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Questions and Answers
Pawnshops are regulated by the BSP.
True
Insurance brokers are supervised by the BSP.
False
All casinos are regulated by the SEC.
False
Electronic money issuers are included in the entities supervised by the BSP.
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The Insurance Commission regulates both pre-need companies and holding companies.
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The transaction can be perceived as structured to avoid reporting requirements under the AMLA.
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A client's past transactions are irrelevant when considering a suspicious activity.
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Coins and currency of legal tender from other countries are not considered monetary instruments.
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Kidnapping is listed as an unlawful activity that can relate to suspicious transactions.
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Non-reporting transactions have no known circumstances that need evaluation.
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Study Notes
Entities Supervised by Financial Authorities
- Bangko Sentral ng Pilipinas (BSP) regulates various entities including banks, non-banks, quasi-banks, trust entities, pawnshops, non-stock savings and loan associations, and electronic money issuers.
- Insurance Commission (IC) oversees insurance companies, pre-need companies, insurance agents, brokers, professional reinsurers, and mutual benefit associations.
- Securities and Exchange Commission (SEC) supervises a wide range of entities, including casinos.
Suspicious Transactions Indicators
- No legal or trade obligation, purpose, or economic justification behind a transaction.
- Client identification issues or discrepancies in declared identity.
- Transaction amounts that do not align with the client’s financial capacity or business activities.
- Any transaction that appears to be structured to avoid AMLA reporting requirements.
- Deviations from the client’s transaction profile based on previous activities.
- Connections to unlawful activities, money laundering, or expected offenses.
- Transactions that are similar to illicit activities or linked to broader criminal behavior.
Unlawful Activities Categories
- Includes a range of offenses: kidnapping, robbery, plunder, smuggling, terrorism, and electronic crimes.
- Each unlawful activity category has defined legal frameworks and penalties associated with them.
Monetary Instruments Definition
- Coins and currencies recognized as legal tender in the Philippines or other nations.
- Credit instruments include bank deposits, royalties, commissions, and financial interests.
Money Laundering Offenses
- Involves transactions or activities with monetary instruments resulting from unlawful activities.
- Includes actions such as conversion, transfer, and concealment of money derived from illegal sources.
- Individuals are accountable for conspiring or assisting in money laundering processes.
AMLC Functions and Powers
- The Anti-Money Laundering Council (AMLC) is empowered to investigate suspicious transactions and enforce AML measures.
- Can file legal complaints for money laundering offenses and has civil forfeiture authority for illicit goods.
- Cooperates with international requests for assistance in anti-money laundering efforts.
Penalties for Money Laundering Violations
- Imprisonment of 6 months to 14 years, with fines ranging from PHP 100,000 to PHP 6 million depending on the crime severity.
- Specific penalties apply for different sections of AMLA, with additional punitive measures if the offender is part of a corporate entity.
Corporate Liability in Money Laundering
- Corporate entities face penalties based on participation and negligence of responsible officers.
- Directors or trustees involved in or knowingly allowing violations of AMLA regulations can be held legally accountable.
Compliance Obligations
- Covered persons must maintain customer records and due diligence practices to support AML efforts.
- Transaction reporting is essential under the provisions of the AMLA to ensure transparency and traceability in financial dealings.
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Description
Test your knowledge on the entities supervised or regulated by the Bangko Sentral ng Pilipinas (BSP). This quiz covers various types of financial institutions such as banks, non-banks, quasi-banks, and trust entities. Assess your understanding of these regulations and their implications.
