Republic of the Philippines

Congress of the Philippines

Metro Manila

Twelfth Congress

First Regular Session

Begun and held in Metro Manila, on Monday, the twenty third day of July, two thousand
one.

[REPUBLIC ACT NO. 9160]

AN ACT DEFINING THE CRIME OF MONEY LAUNDERING, PROVIDING PENALTIES

THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in

Congress assembled.

SECTION 1. Short Title. — This Act shall be known as the “Anti-Money

Laundering Act of 2001.”

Section 2. Declaration of Policy. - It is hereby declared the policy of the State

to protect and preserve the integrity and confidentiality of bank accounts and
to ensure that the Philippines shall not be used as a money laundering site
for the proceeds of any unlawful activity. Consistent with its foreign policy,
the State shall extend cooperation in transnational investigations and
prosecutions of persons involved in money laundering activities wherever
committed, as well as in the implementation of targeted financial sanctions
related to the financing of the proliferation of weapons of mass destruction,
terrorism, and financing of terrorism, pursuant to the resolution of the United
Nations Security Council. (RA 11521)

SEC. 3. Definitions. — For purposes of this Act, the following terms are
hereby defined as follows:

(a) ‘Covered persons’, natural or juridical, refer to:

“(1) banks, non-banks, quasi-banks, trust entities, foreign exchange dealers,

pawnshops, money changers, remittance and transfer companies and other
similar entities and all other persons and their subsidiaries and affiliates
supervised or regulated by the Bangko Sentral ng Pilipinas (BSP);

“(2) insurance companies, pre-need companies and all other persons

supervised or regulated by the Insurance Commission (IC);

“(3) (i) securities dealers, brokers, salesmen, investment houses and other
similar persons managing securities or rendering services as investment
agent, advisor, or consultant, (ii) mutual funds, close-end investment
companies, common trust funds, and other similar persons, and (iii) other
entities administering or otherwise dealing in currency, commodities or
financial derivatives based thereon, valuable objects, cash substitutes and
other similar monetary instruments or property supervised or regulated by
the Securities and Exchange Commission (SEC);

“(4) jewelry dealers in precious metals, who, as a business, trade in precious

metals, for transactions in excess of One million pesos (P1,000,000.00);

“(5) jewelry dealers in precious stones, who, as a business, trade in precious

stones, for transactions in excess of One million pesos (P1,000,000.00);

“(6) company service providers which, as a business, provide any of the

following services to third parties: (i) acting as a formation agent of juridical
persons; (ii) acting as (or arranging for another person to act as) a director
or corporate secretary of a company, a partner of a partnership, or a similar
position in relation to other juridical persons; (iii) providing a registered
office, business address or accommodation, correspondence or
administrative address for a company, a partnership or any other legal
person or arrangement; and (iv) acting as (or arranging for another person
to act as) a nominee shareholder for another person; and

“(7) persons who provide any of the following services:

(i) managing of client money, securities or other assets;

(ii) management of bank, savings or securities accounts;

(iii) organization of contributions for the creation, operation or management

of companies; and

(iv) creation, operation or management of juridical persons or arrangements,

and buying and selling business entities.

(8) casinos, including internet and ship-based casinos, with respect to their
casino cash transactiotus related to they gaming operations. (RA10297)

(9) Real estate developers and brokers; (RA11521)

"(10) Offshore gaming operation, as well as their service providers,

supervised, accredited or regulated by the Philippine Amusement and
Gaming Corporation (PAGCOR) or any government agency (RA11521)

“Notwithstanding the foregoing, the term ‘covered persons’ shall exclude

lawyers and accountants acting as independent legal professionals in
relation to information concerning their clients or where disclosure of
information would compromise client confidences or the attorney-client
relationship: Provided, That these lawyers and accountants are authorized to
practice in the Philippines and shall continue to be subject to the provisions
of their respective codes of conduct and/or professional responsibility or
any of its amendments (RA10365)
"(b) 'Covered transactions' 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; for covered
persons under Section 3(a)(8), a single casino cash transaction involving an
amount in excess of Five million pesos (P5,000,000.00) or its equivalent in
any other currency.

"For covered persons under Section 3(a)(9) herein, a single cash transaction
involving an amount in excess of Seven million five hundred thousand pesos
(P7,500,000.00) or its equivalent in any other currency.

