FOR: & Sigrsire, te. eine: Republic of the Philippines DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT ANTI-MONEY LAUNDERING COUNCIL Joint Memorandum Circular No.: 0 Series of 2023 Date: 1.02 2023 ALL PROVINCIAL GOVERNORS, CITY AND MUNICIPAL MAYORS, PUNONG BARANGAYS, BUSINESS PERMITTING AND LICENSING OFFICERS, DILG REGIONAL AND FIELD OFFICERS, BARMM MINISTER FOR THE INTERIOR AND LOCAL GOVERNMENT, AND ALL OTHERS CONCERNED SUBJECT: GUIDELINES IN ISSUANCES OF BUSINESS PERMITI/LICENSE OF THE DESIGNATED NON-FINANCIAL BUSINESSES AND PROFESSIONS (DNFBPs) PURSUANT TO RA 9160, ALSO KNOWN AS THE ANTI-MONEY LAUNDERING ACT OF 2001, AS AMENDED SECTION 1. BACKGROUND 14. The Anti-Money Laundering Council (AMLC) is the implementing agency of Republic Act (RA) No. 9160, also known as the Anti-Money Laundering Act of 2001, as amended, (AMLA) and RA No. 10168, also known as the Terrorism Financing Prevention and Suppression Act of 2012 (TFPSA). Section 7(10) of the AMLA empowers the AMLC to enlist the assistance of any branch, department, bureau, office, agency, or instrumentality of the government, including the use of personnel, facilities, and resources for the efficient execution of anti-money laundering/counter-terrorism financing matters or operations. The Department of the Interior and Local Government (DILG) pursuant to its delegated authority by the President, exercises general supervision over local government units throughout the country, as provided for under Section 25 of RA No. 7160, otherwise known as the Local Government Code of 1991 . With the inclusion of the Designated Non-Financial Businesses and Professions (DNFBPs) in the definition of Covered Persons under Sections Page 1 of 9 rT OF Py ao OFFICIAL ‘ ELEARE! “yy Recoros SHOTION RS 409 W3203(a), (4), (5), (6), (7), (8), (9) and (10) of Republic Act No. 9160 otherwise known as the “Anti-Money Laundering Act of 2001” (AMLA), as amended, who are required to be registered with the AMLC, the closer coordination between AMLC and the DILG, through the local government units, on licensing and registration of DNFBPs, is imperative to ensure compliance with the law and attain the objective on countering money laundering and terrorist financing SECTION 2. PURPOSE The primary goal of this JMC is to enhance coordination between the AMLC and the LGUs on DNFBP licensing and registration in order to: (1) improve regulation of these Covered Persons; (2) prevent and mitigate practices prejudicial to public interests as much as possible; and (3) establish the minimum requirements and standards under which they may be established and conduct business. Specifically, these guidelines prescribe the procedure and requirements in licensing and registration of DNFBPs 2H 2.2 There is a need to protect the public from threats of money laundering and terrorism financing (MLTF) by, among others, ensuring that DNFBPs operate with the necessary permits or licenses from the local government units and are registered with the AMLC. There is a need for the AMLC to identify DNFBPs who are not registered, and for the AMLC and the local government units to have a coordinated process of licensing and registration that is both vigilant and effective. In order to effectively implement the respective regulatory and supervisory authorities of the AMLC and the city and municipal government units over the operations of DNFBPs, itis necessary for them to share information that may be available in the course of the performance of their functions. SECTION 3. LEGAL COMPLIANCE 3.1 3.2. 3.3. Sections 3(a)(4), (5), (6), (7), (8), (9) and (10) of Republic Act No. 9160 otherwise known as the “Anti-Money Laundering Act of 2001" (AMLA), as amended. Section 3.2, Rule 4 of the 2018 Implementing Rules and Regulations of the AMLA, as amended (2018 IRR) requires licensing or business registration authorities to prescribe registration with the AMLC as a requirement for continued licensing and/or operations of covered persons. Section 1.1.1(e), Rule 6 of the 2018 IRR authorizes the AMLC to conduct onsite and offsite examination or other forms of compliance checking mechanism on covered persons to determine their level and quality of compliance with, the AMLA and TFPSA, their respective IRRs, and other AMILC issuances Page 2 0f 93.4, Section 7(10) of the AMLA empowers the AMLC to enlist the assistance of any branch, department, bureau, office, agency or instrumentality of the government, including the use of personnel, facilities and resources for the efficient execution of anti-money laundering/counter-terrorism financing matters or operations; ‘SECTION 4. SCOPE/COVERAGE 44. 