AMLC REGISTRATION

In 2021, the AMLC, under BSP, required RE brokers to register as “covered persons” to combat money laundering.

Why Require Brokers?

The BSP identified real estate as a potential avenue for money laundering activities. For those unfamiliar, money laundering involves disguising illicitly obtained money to make it appear legitimate.

Example:

Imagine a drug den operator who generates large sums of money. Depositing such cash directly into a bank would raise red flags and require. The bank teller would require proof of

a legitimate source, which the he wouldn’t have.

Instead, they could use the cash to purchase RE (in cash). RE is the perfect option because it:

1. Allows large amounts to be moved in 1 transaction.

2. Appreciates.

3. Is backed by a Title.

After holding onto the property for some time, the individual could sell it and deposit the proceeds into their bank account. If flagged, they could now provide documentation (e.g., a deed of sale) to validate the source of the funds.

At the height of POGO operations in the country, the BSP observed this pattern and responded by requiring RE brokers to report suspicious transactions, particularly large cash payments.

Why Do I Need to Register?

Banking Requirements: Many banks now require proof of AMLC registration for opening new accounts or applying for services such as credit cards.

Account Security: Banks may freeze your account if you cannot provide evidence of registration. This happened to me. Developers likewise need this for accreditation.

How to Register

Visit the AMLC registration portal at: https://portal.amlc.gov.ph/amlc/web/index.htm.

Complete the registration process.

After registering, you will receive a provisional Certificate of Registration (COR) valid for 6 months.

Once your application is reviewed, an official COR will be issued. In my case, I received the official certificate the next day.

Do I Need to Re-register?

Yes, if you registered before April 30, 2024, you must register again.

Complying with AMLC ensures you remain professionally compliant while safeguarding your banking activities.