Commercial and Investment Bank Operations

COMMERCIAL AND INVESTMENT
BANK OPERATIONS –
PART 1:PDIC, AMLC & OTHER
RELATED LAWS
Presented by:
Jason M. Metra
MM-FM
FM214
PHILIPPINE DEPOSIT INSURANCE CORPORATION
(PDIC) CORPORATE PROFILE
▪ Name of Corporation: PHILIPPINE DEPOSIT INSURANCE CORPORATION

(PDIC)
▪ Classification: GOVERNMENT INSTRUMENTALITY (attached to the
Department of Finance – DOF)
▪ Founding Date: JUNE 22, 1963 (Republic Act 3591, as amended)
▪ Functions: Deposit Insurance, Examination and Resolution of Banks,
Receivership and Liquidation of Closed Banks
▪ Address: 3rd – 1oth floor SSS Bldg., 6782 Ayala Ave., Makati City,
1226, Philippines
▪ Website: www.pdic.gov.ph
▪ Email Address: info@pdic.gov.ph
(PDIC)
(PDIC)
▪ Public Policy Objectives:

– PDIC was established to promote and safeguard the interests of the depositing public by way of
providing insurance coverage on all insured deposits. PDIC also aims to strengthen the mandatory
deposit insurance coverage system to generate, preserve, and maintain faith and confidence in the
country’s banking system, and protect it from illegal schemes and machinations.
▪ Mandates:
– Deposit Insurance. PDIC provides a maximum deposit insurance coverage of PHP500,000 per
depositor per bank. To pay claims on insured deposits, PDIC builds up the Deposit Insurance Fund
(DIF) primarily through assessments of member-banks at an annual flat rate of 1/5 of 1% of their
total deposit liabilities.
– Liquidation of Closed Banks. PDIC proceeds with the liquidation process upon order of the
Monetary Board of the Bangko Sentral ng Pilipinas (BSP). The assets of the closed bank are
managed and eventually disposed to settle claims of creditors in accordance with the preference
and concurrence of credits as provided by the Civil Code of the Philippines.
(PDIC)
– Insurance Risk Mitigation. To ensure financial safety and soundness of banks, PDIC resolves
problem banks through strengthening programs and other resolution measures. It also mitigates
insurance risk through refocused bank examination to identify member-banks that pose risks to
the DIF. Examination findings are used as basis for implementing enforcement actions.
 Membership:
– Membership with PDIC is mandatory for all banks licensed by the BSP to operate in the Philippines:
1.Banks incorporated under Philippine laws, such as commercial banks, savings banks,
mortgage banks, stock savings and loan associations, development banks, cooperative banks, and
rural banks; and
2. Domestic branches of foreign banks.
 As of 31 December 2016, there are 602 member-banks of PDIC. These consist of 42 commercial banks which
include branches of foreign banks, 60 thrift banks (savings banks, mortgage banks, stock savings and loan
associations, and development banks), and 500 rural banks (including cooperative banks).
(PDIC)
▪ Scope of Deposit Insurance Protection
– PDIC provides a maximum deposit insurance coverage of PHP500,000 per depositor per bank. It
covers all types of bank deposits in member-banks whether denominated in local or foreign
currencies. All deposit accounts of a depositor in a closed bank maintained in the same right and
capacity shall be added together. A joint account shall be insured separately from any individually-
owned deposit account.
– As of 31 December 2016, around 54 million accounts in 602 member-banks are covered by deposit
insurance. Of the total number of accounts, 96.4% are with balances not exceeding the maximum
deposit insurance coverage of PHP500,000 per depositor per bank. For the same period, total
deposits in the Philippine banking system amounted to PHP10.5 trillion, of which 21.5% was
covered by deposit insurance.
(PDIC)
▪ Legal Framework
– Republic Act 3591, as amended – AN ACT ESTABLISHING THE PHILIPPINE DEPOSIT
CORPORATION, DEFINING ITS POWERS AND DUTIES AND FOR OTHER PURPOSES. NEW PDIC
CHARTER.pdf
– Republic Act 10846 under RA3591 – AN ACT ENHANCING THE RESOLUTION AND LIQUIDATION
FRAMEWORK FOR BANKS, AMENDING FOR THE PURPOSE REPUBLIC ACT 3591, AS AMENDED
