Copyright 2014 CD Technologies Asia, Inc. and Accesslaw, Inc.

Philippine Law Encyclopedia First Release 2014 1

March 7, 2003
REPUBLIC ACT NO. 9194
AN ACT AMENDING REPUBLIC ACT NO. 9160, OTHERWISE KNOWN AS THE
"ANTI-MONEY LAUNDERING ACT OF 2001"
SECTION 1. Section 3, paragraph (b), of Republic Act No. 9160 is
hereby amended as follows:
"(b) 'Covered transaction' is a transaction in cash or other equivalent
monetary instrument involving a total amount in excess of Five hundred
thousand pesos (P500,000.00) within one (1) banking day."
SECTION 2. Section 3 of the same Act is further amended by inserting
between paragraphs (b) and (c) a new paragraph designated as (b-1) to read as
follows:
"(b-1) 'Suspicious transaction' are transactions with covered
institutions, regardless of the amounts involved, where any of the following
circumstances exist:
"1. there is no underlying legal or trade obligation,
purpose or economic justification;
"2. the client is not properly identified;
"3. the amount involved is not commensurate with
the business or financial capacity of the client;
"4. taking into account all known circumstances, it
may be perceived that the client's transaction is structured in
order to avoid being the subject of reporting requirements
under the Act;
"5. any circumstance relating to the transaction which
is observed to deviate from the profile of the client and/or the
client's past transactions with the covered institution; CAaDTH
Copyright 2014 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Law Encyclopedia First Release 2014 2
"6. the transaction is in any way related to an
unlawful activity or offense under this Act that is about to be,
is being or has been committed; or SEIDAC
"7. any transaction that is similar or analogous to any
of the foregoing."
SECTION 3. Section 3(i) of the same Act is further amended to read as
follows:
"(i) 'Unlawful activity' refers to any act or omission or series or
combination thereof involving or having direct relation to the following:
"(1) Kidnapping for ransom under Article 267 of Act
No. 3815, otherwise known as the Revised Penal Code, as
amended;
"(2) Sections 4, 5, 6, 8, 9, 10, 12, 13, 14, 15, and 16 of
Republic Act No. 9165, otherwise known as the
Comprehensive Dangerous Drugs Act of 2002;
"(3) Section 3 paragraphs B, C, E, G, H and I of
Republic Act No. 3019, as amended, otherwise known as the
Anti-Graft and Corrupt Practices Act;
"(4) Plunder under Republic Act No. 7080, as
amended;
"(5) Robbery and extortion under Articles 294, 295,
296, 299, 300, 301 and 302 of the Revised Penal Code, as
amended;
"(6) J ueteng and Masiao punished as illegal gambling
under Presidential Decree No. 1602;
"(7) Piracy on the high seas under the Revised Penal
Code, as amended and Presidential Decree No. 532;
"(8) Qualified theft under Article 310 of the Revised
Penal Code, as amended;
"(9) Swindling under Article 315 of the Revised Penal
Code, as amended;
Copyright 2014 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Law Encyclopedia First Release 2014 3
"(10) Smuggling under Republic Act Nos. 455 and
1937; SEIDAC
"(11) Violations under Republic Act No. 8792,
otherwise known as the Electronic Commerce Act of 2000;
"(12) Hijacking and other violations under Republic
Act No. 6235; destructive arson and murder, as defined under
the Revised Penal Code, as amended, including those
perpetrated by terrorists against non-combatant persons and
similar targets; aCTcDS
"(13) Fraudulent practices and other violations under
Republic Act No. 8799, otherwise known as the Securities
Regulation Code of 2000;
"(14) Felonies or offenses of a similar nature that are
punishable under the penal laws of other countries."
SECTION 4. Section 4 of the same Act is hereby amended to read as
follows:
"SEC. 4. Money Laundering Offense. Money laundering is a
crime whereby the proceeds of an unlawful activity as herein defined are
transacted, thereby making them appear to have originated from legitimate
sources. It is committed by the following:
"(a) Any person knowing that any monetary
instrument or property represents, involves, or relates to, the
proceeds of any unlawful activity, transacts or attempts to
transact said monetary instrument or property.
"(b) Any person knowing that any monetary
instrument or property involves the proceeds of any unlawful
activity, performs or fails to perform any act as a result of
which he facilitates the offense of money laundering referred
to in paragraph (a) above.
