Ceiling on Interest Charges for Credit Card set at 24%

The Bank Sentral ng Pilipnas (BSP) has set ceiling on the interest charges for credit card receivables. The issuing bank can only charge 24% per annum.

CGRLAW & Associates

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Diliman, Quezon City

Tel. No. (+63 2) 8277 7239 

      (+63 2) 8985 4322

              (+63 2) 8902 0900

email: claude.requino@cgrlaw.ph

            info@cgrlaw.ph

website: www.cgrlaw.ph

This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. You are hereby notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited and may be violative of Cybercrime Prevention Act.

𝐂𝐒𝐂 𝐫𝐞𝐯𝐢𝐬𝐞𝐬 𝐢𝐧𝐭𝐞𝐫𝐢𝐦 𝐠𝐮𝐢𝐝𝐞𝐥𝐢𝐧𝐞𝐬 𝐨𝐧 𝐚𝐥𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐯𝐞 𝐰𝐨𝐫𝐤 𝐚𝐫𝐫𝐚𝐧𝐠𝐞𝐦𝐞𝐧𝐭𝐬 𝐢𝐧 Government

The Civil Service Commission (CSC) has amended the guidelines on alternative work arrangements (AWA) in government to align with the community quarantine rules issued by the Inter-Agency Task Force on the Management of Emerging Infectious Diseases (IATF).

Under CSC Resolution No. 2000912 promulgated on 14 October 2020, and circularized via CSC Memorandum Circular No. 18, s. 2020, agencies located in areas under Enhanced Community Quarantine (ECQ) and Modified Enhanced Community Quarantine (MECQ) shall adopt work-from-home arrangement, while skeleton workforce may be allowed unless a different operational capacity is provided in agencies providing essential or critical services.

Meanwhile, agencies located in areas placed under General Community Quarantine (GCQ) and Modified General Community Quarantine (MGCQ) may adopt four-day workweek in combination with other AWAs, provided that the required 40-hour workweek is complied with.

On the other hand, "staggered working hours" is renamed as "work shifting/flexible (staggered) working hours" to mean the adoption of flexible reporting hours as a way to limit the number of employees in an office at a given time. This AWA may be adopted regardless of the type of community quarantine being implemented where the agency is located.

𝐕𝐮𝐥𝐧𝐞𝐫𝐚𝐛𝐥𝐞 𝐰𝐨𝐫𝐤𝐞𝐫𝐬

Employees below 21 years old and 60 years old and above, as well as those with immunodeficiency, comorbidity, or other health risk, and pregnant women, and those who live in ECQ, MECQ, GCQ, and MGCQ areas shall be under work-from-home arrangement, except when their services are indispensable under the circumstances or when office work is permitted. Those living with persons with immunodeficiency, comorbidity, or other health risk may also choose to adopt this type of AWA in areas under ECQ, MECQ and GCQ.

Agency heads shall give priority to the preferred reporting schedule of said group of people, including nursing mothers and persons with disabilities (PWDs), whose services are indispensable under the circumstances.

An additional requirement in MC 18 is the submission of a medical certificate and other relevant medical records for employees with immunodeficiency, comorbidity, or other health risk/conditions requesting for a different work schedule or arrangement.

To manage performance of work-from-home employees, agencies may adopt performance standards to guide them in the delivery of assigned tasks, such as the use of a point system.

𝐑𝐮𝐥𝐞𝐬 𝐨𝐧 𝐬𝐮𝐩𝐩𝐥𝐞𝐦𝐞𝐧𝐭𝐚𝐥 𝐩𝐚𝐲

As work-from-home arrangement is output-oriented, employees adopting this type of AWA are not entitled to compensatory overtime credit (COC) or overtime pay.

Meanwhile, employees assigned as skeleton workforce shall be entitled to COC or overtime pay for hours rendered beyond the normal 8 hours on scheduled workdays or 40 hours a week, and those rendered on rest days, holidays, and special non-working days.

On the other hand, employees assigned as skeleton workforce in areas under ECQ and MECQ shall be entitled to hazard pay, on top of the COC or overtime pay as well as other applicable benefits.

𝐎𝐭𝐡𝐞𝐫 𝐚𝐦𝐞𝐧𝐝𝐦𝐞𝐧𝐭𝐬

The CSC also requires agencies to consider their mandate or functions, aside from the type of community quarantine being implemented in the area, in determining the appropriate or applicable type of AWA to be adopted.

