Renewing AMLC Certificate of Registration Process Philippines

Renewing the AMLC Certificate of Registration in the Philippines: A Comprehensive Legal Guide

Introduction

In the Philippines, the fight against money laundering and terrorism financing (ML/TF) is spearheaded by the Anti-Money Laundering Council (AMLC), established under Republic Act No. 9160, otherwise known as the Anti-Money Laundering Act of 2001 (AMLA), as amended by subsequent laws such as Republic Act No. 9194, 10167, 10365, 10927, and 11521. The AMLC serves as the country's financial intelligence unit (FIU), responsible for implementing and enforcing anti-money laundering and counter-terrorism financing (AML/CFT) measures.

A key component of this framework is the mandatory registration of "covered persons" with the AMLC. Covered persons, as defined under Section 3(a) of the AMLA, include financial institutions (e.g., banks, non-bank financial institutions, insurance companies, securities dealers) and designated non-financial businesses and professions (DNFBPs) such as casinos, real estate brokers, dealers in precious metals and stones, lawyers, accountants, and trust and company service providers when they engage in specified activities. Upon successful registration, the AMLC issues a Certificate of Registration (COR), which certifies that the entity is recognized as a covered person and is subject to ongoing AML/CFT supervision.

The COR is not a perpetual document; it has a validity period, typically three (3) years from the date of issuance, subject to the specific rules issued by the AMLC and supervising authorities like the Bangko Sentral ng Pilipinas (BSP) for banks, the Securities and Exchange Commission (SEC) for securities entities, the Insurance Commission (IC) for insurers, and the Philippine Amusement and Gaming Corporation (PAGCOR) for casinos. Renewal of the COR is essential to maintain compliance, avoid penalties, and ensure uninterrupted business operations. Non-renewal can lead to administrative sanctions, fines, or even the suspension of business activities.

This article provides a comprehensive overview of the renewal process for the AMLC COR in the Philippine context, drawing from the legal framework, procedural requirements, and practical considerations. It is intended for legal practitioners, compliance officers, and business entities navigating the AML/CFT landscape. Note that while this guide is based on established Philippine laws and AMLC issuances, entities should consult the latest AMLC guidelines or seek professional legal advice for case-specific applications, as regulations may evolve.

Legal Framework Governing AMLC Registration and Renewal

The renewal of the AMLC COR is grounded in the following key legal instruments:

1. Republic Act No. 9160 (AMLA), as Amended: This foundational law mandates registration for all covered persons within specified timelines (e.g., within 90 days from the start of operations or from becoming a covered person). Amendments have expanded the scope of covered persons and strengthened enforcement mechanisms.

2. Implementing Rules and Regulations (IRR) of the AMLA: Issued by the AMLC in coordination with supervising authorities, the IRR (last major update in 2018, with subsequent circulars) detail the registration and renewal procedures. Rule 17-A of the 2018 IRR specifically addresses registration requirements, including the need for periodic renewal to ensure ongoing compliance.

3. AMLC Regulatory Issuances (ARIs) and Circulars: The AMLC issues circulars that outline the operational aspects of registration and renewal. For instance, AMLC Resolution No. 14 (series of 2019) and subsequent updates emphasize the use of the AMLC Registration System (ARS) for both initial and renewal applications. These issuances align with international standards set by the Financial Action Task Force (FATF), of which the Philippines is a member.

4. Supervising Authority-Specific Rules:

   • For financial institutions under BSP supervision, Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) incorporate AMLC renewal requirements.
   • For casinos, PAGCOR's Casino Regulatory Manual requires alignment with AMLC renewal.
   • DNFBPs may have additional oversight from professional bodies like the Integrated Bar of the Philippines (for lawyers) or the Philippine Institute of Certified Public Accountants (for accountants).

The renewal process ensures that covered persons maintain an effective AML/CFT program, including risk assessments, customer due diligence (CDD), record-keeping, and suspicious transaction reporting (STR). Failure to renew constitutes a violation under Section 14 of the AMLA, punishable by fines ranging from PHP 100,000 to PHP 500,000 per violation, or more severe penalties for repeated non-compliance.

Who Must Renew the AMLC COR?

Renewal applies to all entities that hold an existing AMLC COR. This includes:

• Financial Institutions: Banks, quasi-banks, trust entities, pawnshops, money service businesses (e.g., remittance agents, currency exchangers), electronic money issuers, and virtual asset service providers (VASPs) as defined under RA 11521.
• DNFBPs: Casinos (including internet-based and ship-based), real estate developers and brokers, dealers in precious metals/stones, lawyers and notaries (when involved in transactions like property transfers or company formation), accountants (for auditing or financial management services), and trust/company service providers.
• Other Entities: Any business or profession designated by the AMLC as high-risk for ML/TF.

Exemptions are rare and typically apply to entities already registered under equivalent regimes (e.g., certain government-owned corporations), but even these may require confirmation of status during renewal periods.

