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Gasol situation

Marc Gasol was never going to simply keep quiet. Not that he didn’t try to stay away from inquiring minds. Thrice since the Lakers formalized their welcome of Andrew Drummond last week, he was asked to meet with scribes. And thrice, he refused comment on the development. No doubt, he figured that if he didn’t have anything good to say, anyway, he would be better off just holding his tongue. Of course, he is who he is, and once opportunity knocked anew, he felt he had no choice but to be his candid self. And that opportunity, ironically enough, came after the purple and gold’s new hire went down with a toe injury and the erstwhile starter found himself on the podium following a relatively solid effort in victory.

Gasol was measured in his responses as he addressed queries from the assembled media. He remains committed to the Lakers, he said. “You have to accept it because that’s your job. And that’s what you sign up to do.” At the same time, he was forthright, noting that “it’s never easy” going from “Plan A [to] Plan C, D… I think there’s an if — if they need you. And that’s a big if.” To be sure, Gasol’s true worth had hitherto been marginal at best; while he was a fixture on the First Five prior to Drummond’s arrival, he normed less than 20 minutes per contest and hardly saw any fourth-quarter action, leading to career lows across the board.

Perhaps Gasol would have been able to get away with posting modest figures had acknowledged leader LeBron James not gone down with an ankle injury two weeks ago. Four straight losses made the Lakers pine for more production and productivity, and Drummond’s availability on the cheap via the buyout market was too good of a bargain to pass up. Unfortunately, the turn of events resulted in him falling to third on the depth chart, next to supersub Montrezl Harrell. And, for all his limited movement as an old 36, he still retained the pride that enabled him to exceed himself in the first place.

And so Gasol wound up exposing his soul to willing listeners. Part of his openness stemmed from his stubborn predisposition; it’s why he was once tabbed a coach killer, with former Grizzlies mentors Dave Joerger and David Fizdale on the receiving end of his strong views. This time around, he had nothing to say against Lakers bench tactician Frank Vogel. He’s not stupid; he knows there’s nothing good coming out of a public challenge to a champion pacing the sidelines — and especially not in the face of his anemic stats. Which is why he said he’s still on board. And which is also why he said “we’ll see.” Indeed.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Pope, at Easter vigil, hopes for post-pandemic rebirth

VATICAN CITY – Pope Francis, leading an Easter vigil service scaled down due to COVID-19, said on Saturday he hoped the dark times of the pandemic would end and that people could rediscover “the grace of everyday life”.

This year has been the second consecutive Easter that all papal services are being attended by only about 200 people in a secondary altar of St. Peter’s Basilica instead of the nearly 10,000 that the largest church in Christendom can hold.

The service began two hours earlier than usual so that participants could get home before a 10 p.m. curfew in Rome, which, like the rest of Italy, is under tough lockdown restrictions during the Easter weekend.

At the start of the service, the basilica was in darkness except for the flames from candles held by participants to signify the darkness in the world before Jesus. As the pope, cardinals and bishops processed to the altar and a cantor chanted three times, the basilica’s lights were turned on.

In his homily, Francis, marking the ninth Easter season of his pontificate, said the festival brought with it the hope for renewal on a personal as well as a global level.

“In these dark months of the pandemic, let us listen to the Risen Lord as he invites us to begin anew and never lose hope,” Francis said.

Just as Jesus brought his message “to those struggling to live from day to day”, he said, people today should care for those most in need on the fringes of society.

“(God) invites us to overcome barriers, banish prejudices and draw near to those around us every day in order to rediscover the grace of everyday life,” Francis said.

On Easter Sunday, the most important day in the Christian liturgical calendar, the pope will deliver his “Urbi et Orbi” (to the city and the world) message.  – Reuters 

 

AREIT, Inc. announces schedule of virtual stockholders’ meeting

Duterte extends ECQ in Metro Manila, nearby provinces

Philippine President Rodrigo R. Duterte extended the stringent lockdown enforced in the country’s capital and nearby provinces until April 11, in an attempt to curb a renewed spike in coronavirus infections.

The Health department on Saturday reported 12,576 new coronavirus disease 2019 (COVID-19) cases, putting the healthcare system under a further strain.

The implementation of an enhanced community quarantine in the National Capital Region (NCR) and the provinces of Bulacan, Rizal, Laguna and Cavite will be extended by another week until April 11, presidential spokesman Herminio L. Roque, Jr. said in a statement.

