Rules on Simplified Onboarding Procedures for Low Risk Accounts

August 11, 2020SEC MEMORANDUM CIRCULAR NO. 21-20SUBJECT: Rules on Simplified Onboarding Procedures for Low Risk Accounts WHEREAS, the Securities and Exchange Commission (hereinafter referred to as "SEC" or "Commission"), as the regulator and supervisor of the capital markets, is tasked to uphold the interest of the public and protection of investors at all times. WHEREAS, the Commission, is also mandated to promote the development of the capital markets, encourage the widest participation of ownership in enterprises and enhance the democratization of wealth.WHEREAS, the Commission finds the promotion of financial inclusion by way of a facilitative but safe onboarding process of customers in the securities markets as being consistent with its mandates.WHEREAS, SEC Memorandum Circular No. 16, Series of 2018 (2018 AML/CFT Guidelines) permits covered institution to formulate a risk-based and tiered customer acceptance, identification and retention policy that involves reduced customer due diligence (CDD) for potentially low risk customers and enhanced CDD for higher risk accounts.WHEREAS, the 2015 Implementing Rules and Regulations of the Securities Regulation Code (2015 SRC Rules) prescribes the requirements and procedures...