ABC Remittance Corporation - Tracking File
ABC Remittance Corporation - Tracking File
MAY 2016
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II.
III.
Introduction ..
IV.
V.
Definition of Terms .
VI.
VII.
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VII.2 Record-Keeping
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VIII.
Training Program.
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IX.
Recruitment .
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IX.
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XI.
Compliance Monitoring .
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a culture that promotesof proactive compliance. We are aware of our dutyrecognize our
solemn duty to followadhere to the regulations based on a culture of accountability and
transparency in every endeavor that we undertake. We are committed to put in place the
appropriate processes to ensure a common understanding of, and compliance with, laws,
rules and regulations, through a continuing training and education program, and enhanced
monitoring and enforcement.
To build long term relationships with our customers, clients & partners and provide
exceptional customer services by pursuing business through innovation and
advanced technology.
Core values
We believe in treating our customers with care, respect and faith.Proper customer
treatment
GrowthWe grow through fuelled by creativity and innovation
We integrate honesty, integrity and business ethics into all aspects of our business
activitiesIntegration of business ethics in all company matters
Our Slogan
The ABC Remittance Corporation recognizes the effect of money laundering to the economy
and theits dangers of it being used as a way to fund in terrorist financing activities. It vows to
fully support all local and international campaigns and efforts to combat money laundering
and terrorist financing activities.
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In line with this, the ABC Remittance Corporation in turn, vows to be committed in playing its
role in the fight against money laundering by conducting its remittance business within the
bounds of all applicable laws and regulations, by refraining to be associated wit h thoseh
agents and partners, and customers involved in unlawful/criminal activities, and by
maintaining the highest operating standards in the conduct of its business with due skill, care
and diligence.
Thus, ABC Remittance Corporation hereby adopts the following policies to combat money
laundering activities.
1. A strictly implementedstraightforward Customer Due Diligence policy to ensure that
satisfactory evidence of the customers identity within the context that all customers
provide sufficient evidence of identity. This is written in the context of Republic Act
9160 as amended by Republic Act 9194 and put in place an effective procedure for
verifying the bona fides of customers and determining their source of funds.
2. Clear and concise-cut polices that concern on records retention, and the protocol for
reporting suspicious activity. reporting of suspicious transactions.
3. Compliance with lawsLaw abidance to ensure that all transactions aret business i
performeds conducted in conformity with high ethical standards; that laws and
regulations are adhered to.
The company reserves the right to deny rendering services in situations when there is
suspicion concerningo, and that service shall not be provided where there is good reason
to believe that transactions are associated customer involvement with money laundering
activities.
4. Cooperation with competent authoritiesgoverning bodies such as Management shall
cooperate fully with the Anti-Money Laundering Council (AMLC) and the Bangko
Sentral ng Pilipinas (Central Bank of the Philippines) within the limits allowed provided
by law.
5. Submission of atting report to AMLC containing details on all covered transactions and
suspicious transactions within five (5) working days from occurrence thereof, unless
the Supervising Authority concerned prescribes a longer period not exceeding ten (10)
working days (Sec. 6 of RA 9194 amending Sec 9 RA 9160)
VI. Definition of Terms UnlessExcepts as otherwise defined herein, all terms used shall have
the same meaning as those terms that are defined in the AMLA, as amended, and its
RIRR.
(A) Money laundering is a crime whereby the proceeds of an unlawful activity as
herein defined are transacted, thereby, making them appear to have originated
from legitimate sources. It is committed by the following:
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(H) Customer - refers to any person or entity that keeps 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.
(I) Shell Company a Legal entity that has no substance in doing business but being
used as financial intermediary that financial transactions may be conducted.
(J) Shell Bank - a Shell company incorporated as a bank or made to appear to be
incorporated as a bank but has no physical presence and no affiliation with a
regulated financial group. It can also be a bank that (a) does not conduct business
at a fixed address in a jurisdiction in which the shell bank is authorized to engage;
(b) does not employ one or more individuals on a full time basis at this fixed
address; (c) does not maintain operating records at this address, and (d) is not
subject to inspection by the authority that licensed it to conduct banking activities.