The week-long hard lockdown, which the President declared last week to address an unprecedented spike in coronavirus infections in the greater Manila area, was to originally set to end on April 4.

The ECQ will be coupled with a strict enforcement of the so-called “prevent, detect, isolate, treat and reintegrate (PDITR) strategy,” Mr. Roque said.

“Health care utilization, case numbers and the PDITR gatekeeping indicators would serve as the parameters to be assessed for the succeeding weeks risk classification,” he said.

“The Department of the Interior and Local Government has been directed to ensure the concerned local government units shall provide these data while the Department of Labor and Employment and the Department of Trade and Industry have been directed to provide the data in the workplaces and establishments.”

The Palace spokesperson said an additional 110 beds for moderate and severe coronavirus cases will be operational “soon” at the Quezon City Institute.

Health Undersecretary Leopoldo J. Vega earlier said all levels of beds dedicated for coronavirus patients and potential cases in Metro Manila have reached a moderate risk level.

He said intensive care unit beds for coronavirus patients in the cities of Quezon, Taguig, Makati and Navotas were already at a “highly critical level.”

The extension of the ECQ in NCR and nearby provinces is likely to hurt a Philippine economy that is still struggling to emerge from recession. Gross domestic product (GDP) slumped by a record 9.5% in 2020, as the government implemented one of the world’s longest and strictest lockdowns.

Duterte extends ECQ in Metro Manila, nearby provinces

Philippine President Rodrigo R. Duterte extended the stringent lockdown enforced in the country’s capital and nearby provinces until April 11, in an attempt to curb a renewed spike in coronavirus infections.

The Health department on Saturday reported 12,576 new coronavirus disease 2019 (COVID-19) cases, putting the healthcare system under a further strain.

The implementation of an enhanced community quarantine in the National Capital Region (NCR) and the provinces of Bulacan, Rizal, Laguna and Cavite will be extended by another week until April 11, presidential spokesman Herminio L. Roque, Jr. said in a statement.

The week-long hard lockdown, which the President declared last week to address an unprecedented spike in coronavirus infections in the greater Manila area, was to originally set to end on April 4.

The ECQ will be coupled with a strict enforcement of the so-called “prevent, detect, isolate, treat and reintegrate (PDITR) strategy,” Mr. Roque said.

“Health care utilization, case numbers and the PDITR gatekeeping indicators would serve as the parameters to be assessed for the succeeding weeks risk classification,” he said.

“The Department of the Interior and Local Government has been directed to ensure the concerned local government units shall provide these data while the Department of Labor and Employment and the Department of Trade and Industry have been directed to provide the data in the workplaces and establishments.”

The Palace spokesperson said an additional 110 beds for moderate and severe coronavirus cases will be operational “soon” at the Quezon City Institute.

Health Undersecretary Leopoldo J. Vega earlier said all levels of beds dedicated for coronavirus patients and potential cases in Metro Manila have reached a moderate risk level.

He said intensive care unit beds for coronavirus patients in the cities of Quezon, Taguig, Makati and Navotas were already at a “highly critical level.”

The extension of the ECQ in NCR and nearby provinces is likely to hurt a Philippine economy that is still struggling to emerge from recession. Gross domestic product (GDP) slumped by a record 9.5% in 2020, as the government implemented one of the world’s longest and strictest lockdowns.

Claim your FREE Covid, Dengue insurance vouchers from Globe At Home starting April 4

Postpaid subscribers of Globe At Home should mark their calendars because starting April 4, 2021 until April 18, 2021, they can claim their FREE COVID-19 and Dengue Insurance for 3 months powered by GInsure and Singlife with coverage of up to P140,500.

This is the latest offering of Globe At Home to its loyal postpaid customers to continuously provide #ExtraCareAtHome protection that goes beyond connectivity.

The 3-month insurance plan offers comprehensive benefits against medical costs such as Php 500 test allowance for Dengue, up to Php 40,000 confinement allowance as well as up to Php 100,000 medical cost reimbursement if diagnosed with COVID-19 or Dengue.

“We recognize the need to provide a sense of safety and peace of mind for our customers as cases in the Philippines continue to surge. We highly encourage our current Postpaid subscribers to avail of this promo to keep themselves protected as we keep them connected through our reliable services and relevant offers,” said Darius Delgado, Globe Vice President and Head of Broadband Business.

