue to respect the attorney-client privilege and other client confidences, and recognize that some lawyers and accountants performed these services, not as a business but as their bread and butter, or primary source of income.
“Taking the cue from the Bangko Sentral ng Pilipinas Circular No. 942, dated 24 January 2017 in regard to the registration of money service businesses, the guidelines require DNFBPs to register with the AMLC, and, attendant to registration, submit deeds of undertaking to comply with the provisions of the AMLA, and to attend regular AML/CTF trainings,” it said.
Racela said the AMLC itself had very little contact with these non-financial businesses and professions prior to 2018.
“It has been observed in our series of engagements with them at the start of 2018 that the DNFBPs have been largely cooperative with the AMLC, recognizing that they could be used as instruments in the commission of money laundering or terrorism financing,” Racela said.
Racela said professional secrecy could not be used as a cloak to commit crime.
“The Asia Pacific Group on Money Laundering or the APG, noted in our last mutual evaluation in 2008, that the Philippines’ lack of a regulatory framework for DNFBPs was a technical compliance issue. With the adoption of the guidelines, the Philippines would be more technically compliant with international standards,” Racela said.