4.2. This shall cover all Provincial Govemors, City and Municipal Mayors, Punong Barangays, their respective Business Permitting and Licensing Officers, the members of the Sangguniang Panglungsod, Sangguniang Bayan, and Sangguniang Barangay, DILG Regional and Field Officers, BARMM Minister for the Interior and Local Government, and All Others Concemed This likewise covers Designated Non-Financial Businesses and Professions (DNFBPs) as defined in this JMC and Section 2 of AMLC Regulatory Issuance (ARI) No. 03, series of 2021 SECTION 5. APPLICABILITY This shall apply to all new, pending and renewal applications for business permit or Mayor's Permit. SECTION 6. DEFINITION OF TERMS For purposes of this policy, the following terms are hereby defined: 6.1. 6.2. 63. 64. Anti-Money Laundering Act (AMLA) — refers to Republic Act (RA) No. 9160, as amended by RA Nos. 9194, 10167, 10365, 10927, 11521 or other laws that may subsequently amend the AMLA. Anti-Money Laundering Council (AMLC) - refers to the Philippines’ central anti-money laundering/counter-terrorism financing (AML/CTF) authority and financial intelligence unit, which is the government instrumentality mandated to implement the AMLA and TFPSA. It also refers to the official name of the Council, which is the governing body of the said government agency. Certificate of Registration (COR)- refers to the document evidencing registration issued by AMLC to a DNFBP. Provisional Certificate of Registration (PCOR)- refers to the document evidencing temporary registration issued by the AMLC to a DNFBP (with validity of six (6) months, with a one-time extension of six (6) months upon approval of the Executive Director of the AMLC). Page 3 of 96.5. Designated Non-Financial Businesses and Professions (DNFBPs) — refer to particular businesses and professions designated as covered persons under the AMLA. These are: (1) (2) (3) 4) (5) Jewelry dealers, dealers in precious metals and dealers in precious stones (DPMS); Company service providers (CSP) which, as a business, provide any of the following services to third parties: (a) Acting as a formation agent of juridical persons; (b) Acting as (or arranging for another person to act as) a director or corporate secretary of a company, a partner of a partnership, or a similar position in relation to other juridical persons; (c) Providing a registered office; business address or accommodation, correspondence or administrative address for a company, a partnership or any other juridical person or legal arrangement, and (@) Acting as (or arranging for another person to act as) a nominee ‘shareholder for another person. Persons, including lawyers, accountants and other professionals (Professional Service Providers/PSP), who provide any of the following services: (a) Managing of client money, securities or other assets; (b) Management of bank, savings, securities or other assets; (©) Organization of contributions for the creation, operation or management of companies, and (d) Creation, operation or management of juridical persons or arrangements, and buying and selling business entities Real estate brokers (REB) and real estate developers RED), and Offshore Gaming Operators (OGO), as well as their service providers (OGO-SPs), supervised, accredited or regulated by the Philippine Amusement and Gaming Corporation (PAGCOR) or any Appropriate Government Agency (AGA). Page 4 of 9SECTION 7. POLICY CONTENT AND GUIDELINES The following procedures in the issuance of business license or permit to, and registration of, DNFBPs as well as the revocation or cancellation of their registration by the AMLC and the concemed city or municipality, if warranted, are adopted: 1. Issuance of Business License or Mayor's Permit The specific line of business shall be indicated in the business permit or license (e.g., Jewelry Dealer/ Dealers in Precious Metals and Dealers in Precious Stones (DPMS), Company Service Providers (CSP), Professional Service Providers (PSP), Real Estate Brokers (REB), Real Estate Developers (RED), Offshore Gaming Operators (OGO), as well as their service providers (OGO-SPs). 