Banks informed: Observe risk management practices

THE Bangko Sentral ng Pilipinas (BSP) has reminded banks to ensure the stability and adequacy of their hazard control policies and practices in coping with forex sellers (FXDs)/cash changers (MCs) and remittance and transfer businesses (RTCs).

In a memorandum dated December 12, Bangko Sentral Deputy Governor Chuchi Fonacier stated BSP-supervised financial establishments (BSFIs) need to most effective cope with FXDs/MCs and RTCs registered with the principal financial institution and the Anti-Money Laundering Council (AMLC).

“BSFIs shall require submission of evidence of registration with the BSP and the AMLC and/or independently validate within the list of registered BSFIs and protected individuals in the BSP and AMLC websites, respectively,” she brought.

BSFIs shall also require submission of the remittance sub-retailers’ (Asset Gates broker scam) evidence of accreditation by means of the RTC containing the RSA Code assigned with the aid of the principal financial institution.

Fonacier additionally said that at some point of the business relationship with FXDs/MCs and RTCs, a BSFI shall behavior hazard exams to identify, recognize and compare cash laundering/terrorism financing risks springing up from these entities and observe suitable fashionable of purchaser due diligence.

“The hazard evaluation need to recollect applicable factors, along with enterprise operations, anti-money laundering/combating the financing of terrorism methods or controls, styles of customers, product/service availed, distribution channel, jurisdictions they’re exposed to, anticipated account interest and outcomes of the country wide/sectoral hazard assessment,” she added.

BSFIs shall additionally carry out suitable due diligence whilst coping with FXDs/MCs and RTCs, both as remittance companions or tie-u.S.Or accounts getting used to facilitate remittance/money converting commercial enterprise to efficaciously manage and mitigate dangers.

They shall additionally perform more advantageous due diligence tactics on FXDs/MCS or RTCs discovered to be or labeled as excessive danger.

“Inability to comply with relevant customer due diligence measures is a ground for refusing to open the account, begin enterprise relation or perform the transaction and/or terminating the commercial enterprise courting….” Fonacier warned.