AND OTHER RELATED LAWS. PDIC CHARTER RA10846.pdf
– New Central Bank Act – ESTABLISHMENT AND ORGANIZATION OF THE BANGKO SENTRAL NG
PILIPINAS. RA7653.pdf
– General Banking Law – AN ACT PROVIDING FOR THE REGULATION OF THE ORGANIZATION AND
OPERATIONS OF BANKS, QUASI-BANKS, TRUST ENTITIES AND FOR OTHER PURPOSES or THE
GENERAL BANKING LAW OF 2000. RA8791.pdf
(PDIC)
▪ Mission, Vision and Quality Policy - vision-mission.pdf
▪ Corporate Social Responsibility Statement - CSR Statement_website-2016.pdf
▪ Governance and Structure:
– Board of Directors
▪ The Board of Directors (the “Board”) is primarily responsible for the governance of the Corporation. The
Board is the government’s agent in pursuing economic growth and development within the ambit of the
Corporation’s jurisdiction. To this end, it will be necessary to ensure that only individuals who are fit and
proper by reason of their experience, education, training and competence can be appointed as members of
the Board of PDIC. PDIC, being created by special law, shall have a Board of Directors composed of the
following, as prescribed in its Charter:
▪ The Secretary of Finance who shall be the ex-officio Chairperson of the Board without compensation.
▪ The Governor of the Bangko Sentral ng Pilipinas (BSP) who shall be ex-officio member of the Board without
compensation.
▪ The President of the Corporation, who shall be appointed by the President of the Philippines from a shortlist
prepared by the Governance Commission for Government-Owned or -Controlled Corporations pursuant to
Republic Act No. 10149 to serve on a full-time basis for a term of six (6) years. The President of the
Corporation shall also serve as Vice Chairman of the Board.
▪ Four (4) members from the private sector to be appointed for a term of six (6) years by the President of the
Philippines from a shortlist prepared by the Governance Commission for Government-Owned or -Controlled
Corporations pursuant to Republic Act No. 10149
(PDIC)
▪ Board Committees - BOARD COMMITTEES.pdf
▪ PDIC ORGANIZATION
– Executive Committee
▪ Chairperson: The President
▪ Members: Sector Heads
▪ The ExCom shall have the following responsibilities:
▪ Advise and assist in facilitating the endorsement and/or the approval of the President on matters relating to the
formulation, monitoring and evaluation of corporate policies, plans and programs;
▪ Build a consensus, upon call of the President, on major internal and external developments and concerns that will
affect the Corporation, particularly its policies, plans and major programs; and
▪ Provide a venue for resolution and issues in the implementation of policies, plans and major programs.
▪ In the absence of the President, the Officer-in-Charge (OIC) of the Corporation shall chair the Committee.
Likewise, in the absence of an ExCom member, the OIC of the Sector shall attend the meeting.
▪ The Group Heads of Corporate Planning Group, Internal Audit Group, Corporate Affairs Group, and Head
Executive Assistant - OP shall attend as observers.
▪ The Group Heads of Risk Management Office and Corporate Governance Office shall attend the meeting upon
request of the President/Chairperson.
(PDIC)
– Management Committee
▪ Chairperson: The President
▪ Members: Vice President and up
▪ The ManCom has the following functions:

▪ To provide a venue to communicate decisions and views of the President relating to the
implementation of Corporate policies, plans and major programs; and
▪ To build consensus upon call of the President on internal and external issues that will affect the
Corporation, particularly, its policies, plans and major programs.
▪ The Mancom shall meet at least once every quarter or whenever necessary and may require the
attendance of other officers and staff to provide clarification and/or additional information
during the discussion/s.
▪ In the absence of the President, the Officer-in-Charge of the Corporation shall chair the
Committee.
(PDIC)
▪ Organizational Structure - orgchart.pdf