"(b-1) 'Suspicious transactions' are transactions with covered persons,

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 person;

"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

"7. Any transaction that is similar or analogous to any of the

foregoing. (RA11521)

(c) “Monetary instrument” refers to:

(1) coins or currency of legal tender of the Philippines, or of any other

country;

(2) drafts, checks and notes;

(3) securities or negotiable instruments, bonds, commercial papers, deposit

certificates, trust certificates, custodial receipts or deposit substitute
instruments, trading orders, transaction tickets and confirmations of sale or
investments and money market instruments; and
(4) other similar instruments where title thereto passes to another by
endorsement, assignment or delivery.

(d) “Offender” refers to any person who commits a money laundering

offense.

(e) “Person” refers to any natural or juridical person.

(f) “Proceeds” refers to an amount derived or realized from an unlawful

activity.

(g) “Supervising Authority” refers to the appropriate supervisory or regulatory

agency, department or office supervising or regulating the covered
institutions enumerated in Section 3(a).

(h) “Transaction” refers to any act establishing any right or obligation or

giving rise to any contractual or legal relationship between the parties
thereto. It also includes any movement of funds by any means with a covered
institution.

"(i) 'Unlawful activity' refers to any act or omission or series or combination

thereof involving or having relation to the following: (RA11521)

“(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, 11, 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) Jueteng 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 and Other Forms of Swindling under Article
316 of the Revised Penal Code, as amended;

“(10) Smuggling under Republic Act Nos. 455 and 1937;

“(11) Violations of 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;

“(13) Terrorism and conspiracy to commit terrorism as defined and

penalized under Sections 3 and 4 of Republic Act No. 9372;

“(14) Financing of terrorism under Section 4 and offenses punishable under

Sections 5, 6, 7 and 8 of Republic Act No. 10168, otherwise known as the
Terrorism Financing Prevention and Suppression Act of 2012:

“(15) Bribery under Articles 210, 211 and 211-A of the Revised Penal Code,
as amended, and Corruption of Public Officers under Article 212 of the
Revised Penal Code, as amended;

“(16) Frauds and Illegal Exactions and Transactions under Articles 213, 214,
215 and 216 of the Revised Penal Code, as amended;

“(17) Malversation of Public Funds and Property under Articles 217 and 222
of the Revised Penal Code, as amended;

“(18) Forgeries and Counterfeiting under Articles 163, 166, 167, 168, 169 and
176 of the Revised Penal Code, as amended;

“(19) Violations of Sections 4 to 6 of Republic Act No. 9208, otherwise known

as the Anti-Trafficking in Persons Act of 2003;

“(20) Violations of Sections 78 to 79 of Chapter IV, of Presidential Decree

No. 705, otherwise known as the Revised Forestry Code of the Philippines,
as amended;

“(21) Violations of Sections 86 to 106 of Chapter VI, of Republic Act No.

8550, otherwise known as the Philippine Fisheries Code of 1998;

“(22) Violations of Sections 101 to 107, and 110 of Republic Act No. 7942,
otherwise known as the Philippine Mining Act of 1995;

“(23) Violations of Section 27(c), (e), (f), (g) and (i), of Republic Act No. 9147,
otherwise known as the Wildlife Resources Conservation and Protection Act;

“(24) Violation of Section 7(b) of Republic Act No. 9072, otherwise known as
the National Caves and Cave Resources Management Protection Act;

“(25) Violation of Republic Act No. 6539, otherwise known as the Anti-
Carnapping Act of 2002, as amended;
“(26) Violations of Sections 1, 3 and 5 of Presidential Decree No. 1866, as
amended, otherwise known as the decree Codifying the Laws on
Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition or
Disposition of Firearms, Ammunition or Explosives;

“(27) Violation of Presidential Decree No. 1612, otherwise known as the Anti-
Fencing Law;

“(28) Violation of Section 6 of Republic Act No. 8042, otherwise known as

the Migrant Workers and Overseas Filipinos Act of 1995, as amended by
Republic Act No. 10022;

“(29) Violation of Republic Act No. 8293, otherwise known as the Intellectual
Property Code of the Philippines;

“(30) Violation of Section 4 of Republic Act No. 9995, otherwise known as

the Anti-Photo and Video Voyeurism Act of 2009;

“(31) Violation of Section 4 of Republic Act No. 9775, otherwise known as

the Anti-Child Pornography Act of 2009;

“(32) Violations of Sections 5, 7, 8, 9, 10(c), (d) and (e), 11, 12 and 14 of

Republic Act No. 7610, otherwise known as the Special Protection of
Children Against Abuse, Exploitation and Discrimination;