(K) Beneficial Owner - refers to natural person(s) who ultimately owns or controls a
customer and/or the person on whose behalf a transaction is being conducted. It
also incorporates those persons who exercise ultimate effective control over a
legal person or arrangement.
(L) Politically Exposed Person or PEP - an individual who is or has been entrusted
with prominent public positions in the Philippines or in a foreign state, including
heads of state or of government, senior politicians, senior national or local
government, judicial or military officials, senior executives of government or state
owned or controlled corporations and important political party officials.
(M)
its RIRR, or (b) a financial institution operating outside the Philippines that is other
than covered institutions referred to in (a) but conducts business operation and
activities similar to them
(R) Beneficiary institution - refers to the entity that will pay out the money to the
beneficiary and can either be (a) a covered institution as specifically defined by
these Rules and as generally defined by the AMLA, as amended, and its RIRR, or
(b) a financial institution operating outside the Philippines that is other than
covered institutions referred to in (a) but conducts business operations and
activities similar to them.
(S) Intermediary institution - refers to the entity utilized by the originating and
beneficiary institutions where both have no correspondent banking relationship
with the intermediary institution. It can either be (a) a covered institution as
specifically defined by these Rules and as generally defined by the AMLA, as
amended, and its RIRR, or (b) a financial institution operating outside the
Philippines that is other than covered institution referred to in (a) but conducts
business operations and activities similar to them.
(T) Remittance Partner (Tie-up) an entity with whom ABC Remittance Corporation
has a business agreement for processing remittance transactions. A remittance
partner based abroad and who will accept remittance transactions is called either
an Agent or a Subsidiary/Affiliate, while remittance partners based here in the
Philippines and who will be used as a channel for distribution of the remittance to
its final beneficiary is called a Fulfillment partner or a Courier or an Outlet.
VII.
VIII.
To ensure that it deals only with legitimate entities, ABC Remittance Corporation
shall identify prospective business agents and partners from among the known
and reputable entities in the remittance business, including reputable foreign
correspondent banks, and are known to be regulated/subject to anti-money
laundering and combating terrorist financing laws and regulations.
2.
Relationship with the preferred business tie-up (agent and fulfillment partner)
shall be established with the signing of a Memorandum of Agreement (MOA).
3.
POLICY GUIDELINES
VII.1 Customer Identification or Know Your Customer (KYC) Process
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A KYC policy should increase the likelihood thatensures that ABC Remittance
Corporation is in compliance with all laws and regulations. It also makes sure that
ABC Remittance Corporation and adheres to sound and recognized business
practices that will protect the good name of the company.engages in good
business practice that will uphold the companys reputation.
Thus, a KYC policy should decrease the likelihood thatlessen the possibility of
ABC becomingwill become a victim of illegal activities perpetrated by fraudulent
people. its customers.
The best stage to do KYC will be best implementedis before the relationship with
the customer begins. ABC, its agents, subsidiaries/affiliate, tie-ups, fulfillment
partners, couriers and outlets are enjoined to observe proper identification of
clients. The ABC Anti-Money Laundering Questionnaire (Annex A) must be filledup.
Moreover, if a remitter opens an account at the agent/subsidiary/affiliate abroad, it
will be the responsibility of the agent/subsidiary/affiliate to establish and record
the identity of the remitter. ABC then takes in thiscaptures this information
throughwith the use of its system and from the exchange file instructions.
Agents/subsidiaries/affiliates shall ensure that all necessary information,
pertaining to KYC, of the client/customer/remitter shall be properly documented
and included in the exchange file, and that these documents presented are
thoroughlycarefully inspected.
VII.1.1 General Information/Documents Required
a. ABC shall obtain satisfactory evidence of the true and full identity,
representative capacity, domicile, legal capacity, occupation or business
purposes of clients, as well as other identifying information on those clients,
whether they be occasional or usual, through the use of documents such
as, but not limited to:
i.
cards may be used, they should not be accepted as the sole means of
identification.
ii.
iii.
iv.