Globe At Home makes the health and safety of its loyal postpaid customers a priority by making redemption of this voucher easy through the Globe At Home app.

All current Globe At Home subscribers are eligible for this promo as long as they have the Globe At Home or GCash apps and make sure that their accounts are active and contact details are up to date.

With customers at the core of its service, Globe At Home continues to lead in building new ways to show care for customers as they continue to develop innovations for greater convenience and service upgrades.

Download the Globe At Home app today to claim your FREE 3-month COVID-19 and Dengue Insurance. To know more about Globe At Home, visit https://www.globe.com.ph/broadband.html.

 

Bank lending shrinks for third straight month in February

CREDIT extended by big lenders continued to shrink for a third straight month in February despite faster liquidity growth, reflecting that risk aversion and dampened demand amid the pandemic.

Outstanding loans by universal and commercial banks dropped 2.7% to P8.936 trillion in February from a year earlier, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed. This is steeper than the 2.5% contraction in January and marked the third consecutive month of annual decline in lending activity.

Inclusive of reverse repurchase agreements, bank lending fell 2.3% in February.

The decline in bank lending largely reflects the sluggish economic conditions in the country, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a note.

Loans for production activities dropped 1.3% in February, after a 1.1% decrease in January. This, as borrowings meant for wholesale and retail trade and repair of motor vehicles and motorcycles (-6.3%), financial and insurance activities (-7.5%), and manufacturing (-5.7%) continued to decline.

On the other hand, credit extended to sectors such as real estate (5.1%), electricity, gas, steam, and air-conditioning supply (3.6%), as well as transportation and storage (7.1%) increased.

Consumer loans slumped by 8.3% in February, worse than the 7.3% drop in January. Credit card (-9.6%) and motor vehicle loans (-8.8%) continued to slide, while salary-based general purpose consumption loans slowed to a 4.1% growth from 7.2%.

Banks may be open to extending more credit in the coming months as the Financial Institutions Strategic Transfer (FIST) was recently signed into law, Mr. Ricafort said.

“The FIST Law would be an option available to banks to sell some of their NPLs and other nonperforming assets from their balance sheets, thereby freeing up more funds and helping increase their lending activities,” he said.

Republic Act 11523 or the FIST Act was signed by President Rodrigo R. Duterte in February, while its implementing rules and regulations were released on Monday.

The BSP expects that banks will offload at least P152 billion of their nonperforming assets to FIST Corporations. The central bank estimates the law will bring down the nonperforming loan (NPL) ratio by 0.63 to 0.73 percentage points.

Lenders have tightened their credit standards to prevent a further increase in bad loans in their portfolio. Latest data from the BSP showed the NPL ratio held by big banks stood at 3.7% in January, much higher than the 2.16% a year earlier.

Mr. Ricafort also said the return of stricter restriction measures is a risk factor to lending growth, as business capacity is reduced.

LIQUIDITY BOUNCES BACK
Meanwhile, M3 — which is considered as the broadest measure of liquidity in an economy — expanded by 9.4% in February after its 8.9% growth in January, the central bank said in a separate statement on Wednesday.

Domestic claims saw quicker growth of 5.6% in February, from 4.9% in January.

Net borrowings of the central government increased by 47.1%, quicker than the 39% growth a month earlier.

Meanwhile, net foreign assets rose by 21.8% for the second straight month. Those held by other depository corporations expanded 38.1%, much faster than the 32.6% in January.

“The BSP looks to keep its monetary policy stance supportive of the government’s measures to address the pandemic. The BSP is prepared to take immediate measures as appropriate to ensure ample liquidity and credit in the financial system, consistent with its price and financial stability objectives,” it said.

The central bank last week kept the overnight reverse repurchase, lending, and deposit rates untouched at record lows of 2%, 2.5%, and 1.5%, respectively. — Luz Wendy T. Noble

BSP sees March inflation at 4.2% to 5%

THE central bank continues to see inflation breaching the target range in March, as oil prices rose and the peso weakened against the US dollar.

Headline inflation during the month likely settled within 4.2% to 5%, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in a Viber message to reporters. This is still beyond the 2-4% target set by the BSP.

The BSP’s point inflation projection for March is 4.6%, which, if realized, will be a tad slower than the 4.7% print in February but higher than the 2.5% a year ago.

Mr. Diokno said the hike in oil prices as well as the peso depreciation could drive the uptick in inflation.