Moreover, in implementing AWAs, agencies located in GCQ and MGCQ are mandated to ensure continuous delivery of public services for the entire workweek.

𝐀𝐠𝐞𝐧𝐜𝐲 𝐢𝐧𝐭𝐞𝐫𝐧𝐚𝐥 𝐠𝐮𝐢𝐝𝐞𝐥𝐢𝐧𝐞𝐬

Agencies shall establish their internal guidelines on the alternative work arrangement/s they adopted and implemented including the alternative work arrangement/s of employees who are in transit (daily/weekly) in reporting to work and going home across quarantine areas (ECQ/MECQ/GCQ/MGCQ), as well as from a quarantine area to a quarantine-free area and vice versa. Said guidelines shall guide the administration of employees' work attendance and absences, employee responsibilities, and benefits during the implementation of community quarantine due to the COVID-19 pandemic.

-------------------------

Read the full text of the revised interim guidelines: http://www.csc.gov.ph/.../category/1740-mcno18s2020.html

Press Release CSC

Advisory on the Typologies Report on the Use of Filipinos and Businesses as Dummies

Advisory on the Typologies Report on the Use of Filipinos and Businesses as Dummies

AMLC Advisory Typologies Report on Use of Filipinos and Businesses as Dummies by Foreign Nationals

 The AMLC typologies report on money laundering related to illegal drug activities identified the modus operandi involving Filipino nationals ("front"), who register businesses with the company registries on behalf of foreign nationals, who are the actual and ultimate beneficial owners or the UBOs of the said businesses.

 These companies are under the complete control and operation of the foreign nationals. After registration with the company registry, the "front" goes to the bank (mostly commercial and universal banks are utilized) with the newly acquired business registration permit, to open an account in the name of the business. The said bank account will then be managed and controlled by the foreign nationals - the UBOs, for the purpose of receiving funds from illegal proceeds. Moreover, majority of the registered businesses, as identified in this modus operandi, are discovered to be "shell companies" or inexistent companies. The receiving and/or transacting of proceeds of illegal activities using the scheme and accounts set up by the Filipinos and foreign nationals for that purpose, is a violation of the Anti-Money Laundering Act, as amended.

 The red flag indicators and suspicious behaviors that have emerged from the analysis of the information gathered, which are related to possible money laundering activities associated with illegal drug trade are as follows:

• Significant or large transactions incurred in a short period of time;
• Unjustified large cash deposits;
• Transactions seem to be inconsistent with the customer's financial standing;
• Transaction activity is inconsistent with what is expected from business declaration;
• Unusual transactions or activities compared with normal everyday trade or dealings;
• Application of sophisticated products or use of complex techniques;
• Multiple accounts associated with a single business;
• Structured cash deposits and money transfers;
  • Use of multiple accounts by a single transactor;
  • Use of several money service businesses to send funds; and
• Use of authorized representative with no clear and underlying valid reason or justification.

In relation to the findings of the Typologies Report, covered persons are reminded of the following obligations relating to the Customer Due Diligence (CDD):

• To conduct CDD for the following purposes: (a) To identify the customer, and its agents and beneficial owners; (b) To determine the risk posed by each customer; (c) To establish, maintain, close or terminate the account or business relationship; and (d) To assess the level of monitoring to be applied (Sec. 1.1 Rule 18 of the 2018 IRR).

• For customers that are juridical persons or legal arrangements, CPs should maintain a system of understanding the nature of the customer's business or profession, and ownership and control structure, as well as the authority and identification of all persons purporting to act on their behalf (Sec. 4.2 Rule 18 of 2018 IRR).

• To verify the validity of the authority of the agent and in case it entertains doubts as to whether the account holder or person purporting to act on behalf of the customer is being used as a dummy in circumvention of existing laws, it shall apply enhanced due diligence and file a suspicious transaction report (STR), if warranted (Sec. 5.3 of Rule 18 of 2018 IRR).

• To identify the beneficial owner and take reasonable measures to verify the identity of the beneficial owner, using the relevant information or data obtained from a reliable source, such that the covered person is satisfied that it knows who the beneficial owner is (Sec. 6.1 Rule 18 of 2018 IRR).