6. Postal ID
7. Voters ID
8. Tax Identification Number
9. Barangay certification
10. GSIS e-Card
11. SSS card
12. Senior Citizen card
13. OWWA ID
14. OFW ID
15. Seamans book
16. Alien Certification of Registration/Immigrant Certificate of Registration
17. Government office and GOCC ID (e.g., AFP, HDMF IDs)
18. Certification from the NCWDP
19. DSWD certification
20. IBP ID; and
21. Company IDs issued by private entities or institutions registered with
or supervised or regulated either by the BSP, SEC or IC.
(2) BStudents who are beneficiaries of remittances/fund transfers under the
age of eighteen and who are not yet of voting age, may be allowed to
present the original and submit a clear copy of one (1) valid photo-bearing
school ID duly signed by the school principal.principal or head of the
school.
(3) Where the customer or authorized signatoryFor foreign residents is a
non-Philippine resident, similar IDs duly issued by the foreign government
where the customer is a resident or a citizen may be presented.
(4) ABC shall require their customers or authorized signatory to submit a
clear copy of one (1) valid ID on a one-time basis only at the
commencement of business relationship. in order to consummate the
business relationship. CThey shall require their clients are also required to
submit an updated photos and other relevant information on the basis of
risk and materiality.
(5) ABC Skcyash may classify identification documents based on its
reliability and ability to validate the information indicated in the identification
document with that provided by the customer.
(6) For special casesWhenever it deems necessary, ABC may accept other
IDs not enumerated above provided that it shall not be the sole means of
identification.
(7) In case the identification documents mentioned above or other
identification documents acceptable to the company do not bear any photo
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4. If the records relate to on-going investigations or transactions that have been the
subject of a disclosure, they shall be retained beyond the stipulated retention
period until it is confirmed that the case has been closed and terminated
5. Where applicable, ABC shall designate at least two (2) persons responsible in the
safekeeping of all records, reporting to the Commission/Council any change in the
person/s responsible, if there is any.
VII.3 Reporting of Covered & Suspicious Transactions
1. It is within shall be the responsibility of ABCs responsibility to report all covered
and suspicious remittance transactions to the Compliance Monitoring Officer all
covered and suspicious remittance transaction. ABC incorporates an automated
AML, OFAC and KYC controls and reporting functionalities within its system.
2. The report shall be submitted within ten (10) days from occurrence thereof,
unless the Supervising Authority (BSP, SEC, IC etc.) concerned prescribes a
longer period not exceeding 10 working days., This shallto be prepared in the
prescribed format and forms and shall be submitted/transmitted in a secured
manner as prescribed in the AMLC Reporting Procedures document.
3. Where applicable, the mandatory Covered Transaction Report (CTR), shall be
filed before the Anti-Money Laundering Council, copy furnished the SEC, for
transactions in cash or other equivalent monetary instrument involving a total
amount in excess of the threshold limit of P500,000.00 within one (1) banking
day as provided under Section 3 (b) of R.A. 9160, ABC shall clarify the economic
background and purpose of any transaction or business relationship if its form or
amount appears unusual in relation to the business or financial capacity of the
customer and the customer has not been properly identified, or if the economic
purpose or legality of the transaction is not immediately clear, as where there is
no underlying legal, trade obligation, purpose, origin or economic justification, or
where the transaction is unusually large and complex.
4. Where the transaction or transactions do not fall within the threshold amount
provided in the definition of a covered transaction, and ABC has reasonable
grounds to believe that the source/s of the funds arise from or are in anyway
related to an unlawful activity, ABC shall file a Suspicious Transaction Report
before the Anti-Money Laundering Council, copy furnished the SEC. In this
regard, ABC should exercise due diligence by implementing adequate systems
for identifying and detecting suspicious transactions, especially where any of the
following circumstances exists:
a. there is no justifying legal or trade obligation, purpose or economic
justification;
b. the client is not properly identified;
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raise a suspicion in the mind of ABC that the transaction may be connected with
any unlawful activity.
VII.4 Risk-Based Due Diligence in Processing Remittance Instructions
1. ABC will accept remittance instruction only accepts remittance instructions from
its agents, subsidiaries/affiliates, tie-ups, and correspondent banks.
2. AThe agents/subsidiaries/affiliates mustshall ensure that remitters declare
thethe remitter declare the purpose of the remittance transaction as well as its
sourcebeing made and the source of fund. The declaration should be validated
through the identification papers presented., Ai.e. assessments will me made
whetherif the remittance amount is commensurate to the nature of job/business
of the remitter.
