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IMPLEMENTING RULES AND
REGULATIONS
REPUBLIC ACT NO. 9160
ANTI-MONEY LAUNDERING ACT
OF 2001
RULE I
Title
Rule l.a. Title. — These Rules
shall be known and
cited as the “Rules and Regulations Implementing
Republic Act No. 9160”, the Anti-Money Laundering
Act of 2001 (AMLA).
Rule lb. Purpose. — These Rules
are promulgated to prescribe the procedures and guidelines for the
implementation of the AMLA, taking into account R.A. 9160 and
related laws of the Philippines for a comprehensive anti-money
laundering regime.
RULE 2
Declaration of Policy
Rule 2. Declaration of Policy. —
It is hereby declared
policy of the State to protect the integrity and confidentiality of
bank accounts and to ensure that the Philippines shall not be used
as a money-laundering site for the proceeds of any unlawful
activity. Consistent with its foreign policy, the Philippines shall
extend cooperation in transnational investigations and prosecutions
of persons involved in money laundering activities wherever
committed.
RULE 3
Definitions
Rule 3. Definitions. — For
purposes of the Act, the following terms are hereby defined as
follows:
Rule 3.a. “Covered Institution”
refers to:
Rule 3.a.1. Banks, offshore
banking units, quasi. banks, trust entities, non-stock savings and
loan associations, pawnshops, and all other institutions, including
their subsidiaries and affiliates supervised and/or regulated by the
Bangko Sentral ng Pilipinas
(BSP).
(a) A subsidiary means an entity
more than fifty percent (50%) of the outstanding voting stock of
which is owned by a bank, quasi-bank, trust entity or any other
institution supervised or regulated by the BSP.
(b) An affiliate means an entity
at least twenty percent (20%) but not exceeding fifty percent (50%)
of the voting stock of which is owned by a bank, quasi- bank, trust
entity, or any other institution supervised and/or regulated by the
BSP.
Rule 3..2. Insurance companies,
insurance agents, insurance brokers, professional reinsurers,
reinsurance brokers, holding companies, holding company systems and
all other persons and entities supervised and/or reguiated by the
Insurance Commission (IC).
(a) An insurance company
includes those entities authorized to transact insurance business in
the Philippines, whether life or non-life and whether domestic,
domestically incorporated or branch of a foreign entity. A contract
of insurance is an agreement whereby one undertakes for a
consideration to indemnify another against loss, damage or liability
arising from an unknown or contingent event. Transacting insurance
business includes making or proposing to make, as insurer, any
insurance contract, or as surety, any contract of surety ship as a
vocation and not as merely incidental to any other legitimate
business or activity of the surety, doing any kind of business
specifically recognized as constituting the doing of an insurance
within the meaning of Presidential Decree (RD.) No. 612, as amended,
including a reinsurance business and doing or proposing to do any
business in substance equivalent to any of the foregoing in a manner
designed to evade the provisions of RD. No. 612, as amended.
(b) An insurance agent includes
any person who solicits or obtains insurance on behalf of any
insurance company or transmits for a person other than himself an
application for a poNcy or contract of insurance to or from such
company or offers or assumes to act in the negotiation of such
insurance.
(c) An insurance broker includes
any person who acts or aids in any manner in soliciting, negotiating
or procuring the making of any insurance contract or in placing risk
or taking out insurance, on behalf of an insured other than himself.
(d) A professional reinsurer
includes any person, partnership, association or corporation that
transacts solely and exclusively reinsurance business in the
Philippines, whether domestic, domestically incorporated or a branch
of a foreign entity. A contract of reinsurance is one by which an
insurer procures a third person to insure him against loss or
liability by reason of such original insurance.
(e) A reinsurance broker
includes any person who, not being a duly authorized agent, employee
or officer of an insurer in which any reinsurance is effected, acts
or aids in any manner in negotiating contracts of reinsurance or
placing risks of effecting reinsurance, for any insurance company
authorized to do business in the Philippines.
(f) A holding company includes
any person who directly or indirectly controls any authorized
insurer. A holding company system includes a holding company
together with its controlled insurers and controlled p2rsons.
Rule 3.a.3. (I) Securities
dealers, brokers, salesmen, associated persons of brokers or
dealers, investment houses, investment agents and consultants,
trading advisors, and other entities managing securities or
rendering similar services; (ii) mutual funds or open- end
investment companies, close-end investment companies, common trust
funds, pre-need companies or issuers and other similar entities; (lii)
foreign exchange corporations, money changers, money payment,
remittance, and transfer companies and other similar entities, and
(iv) other entities administering or otherwise dealing in currency,
commodities or financial derivatives based thereon, valuable
objects, cash substitutes and other similar monetary instruments or
property supervised and/or regulated by the Securities and Exchange
Commission (SEC).
(a) A securities broker includes
a person engaged in the business of buying and selling securities
for the account of others.
(b) A securities dealer Includes
any person who buys and sells securities for his/her account in the
ordinary course of business.
(c) A securities salesman
includes a natural person, employed as such or as an agent, by a
dealer, issuer or broker to buy and sell securities.
(d) An associated person of a
broker or dealer includes an employee thereof who directly exercises
control or supervisory authority, but does not include a salesman,
or an agent or a person whose functions are solely clerical or
ministerial.
(e) An investment house includes
an enterprise which engages or purports to engage, whether regularly
or on an isolated basis, in the underwriting of securities of
another person or enterprise, including securities of the Government
and its instrumentalities.
(f) A mutual fund or an open-end
investment company includes an investment company which is offering
for sale or has outstanding, any redeemable security of which it is
the issuer.
(g) A close-end investment
company includes an investment company other than open-end
investment company.
(h) A common trust fund includes
a fund maintained by an entity authorized to perform trust functions
under a written and formally established plan, exclusively for the
collective investment and reinvestment of certain money representing
participation in the plan received by it in its capacity as trustee,
for the purpose of administration, holding or management of such
funds and/or properties for the use, benefit or advantage of the
trust or or of others known as beneficiaries.
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