Financial Crime World

Banks Ordered to Disclose Large Transactions to Authorities

In an effort to combat money laundering and terrorist financing, the Philippine government has issued new regulations requiring banks to disclose large transactions involving cash or equivalent monetary instruments exceeding certain thresholds.

What You Need to Know

  • Banks are required to report transactions involving jewelry dealers, precious metal dealers, and precious stone dealers that exceed PHP 1 million (approximately USD 20,000).
  • Casinos must report cash transactions exceeding PHP 5 million (approximately USD 100,000) or its equivalent in other currencies.
  • Banks must disclose suspicious transactions, regardless of amount, if they determine that any of the following circumstances are present:
    • A transaction is made in cash or through an anonymous account
    • A transaction is made with a person whose identity cannot be verified
    • A transaction involves the conversion or transfer of funds between accounts

Regulatory Bodies Involved

  • The Anti-Money Laundering Council (AMLC) and the Bangko Sentral ng Pilipinas (BSP) have been authorized to:
    • Examine deposit records
    • Investigate transactions that may be related to money laundering, terrorist financing, or other illegal activities
  • The AMLC has also been given the power to inquire into deposits and investments with any banking institution without a court order.
  • The Commission on Audit (COA) is empowered to:
    • Audit government deposits
    • Examine the revenue and receipts of government agencies and instrumentalities
  • The Presidential Commission on Good Government (PCGG) may investigate transactions involving ill-gotten wealth accumulated by former President Ferdinand E. Marcos and his associates, and issue subpoenas requiring banks to produce relevant documents and testimony.

Goals of the New Regulations

The new regulations aim to enhance the country’s anti-money laundering and combating the financing of terrorism (AML/CFT) regime and ensure compliance with international standards set by the Financial Action Task Force (FATF).