7.1.1. For new entities applying for business permit or license (New Application): The city or municipality shall issue business license or permit to business entities with the following conditions clearly stated in the business permit or license: “Covered Persons/Businesses under the AMLA, as amended, are required to register with the AMLC prior to the start of the operations (Sec. 3.2, Rule 4, 2018 IRR of the AMLA, as amended).” 7.1.1.2.1 Each city or municipality shall submit a semestral report to the AMLC for all the newly registered businesses. 7.1.1.2.2. The AMLC will evaluate the list and determine who are DNFBPs and who failed to register with the AMLC. 7.1.1.2.3. For those who failed to register, the AMLC will notify the DNFBP in writing to require them to register within thirty (30) days from the receipt of notice. 7.1.1.2.4 If after the lapse of thirty (30) days, a particular DNFBP remains unregistered with the AMLC, such non- registration shall be communicated by the AMLC to the city or municipality through the Local Chief Executive for the appropriate action. 7.1.1.2.5 The Local Chief executive shall suspend or revoke the license issued to the DNFBP, pursuant to an Ordinance issued for that purpose. 7.1.2. For renewal of business permits and licenses of DNFBPs: 7.1.1.3.1. The city or municipality shall require existing DNFBPs to present copies of their AMLC Provisional Certificates of Registration (PCOR) or AMLC Certificates of Page 5 of 9Zz 7.3. Registration (COR) duly issued by the AMLC prior to the renewal of their business licenses or permits. 7.1.1.3.2 Failure to submit the PCOR or COR will constitute non- compliance with documentary requirements for the renewal of the business license or permits, and will be the cause for the non-processing of the application for renewal. Information from the AMLC The AMLC shail, on a semestral basis or upon request or spontaneously, provide, through mail, e-mail, or posting in the AMLC Portal or Website, cities and municipalities the following information: (a) () (c) (@) (e) DNFBPs who were issued AMLC PCORs or CORs, including those which were re-issued AMLC PCORs or CORs due to any amendment or revision reflecting change in the business name, address, or type of organization; DNFEBPs with pending applications for registration with the AMLC; DNFEBPs with cancelled PCORs or CORs; DNFBPs and their officers, directors, stockholders or owners who have committed irregularities in the conduct of business, willful failure or refusal to comply with, or violation of any applicable law or any order, instruction, or regulation by the AMLC; and Other information affecting DNFBPs as may be deemed relevant by the AMLC. Information from the LGUs 7.3.1. The cities and municipalities, shall, on semestral basis or upon request or spontaneously, provide the AMLC a report duly certified by the City/Municipal Mayor or their duly designated/authorized representatives, containing the following information: (2) New DNFBPs who have been issued business licenses or permits; (b) DNFBPs who were issued renewal of business licenses or permits, including those that transferred location, changed ownership, or changed their business name; indicating the owner's name and current addresses; (c)_DNFBPs who failed to renew their business licenses/permits; (4) DNFBPs with cancelled business licenses/permits; and Page 6 of 97.3.2. 7.3.3. 7.3.4. (@) Other information affecting DNFBPs, as may be deemed relevant by the concerned cities and municipalities. To facilitate processing of submission, LGU shall submit the report in soft copy, using the AMLC prescribed template [Annex 3 (Template of Semestral Report on DNFBPs)] via electronic mail to. the AMLC's e-mail address: secretariat@amic.gov.ph For those without access to electronic mail, submission may be done through registered mail at the address below: The Executive Director Attention: Commitments and Policy Group Anti-Money Laundering Council 5th Fir, EDPC Building, BSP Complex, Roxas Blvd. cor. Pablo. Ocampo St., Malate 1004 ‘The report shall be submitted on a semestral basis to the AMLC on the following schedule: __ Period Covered _ Frequency 1 Semestral Report 2 week of July 2° Semestral Report 2° week of January of the succeeding year SECTION 8. ROLES AND RESPONSIBILITIES 8.1. Department of the Interior and Local Government 8.2. 