SEC Orders Finance, Lending Companies to Submit AML Plans by 21 June

Philippine’s SEC has ordered all financing and lending companies to submit their plans for the implementation of a risk-based AML/CFT program.  

The Philippine SEC (Securities and Exchange Commission) has announced the deadline of 21 June for all financing and lending companies to submit their plans for the implementation of AML (Anti-money Laundering) and CFT (Counter Financing of Terrorism) requirements.

Earlier this year, the Philippines updated its AML/CFT law to cover all financing and lending companies, making them liable to register with the Anti-money Laundering Council (AMLC), update their data every two years, and comply with all other AML/CFT rules. This also includes the filing of Suspicious Transaction Reports (STRs). 

Suggested Read: Banks Ordered by BSP to Enhance the Filing of Suspicious Reports

Following this, a new notice has been published by the SEC stating that all financing and lending firms are mandated to devise and implement a “comprehensive and risk-based Money laundering and Terrorist Financing Prevention Program (MTPP).”

The MTPP has to be submitted along with a copy of the Board Resolution or Certification by the country/regional/area head of local branches that have approved the adoption of the MTPP.

Companies that wish to operate financing and lending companies are required by the SEC to submit a soft copy of the MTPP within 10 days after their license application has been approved. 

For companies that fail to submit the MTPP, heavy penalties have been announced under the 2018 AML/CFT Guideline for SEC covered persons, and/or the Implementing Rules and Regulations of the AMLA (Anti Money Laundering Act).

Read Also: Philippine Banks Struggle to Comply with AML Regulations