▪ Human Resource
 Health and Safety of Employees
– Part of the Wellness Program of PDIC is the identification of the top four diseases prevalent among
its personnel. The data are gathered from the results of the employees’ Annual Physical
Examination. Physical and health activities are developed and undertaken by PDIC specifically to
address the top four diseases. The holding of wellness activities and their relation to the top four
diseases are announced through the intranet, the bulletin board and public announcement system.
– Employees are made aware of incidents related to their safety and welfare with corresponding
safety reminders. Before holding fire and earth quake drills, part of the preparation for the drills
involves the dissemination of facts and statistics on fires and earthquakes, the designated
employee-marshals, and exit and safety points during the drills.
(PDIC)
▪ Human Resource
 Addressing Concerns about illegal or unethical practices
− The Grievance Machinery allows employees to convey to their supervisors their dissatisfaction with their
work situation and/or performance rating. If the grievance could not be resolved from the lowest level, it
may be elevated to the next higher level up to the Grievance Committee until a workable solution can be
forged to improve the morale, and eventually, the performance of the employees concerned.
− PDIC adheres to the Revised Rules on Administrative Cases in the Civil Service (RRACCS) and the
Grievance Machinery both of which were issued by the Civil Service Commission, and Memorandum
Circular No. 2012-07, issued by the Governance Commission for GOCCs which gives the Board of
Directors authority to discipline, or remove from office erring Officers. Implementing guidelines have
been issued fleshing out the provisions of the RRACCS and Grievance Machinery. Employees and third
parties may freely air their complaints, which may even be elevated to the Board if the employee
complained of is an Officer. Complainants are assured that their actions will not be taken against them,
more so when formal charges are eventually issued by PDIC against the employee complained of as
PDIC itself then assumes the standing of the complainant in the administrative case, thus insulating the
original complainant from retaliatory actions. Administrative cases involving Officers and employees are
regularly reported to the Board through the Board Governance Committee.
(PDIC)
▪ FINANCIAL HIGHLIGHTS - Financial Highlights - PDIC.pdf
END OF SLIDE - PDIC

ANTI-MONEY LAUNDERING COUNCIL
(AMLC) – BACKGROUND
▪ The Anti-Money Laundering Council (AMLC) was created pursuant to Republic Act
No. 9160, otherwise known as the “Anti-Money Laundering Act of 2001” (AMLA), to
protect the integrity and confidentiality of bank accounts and to ensure that the
Philippines shall not be used as a money laundering site for the proceeds of any
unlawful activity.
▪ The AMLC is the Philippines’ Financial Intelligence Unit (FIU) tasked to implement
the AMLA, as amended by Republic Act Nos. 9194, 10167, and 10365, as well
Republic Act No. 10168, otherwise known as the “Terrorism Financing Prevention
and Suppression Act of 2012”.
▪ VISION
– To be a world-class financial intelligence unit that will help establish and maintain an internationally
