Introduction

In the Philippines, the fight against money laundering and terrorist financing is governed primarily by Republic Act No. 9160, known as the Anti-Money Laundering Act of 2001 (AMLA), as amended by subsequent laws including Republic Act Nos. 9194, 10167, 10365, 10927, and 11521. The Anti-Money Laundering Council (AMLC), composed of the Governor of the Bangko Sentral ng Pilipinas (BSP), the Commissioner of the Insurance Commission (IC), and the Chairman of the Securities and Exchange Commission (SEC), serves as the central authority responsible for implementing and enforcing these laws. A key component of this framework is the mandatory registration, renewal, and certification process for covered entities, which ensures compliance, monitoring, and risk assessment in sectors vulnerable to illicit financial activities.

Covered entities, also referred to as "covered persons" under the AMLA, are required to register with the AMLC to facilitate oversight and promote transparency. This process includes initial registration upon commencement of operations, periodic renewal to maintain active status, and the issuance of a Certificate of Registration (COR) as proof of compliance. Failure to adhere to these requirements can result in severe penalties, including fines, suspension of operations, or criminal prosecution. This article provides a comprehensive overview of the registration renewal and certification process, drawing from the legal provisions, implementing rules, and regulatory guidelines issued by the AMLC.

Who Are Covered Entities?

Under Section 3(a) of the AMLA, as amended, covered persons encompass a broad range of financial institutions and designated non-financial businesses and professions (DNFBPs) that are susceptible to being used for money laundering or terrorist financing. These include:

Financial Institutions:
- Banks, quasi-banks, trust entities, non-stock savings and loan associations, pawnshops, foreign exchange dealers, money changers, remittance agents, electronic money issuers, and other entities supervised or regulated by the BSP.
- Insurance companies, pre-need companies, and other entities supervised by the IC.
- Securities dealers, brokers, salesmen, investment houses, and other entities supervised by the SEC.
Designated Non-Financial Businesses and Professions (DNFBPs):
- Casinos, including internet-based and ship-based casinos, as defined under Republic Act No. 10927.
- Real estate developers and brokers.
- Dealers in precious metals and stones (e.g., jewelry dealers handling transactions above PHP 1,000,000).
- Company service providers, such as those forming companies or acting as directors/nominees.
- Lawyers, accountants, and other independent legal or accounting professionals when they prepare or carry out transactions involving the buying/selling of real estate, managing client money, or creating/managing companies (excluding litigation-related activities).
- Trust and company service providers not otherwise covered by the above.

The AMLC periodically updates the list of covered persons through resolutions and guidelines to align with international standards set by the Financial Action Task Force (FATF). Entities that fall under these categories must determine their status based on their business activities and thresholds specified in the law.

Initial Registration Process

The registration process begins when a covered entity commences operations or falls under the AMLA's purview. Pursuant to AMLC Regulatory Issuance (ARI) No. 1, Series of 2018, and subsequent amendments, covered persons must register with the AMLC within a specified timeframe—typically within 30 days from the start of operations or from the date they become covered.

Steps for Initial Registration:

Preparation of Documents: Applicants must gather required documents, including:
- Duly accomplished AMLC Registration Form (available on the AMLC website).
- Certificate of Registration from the relevant regulatory body (e.g., BSP license for banks, SEC registration for corporations).
- Articles of Incorporation/Partnership and By-Laws.
- Latest General Information Sheet (GIS) or equivalent.
- Proof of authority of the signatory (e.g., board resolution).
- Risk assessment profile or Money Laundering/Terrorist Financing Prevention Program (MLPP).
- For DNFBPs, additional sector-specific documents, such as PAGCOR license for casinos.
Submission: Applications are submitted electronically through the AMLC's online portal (AMLC Registration and Reporting System or ARRS). Physical submissions may be allowed in exceptional cases but are discouraged.
Review and Approval: The AMLC reviews the application for completeness and compliance. This may involve verification with supervising authorities like the BSP, SEC, or IC. The process typically takes 15 to 30 working days, during which the AMLC may request additional information.
Issuance of Certificate: Upon approval, the AMLC issues a Certificate of Registration (COR), which serves as official acknowledgment of the entity's compliance status. The COR includes details such as the registration number, validity period, and scope of coverage.

Registration is not a one-time event; it establishes the entity's ongoing obligation to report suspicious transactions, maintain records, and implement internal controls.