"(c) Any person knowing that any monetary
instrument or property is required under this Act to be
disclosed and filed with the Anti-Money Laundering Council
(AMLC), fails to do so."
Copyright 2014 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Law Encyclopedia First Release 2014 4
SECTION 5. Section 7 of the same Act is hereby amended as follows:
"SEC. 7. Creation of Anti-Money Laundering Council (AMLC).
The Anti-Money Laundering Council is hereby created and shall be composed
of the Governor of the Bangko Sentral ng Pilipinas as chairman, the
Commissioner of the Insurance Commission and the Chairman of the
Securities and Exchange Commission as members. The AMLC shall act
unanimously in the discharge of its functions as defined hereunder:
"(1) to require and receive covered or suspicious
transaction reports from covered institutions; SEIDAC
"(2) to issue orders addressed to the appropriate
Supervising Authority or the covered institution to determine
the true identity of the owner of any monetary instrument or
property subject of a covered transaction or suspicious
transaction report or request for assistance from a foreign
State, or believed by the Council, on the basis of substantial
evidence, to be, in whole or in part, wherever located,
representing, involving, or related to, directly or indirectly, in
any manner or by any means, the proceeds of an unlawful
activity.
"(3) to institute civil forfeiture proceedings and all
other remedial proceedings through the Office of the Solicitor
General;
"(4) to cause the filing of complaints with the
Department of J ustice or the Ombudsman for the prosecution
of money laundering offenses;
"(5) to investigate suspicious transactions and covered
transactions deemed suspicious after an investigation by
AMLC, money laundering activities, and other violations of
this Act;
"(6) to apply before the Court of Appeals, ex parte, for
the freezing of any monetary instrument or property alleged to
be the proceeds of any unlawful activity as defined in Section
3(i) hereof; HCaEAT
"(7) to implement such measures as may be necessary
and justified under this Act to counteract money laundering;
Copyright 2014 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Law Encyclopedia First Release 2014 5
"(8) to receive and take action in respect of, any
request from foreign states for assistance in their own
anti-money laundering operations provided in this Act;
"(9) to develop educational programs on the
pernicious effects of money laundering, the methods and
techniques used in money laundering, the viable means of
preventing money laundering and the effective ways of
prosecuting and punishing offenders;
"(10) to enlist the assistance of any branch, department,
bureau, office, agency or instrumentality of the government,
including government-owned and -controlled corporations, in
undertaking any and all anti-money laundering operations,
which may include the use of its personnel, facilities and
resources for the more resolute prevention, detection and
investigation of money laundering offenses and prosecution of
offenders; and SEIDAC
"(11) to impose administrative sanctions for the
violation of laws, rules, regulations and orders and resolutions
issued pursuant thereto."
SECTION 6. Section 9(c) of the same Act is hereby amended to read as
follows:
"(c) Reporting of Covered and Suspicious Transactions. Covered
institutions shall report to the AMLC all covered transactions and suspicious
transactions within five (5) working days from occurrence thereof, unless the
Supervising Authority prescribes a longer period not exceeding ten (10)
working days.
"Should a transaction be determined to be both a covered transaction
and a suspicious transaction, the covered institution shall be required to report
the same as a suspicious transaction.
"When reporting covered or suspicious transactions to the AMLC,
covered institutions and their officers and employees shall not be deemed to
have violated Republic Act No. 1405, as amended, Republic Act No. 6426, as
amended, Republic Act No. 8791 and other similar laws, but are prohibited
from communicating, directly or indirectly, in any manner or by any means,
to any person, the fact that a covered or suspicious transaction report was
made, the contents thereof, or any other information in relation thereto. In
Copyright 2014 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Law Encyclopedia First Release 2014 6
case of violation thereof, the concerned officer and employee of the covered
institution shall be criminally liable. However, no administrative, criminal or
civil proceedings, shall lie against any person for having made a covered or
suspicious transaction report in the regular performance of his duties in good
faith, whether or not such reporting results in any criminal prosecution under
this Act or any other law. SIDEaA
"When reporting covered or suspicious transactions to the AMLC,
covered institutions and their officers and employees are prohibited from
communicating directly or indirectly, in any manner or by any means, to any
person or entity, the media, the fact that a covered or suspicious transaction
report was made, the contents thereof, or any other information in relation
thereto. Neither may such reporting be published or aired in any manner or
form by the mass media, electronic mail, or other similar devices. In case of
violation thereof, the concerned officer and employee of the covered
institution and media shall be held criminally liable."