• Covered persons who are unable to comply with the relevant CDD measures shall: (a) refuse to open an account, commence business relations or perform the transaction; or shall terminate the business relationship; and (b) File an STR in relation to the customer, if circumstances warrant (Sec. 12 Rule 18 of 2018 IRR).

 When reporting these transactions, CPs are encouraged to use any of these applicable keyword phrases:

1. Front business or front individual
2. Multiple accounts
3. Transactor different from account owner
4. Shell companies
5. Sole proprietorship
6. Wholesale/retail business
7. General merchandise/ Trading business
8. Newly formed business
9. Special power of attorney
10. Use of Agents or representative agents or representative office/authorized representative
11. Methamphetamine hydrochloride / Methamphetamine/Shabu/Ecstasy/Marijuana
12. Illegal drugs
13. Drug trafficking/Drug distributor/Drug peddler
14. Fake identification/IDs
15. Substantial cash deposits
16. Multiple deposits
17. Small-denominated bills

Covered persons are advised that failure to comply with the above requirements of the 2018 IRRs shall be subject to applicable sanctions under Rule IV of Rules of Procedure on Administrative Cases under Republic Act No. 9160 or the Anti-Money Laundering Act of 2001, as Amended, and its Implementing Rules and Regulations, and Guidelines and Other Issuances of the Anti-Money Laundering Council.

Guidelines on the Adjustment Measure Program DO 209

Please be advised that the Department of Labor and Employment issued Department Order No. 209 s. 2020, which give guidelines to the Covid19 Adjustment Measures Program.

1. The Guidelines is applicable to (a) affected establishments that had implemented Flexible Work Arrangements or temporary closure as mitigating measures due to COVID-19 pandemic. (b) Affected workers.

2. Financial support will be given to affected workers equivalent to PhP 5,000.00 in lump sum, non-conditional, regardless of employment status.

3. The private establishment must be eligible and qualified to avail of this program. The employer must apply with DOLE Regional Office and will be evaluated accordingly. The procedure are enclosed in this email.

4. The financial support will be given directly by DOLE Regional Office through bank transfer within 2 weeks upon receipt.

5. Employment Facilitation will be given to employees that are terminated by reason of closure of business.

For everyone's information.

Warm regards,

Atty Claude

Labor Advisory No. 9 and supplemental Labor Advisory No, 11, in relation to the implementation of remedial measure due to the outgoing COVID19 outbreak

The Department of Labor and Employment had issued Labor Advisory No. 9 and supplemental Labor Advisory No, 11, in relation to the implementation of remedial measure due to the outgoing COVID19 outbreak.

DOLE calls for flexi work, other means to deal with Covid-19

News Release
Department of Labor and Employment
March 4, 2020

DOLE calls for flexi work, other means to deal with Covid-19

Amid the creeping impact of the COVID-19 epidemic on global trade and its perceived impact on domestic economies, the labor department announced yesterday a package of measures that would mitigate any potential threat the disease might have on the country's labor market.

In a press briefing, Secretary Silvestre Bello III said that the labor department is preparing a wide-ranging set of actions that would prepare the labor sector from any impact from the epidemic.

Bello said that he has tasked all labor officials, both in the regional offices and those in Philippine Overseas Labor Offices (POLO), to be on alert-footing to allow a quick reporting system on worker displacements and pave the way for countermeasures.

He said the measures will include urging industry leaders to adopt "flexitime" work arrangements for workers in industries that could be affected by an outbreak.

The labor secretary also said that DOLE is preparing to reposition some of the department's financial programs to sectors that might be affected by an outbreak of COVID-19. He said assistance packages like the Adjustment Measures Program (AMP), Tulong Panghanapbuhay sa ating Disadvantaged/Displaced Workers Program (TUPAD), and Government Internship Program (GIP) will be repositioned to help workers in industries that could be affected by the epidemic.

In the same press briefing, Undersecretary Ana Dione said that the flexible work arrangements is a better alternative than the outright termination of the services of the employees or the total closure of the establishment.

"The labor department calls on employers to adopt flexible work arrangements as an alternative measure to save jobs. Instead of totally closing their businesses, we encourage them to adopt schemes such as reduced work days, rotation, and adjusted working hours," the senior labor official said.

