IMPLEMENTING RULES AND REGULATIONS REPUBLIC ACT NO. 9160 ANTI-MONEY LAUNDERING ACT OF 2001

A pre-need company or issuer includes any corporation supervised and/or regulated by the SEC and is authorized or licensed to sell or offer for sale pre-need plans. Pre-need plans are contracts which provide for the performance of future service(s) or payment of future monetary consideration at the time of actual need, payable either in cash or installment by the plan holder at prices stated in the contract with or without interest or insurance coverage and include life, pension, education, internment and other plans, which the Commission may, from time to time, approve.

(j) A foreign exchange corporation includes any enterprise which engages or purports to engage, whether regularly or on an isolated basis, in the sale and purchase of foreign currency notes and such other foreign-currency denominated non bank deposit transactions as may authorized under its articles of incorporation. (k) Investment Advisor/Agent/Consultant shall refer to any person:

(1) who for an advisory fee is engaged in the business of advising others, either directly or through circulars, reports, publications or writings, as to the value of any security and as to the advisability of trading in any security; or

(2) who for compensation and as part of a regular business, issues or promulgates, analyzes reports concerning the capital market, except: (a) any bank or trust company; (b) any journalist, reporter, columnist, editor, lawyer, accountant, teacher; (c) the publisher of any bonafide newspaper, news, business or financial publication of general and regular circulation, including their employees; (d) any contract market; (e) such other person not within the intent of this definition, provided that the furnishing of such service by the foregoing persons is solely incidental to the conduct of their business or profession.

(3) any person who undertakes the management of portfolio securities of investment companies, including the arrangement of purchases, sales or exchanges of securities. (I) A moneychanger includes any person in the business of buying or selling foreign currency notes. (m) A money payment, remittance and transfer company includes any person offering to pay, remit or transfer or transmit money on behalf of any person to another person. (n) "Customer" refers to any person or entity that keeps an account, or otherwise transacts business, with a covered institution and any person or entity on whose behalf an account is maintained or a transaction is conducted, as well as the beneficiary of said transactions. A customer also includes the beneficiary of a trust, an investment fund, a pension fund or a company or person whose assets are managed by an asset manager, or a grantor of a trust. It includes any insurance policy holder, whether actual or prospective.
(o) "Property" includes any thing or item of value, real or personal, tangible or intangible, or any interest therein or any benefit, privilege, claim or right with respect thereto.

Rule 3.b."Covered Transaction" means:

(1) A single transaction involving an amount in excess of Four Million Philippine Pesos (Php4,000,000.OO) or an equivalent amount in foreign currency based on the prevailing exchange rate where the client is not properly identified and/or the amount is not commensurate with his business or financial capacity.

(2) A single transaction involving an amount in excess of Four Million Philippine Pesos (Php4,000,000.OO) or an equivalent amount in foreign currency based on the prevailing exchange rate which has no underlying legal or trade obligation, purpose, origin, or economic justification.

(3) A series or combination of transactions conducted within five (5) consecutive banking days aggregating to a total amount in excess of Four million Philippine Pesos (Php4,000,000.OO) or an equivalent in foreign currency based on the prevailing exchange rate where the client is not properly identified and/or the amount is not commensurate with his business or financial capacity.

(4) A series or combination of transactions conducted within five (5) consecutive banking days aggregating to a total amount in excess of Four Million Philippine Pesos (Php4,000,000.OO) or an equivalent in foreign currency based on the prevailing exchange rate where most, if not all the transactions, do not have any underlying legal or trade obligation, purpose, origin, or economic justification.

(5) A single unusually large and complex transaction in excess of Four Million Philippine Pesos (Php4,000,000.OO), especially a cash deposit or investment having no credible purpose or origin, underlying trade obligation or contract, regardless of whether or not the client is properly identified and/or the amount is commensurate with his business or financial capacity.

(6) A series, combination or pattern of unusually large and complex transactions aggregating to, without reference to any period, a total amount in excess of Four Million Philippine Pesos (Php4,000,000.OO), especially cash deposits and/or investments having no credible purpose or origin, underlying trade obligation or contract, regardless of whether or not the client is properly identified and/or the amount is commensurate which his business or financial capacity."

Rule 3.c. "Monetary Instrument" refers to:

(1) Coins or currency of legal tender of the Philippines, or of any other country; (2) Drafts, checks and notes; (3) Securities or negotiable instruments, bonds, commercial papers, deposit certificates, trust certificates, custodial receipts or deposit substitute instruments, trading orders, transaction tickets and confirmations of sale or investments and money market instruments; (4) Contracts or policies of insurance, life or non-life, and contracts of surety ship; and (5) Other similar instruments where title thereto passes to another by endorsement, assignment or delivery.

Rule 3d. "Offender" refers to any person who commits a money laundering offense.

Rule 3.e. "Person" refers to any natural or juridical person.

Rule 3.f. "Proceeds" refers to an amount derived or realized from an unlawful activity. It includes:

(1) All material results, profits, effects and any amount realized from any unlawful activity; (2) All monetary, financial or economic means, devices, documents, papers or things used in or having any relation to any unlawful activity; and (3) All moneys, expenditures, payments, disbursements costs, outlays, charges, accounts, refunds and other similar items for the financing, operations, and maintenance of any unlawful activity.

Rule 3.g. "Supervising Authority" refers to the BSP, the SEC and the IC. Where the BSP, SEC or IC supervision applies only to the registration of the covered institution, the BSP, the SEC or the IC, within the limits of the AMLA, shall have the authority to require and ask assistance from the government agency having regulatory power and/or licensing authority over said covered institution for the implementation and enforcement of the AMLA and these Rules.

Rule 3.h. "Transaction" refers to any act establishing any right or obligation or giving rise to any contractual or legal relationship between the parties thereto. It also includes any movement of funds by any means with a covered institution.

Rule 3.i. "Unlawful activity" refers to any act or omission or series or combination thereof involving or having relation, to the following.

(A) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise known as the Revised Penal Code, as amended; (1) Kidnapping for ransom

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