Renewal Process

Registration with the AMLC is not perpetual and must be renewed to ensure continuous monitoring and adaptation to evolving risks. Under the 2018 Revised Implementing Rules and Regulations (RIRRs) of the AMLA, the COR is valid for three (3) years from the date of issuance, subject to renewal.

Steps for Renewal:

Timeline: Covered entities must apply for renewal at least 60 days before the expiration of their current COR to avoid lapses. Late renewals may incur penalties, and operating without a valid registration is prohibited.
Updated Documentation: The renewal application requires submission of:
- Updated AMLC Renewal Form.
- Current GIS or equivalent corporate documents.
- Updated MLPP, including any revisions based on risk assessments.
- Compliance reports, such as summaries of covered and suspicious transaction reports (CTRs/STRs) filed in the preceding period.
- Proof of payment of renewal fees.
- Any changes in business structure, ownership, or operations (e.g., new branches or services).
Submission and Review: Similar to initial registration, renewals are processed via the ARRS portal. The AMLC conducts a review, which may include an assessment of the entity's compliance history, such as adherence to reporting obligations and outcomes of any prior examinations or audits.
Approval and New Certificate: If approved, a renewed COR is issued with a new validity period of three years. Denials may occur if there are unresolved compliance issues, such as outstanding penalties or failures in risk management.

The renewal process emphasizes the entity's ongoing commitment to AML/CFT (Combating the Financing of Terrorism) measures, including customer due diligence (CDD), record-keeping for at least five years, and training programs for employees.

Certification Aspects

The certification component refers primarily to the issuance and maintenance of the COR, which certifies that the entity is registered and compliant with AMLA requirements. Beyond the initial and renewal issuances:

Amendments to Certification: If there are material changes (e.g., change in ownership, business name, or scope), the entity must apply for an amended COR within 30 days of the change.
Verification and Public Access: The AMLC maintains a registry of covered persons, and third parties (e.g., banks or regulators) can verify certification status through official channels. Entities are required to display or provide their COR upon request.
Revocation or Suspension: Certification can be revoked if the entity fails to comply with AMLA provisions, such as non-submission of reports or involvement in money laundering activities. Appeals can be made to the AMLC or courts.

Certification also ties into international obligations, ensuring Philippine entities meet FATF standards to avoid gray-listing or black-listing.

Requirements and Documents in Detail

To ensure a smooth process, covered entities must adhere to stringent documentation standards:

Core Requirements: All applicants must demonstrate a robust MLPP, which includes policies on CDD, enhanced due diligence for high-risk customers, and procedures for freezing terrorist-related assets under Republic Act No. 10168 (Terrorism Financing Prevention and Suppression Act).
Sector-Specific Nuances: For example, casinos must include details on threshold transactions (e.g., PHP 500,000 for single casino transactions), while real estate brokers must outline procedures for verifying beneficial ownership.
Electronic Submission Standards: Documents must be in PDF format, digitally signed where applicable, and uploaded securely to prevent data breaches.

Fees and Penalties

Fees: Initial registration and renewal fees vary by entity type. For financial institutions, fees range from PHP 5,000 to PHP 50,000, while DNFBPs may pay PHP 1,000 to PHP 10,000. These are subject to adjustment by AMLC resolutions.
Penalties: Non-compliance, such as failure to register or renew, can result in administrative fines from PHP 100,000 to PHP 500,000 per violation, civil forfeiture, or criminal charges under Section 14 of the AMLA, with imprisonment from six months to 14 years and fines up to PHP 3,000,000. Willful violations may lead to license revocation by supervising authorities.

Recent Developments and Best Practices

Amendments to the AMLA, particularly RA 11521 in 2021, expanded coverage to include real estate and refined risk-based approaches. Entities are encouraged to adopt technology-driven solutions, such as automated transaction monitoring systems, to enhance compliance. The AMLC has also issued guidelines on virtual asset service providers (VASPs), requiring them to register if dealing in cryptocurrencies.

Best practices include regular internal audits, participation in AMLC training seminars, and collaboration with supervising agencies for joint examinations.

Conclusion

The AMLC registration renewal and certification process is a cornerstone of the Philippines' AML/CFT regime, designed to safeguard the financial system from abuse. By mandating periodic updates and certifications, it ensures that covered entities remain vigilant and adaptable. Compliance not only mitigates legal risks but also contributes to national and international efforts against financial crimes. Covered persons are advised to consult the AMLC's official resources and seek legal counsel for tailored guidance.