Financial Crime World

Compliance Training for Financial Institutions in Philippines: A Must-Have Measure Against Money Laundering and Terrorism Financing

The Bangko Sentral ng Pilipinas (BSP) has emphasized the importance of compliance training for financial institutions in the Philippines, particularly in preventing money laundering and terrorism financing. In Circular No. 950 dated March 15, 2017, the BSP required covered persons to formulate an annual Anti-Money Laundering (AML) training program that provides efficient, adequate, and continuous education to their responsible officers and personnel.

Importance of AML Training

The AML training program is designed to ensure that all staff members, including:

  • New hires
  • Front-line staff
  • Compliance office staff
  • Internal audit staff
  • Officers
  • Senior management
  • Directors
  • Stockholders

are aware of their duties and responsibilities under the Anti-Money Laundering Act (AMLA) and its implementing rules and regulations.

Topics Covered in AML Training

The program should cover topics such as:

  • Customer identification processes
  • Record-keeping requirements
  • Suspicious transaction reporting
  • Internal processes, including:
    • Chain of command for reporting and investigating suspicious activities

Additionally, the training program should provide ample understanding of internal processes to ensure that staff members are aware of their roles and responsibilities.

Regular Refresher Trainings

To guarantee that officers and staff are informed of new developments and issuances related to AML and terrorism financing prevention, regular refresher trainings will be provided. Covered persons are also required to keep records of all AML seminars and trainings conducted by their institution or attended by its personnel, including copies of training materials.

Record Keeping and Examination

These records must be made available during periodic or special examinations by the BSP. Compliance with this requirement is crucial in ensuring that financial institutions in the Philippines are able to prevent money laundering and terrorism financing effectively.

Benefits of AML Training

With the implementation of AML training programs, financial institutions can ensure that their staff members are equipped with the necessary knowledge and skills to:

  • Identify suspicious activities
  • Report illegal transactions
  • Maintain a clean and reputable reputation

By providing comprehensive AML training to their staff, financial institutions in the Philippines can effectively prevent money laundering and terrorism financing, thereby maintaining a safe and secure environment for customers.