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The Commission En Banc, in its meeting on 26 August 2014, prescribed the due date of submission of the Anti-Money Laundering Operating Manual (Manual) and Anti-Money Laundering Compliance Form (Compliance Form) for financing companies (FCs) and lending companies (LCs) which became or may become covered institutions after 08 December 2010, and penalties for noncompliance thereof, as follows:

1. The Manual shall be submitted within sixty (60) days from the time the FC or LC becomes a covered institution after the effectivity of this circular, either by increase of paid-up capital to Php 10 Million or increase of the foreign participation to more than 40% in its voting stock.
2. If the FC or LC became a covered institution after 08 December 2010 but prior to the issuance of this circular, the Manual shall be submitted on or before the 60th day from its fiscal year nearest the date when it became such, or the date given the company upon being notified of said non-submission or on or before 30 October 2014, whichever is earlier.
3. The Compliance Form is a blank form to be filled by the covered institution and shall be submitted to the Commission on the First (1^st) working day of June of the year following the due date of submission of the Manual, and every three (3) years thereafter. Compliance Form is available at the Commission’s website: www.sec.gov.ph.
4. An FC or LC which fails to submit its respective Manual on the prescribed period set under Nos. 1 and 2 above shall be subject to a penalty of Five Hundred Pesos (P500.00) per day of delay or as may be determined by the Commission. The daily penalty shall continue to run until the Manual is submitted to the Commission.
5. An FC or LC which fails to submit its respective Compliance Form on the prescribed period set under No. 3 above shall be subject to a basic penalty of Ten Thousand Pesos (P10,000.00)plus One Hundred Pesos (P100.00)per day of delay and which penalty shall continue until the Compliance Form has been submitted to the Commission.
6. FCs & LCs which were already covered prior to 08 December 2010 were previously given until 08 December 2010 within which to submit the Manual. Hence, non-submission of Manual, or submission of the Manual, after 08 December 2010 shall be subject to appropriate penalty.
7. This Memorandum Circular shall take effect 15 days after its publication in two (2) national newspapers of general circulation and posting same in the Commission’s website.

Issued this 16 of September 2014, Mandaluyong City, Philippines.

For the Commission:

(SGD) TERESITA J. HERBOSA
Chairperson