compliant and effective anti-money laundering regime which will provide the Filipino people with a
sound, dynamic, and strong financial system in an environment conducive to the promotion of
social justice, political stability, and sustainable economic growth. Towards this goal, the AMLC
shall, without fear or favor, investigate and cause the prosecution of money laundering offenses.
▪ MISSION
– To protect and preserve the integrity and confidentiality of bank accounts
– To ensure that the Philippines shall not be used as a money laundering site for proceeds of any
unlawful activity
– To extend cooperation in transnational investigation and prosecution of persons involved in money
laundering activities, wherever committed
(AMLC) – SEAL
▪ The new AMLC seal features a stylized young Philippine eagle rendered in blue, red,
and yellow strokes. Characterized by strength and a keen vision, the Philippine eagle
is known for its ability to fly high and soar toward its goal. The main elements encase
the text inscriptions “AMLC” and “Anti-Money Laundering Council.” These elements
have no enclosure, signifying openness, freedom, impartiality, and objectivity of the
AMLC.
▪ Principal Elements
– The Philippine eagle, the Philippines’ national bird, is the world’s largest eagle and is a symbol of
strength, courage, and determination in the pursuit of the mandate; independence from outside
forces/pressure; honesty in public service; guardianship against attempts to make the Philippines a
money-laundering site; and the eagle eye for clarity of vision.
– Three strokes represent the three pillars or virtues of the AMLC — independence, integrity, and
cooperation.
– The Council’s acronym, “AMLC,” is given prominence to make the agency more familiar to the
public.
(AMLC) – SEAL
▪ Colors
– The blue stroke represents security, trust, reliability, and responsibility.
– The red stroke symbolizes passion, action, strength, courage, and determination.
– The yellow stroke symbolizes optimism, wisdom, and logic.
– The black font color of the text “AMLC” denotes strength and authority.
▪ Font or Typeface
– BlairMdITC TT, medium, for “AMLC,” characterized by a streamlined, solid, and balanced line,
suggesting AMLC’s way of performing its mandate
(AMLC)
▪ ANTI-MONEY LAUNDERING LAWS
– REPUBLIC ACT NO. 9160 – An Act Defining the Crime of Money Laundering, Providing Penalties
therefor and for Other Purposes or Anti-Money Laundering Act of 2001RA9160.pdf
– REPUBLIC ACT NO. 9194 – An Act Amending Republic Act No. 9160 - 2002 (certain provisions)
RA9194.pdf
– REPUBLIC ACT NO. 10167 – An Act to Further Strengthen the Anti-Money Laundering Law,
Amending for the Purpose Sections 10 and 11 of Republic Act No. 9160, as Amended and for Other
Purposes - 2011 RA_10167.pdf
– REPUBLIC ACT NO. 10365 – An Act Further Strengthening the Anti-Money Laundering Law,
Amending for the Purpose Republic Act No. 9160, as Amended – 2012 RA-10365-BSA.pdf
– REPUBLIC ACT NO. 10927 – An Act Designating Casinos as Covered Persons Under Republic Act No.
9160, a Amended – 2016 20170714-RA-10927-RRD.pdf
(AMLC) – SUMMARY
▪ UNLAWFUL ACTIVITIES UNDER AMLA
– Terrorism and Conspiracy to commit Terrorism, Financing of Terrorism

