Question

A bank recently discovered suspicious transactions in one of its accounts. After conducting due diligence, they believe that these transactions may be related to money laundering activities. The bank wishes to avail of the Safe Harbor Provision under the Anti-Money Laundering Act to protect itself from liability.

In relation to the Safe Harbor Provision provided under Section 9 of the Anti-Money Laundering Act (R.A. No. 9160, as amended by R.A. Nos. 9194, 10167, 10365, 10927, and 11521), answer the following:

1. What are the requirements or conditions that banks must comply with to qualify for the Safe Harbor Provision? Explain briefly.
2. Assuming that the bank satisfies all the necessary requirements, what protection does the Safe Harbor Provision provide to the bank in terms of liability for possible money laundering activities? Discuss briefly.
3. Enumerate and briefly discuss the actions that the bank should take in order to effectively avail of the Safe Harbor Provision.