June 30, 2021
Dear RONALIE MENDUA,
Greetings!
Thank you for your request dated Jun 29, 2021 12:30:32 PM under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch.
Your Request
You asked for Documents Relating To AML/CFT Policies, Initiatives, Guidelines, Etc.
Response to Request
Dear Ms. Mendua:
The Securities and Exchange Commission as supervising authority supervises the implementation of anti money laundering rules and regulations and monitors compliance by covered persons of such rules such as the conduct of customer due diligence, transaction reporting, internal audit, institutional risk assessment and record keeping. It does not investigate or prosecute money laundering offenses.
In seeing to it that its supervised covered persons are implementing measures to prevent money laundering, it is contributing to the overall effort of combating money laundering. The results, however, of its AML/CFT examinations are confidential in nature.
Insofar as complaints for money laundering offenses are concerned, this should be referred to the Anti-Money Laundering Council which is vested with the authority and has the competence to conduct investigations and prosecute money laundering offenses.
Insofar as investigating violations of laws being enforced by the Commission is concerned, the following are the pertinent rules of procedure:
Investigative Powers of the Operating Departments. - During the initial investigation, the Operating Department has the obligation to establish sufficient grounds that warrants the commencement of an administrative action, which is an action that determines whether the laws, rules, regulations, circulars and orders being implemented by the Commission are being, or about to be, or were violated, or are being abetted or aided to be violated by the person being investigated.
Pursuant thereto, the Operating Department may exercise any of the following powers:
a. Monitor compliance by the corporation or such other persons with the laws, rules, regulations, circulars and orders being implemented by the Commission, and request the submission of certain documents relevant and material to the inquiry;
b. Administer oaths and affirmations, and issue subpoena ad testificandum to compel attendance of a person subject of the investigation and witnesses; x issue subpoena duces tecum for the production of any book. paper, correspondence, memorandum and other records which the Commission deems relevant and material to the inquiry;
c. Hold conferences and interviews with the complainant, possible witnesses, person being investigated, and other relevant persons;
d. Conduct surveillance, ocular inspection, audit, and perform other visitorial powers of the Commission;
e. Seek assistance from other government agencies and instrumentalities in the conduct of such investigation or proceedings;
f. Cite in contempt the person being investigated, his counselor any person in accordance with these Rules and the pertinent provisions of the Rules of Court;
g. Require any person to file a statement in writing as to all facts and circumstances concerning the matter to be investigated; and
h. Perform such other acts necessary in the conduct of such investigation or proceedings.
The investigation focuses only on the violation of rules and laws enforced by the Commission. Such violations do not automatically qualify as money laundering offenses. Money laundering offenses are investigated and prosecuted by the Anti-Money Laundering Council. The Anti Money Laundering Council is not an office or department of the SEC.
The SEC has an Anti-Money Laundering Division which assists in the supervision of covered entities to ensure their compliance with measures to prevent money laundering as mentioned above. The AMLD however does not investigate or prosecute money laundering offenses.
When it appears that a matter can be acted upon by the company or remedied by the respondent company, an operating department may ask the complainant to first inform the company of its complaint.
If there is any evidence of a money laundering offense, the matter should be brought to the AMLC which is the agency having the authority and primary competence to determine whether a money laundering offense has been committed. This is based on Section 7, (4) and (5) of the Anti-Money Laundering Act, as amended which provides as follows:
Section 7.Creation of Anti-Money Laundering Council (AMLC).
xxx The AMLC shall act unanimously in the discharge of its functions as defined hereunder:
"(4) to cause the filing of complaints with the Department of Justice or the Ombudsman for the prosecution of money laundering offenses; "
(5) to investigate suspicious transactions and covered transactions deemed suspicious after an investigation by AMLC, money laundering activities, and other violations of this Act;
Hence, the query as to the number of money laundering complaints and investigations should be addressed to the AMLC (www.amlc.gov.ph).
For failure to comply with AML/CFT requirements, a total of 60 corporations for the years 2019 and 2020 have been penalized by the SEC. This has nothing to do with money laundering offenses however as they are mere non compliance with certain requirements such as the submission of the Money Laundering and Terrorist Financing Prevention Program.
Anti-Money Laundering Division
Enforcement and Investor Protection Department
(
[email protected])