– Bribery and Corruption of Public Officers
– Fraud
– Malversation of Public Funds and Property
– Forgeries and Counterfeiting
– Human Trafficking
– Violations of Philippine Forestry Laws, Fisheries Laws and Mining Laws
– Violations of Philippine Wildlife Resources Conservation Laws and Caves and Cave
Resources Management Laws
(AMLC) – SUMMARY
▪ UNLAWFUL ACTIVITIES UNDER AMLA
– Carnapping
– Illegal/Unlawful Possession, Manufacture, Dealing in, Acquisition, or Disposition of
Firearms, Ammunition or Explosives
– Fencing (the purchase and sale of stolen goods)
– Violation of Philippine Laws Protecting Migrant Workers and Overseas Filipinos
– Violation of Intellectual Property Rights
– Photo and Video Voyeurism
– Child Pornography, Child Abuse, Exploitation and Discrimination
(AMLC) – SUMMARY
▪ HOW IS MONEY LAUNDERED THROUGH THE FINANCIAL SYSTEM

– Placement – involves initial placement or introduction of the illegal funds into the financial system.
Financial institutions are usually used at this point.
– Layering – involves a series of financial transactions during which the dirty money is passed
through a series of procedures, putting layer upon layer of persons and financial activities into the
laundering process. Ex. wire transfers, use of shell corporations, etc.
– Integration – the money is once again made available to the criminal with the occupational and
geographic origin obscured or concealed. The laundered funds are now integrated back into the
legitimate economy through the purchase of properties, businesses and other investments.
▪ WHY IS MONEY LAUNDERING A PROBLEM
– Money laundering allows criminals to preserve and enjoy the proceeds of their crimes, thus
providing them with the incentives and the means to continue their illegal activities. At the same
time, it provides them the opportunity to appear in public like legitimate entrepreneurs. Organized
crime, through money laundering, is known to have the capacity to destabilize governments and
undermine their financial systems. It is thus a threat to national security.
(AMLC) – SUMMARY
▪ SALIENT FEATURES OF AMLA
1. It criminalizes money laundering, meaning it makes money laundering a crime, and provides penalties
for its commission, including hefty fines and imprisonment.
2. It states clearly the determination of the government to prevent the Philippines from becoming a
haven for money laundering, while ensuring to preserve the integrity and confidentiality of good bank
accounts.
3. It creates an Anti-Money Laundering Council (AMLC) that is tasked to oversee the implementation of
the law and to act as a financial intelligence unit to receive and analyze covered and suspicious
transaction reports.
4. It establishes the rules and the administration process for the prevention, detection and prosecution of
money laundering activities.
5. It relaxes the bank deposit secrecy laws authorizing the AMLC and the Bangko Sentral ng Pilipinas
access to deposit and investment accounts in specific circumstances.
6. It requires covered institutions to report covered and suspicious transactions and to cooperate with the
government in prosecuting offenders. It also requires them to know their customers and to safely keep
all records of their transactions.
(AMLC) – SUMMARY
▪ SALIENT FEATURES OF AMLA
7. It carries provisions to protect innocent parties by providing penalties for causing the disclosure
to the public of confidential information contained in the covered and suspicious transactions.
8. It establishes procedures for international cooperation and assistance in the apprehension and
prosecution of money laundering suspects.
▪ ANTI-MONEY LAUNDERING COUNCIL POWERS
1. Require and receive covered or suspicious transaction reports from covered institutions.
2. Issue orders to determine the true identity of the owner of any monetary instrument or property
that is the subject of a covered or suspicious transaction report, and to request the assistance of a
foreign country if the Council believes it is necessary.
(AMLC) – SUMMARY
▪ ANTI-MONEY LAUNDERING COUNCIL POWERS
3. Institute civil forfeiture and all other remedial proceedings through the Office of the Solicitor General.
4. Cause the filing of complaints with the Department of Justice or the Ombudsman for the prosecution
of money laundering offenses.
5. Investigate suspicious transactions, covered transactions deemed suspicious, money laundering
activities and other violations of the AMLA.
6. Secure the order of the Court of Appeals to freeze any monetary instrument or property alleged to be
the proceeds of unlawful activity.
7. Implement such measures as may be necessary and justified to counteract money laundering.
8. Receive and take action on any request from foreign countries for assistance in their own anti-money
laundering operations.
9. Develop educational programs to make the public aware of the pernicious effects of money laundering
and how they can participate in bringing the offenders to the fold of the law.
10. Enlist the assistance of any branch of government for the prevention, detection and investigation of
money laundering offenses and the prosecution of offenders. In this connection, the AMLC can require
intelligence agencies of the government to divulge any information that will facilitate the work of the
Council in going after money launderers.
11. Impose administrative sanctions on those who violate the law, and the rules, regulations, orders and
resolutions issued in connection with the enforcement of the law.
(AMLC) – SUMMARY
▪ COVERED INSTITUTIONS
– Banks, offshore banking units, quasi-banks, trust entities, non-stock savings and loan associations,
pawnshops, and all other institutions, including their subsidiaries and affiliates supervised and/or
regulated by the Bangko Sentral ng Pilipinas (BSP)
– Insurance companies, holding companies and all other institutions supervised or regulated by the
Insurance Commission (IC)
– Securities dealers, brokers, pre-need companies, foreign exchange corporations, investment
houses, trading advisers, as well as other entities supervised or regulated by the Securities and
Exchange Commission (SEC)
(AMLC) – SUMMARY
▪ CUSTOMER IDENTIFICATION REQUIREMENTS – KYC (KnowYour Customer Rule)
– Covered institutions shall:

▪ Establish and record the true identity of their clients based on official documents.
▪ In case of individual clients, maintain a system of verifying the true identity of their
clients.
▪ In case of corporate clients, require a system verifying their legal existence and
organizational structure, as well as the authority and identification of all persons
purporting to act in their behalf.
▪ Establish appropriate systems and methods based on internationally compliant
standards and adequate internal controls for verifying and recording the true and full
identify of their customers.
(AMLC) – SUMMARY
▪ COVERED TRANSACTIONS
– Transaction in cash or other equivalent monetary instruments involving a total amount in excess of
P500,000.00 within one business day.
▪ SUSPICIOUS TRANSACTIONS
– Transactions, regardless of the amount involved, where the following circumstances exist:
a. there is no underlying legal or trade obligation, purpose or economic justification;
b. the client is not properly identified;
c. the amount involved is not commensurate with the business or financial capacity of the client;
d. taking into account all known circumstances, it may be perceived that the client’s transaction is
structured in order to avoid being the subject of reporting requirements under the Act;
e. any circumstance relating to the transaction which is observed to deviate from the profile of the
client and/or the client’s past transactions with the covered institution;
f. the transaction is in any way related to an unlawful activity or offense under this Act that is about
to be, is being or has been committed; or
g. any transaction that is similar or analogous to the foregoing.
(AMLC) – SUMMARY
▪ REPORTING REQUIREMENTS
– Covered institutions shall report to the AMLC all covered transactions and suspicious
transactions within five working days from occurrence thereof, unless the Supervision
Authority (the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, or
the Insurance Commission) prescribes a longer period not exceeding ten working days.
Should a transaction be determined to be both a covered transaction and a suspicious
transaction, it shall be reported as suspicious transaction.
▪ HOW REPORTING IS DONE?
– The reports on covered and/or suspicious transactions shall be accomplished in the prescribed
formats and submitted within five business days from occurrence of the transactions in a secured
manner to the AMLC in electronic form, either via diskettes, leased lines, or through internet
facilities. The corresponding hard copy for suspicious transactions shall be sent to AMLC at the 5th
Floor EDPC Building, Bangko Sentral ng Pilipinas Complex, Manila, Philippines. All pawnshops
should coordinate with the AMLC thru tel. nos. 523-4421, 521-5662 or 302-3979 on reporting
requirements, procedures and deadlines.
(AMLC) – SUMMARY
▪ SANCTIONS FOR FAILURE to REPORT COVERED OR SUSPICIOUS TRANSACTIONS

– Any person, required to report covered and suspicious transactions failed to do so will be
subjected to penalty of 6 months to 4 years imprisonment or a fine of not less than
P100,000.00 but not more than P500,000.00, or both.
▪ CONFIDENTIALITY RESTRICTIONS ON REPORTING
– When reporting covered transactions or suspicious transactions to the AMLC, covered
institutions and their officers and employees, are prohibited from communicating, directly
or indirectly, in any manner or by any means, to any person, entity, the media, the fact
that a covered or suspicious transaction report was made, the contents thereof, or any
other information in relation thereto. Neither may such reporting be published or aired in
any manner or form by the mass media, electronic mail, or other similar devices. In case of
violation thereof, the concerned officer, and employee, of the covered institution, or
media shall be held criminally liable.
(AMLC) – SUMMARY
▪ OTHER OFFENSES PUNISHABLE UNDER AMLA, AS AMENDED
a. Failure to keep records is committed by any responsible official or employee of a covered
institution who fails to maintain and safely store all records of transactions for 5 years from the dates the
transactions were made or when the accounts were closed. The penalty is 6 months to 1 year
imprisonment or a fine of not less than P100,000.00 but not more than P500,000.00, or both.
b. Malicious reporting is committed by any person who, with malice or in bad faith, reports or
files a completely unwarranted or false information regarding a money laundering transaction against
any person. The penalty is 6 months to 4 years imprisonment and a fine of not less than P100,000.00
but not more than P500,000.00. The offender is not entitled to the benefits of the Probation Law.
c. Breach of Confidentiality. For this offense, the penalty is 3 to 8 years imprisonment and a fine
of not less than P500,000.00 but not more than P1 million. In case the prohibited information is reported
by media, the responsible reporter, writer, president, publisher, manager, and editor-in-chief are held
criminally liable.
d. Administrative offenses. The AMLC, after due investigation, can impose fines from
P100,000.00 to P500,000.00 on officers and employees of covered institutions or any person who
violates the provisions of the AMLA, as amended, the Implementing Rules and Regulations, and orders
and resolutions issued pursuant thereto.
(AMLC)
▪ OTHER LAWS RELATED TO ANTI-MONEY LAUNDERING LAW
– REPUBLIC ACT NO. 10168 – An Act Defining the Crime of Financing of Terrorism, Providing
Penalties therefor and for Other Purposes or also known as The Terrorism Financing Prevention and
Suppression Act of 2012 - RA 10168.pdf
▪ RECENT ISSUE OF AMLA INVOLVING THE RCBC