OIC-Assistant Secretary Dominique Tutay added that 35 tourism-related establishments involving 3,255 workers have already resorted to flexible work arrangements. The establishments are located in Western Visayas, Central Visayas, and SOCCSKSARGEN regions.

Flexible work arrangements, which are temporary in nature, refer to alternative arrangements or schedules other than the traditional or standard work hours, workdays, and workweek.

It is one of the coping mechanisms and remedial measures in times of economic difficulties and national emergencies and is recognized as beneficial in terms of reducing business costs and saving jobs while maintaining competitiveness and productivity in industries.

Prior to its implementation, the employers shall notify the labor department through the Regional Office which has jurisdiction over the workplace. END/aldm

Failure to Disclose Beneficial Ownership Information in the General Information Sheet (GIS)

NOTICE

Failure to Disclose Beneficial Ownership Information in the General Information Sheet (GIS)

TO: ALL SEC REGISTERED CORPORATIONS REQUIRED TO SUBMIT THE GIS

Notice is hereby given that pursuant to the provisions of Memorandum Circular No. 15, Series of 2019, the reporting corporation is required to disclose beneficial ownership information in the GIS.

Section 4 of the said Memorandum Circular provides that:

"Beneficial ownership shall be determined as follows:

1. The identity of the natural person who ultimately has controlling ownership interest in the corporation.
   xxx

2. The identity of the natural persons (if any) exercising control over the corporation through other means.
   xxx

3. The identity of the natural persons composing the Board of Directors/Trustees/ or any similar body and/or the senior managing official of the reporting corporation.

   This is only in exceptional circumstances where no natural person can be identified as ultimately owning or controlling or exercising ultimate effective control over the corporation through controlling ownership interest, controlling voting rights, or through other means. xxx

Accordingly, the failure to disclose any beneficial owner in the GIS will render it insufficient in form and substance and the same will not be received by the Commission.

For your guidance and strict compliance. 

http://www.sec.gov.ph/wp-content/uploads/2020/01/2020Notice_Failure-to-Disclose-BO_r.pdf

Departing aliens urged to process reentry fees in BI Offices amidst CNY rush

2020 January 20

Departing aliens urged to process reentry fees in BI Offices amidst CNY rush

PASAY, Philippines—Bureau of Immigration (BI) personnel stationed at the Ninoy Aquino International Airport (NAIA) urged alien residents in the country who plan to spend Chinese New Year abroad to process their reentry fees in any of the Bureau's offices before proceeding to the airport.

BI Port Operations Division Chief Grifton Medina issued the appeal following the expected annual surge in volume of travelers lining up to pay their reentry fees to immigration cashiers at the departure areas of the three NAIA terminals.

"We are expecting a surge of Chinese residents in the Philippines who wish to spend the Chinese New Year abroad," said Medina. "It may result to heavy congestion of our airports, which could be avoided if they process and pay their fees before heading to the airport," he added.

The Philippines is host to tens of thousands of Chinese immigrants and non-immigrants. In 2018 alone, a total of 1.3 M Chinese citizens were recorded to have entered the country.

Medina shared that they expect a 10-15% increase in departures during the Chinese New Year. "Last year we saw a 14% increase in departures, this year the increase might be more or less the same," he stated.

Immigration policies require foreign nationals who are registered holders of valid immigrant and non-immigrant visas to pay exit and re-entry permits every time they leave the country.

Said foreign nationals to present official receipts of their reentry permit fees before they are cleared for departure, otherwise they are directed to first pay their fees to BI cashiers at the airport.

"We expect that the surge could congest our immigration cashiers, hence we are appealing to registered aliens to pre-pay their fees to avoid the congestion," he stated.

He mentioned that reentry fees can be paid at the BI main office in Manila and in immigration field, satellite and extension offices nationwide. "The BI has almost 60 offices nationwide that may cater to this need. It's a very quick process, which will only take a few minutes. We also have offices located in malls and other convenient locations," he said. "Coming to the airport

with the receipt at hand makes processing faster, allowing departing aliens to avoid the rush and relax before their flight," he added.

It has been customary practice for many Chinese nationals living abroad to visit their homeland for the Chinese New Year which will be celebrated on January 25. # 

http://immigration.gov.ph/images/News/2020_Yr/01_Jan/2020Jan20_Press.pdf