Global oil prices have risen on the back of a widely anticipated recovery in demand as the world economy shows signs of recovery.

Locally, gasoline, diesel, and kerosene prices have increased by P6.15, P4.60, and P3.50 per liter as of March 30 year to date, based on data from the Department of Energy.

Meanwhile, the peso closed at P48.53 per dollar on Wednesday, up 1.5 centavos from its previous close. The local unit has depreciated by 50.7 centavos or by 1.05% from its P48.023 finish on Dec. 29, 2020 — the last trading day for the year.

On the other hand, Mr. Diokno said downward adjustments in electricity rates of the Manila Electric Co. (Meralco) and the “lower prices of key food items due to supply conditions and the continued implementation of price caps on meat products” are factors that could have contributed to easing inflation during the month.

Meralco’s overall power rate for March stood at P8.3195 per kilowatt-hour (kWh), which is the lowest overall power rate since August 2017, the firm said. This means that households consuming 300 kWh, 400 kWh, and 500 kWh saw their monthly bills go down by P108, P144, and P180, respectively.

Meanwhile, the government-approved price cap in Metro Manila for pork and chicken products remains in effect until April 8.

“Moving forward, the BSP will continue to monitor evolving economic and financial conditions to ensure that the monetary policy stance remains consistent with the BSP’s price stability mandate,” Mr. Diokno said.

Last week, the central bank maintained the key policy rate at 2% as it continues to provide support to the economy amid emerging risks from the fresh surge in coronavirus cases. The BSP noted the inflation uptick in recent months has been driven by supply-side factors and is better addressed through non-monetary measures.

Officials, however, assured that the BSP will be ready to act in case of evidence of second-round effects such as a clamor for a hike in wages and transport fares.

The Philippine Statistics Authority will report the March inflation data on April 6. — Luz Wendy T. Noble

AMRO slashes Philippine GDP outlook as pandemic rages on

By Beatrice M. Laforga, Reporter

THE ASEAN+3 Macroeconomic Research Office (AMRO) expects the Philippine economy to expand at a slower pace this year than what was previously estimated due to the poor containment of the coronavirus pandemic.

This as the Health department reported 6,128 new coronavirus disease 2019 (COVID-19) infections, bringing the number of active cases to over 130,000.

In its ASEAN+3 Regional Economic Outlook 2021 released on Wednesday, the regional macroeconomic surveillance organization lowered this year’s gross domestic product (GDP) forecast for the Philippines to 6.9% from the 7.4% estimate it gave in January.

“We cannot expect the economy to strongly recover until the virus is under control. What’s going to be important now is targeted containment, containment that’s decisive, effective and proactive as far as possible, and the speedy rollout of vaccines that are accessible and acceptable,” Anne Oeking, economist at AMRO said in a press briefing on Wednesday.

AMRO maintained the Philippine GDP growth projection at 7.8% for 2022.

The latest estimates compare with the 6.5-7.5% target of the Philippine economic managers for 2021 and 8-10% forecast for next year.

Among Southeast Asian economies, AMRO’s GDP estimate for the Philippines is the second highest after Vietnam’s projected 7% expansion for the year. It is also higher than the estimated 4.9% regional average for the Association of Southeast Asian Nations (ASEAN), and 6.7% for ASEAN+3, which includes China, Japan and South Korea.

Ms. Oeking said the Philippines is projected to post one of the highest growth rates in the region due to low base effect, after the economy plunged by 9.5% last year.

“For this year, we actually expect that the growth rate will be one of the better ones in the region, [mainly] because 2020 was so weak, and that does not mean that output losses will be recovered this year,” she said.

The AMRO said the Philippines was among the economies most affected by the pandemic since household spending, one of its biggest growth drivers, was heavily disrupted by stringent lockdown measures.

It also pointed to the government’s “modest” spending, which only accounted for 23.5% of GDP in 2020, compared with the regional peers that rolled out fiscal stimulus of up to 53.9% of economic output.

“Stronger fiscal support should be used to shore up the economy if the recovery were to falter or weaken,” AMRO said.

AMRO said the Philippines will likely post the largest output gap in the region along with Myanmar by 2022.

Both economies are estimated to record 14% lower overall production next year, compared with the output they should have achieved had they grown at the same rate as before the crisis. This compares with Brunei, China and Singapore who have the narrowest output gap estimate of around 2% each.