8.14 8.1.2. Anti-Money Laundering Coun 8.2.1 8.2.2. 8.2.3. 8.2.4. 8.2.5. Provide policy direction in the implementation of standards and Policies contained in this JMC. Disseminate to all Local Government Units this issuance and to enjoin their compliance. Coordinate the adoption and scaling up of the standards set in this JMC. Provision of technical assistance to the cities and municipalities Ensure coordination with the cities and municipalities especially on exchanging reports. Monitor compliance of Local Government Units on the DNFBPs operator. Provide DILG with the compliance report of the LGU 8.3. Local Government Units (LGUs) Page 7 of 98.3.1. Upon request, assist the AMLC in conducting onsite examination or compliance checking of DNFBPs and to provide information necessary to facilitate such activities. 8.3.2. To ensure proper coordination and facilitate their lines of communication and prompt action, to designate BPLO as a focal person and prepare the necessary report. 8.3.3. Submit semestral report to AMLC as stated in the policy guidelines 8.3.4. Ensure coordination with AMLC in monitoring compliance of DNFBPs, 8.3.5. LGUs shall comply with the provision of this JMC and shall issue the appropriate orders or ordinances to adopt this JMC. SECTION 9. CONFIDENTIALITY PROVISION Any information subject of this JMC that is not public in nature shall be treated with utmost confidentiality and the disclosure of such information shall be subject to such restrictions and conditions prescribed under existing laws, rules and regulations. In addition, all processing of personal data shall be conducted in compliance with the provisions of RA No. 10173 (Data Privacy Act of 2012) and its corresponding Implementing Rules and Regulations. SECTION 10. DISPUTE SETTLEMENT The DILG and AMLC shall exert their best efforts to amicably settle any disputes arising out of or in connection with this JMC. In case of failure to amicably settle such disputes, the DILG and AMLC shall observe the applicable dispute resolution provisions of the Administrative Code of 1987. SECTION 11. FEEDBACK For all inquiries and concems regarding this JMC, all questions should be directed/addressed to: Director, DILG-Bureau of Local Government Development Telephone number: (02) 8925-0356 E-mail: lfrdd.official@amail.com / odblad@amail.com Executive Director, AMLC Telephone number: (02) 87087066 E-mail: secretariat@amlc.gov.ph SECTION 12. SEPARABILITY CLAUSE Page 8 of 9If any section or part of this JMC is held unconstitutional or invalid, the other sections or provisions not otherwise affected shall remain in full force and effect. SECTION 13. REPEALING CLAUSE Allrules, regulations, orders and/or Circulars inconsistent or contrary to the provisions of this JMC are hereby repealed or modified accordingly, SECTION 14. ANNEXES. Hereto attached are the following annexes: Annex 1: Sample Certificate of Registration for DNFBPs ‘Annex 2: Sample Provisional Certificate of Registration for DNFBPs Annex 3: Template of Semestral Report on DNFBPs SECTION 45. EFFECTIVITY This JMC shall take effect immediately upon filing of three (3) certified true copies with the Office of the National Administrative Register, University of the Philippines Law Center. SECTION 16. APPROVING AUTHORITY / ATTY/BENJAMIN C. ABALOS, JR. ATTY. MATTHEW M. DAVID Secretary Executive Director partinent of the Interior and Local Anti-Money Laundering Council Government Page 9 of 9AAA MAAAAMLAAAAALAAAAAEAA EMMA MA MAMMA MMMM MAMMA MEME MMMM AMMA Bh Republic of the Philippir ANTI-MONEY LAUNDERING COUNCIL CERTIFICATE OF REGISTRATION bh is bh h hb bh bh h bh bh bh This is to certify that has duly complied with the registration process of the Anti-Money Laundering Council (AMLC) for the purpose of submitting Covered and Suspicious Transaction Reports pursuant to the Anti-Money Laundering Act (Republic Act 9160), as amended, and its Revised Implementing Rules and Regulations. This certification is issued this___ day of 2022 in the City of Manila. MATTHEW M. DAVID