3. The fulfillment partners, accredited couriers and outlets should also pursue their
own verification initiatives d likewise perform their own diligent
checking/validations on establishing the identity of the beneficiary, source of
funds, and of the remitter/purpose of the remittance., if applicable.
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ii. ABC will use the service of a secured FTP server to ensure security,
efficiency and speed in the delivery of the exchange file.
Note: ABC shall provide its remittance partners a unique set of login credentials.
Processing Staff
Processing Staff
Processing Staff
Processing Staff
Processing Staff
ACTIVITY
Confirmation of Transaction
Download Payment Instruction batch files from the
tie-up web site or FTP folder.
Save the downloaded Payment Instruction batch
files to the assigned tie-up folders.
Verify the contents of the Payment Instruction as to;
total amount, number of items, message number
and Testkey codes..etc.
Log the Payment Instruction details (Transaction
date, amount, batch name and signature) on the
Tie-up Validation Sheet (Annex A).
Validate the indicated Testkey Code and Message
number based on the assigned Tie-up Testkey
Codes (Annex B)
Confirm the receipt of Payment Instruction batch
files to Tie-ups thru Email or other agreed mode of
communication.
Remittance Take-up
Log on to the Nautilus Remittance System. Go to
Remittance Take-up Menu.
Load the transaction on the Nautilus Remittance
System and save.
Note: In this stage an automated filtering of items
against the OFAC and PEP (Philippines) list is being
triggered by the system. A notification will be
prompted upon a match. A report must be prepared
for AMLAC.
Verify unassigned items.
Note: If no service code was provided on the
Remittance Instruction, the following rules will apply:
1. If the bank name and bank account number are
present the service mode must be Credit to Bank.
2. If home address is present the service mode
must be Door to Door Delivery.
3. If neither home address nor bank details are
present the service mode will be Cash Pick-up.
4. If either of the above premises were present, the
item should be lodged into AP account.
Preview and generate the Draft Prooflist of the
verified batch file.
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Processing Officer
Processing Officer
Processing Staff
Processing Staff
Processing Staff
Processing Staff
Processing Staff
Processing Staff
Processing Staff
Processing Staff
Processing Staff
Feedback Staff
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Feedback Staff
Feedback Staff
Feedback Staff
Feedback Staff
Feedback Staff
Processing Officer
Feedback Staff
Feedback Staff
Processing Officer
Feedback Staff
Feedback Staff
Feedback Staff
Feedback Staff
IX.
Training Program
1. ABC shall provide all its staff and personnel, ABC shall provide education and
training for all its staff and personnel, including directors and officers, with education
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and training ABC , to ensure that they are fully aware of their personal obligations
and responsibilities to in combating money laundering and to familiarize
themselvesbe familiar with theits system for reporting and investigating suspicious
matters.
2. ABC may, due to the scale and nature of its operations, assign the internal audit or
training functions to another entityperson (e.g. professional association, parent
company or external auditors). Where ABC delegates its responsibilities for audit
and training, due diligence is to be exercised to ensure that the persons appointed
are able to perform these functions effectively and the fact of such appointment
must be relayed in writing to the Council.
3. Timing and content of training for various sectors of staff will need to be adapted by
ABC for its own needs. The following may be included:.
a. New Staff. General background of money laundering, the ability to identify suspicious
transactions and method of reporting these to the appropriate designated point person within
ABC A general appreciation of the background to money laundering, the need to be able to
identify suspicious transactions and report such transactions to the appropriate designated
point within ABC. This training shall be provided to all new employees, regardless of level of
seniority.
b. Supervisors and Managers. A more comprehensive course higher level of instruction that
coversring all aspects of money laundering procedures should be provided to supervisors and
managers. This will include the offensces and penalties arising from the Act, procedures
relating to service of production and restraint orders, internal reporting procedures, and the
requirements for verification of identity and the retention of records.
4. ABC shall l, at least once a year, make arrangements for refresher coursestraining
at least once a year to remind key staff of their responsibilities and to make them
aware of any changes in the laws and rules relating to money laundering, as well as
the internal procedures of ABC.