AMRO said remittances from overseas workers remain a bright spot for the Philippines, as inflows remained resilient during last year’s crisis with only a 0.8% slump against the central bank’s projected 2% contraction.

Headline inflation is expected to average at 3.8% this year and at 3.3% next year, both within the 2-4% annual target of the Philippine central bank, AMRO said.

The general government budget deficit is seen rising to 9.1% by year’s end, before going back to 7.6% level next year.

Meanwhile, AMRO sees the country’s current account surplus to make up 0.9% of GDP in 2021 and 1.2% in 2022.

Other organizations also recently cut their GDP forecasts for the Philippines, including the World Bank who slashed its growth outlook to 5.5% for 2021 from 5.9% previously, and Economic and Social Commission for Asia and the Pacific (ESCAP), a United Nations body, which downgraded its estimate to 6.5% from 7%.

Philippine banks still at risk of continued property sector slump

By Luz Wendy T. Noble, Reporter

PHILIPPINE BANKS are still facing risks from a prolonged weakness in the property market, Fitch Ratings said.

“Fitch remains watchful of any signs of an undue rise in banks’ risk appetite when the economy recovers, as many banks had substantial residential mortgage loans with loan-to-value ratios that exceeded 80% prior to the crisis,” Fitch analysts Tamma Febrian and Willie Tanoto said in a note on Wednesday.

“Sustained weakness in the property market will continue to pressure the banks’ asset quality, which is already on a negative outlook,” they added.

Latest data from the Bangko Sentral ng Pilipinas showed residential property prices picked up in the fourth quarter of 2020 driven mainly by quicker increase in home prices outside Metro Manila.

The central bank’s residential real estate price index rose 0.8% year on year in the October to December period, reversing the 0.4% decline in the third quarter but a slower pace than the 10.4% growth a year earlier.

Home prices recovering at a time when economic recovery is not yet fully stabilized could affect banks’ buffers during the crisis, according to Fitch Ratings.

“Protracted economic weakness could expose the banks to lumpy impairments and diminish their loss-absorption buffers — given their high large-borrower concentration and the strong correlation of the property sector to the broader economy,” the analysts said.

The debt watcher said rated Philippine banks will continue to withstand moderate stress in the real estate sector, while many property developers boosted their liquidity last year to guard against the impact of the crisis.

“We expect the property market to remain soft in the near term, considering the sluggish economic recovery and weak housing affordability,” the analysts said, noting average property prices are nearly 15 times median household income which stands among the highest in Asia-Pacific.

BSP Governor Benjamin E. Diokno said in February that they do not expect “any undue surge in asset prices.”

“While we expect asset price inflation to remain manageable, the BSP continues to closely monitor market conditions for signs of imbalances or the potential presence of asset bubbles,” Mr. Diokno said.

Asset price bubbles occur when prices of stocks, bonds, properties, or commodities increase quickly without underlying fundamentals such as increased demand. Such incidents could be a threat to financial stability.

JG Summit swings to P468-million loss

JG SUMMIT Holdings, Inc. incurred a consolidated net loss of P468 million last year, a reversal of its P31.3-billion net income in 2019, as it took into account nonrecurring fuel hedging losses and a one-off impairment charge from its utility investment Manila Electric Co.

“Coming from a very strong 2019, COVID-19 (coronavirus disease 2019) has clearly disrupted the business, which dented our 2020 operating and financial results,” JG Summit President and Chief Executive Officer Lance Y. Gokongwei said in a statement on Monday.

The company’s core net income after tax finished at P450 million, declining by 98.22% from P25.3 billion the previous year due to the impact of the pandemic on the company’s petrochemical segment and air transport business.

Consolidated revenues for the year declined to P221.6 billion, falling by 27% from P301.8 billion.

JG Summit said its diverse business portfolio and the “strength” of the company’s balance sheet helped it face the pandemic.

Food manufacturing arm Universal Robina Corp. (URC) net income grew by 10% to P10.7 billion. The company said it gained market share in key categories through branded consumer foods (BCF) in the Philippines by introducing new products and keeping up with consumer demands.

URC revenues also inched down by 0.82% to P133.1 billion year on year from P134.2 billion as BCF Philippines saw “flat sales,” while strong revenues from agro-industrial and commodities offset the lower top line of BCF international.

The net income of real estate unit Robinsons Land Corp. declined by 39% to P5.3 billion after taking into account interest expense from its P13.2-billion bond issuance in July 2020 and the additional depreciation of properties that opened in late 2019.