– AMLA VIDEO.mp4
(AMLC)
▪ REFERENCES
– www.pdic.gov.ph
– www.amlc.gov.ph
– http://www.officialgazette.gov.ph
END OF SLIDE - AMLA

INVESTMENT HOUSE ASSOCIATION OF THE
PHILIPPINES (IHAP) - BACKGROUND
▪ The Investment House Association of the Philippines (IHAP) was established on July
19, 1974 as a non-stock, non-profit organization. Its primary objective is to promote a
better understanding of the role and functions of investment houses and to enhance
their contribution to the growth of Philippine business and the economy particularly
through the development of the capital market.
▪ IHAP was set up following the enactment of the Investment House Law under
Presidential Decree (PD) No. 129 in 1973. The Law defines investment houses as
enterprises engaged in the underwriting of securities of other corporations.
Investment houses may be allowed to perform quasi-banking functions by the
Monetary Board.
▪ Investment-Houses-Law-P.D.-129.pdf
PHILIPPINES (IHAP) - BACKGROUND
▪ Investment houses are subject to regulation by the Securities and Exchange

Commission. Those with quasi-banking license are further supervised by the Bangko
Sentral ng Pilipinas.
▪ Republic Act No. 8366, which took effect in 1997, amended certain sections of the
Investment House Law on citizenship and capital requirement. The foreign
ownership requirement of investment houses was increased to a maximum of sixty
percent (60%) of the voting stock. The minimum paid-in capital for Investment
houses was raised to P300 million.
▪ Since the enactment of PD 129, the investment banking industry has continued to
figure prominently in the development of the Philippine capital market. Specifically,
investment houses have provided a wide range of financial and advisory services
such as issue management and underwriting of public offering of debt and equity
securities, loan syndication and financial packaging and advisory for corporate
mergers, acquisitions and restructuring.
PHILIPPINES (IHAP) – MISSION STATEMENT
▪ We are an organization of investment houses and universal banks bound by a

common purpose of undertaking investment banking activities to promote
Philippine economic growth and enhance the value of Philippine trade, commerce
and industry.
▪ We are committed to pursue our pre-eminent role in providing capital resources for
business development and stability.
▪ We shall provide a forum for continuous flow of information among our members,
our customers and clients, the financial community and our regulatory agencies.
▪ We shall promote improvements in the efficiency of our members' operations and
the effectiveness of the services they render to their markets.
▪ We commit to raise our manpower productivities to global standards through
continuous professional training and development.
PHILIPPINES (IHAP) – MISSION STATEMENT
▪ We commit to instil in our members the highest standards of integrity, morality and
fairness in their professional acts.
▪ We shall work closely with monetary policy making bodies to harmonize investment
banking operation and policies with monetary and economic goals.
▪ We shall cooperate with legislative, executive and other regulatory agencies in the
formulation of laws, rules or regulations relating to investment banking.
▪ We shall develop in our members professional respect for each other and encourage
fair competition.
▪ We shall continuously uphold our commitment to society by supporting the
economic and social needs of the communities we operate in.
PHILIPPINES (IHAP)
▪ REGULAR MEMBER
▪AB Capital & Investment Corp. ▪First Metro Investment Corp.

▪Abacus Capital & Investment Corp. ▪PNB Capital & Investment Corp.
▪ Amalgamated Inv Bancorporation ▪RCBC Capital Corporation
▪Asian Alliance Investment Corp. ▪Investment & Capital Corp. of the
▪BDO Capital & Investment Corp. Philippines
▪BPI Capital Corp. ▪International Capital Corp.
▪Chinabank Capital Corp. ▪PBC Capital Investment Corp.
▪Citicorp Capital Phils., Inc. ▪Multinational Inv Bancorporation
▪CLSA Exchange Capital, Inc. ▪SB Capital Investment Corp.
▪Insular Investment Corporation ▪Unicapital Incorporated
PHILIPPINES (IHAP)
▪ ASSOCIATE MEMBER ▪ FELLOW MEMBER
▪Asia United Bank ▪AFS Philippines, Inc.

