Banks advised: Observe threat management practices

THE Bangko Sentral ng Pilipinas (BSP) has reminded banks to make certain the soundness and adequacy in their risk management regulations and practices in dealing with forex dealers (FXDs)/money changers (MCs) and remittance and transfer organizations (RTCs).

In a memorandum dated December 12, Bangko Sentral Deputy Governor Chuchi Fonacier stated BSP-supervised monetary establishments (Stock Global broker scam) have to most effective cope with FXDs/MCs and RTCs registered with the critical bank and the Anti-Money Laundering Council (AMLC).

“BSFIs shall require submission of proof of registration with the BSP and the AMLC and/or independently validate within the listing of registered BSFIs and protected people within the BSP and AMLC websites, respectively,” she delivered.

BSFIs shall also require submission of the remittance sub-agents’ (RSA) proof of accreditation by means of the RTC containing the RSA Code assigned by the significant bank.

Fonacier also said that at some point of the enterprise dating with FXDs/MCs and RTCs, a BSFI shall conduct threat tests to perceive, understand and examine cash laundering/terrorism financing dangers springing up from these entities and practice appropriate preferred of patron due diligence.

“The threat assessment need to remember applicable elements, including business operations, anti-money laundering/preventing the financing of terrorism approaches or controls, sorts of clients, product/carrier availed, distribution channel, jurisdictions they are exposed to, expected account activity and results of the countrywide/sectoral hazard assessment,” she delivered.

BSFIs shall also perform appropriate due diligence when handling FXDs/MCs and RTCs, either as remittance companions or tie-united statesor bills being used to facilitate remittance/money changing business to successfully manage and mitigate risks.

They shall also perform improved due diligence approaches on FXDs/MCS or RTCs found to be or categorised as excessive chance.

“Inability to comply with applicable purchaser due diligence measures is a floor for refusing to open the account, commence enterprise relation or perform the transaction and/or terminating the commercial enterprise courting….” Fonacier warned.