Robinsons Land revenues also dropped 18% last year to P24.9 billion from P30.2 billion previously.

Cebu Air, Inc. suffered a net loss of P22.2 billion, a reversal of its P9.1-billion income in 2019, as travel restrictions were imposed amid the pandemic.

Revenues for the air transport business fell by 73% to P22.6 billion from P84.8 billion the previous year. Passenger traffic fell by 71%. Meanwhile, its cargo business benefited from increased demand for online deliveries, inching down by 6%.

JG Summit Petrochemical Corp. incurred a loss of P2 billion in 2020, a reversal of the P970.6-million income from the previous year. Revenues declined by 27% to P21.3 billion from P29.1 billion in 2019.

“Despite global implementation of strict quarantines, [the petrochemicals group] was able to continue with its manufacturing operations and perform its delivery commitments upon restart of its integrated cracker and polymer operations in early March 2020,” JG Summit said.

Polymer sales volumes increase by 14% in 2020. The petrochemicals group capitalized on demand for packaging of essential items and agricultural requirements, making the company gain market share.

Meanwhile, Robinsons Bank Corp.’s (RBank) net income climbed by 30% to P935 million from P719.4 million on the back of strong revenues, despite setting P1.1 billion in provisions for bad loans.

The banking segment gained P939 million on trading activities, leading to a top line growth of 13% year on year to P9.2 billion from P8.1 billion.

JG Summit said the pandemic prompted it to fast-track its efforts on digitalization for various businesses.

“We will continue to invest in the necessary assets and capabilities needed to sustain the business in the years to come. This will allow us to take advantage of emerging opportunities as the economy pivots back to growth,” Mr. Gokongwei said.

Food business URC dipped into other selling platforms to adjust to lockdown restrictions. Robinsons Land rolled out pickup stations in Robinsons Malls, RDelivery, and RPersonal Shopper for consumers.

Meanwhile, Robinsons Bank launched mobile app RBank Digital, QR code cashless solution QuickR, and RBankMo, where banking agents provide basic financial services.

On Wednesday, JG Summit shares at the stock market declined by 1.81% or P1.10 to close at P59.75. — Keren Concepcion G. Valmonte

SEC rules vs dirty money now cover all financing, lending firms

ALL financing and lending institutions are now covered by the Securities and Exchange Commission’s (SEC) guidelines on anti-money laundering (AML) and combating the financing of terrorism (CFT).

The SEC released on Tuesday the 2020 guidelines on the submission and monitoring of the Money Laundering and Terrorist Prevention Program (MTPP).

The commission said: “There is a need to subject financing companies and lending companies to supervision and monitoring for AML/CFT purposes to ensure that such companies are not used for money laundering or terrorist financing.”

Previous rules covered only financial and lending companies with over 40% foreign participation in its voting stock and those with a paid-up capital of P10 million or more.

The amended guidelines also forego Section 5 of the 2020 Guidelines on the Submission and Monitoring of the Anti-Money Laundering and Terrorist Financing Prevention Program, which provides additional rules for financing and lending companies that have reached the threshold P10-million minimum paid-up capital or those with below 40% foreign equity.

All financing and lending companies supervised by the SEC are required to comply with the requirements under the Anti-Money Laundering Act (AMLA) and the Terrorist Financing Prevention and Suppression Act (TFPSA), their respective implementing rules and regulations, and other guidelines of the Anti-Money Laundering Council (AMLC).

Companies are also expected to register with the AMLC’s online reporting system, in accordance with the AMLC registration and reporting guidelines.

Financial and lending companies not yet registered with the AMLC are given two months from the effectivity of the amended guidelines to register and submit proof to the SEC’s Anti-Money Laundering Division of the Enforcement and Investor Protection Department (AMLD-EIPD).

“The AMLD-EIPD shall enforce and monitor compliance with this circular in coordination with other operating departments of the commission and impose the applicable sanctions for any violation thereof as may be warranted,” the SEC said.

A detailed and risk-based money laundering and terrorist financing prevention program should also be created by the companies in accordance to their corporate structure and risk profile. The SEC said these should be compliant to the guidelines of AMLA, TFPSA, and AMLC.

Companies are given two months from the effectiveness of the circular to accomplish their respective programs, which should be approved by their board of directors or its equivalent for local branches of foreign financing or lending companies. — Keren Concepcion G. Valmonte