Step-by-Step Process for Renewing the AMLC COR

The renewal process mirrors the initial registration but focuses on updating information and demonstrating continued compliance. It is primarily conducted online through the AMLC's secure portal, the AMLC Registration System (ARS), accessible via the AMLC website (www.amlc.gov.ph). The process should commence at least sixty (60) days before the COR's expiration to allow for processing time, which can take 30-45 days.

Step 1: Preparation and Self-Assessment

• Conduct an internal review of your AML/CFT program to ensure it complies with current standards, including the adoption of a risk-based approach (RBA) as per AMLC guidelines.
• Update key documents, such as the Money Laundering and Terrorism Financing Prevention Program (MLPP), which must include policies on CDD, enhanced due diligence (EDD) for high-risk customers, and training programs for staff.
• Gather required documents (see "Requirements" section below).

Step 2: Access the AMLC Registration System (ARS)

• Log in to the ARS using your existing credentials. If credentials are lost, request reset via the AMLC Secretariat.
• Select the "Renewal Application" module. The system will pre-populate data from your initial registration, requiring verification and updates.

Step 3: Submit Updated Information and Documents

• Provide updates on business details, such as changes in ownership, address, contact information, or nature of operations.
• Upload scanned copies of required documents in PDF format (maximum file size per document: 5MB).
• Certify that all information is accurate and that the entity has no unresolved ML/TF violations.

Step 4: Pay Renewal Fees

• Fees vary by entity type:
  • Financial institutions: PHP 5,000 to PHP 20,000.
  • DNFBPs: PHP 1,000 to PHP 5,000.
  • Payment is made online via bank transfer, credit card, or through accredited payment channels. Proof of payment must be uploaded.

Step 5: Review and Submission

• The system performs an automated preliminary check for completeness.
• Submit the application electronically. A confirmation email with a reference number will be sent.

Step 6: AMLC Review and Approval

• The AMLC Secretariat reviews the application for compliance. They may request additional information or conduct a virtual/on-site inspection if red flags are identified (e.g., high-risk operations).
• If approved, a digital COR is issued via email, with a physical copy available upon request. The renewed COR will be valid for another three (3) years.

Step 7: Post-Renewal Obligations

• Display the COR prominently at business premises and on your website (if applicable).
• Continue submitting covered transaction reports (CTRs) and STRs through the AMLC Reporting System.
• Update the AMLC within thirty (30) days of any material changes (e.g., change in beneficial ownership).

Requirements for Renewal

To ensure a smooth renewal, prepare the following:

1. Basic Documents:

   • Valid business registration (e.g., SEC Certificate of Incorporation, DTI Registration for sole proprietorships).
   • Latest General Information Sheet (GIS) or equivalent for corporations.
   • Business permits and licenses from local government units (LGUs) and supervising authorities.

2. AML/CFT-Specific Documents:

   • Updated MLPP, approved by senior management.
   • Proof of AML/CFT training for compliance officers and staff (e.g., certificates from AMLC-accredited programs).
   • Risk assessment report identifying ML/TF vulnerabilities.
   • Declaration of beneficial owners (UBO) in compliance with SEC Memorandum Circular No. 15 (2019).

3. Financial and Compliance Proofs:

   • Audited financial statements for the past year.
   • Certification of no pending AML/CFT cases or violations.
   • Proof of payment for renewal fees.

4. Additional for Specific Entities:

   • For VASPs: BSP license or registration.
   • For casinos: PAGCOR license renewal proof.
   • For DNFBPs: Professional licenses (e.g., PRC ID for accountants).

All documents must be current, notarized where required, and submitted in English or with certified translations.

Timelines, Fees, and Penalties

• Timelines: Applications must be filed 60 days prior to expiration. Late filings may incur penalties and require justification.
• Fees: As noted, fees range from PHP 1,000 to PHP 20,000, non-refundable. Additional charges apply for expedited processing or inspections.
• Penalties for Non-Renewal:
  • Administrative fines under Section 36 of the AMLA IRR: Up to PHP 500,000 per day of delay.
  • Suspension or revocation of the COR, leading to business closure.
  • Criminal liabilities if non-renewal facilitates ML/TF, with imprisonment from 6 months to 14 years and fines up to PHP 3 million.
  • Blacklisting by the AMLC, affecting access to financial systems.

Challenges and Best Practices

Common challenges include delays in document preparation, technical issues with the ARS, and evolving regulatory requirements (e.g., post-FATF evaluations). Best practices include:

• Appointing a dedicated AML Compliance Officer (AMLCO) to oversee renewal.
• Using AMLC's helpdesk for queries (email: secretariat@amlc.gov.ph).
• Integrating renewal into annual compliance calendars.
• Staying updated via AMLC newsletters and seminars.

Conclusion

Renewing the AMLC Certificate of Registration is a critical compliance obligation that reinforces the Philippines' commitment to a robust AML/CFT regime. By adhering to the outlined process, covered persons not only avoid legal repercussions but also contribute to national efforts against financial crimes. As the regulatory environment continues to adapt to global threats, proactive engagement with the AMLC ensures sustained business integrity and resilience. For the most current details, refer directly to the AMLC website or consult a qualified legal expert specializing in Philippine financial regulations.