Executive Director Control No.: ONFBP. hhh dk AMA AMA AMADA MMMM MMEM MME M EMEA AAA Mh bn POV Y VIO Y VV VV PVP V Py MAMAMMAAAAD MAA M AAEM ARAMA EMMA AAEM AAA AMAA AA MMA EAM MMMMMAMA AMMA MA AA ARMA R MMMM AMARA MMMM MAMAN h MMA E AMARA ABM eh Republic of the Philippines AMLOC\. ~~ ANTI-MONEY LAUNDERING COUNCIL PROVISIONAL CERTIFICATE OF REGISTRATION This is to certify that has conditionally complied with the requirements for registration with the Anti-Money Laundering Council (AMLC) for the purpose of submitting Covered and Suspicious Transaction Reports (C/STRs) pursuant to the Anti-Money Laundering Act (Republic Act No. 9160), as amended, and the 2018 Implementing Rules and Regulations (IRR). This provisional registration is valid only for a period of six (6) months from date herein, subject to the conditions mentioned in AMLC Regulatory Issuance (ARI) No. 3, Series of 2021. Issued this___ day of 2022 in the City of Manila. MATTHEW M. DAVID Executive Director Control No: DNFBP- AMAA AM MA MAMA BAMA MAMMA EMRE MMARMMMA MMMM AMMA MMM RM ddd ADMMM MDMAA MDME EMMA MAMMA AMAA AMM hh FOF OV OVI YOY VV OVI YV VV OPV VV PY POPPY VV PyANNEX C Province of CITY/MUNICIPALITY OF SEMESTRAL REPORT ON DESIGNATED NON-FINANCIAL BUSINESSES AND PROFESSIONS (DNFBPs) WITH LICENSES/PERMITS ISSUED BY THE CITY/MUNICIPALITY A. Law and Accounting Firms ‘ Contact| Mayor's Permit/ Business Name | Address | e-Mail | Otis Ucense Nov | Issued on a 2 | 3 a | 5 1 B. Real Estate Developers? Contact| Mayor's Permit/ BusinessName | Address | e-Mail heel cence No | 'ssuedon a 2 3 a 5 C. Real Estate Brokers? jis | Mayor's Permit/ Business Name | Address | e-Mail | Contact Details Nor | tssued on 1 fz 3 4 5 I Jewelry Dealers and Dealers in Precious Metal and Stones || Business Name | Address | e-Mail | Contact Details _ Issued on. f ml 2 3 + Real state Developer refers to any natural or juridical person engaged in the business of developing realestate development project forthe account ofthe {eveloper and offering them for sale or lese (Se. 3m] ofthe AMLA, a8 amended), * Real Estate Broker refers toa duly registered and licensed natural person who, fra professional fee, omission or other valuable conslderation, acs as an ‘agent ofa partyin a realestate transaction to offer, adverts, sol, st, promote, mediate, negotiate, or effect the meeting of the mings onthe sale, purchase exchange, mortgage, leas or jin venture, or other similar transaction on real estate or any interes therein (Sec. afn}of the AMLA, as amended). Page 1 of 2a 5 ‘Company Service Providers? Mayor's Permit/ Business Name | Address | e-Mail | Contact Details | UTCoSe yg. | lssued on a 2 3 4 5 Mayor's Permit/ Business Name | Address Contact Details ange No | 'ssued on 1 2 3 4 5 G. Offshore Gaming Operators (OGOs)° i Permi | BisinesaName’ | Address |: Se Mel |SContaceueens | MARESESIMY:,|asney a License No. f 2 | G + [a 5 L [ H. 0GO- Service Providers* Contact| Mayor's Permit Business Name | Address | e-Mail ie license Non | ssuedon 1 | 2 3 I i + 5 ® Company Serie Provider, which, a8 a business, provide any ofthe following services to third partes a) acting as formation agent of juridical persons: () ‘acting 25 (or arranging for another person to act asa director or corporate secretary of company, 2 partner of partnership, ora sila postion nelation tw other juridical persons; c) proviinga registered office, business address or accommodation, correspondence of administrative adress for 3 company, partnership or any other juridical persons or legal arrangement (Sc. [b]3], Rule , 2018 IRR ofthe AMLA, 25 amend). ‘Casino refers toa business authorized by the appropriate government agency to engage in garring operations (Se. 3] ofthe AMLA. as amended + Offshore Gaming Operator refers to an entity engaged in offering online eames of chance or sporting events va the interne using 2 network and software ‘rogram, by themselves or through local service proviers (Sec [al] ofthe AMLA, as amended, and Sec. 30], Titel ofthe 2021 AML/CTF Gusdebnes for ONFEPS} + 0G0-Service Provider refers to duly consttuted business operation who provides components of offshore gaming operations to offshore gaming operators (Sec. 3[al[5] ofthe AMLA, as amended, and Sec 3], Tit Il ofthe 2023 AMLICTE Guidelines for DNFBPS) Page 2 of 2