X.
Recruitment Process
ABC Remittance Corporation commits itselfis committed to hiring individuals who reflect
diverse backgrounds, possess have the qualifications, values and potential necessary to
achieve company goals. These hiring policies involvearticulate sound practices to ensure
that this is achieved and risks to the company are minimized.company risk is minimized.
1. Posting Requirements
Once the listing for job openings job need evaluation has been completed, the
position may be posted oin Jobstreet, company website or newspaper
classified ads for candidates to apply. Use of search enginesfirms to source
candidates for a position may be considered.is permissible.
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2. Applicant Eligibility
A candidate must meet the qualification standard for the position. Human
resourcesThe company will conduct a record review of the candidate and
determine his/her eligibility for hire.
3. Applications for Employment
All internal and external applications for staff positions will be posted and
made available whether online or classified ads. Applications will comply with
all legal requirements.
4. Interview Process
CGenerally, candidates will be screened in order to determine whether they meet
thefor minimum requirements for the position. Those determined to meet the
requirements will be passed on to the hiring manager. Candidates selected will be
interviewed in person and progress to subsequent steps in the process based on
the interview results.
5. Offers of Employment
Compensation offered must be consistent with company policythe policies of
the Company. Employment offers are commitments on behalf of the Company.
It and must ensure that every offer made to an individual complies with
company and legal requirements.
6. Pre-Employment Background Reviews
Candidates will be subject to testing procedures. The company conducts
various checks on applicants for employment to ensure that individuals who
join the company workforce are qualified, have potential to be productive and
successful, and have honestly presented their qualifications on the
Employment Application.
8. Pre-Employment Physical Examinations
Physical examinations are not required by the company and are not conditional for
employment.The company does not generally require pre-employment physical examinations
as a condition of employment. However, the company reserves the right to require post-offer,
pre-employment physical exams in circumstances where the nature of the work renders it
appropriate or where law or regulation requires.
XI.
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The internal audit function associated with money laundering and terrorist financing
should be conducted by qualified personnel who are not affiliated independentwith of the
office being audited. S. It must have the support of the board of directors and senior
management is needed, as well and have a direct reporting line to the board or a board
level audit committee.
In addition to the function earlier mentioned, the internal audit shall also be responsible
for the following:
a. periodic and independent evaluation of the risk management;
b. degree of adherence to internal control mechanisms related to the customer
identification process, such as the determination of the existence of customers and
the completeness of the minimum information and/or documents establishing the
true and full identity of, and the extent and standard of due diligence applied to,
customers;
c. CT and ST reporting and record keeping and retention; and
d. Determination ofing the adequacy and effectiveness of other existing internal
controls associated with money laundering and financing terrorist activities.terrorist
financing.
The results of the internal auditInternal audit results shall be immediately communicated
to the board of directors. It must also be available forrs and shall be open for scrutiny by
BSP examiners in the course of the regular or special examination without prejudice to
the conduct of its own evaluation whenever necessary.
Results of the audit shall likewise be promptly communicated to the compliance office for
its appropriate corrective action. The Compliance Office shall regularly submit reports to
the board to inform them of managements action to address deficiencies noted in the
audit.
XII.
XIII.
Compliance Monitoring
(Mechanism that ensures all noted deficiencies are corrected)
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1. All the audit findings and noted deficiencies shall be addressed and corrected.
The revisions must be recorded and integrated in the revised version of the MLPP
for review and approval by the ABC Board of Directors.
2. ABC shall ensure its continued compliance with the institution's policies,
procedures and guidelines on money transfers, particularly with regard to antimoney laundering.
3. Occasional review of It shall review from time-to-time its policies and and
procedures, implementation of and effect necessary revisions for product
developmentthe improvement of its products and services, as well as the
introduction ofintroduce better safeguards against money laundering.
XIV.
XV.
c) Serves as the linkAct as the liaison between ABC and the Anti-Money
Laundering Council (AMLC) concerning legal mattersin matters relating to
compliance with the provisions of the law;
d) Preparatione and submission of t to the AMLC written reports on ABCs
compliance with the provisions of the law, in such form and submitted at
such time as the AMLC may determine.
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