SECTION 7. Section 10 of the same Act is hereby amended to read as
follows:
"SEC. 10. Freezing of Monetary Instrument or Property. The
Court of Appeals, upon application ex parte by the AMLC and after
determination that probable cause exists that any monetary instrument or
property is in any way related to an unlawful activity as defined in Section
3(i) hereof, may issue a freeze order which shall be effective immediately.
The freeze order shall be for a period of twenty (20) days unless extended by
the court." SEIDAC
SECTION 8. Section 11 of the same Act is hereby amended to read as
follows:
"SEC. 11. Authority to Inquire into Bank Deposits.
Notwithstanding the provisions of Republic Act No. 1405, as amended,
Republic Act No. 6426, as amended, Republic Act No. 8791, and other laws,
the AMLC may inquire into or examine any particular deposit or investment
with any banking institution or non-bank financial institution upon order of
any competent court in cases of violation of this Act, when it has been
established that there is probable cause that the deposits or investments are
related to an unlawful activity as defined in Section 3(i) hereof or a money
laundering offense under Section 4 hereof; except that no court order shall be
required in cases involving unlawful activities defined in Sections 3(i)(1), (2)
and (12). HTaSEA
Copyright 2014 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Law Encyclopedia First Release 2014 7
"To ensure compliance with this Act, the Bangko Sentral ng Pilipinas
(BSP) may inquire into or examine any deposit or investment with any
banking institution or non-bank financial institution when the examination is
made in the course of a periodic or special examination, in accordance with
the rules of examination of the BSP."
SECTION 9. Section 14, paragraphs (c) and (d) of the same Act is hereby
amended to read as follows:
"(c) Malicious Reporting. Any person who, with malice, or in bad
faith, reports or files a completely unwarranted or false information relative to
money laundering transaction against any person shall be subject to a penalty
of six (6) months to four (4) years imprisonment and a fine of not less than
One hundred thousand Philippine pesos (Php 100,000.00) but not more than
Five hundred thousand Philippine pesos (Php 500,000.00), at the discretion of
the court: Provided, That the offender is not entitled to avail the benefits of
the Probation Law.
"If the offender is a corporation, association, partnership or any
juridical person, the penalty shall be imposed upon the responsible officers, as
the case may be, who participated in, or allowed by their gross negligence, the
commission of the crime. If the offender is a juridical person, the court may
suspend or revoke its license. If the offender is an alien, he shall, in addition
to the penalties herein prescribed, be deported without further proceedings
after serving the penalties herein prescribed. If the offender is a public official
or employee, he shall, in addition to the penalties prescribed herein, suffer
perpetual or temporary absolute disqualification from office, as the case may
be. SIcTAC
"Any public official or employee who is called upon to testify and
refuses to do the same or purposely fails to testify shall suffer the same
penalties prescribed herein.
"(d) Breach of Confidentiality. The punishment of imprisonment
ranging from three (3) to eight (8) years and a fine of not less than Five
hundred thousand Philippine pesos (Php 500,000.00) but not more than One
million Philippine pesos (Php 1,000,000.00) shall be imposed on a person
convicted for a violation under Section 9(c). In the case of a breach of
confidentiality that is published or reported by media, the responsible
reporter, writer, president, publisher, manager and editor-in-chief shall be
liable under this Act."
Copyright 2014 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Law Encyclopedia First Release 2014 8
SECTION 10. Section 15 of Republic Act No. 9160 is hereby deleted. SEIDAC
SECTION 11. Section 23 of the same Act is hereby amended to read as
follows:
"SEC. 23. Effectivity. This Act shall take effect fifteen (15) days
after its complete publication in the Official Gazette or in at least two (2)
national newspapers of general circulation." CIDcHA
SECTION 12. Transitory Provision. Existing freeze orders issued by
the AMLC shall remain in force for a period of thirty (30) days after the effectivity of
this Act, unless extended by the Court of Appeals.
SECTION 13. Effectivity. This Act shall take effect fifteen (15) days
after its complete publication in the Official Gazette or in at least two (2) national
newspapers of general circulation.
Approved : March 7, 2003
Published in the Official Gazette, Vol. 99 No. 21 Page 3328 on May 26, 2003.