THE Securities and Exchange Commission (SEC) is extending the submission deadline of ‘dirty money’ risk reports until the end of November.
A link to the Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) Inherent Risk Assessment Data Form (AIRDF) for the year 2020 may be accessed through a notice on the SEC’s website.
Securities brokers and dealers, investment houses, underwriters of securities, financing and lending companies, among others, are required to accomplish the report, which assesses the covered person’s (CP) products and services, customer profile, delivery and financial service channels, and the geographical location of customers and other parties included in its transactions.
“The information gathered through the AIRDF shall likewise be used by the commission in implementing its risk-based supervision of the SEC CPs,” the regulator said.
Failure to submit an accomplished AIRDF by Nov. 30 will be considered a violation of SEC Memorandum Circular No. 26, Series of 2020 or the Guidelines in the Implementation of a Risk-Based Approach to AML/CFT and Adoption and Development of a Risk Rating System for SEC Covered Persons.
Violations may result in monetary fines, the issuance of a permanent cease-and-desist order, and a suspension or the revocation of certificate of incorporation. Noncomplying entities may also be subjected to the dissolution of the corporation and the forfeiture of its assets under conditions stated on the Revised Corporation Code.
It may also be grounds for the revocation of the secondary license of the noncompliant corporation. — Keren Concepcion G. Valmonte
