19 March 2003
To: Chief Executive of all authorized insurance institutions
carrying on long term business
Dear Sir/Madam,
Non-cooperative Countries and Territories
I refer to my letter of 18 February 2003 advising you the intention of the Financial Action Task Force to ("FATF") apply counter-measures on the Philippines unless its Government enacts appropriate legislative amendments by 15 March 2003 to address the previously identified deficiencies in its anti-money laundering regime.
On 7 March 2003, the Philippine Government enacted a new law "Republic Act No. 9194 - An Act Amending the Anti-Money Laundering Act of 2001". The FATF has conducted an assessment of the new legislation and decided not to apply counter-measures to the Philippines at this stage. The situation in this country will however be closely reviewed in June 2003. I will keep you informed of any further development on this subject in due course.
Notwithstanding the suspension of the application of counter-measures, the Philippines is still included in the FATF's list of non-cooperative countries and territories("NCCTs") . You are therefore advised to continue to give special attention to businesses and transactions with persons, including companies and financial institutions, in the Philippines, in accordance with Recommendation 21 Note of the FATF Forty Recommendations. Where applicable, the updated list of suspicious activity indicators attached to my letter of 9 January 2003 should be used to help identify reportable suspicious transactions to the Joint Financial Intelligence Unit for prompt investigation in order to ensure compliance with the Guidance Note on Prevention of Money Laundering.
A copy of the FATF press release of 13 March 2003 in respect of the Philippines is attached at Annex for your reference.
The FATF will review the NCCT list from time to time. Changes to the list, if any, will be conveyed to you through similar advisory in due course.
Should you have any enquiries, please contact Mr. William Hsieh at 2867 4529 or Ms. Joanne Lin at 2867 2557.
Yours sincerely,
(Benjamin Tang)
Commissioner of Insurance
Note:
Recommendation 21 : Financial institutions should give special attention to business relations and transactions with persons, including companies and financial institutions, from countries which do not or insufficiently apply these Recommendations. Whenever these transactions have no apparent economic or visible lawful purpose, their background and purpose should, as far as possible, be examined, the findings established in writing, and be available to help supervisors, auditors and law enforcement agencies.
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