Source Document
Manual of Regulations for Banks
BSP.MORB.2023.Sec903.p3.OBL1
Manual of Regulations for Banks > 903 SCOPE OF REGULATIONS > 903
Obligation Summary
When a host country's AML/CFT rules are weaker, covered persons and their foreign branches and majority-owned subsidiaries must still apply the stricter Philippine AMLA/TFPSA-consistent measures, as far as host-country law allows.
In cases where the minimum AML/CFT requirements of the host country are less strict, covered persons, including their foreign branches and majority-owned subsidiaries abroad, shall apply AML/CFT measures consistent with the AMLA and the TFPSA and their respective RIRR, and other AMLC and Bangko Sentral issuances, to the extent that the laws and regulations of the host country permit.
MORB, Sec. 903, p. 3 (2023 ed.) · Manual of Regulations for Banks · p. 3
authority’s directive, as the case may be; and (2) apply appropriate additional measures or mitigating controls to manage the ML and TF risks.
In cases where the minimum AML/CFT requirements of the host country are less strict, covered persons, including their foreign branches and majority-owned subsidiaries abroad, shall apply AML/CFT measures consistent with the AMLA and the TFPSA and their respective RIRR, and other AMLC and Bangko Sentral issuances, to the extent that the laws and regulations of the host country permit.
What This Requires.
ProfytAI Regulatory Intelligence
Type: conditionWhere a host country's minimum AML/CFT requirements are less strict, requires the covered person and its foreign branches and majority-owned subsidiaries abroad to apply AML/CFT measures consistent with the AMLA, the TFPSA, and related implementing rules and BSP/AMLC issuances, to the extent host-country law allows.
Relationship
Final item in the lettered 'b' sequence under Sec903; follows directly from the host-country notification duty (Sec903.b.p2.OBL3), addressing the related but distinct case where the host country permits implementation but sets a lower AML/CFT minimum.
Why This Exists
Prevents covered persons from using weaker foreign jurisdictions to lower their AML/CFT standards, keeping the Philippine-mandated baseline in place across the group wherever host law permits it.
Implementation Considerations
Typically involves comparing home and host AML/CFT standards, applying the stricter Philippine-consistent measures across foreign branches and subsidiaries, and documenting any instance where host law caps that application.
Interpretation Note · Applies specifically to foreign branches and majority-owned subsidiaries, not all affiliates; the higher standard applies only to the extent host-country law permits, a scope limiter rather than an exception to read broadly.
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