Questions and Answers
What is the primary activity of a Virtual Asset Provider that involves moving virtual assets between addresses?
Which of the following is NOT a defined activity of a Virtual Asset Provider?
Which type of weapon is categorized as Weapons of Mass Destruction (WMD)?
What is excluded from the definition of Weapons of Mass Destruction?
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What does participation in financial services related to a virtual asset issuer involve?
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Which of the following activities does NOT involve a Virtual Asset Provider?
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In the context of WMDs, what aspect is considered when evaluating their capacity?
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Which statement accurately describes the role of a Virtual Asset Provider in asset administration?
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What effective date is associated with the new provision regarding Virtual Asset Providers?
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Which of the following best outlines the exchange activities of a Virtual Asset Provider?
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Study Notes
Anti-Money Laundering/Counter-Terrorism Financing (AML/CTF) in the Philippines
- The Philippines promotes cooperation in transnational investigations of money laundering, aligned with its foreign policy.
- The Anti-Money Laundering Council (AMLC) operates as an independent financial intelligence unit, focused on ethical development and efficient processes.
- A risk-based approach is essential for implementing AML/CTF laws, ensuring financial inclusion while maintaining safeguards against risks.
Governing Principles
- The AMLC fosters a strong compliance culture and governance to support an effective AML/CTF regime, including capacity building and appropriate sanctions.
- Essential components include a robust risk management system to identify, assess, mitigate, monitor, and control money laundering/terrorism financing risks.
Key Definitions
- Biometric Information: Includes photographs, fingerprints, and iris scans for identity verification.
- Casino: An establishment authorized to conduct gaming operations.
- Civil Forfeiture: Legal process to forfeit monetary instruments or properties without a conviction linked to unlawful activities.
- Close Relationship/Associate: Individuals known to have a close association with Politically-Exposed Persons (PEPs), influencing financial transactions.
Banking and Financial Terms
- Correspondent Banking: Banking services provided by one bank to another, enhancing financial access and operations.
- Payable-through Accounts: Accounts enabling third parties to transact on their own behalf directly through correspondent accounts.
Identification and Regulation
- Philippine Identification Card (PhilID): Official ID issued to citizens and resident aliens, serving for transactions with government entities.
- Philippine Identification System (PhilSys): A central government platform for identification established under Republic Act No. 11055.
Risk Assessment Concepts
- Source of Fund: Refers to the origin of funds tied to transactions, critical for verifying legitimacy.
- Source of Wealth: Encompasses all resources contributing to a customer’s wealth, such as employment or inheritance.
Processing and Analysis
- Straight-through Processing: Electronic payment transactions executed without manual steps.
- Strategic Analysis: Macro-level data analysis to identify ML/TF patterns, guiding policy development against financial crime.
Regulatory Entities
- Supervising Authority (SA): Agencies like BSP, SEC, and IC oversee the regulation of financial institutions and designated non-financial businesses.
Virtual Assets and Security
- Virtual Asset Provider: Entities engaging in exchanging, transferring, or managing virtual assets for others.
- Weapons of Mass Destruction (WMD): Refers to specific weapons capable of mass casualties, excluding transportation means that are separate from the weapons themselves.
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Description
This quiz explores the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) strategies adopted in the Philippines. It covers the role of the Anti-Money Laundering Council (AMLC), the importance of a risk-based approach, and governing principles that ensure an effective AML/CTF regime. Test your knowledge on the key definitions and regulatory practices involved in combating financial crimes.