▪DBP ▪PJS Law, Puyat Jacinto N. Santos
▪HSBC Law
▪Ing Bank
▪LBP
▪Philippine Export-Import Credit
Agency
▪UBP
▪UCPB
OTHER RELATED LAWS IN BANKING AND
INVESTMENT INSTITUTIONS
▪ REPUBLIC ACT NO. 1405 – An Act Prohibiting Disclosure of or Inquiry into, Deposits
with any Banking Institution and Providing Penalty therefor or the Bank Secrecy
Law. (September 9, 1955) ra1405.pdf
– This law was enacted to encourage individuals to deposit their money in banks instead of
hoarding them.
– Technically, the law prefers that money be deposited in banks so they may be properly
utilized to assist in the economic development of the country.
– The following are the exceptions to the bank secrecy law:
▪ Written permission or consent in writing by the depositor;
▪ In cases of impeachment;
▪ Upon order of the court in cases of bribery or dereliction of duty of public officials;
▪ Upon order of the court in cases where the money deposited or invested is the subject
matter of the litigation;
▪ Upon a subpoena issued by the Ombudsman concerning an investigation it is conducting,
provided that there must already be a case pending in court, the account be clearly identified,
the inspection be limited to the subject matter of the pending case; and the bank personnel and
the depositor must be notified to be present during the inspection;
▪ The BIR can inquire into bank deposits in an application for compromise of tax liability or
determination of a decedent’s gross estate;
▪ The Anti-Money Laundering Council (“AMLC”) can examine bank accounts pursuant to a court
order, where there is probable cause that the deposits are related to an unlawful activity or
money laundering offense;
▪ The AMLC can examine bank accounts, WITHOUT a court order, where there is probable cause
that the deposits are related to certain crimes such as kidnapping for ransom, violation of the
Dangerous Drugs Act, hijacking, destructive arson, murder and violations of RA 6235 (acts
inimical to civil aviation);
▪ The Bangko Sentral can examine bank accounts in the course of its periodic or special
examination regarding compliance with Anti-Money Laundering Law.
▪ Criminal liability for violating the bank secrecy law may be imprisoned for not more
than five (5) years or meted a fine not exceeding Php20,000.00 or both.
▪ REPUBLIC ACT NO. 6426 – An Act Instituting a Foreign Currency Deposit System in
the Philippines and for Other Purposes or also known as the “Foreign Currency
Deposit Act of the Philippines. RA6426.pdf
THANK YOU FOR
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Commercial and Investment Bank Operations

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Commercial and Investment Bank Operations

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COMMERCIAL AND INVESTMENT

▪ Name of Corporation: PHILIPPINE DEPOSIT INSURANCE CORPORATION

▪ Public Policy Objectives:

▪ Scope of Deposit Insurance Protection

▪ The ManCom has the following functions:

▪ Organizational Structure - orgchart.pdf

▪ FINANCIAL HIGHLIGHTS - Financial Highlights - PDIC.pdf

END OF SLIDE - PDIC

▪ ANTI-MONEY LAUNDERING LAWS

▪ UNLAWFUL ACTIVITIES UNDER AMLA

– Terrorism and Conspiracy to commit Terrorism, Financing of Terrorism

▪ UNLAWFUL ACTIVITIES UNDER AMLA

▪ HOW IS MONEY LAUNDERED THROUGH THE FINANCIAL SYSTEM

▪ SALIENT FEATURES OF AMLA

▪ ANTI-MONEY LAUNDERING COUNCIL POWERS

▪ CUSTOMER IDENTIFICATION REQUIREMENTS – KYC (KnowYour Customer Rule)

– Covered institutions shall:

▪ SANCTIONS FOR FAILURE to REPORT COVERED OR SUSPICIOUS TRANSACTIONS

▪ OTHER LAWS RELATED TO ANTI-MONEY LAUNDERING LAW

▪ RECENT ISSUE OF AMLA INVOLVING THE RCBC

END OF SLIDE - AMLA

▪ Investment houses are subject to regulation by the Securities and Exchange

▪ We are an organization of investment houses and universal banks bound by a

▪AB Capital & Investment Corp. ▪First Metro Investment Corp.

▪ ASSOCIATE MEMBER ▪ FELLOW MEMBER

▪Asia United Bank ▪AFS Philippines, Inc.

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