The Bangko Sentral ng Pilipinas (BSP) Office of the General Counsel and Legal Services said its examiners are entitled to reports submitted by banks to the Anti-Money Laundering Council (AMLC).

These reports, based on a memo signed by BSP Deputy Governor Nestor A. Espenilla Jr., include suspicious transactions reports (STRs) and covered transaction reports (CTRs). He said BSP examiners should be given access when conducting examination of banks and non-banks alike.

The BSP’s legal department argued that in the “exercise of the mandate granted to the BSP to ensure compliance with the AMLA (Anti-Money Laundering Act of 2001), as amended, (BSP) should be provided with the copies of the CTRs and STRs when conducting regular and special examinations.”

The central bank is currently prohibited to such reports because of the Deposit Secrecy Law which bars banks from disclosing information on any of its deposits unless ordered by the local courts.

Under AMLA, banks and other financial institutions are required to report transactions to the AMLC, which was located within the BSP complex. These suspicious transactions include the use of funds gained from illegal activities such as kidnapping for ransom, drug trafficking, graft and corruption, plunder, robbery and extortion, piracy, qualified theft, swindling and smuggling, among others.

Banks are also required to report to the AMLC transactions amounting to P500,000 and higher.

Basically AMLC is the central office that obtains and analyzes financial reports and then discloses it to appropriate government agencies and other FIUs.