"(33) Fraudulent practice and other violations under Republic Actr No. 8799,
otherwise known as "The Securities Regulation Code of 2000; (RA11521)

"(34) Violation of Section 9 (a)(3) of Republic Act No. 10697, otherwise

known as the "Strategic Trade Management Act", in relation to the
proliferation of weapons of mass destruction and its financing pursuant to
United Nations Security Council Resolution Numbers 1718 of 2006 and 2231
of 2015"; (RA11521)

"(35) Violation of Section 254 of Chapter II, Title X of the National Internal
Revenue Code of 1997, as amended, where the deficiency basic tax due in
the final assessment is in excess of Twenty-five million pesos
(P25,000,000.00) per taxable year, for each tax type covered and there has
been a finding of probable cause by the competent
authority: Provided,further, That there must be a finding of fraud, willful
misrepresenting or malicious intent on the part of the
taxpayer: Provided, finally, That in no case shall the AMLC institute forfeiture
proceedings to recover monetary instruments, property or proceeds
representing, involving, or relating to a tax crime, if the same has already
been recovered or collected by the Bureau of Internal Revenue (BIR) in a
separate proceeding and (RA11521)

"(36) Felonies and offenses of a similar nature that are punishable under the
penal laws of other countries. (RA11521)
“(j) Precious metals’ shall mean gold, silver, platinum, palladium, rhodium,
ruthenium, iridium and osmium. These include alloys of precious metals,
solders and plating chemicals such as rhodium and palladium plating
solutions and potassium gold cyanide and potassium silver cyanide and
silver cyanide in salt solution.

“(k) ‘Precious stones’ shall mean diamond, ruby, emerald, sapphire, opal,
amethyst, beryl, topaz, and garnet that are used in jewelry making, including
those formerly classified as semi-precious stones.” (RA10365)

“(l) For purposes of covered persons under Section 3(a)(8), the following
terms are hereby defined as follows:

“(1) ‘Casino’ refers to a business authorized by the appropriate goverment

agency to engage in gaming operations:

“(i) ‘Internet-based casinos’ shall refer a casinos in which persons participate

by the use of remote communication facilities such as, but not limited to,
internet, telephone, television, radio or any other kind of electronic or other
technology for facilitating communication; and

“(ii) ‘Ship-based casino’ shall refer to casinos, the operation of which is

undertaken on board a vessel, ship, boat or any other water-based craft
wholly or partly intended for gambling;

“(2) ‘Casino cash transaction’ refers to transactions involving the receipt of

cash by a casino paid by or on behalf of a customer, or transactions involving
the payout of cash by a casino to a customer or to any person in his/her
behalf; and

“(3) ‘Gaming operations’ refer to the activities of the casino offering games
of chance and any variations thereof approved by the appropriate
government authorities.” (RA10927)

"(m) 'Real estate developer' refers to any natural or juridical person engaged
in the business of developing real estate development project for the account
of the developer and offering them for sale or lease.

"(n) 'Real estate broker' refers to a duly registered and licensed natural
person who, for a professional fee, omission or other valuable consideration,
acts as an agent of a party in a real estate transaction to offer, advertise,
solicit, list, promote, mediate, negotiate, or effect the meeting of the minds
on the sale, purchase, exchange, mortgage, lease or joint venture, or other
similar transaction on real estate or any interest therein.

"(o) 'Targeted financial sanctions' refer to both asset freezing and prohibition
to prevent funds or other assets from being made available, directly or
indirectly, for the benefit of any individual, natural or legal persons or entity
designated pursuant to relevant United Nations Security Council resolution
and its designation processes.
"(p) 'Proliferation financing' refers when a person:

"(1) Makes available an asset; or

"(2) Provides a financial service; or

"(3) Conducts a financial transaction; and the person knows that, or is

reckless as to whether, the asset, financial service or financial
transaction is intended to, in whole or in part, facilitate proliferation of
weapons of mass destruction in relation to UN Security Council
Resolution Number 1718 0f 2006 and 2231 of 2015." (RA11521)

“SEC. 4. Money Laundering Offense. – Money laundering is committed by any

person who, knowing that any monetary instrument or property represents,
involves, or relates to the proceeds of any unlawful activity:

“(a) transacts said monetary instrument or property;

“(b) converts, transfers, disposes of, moves, acquires, possesses or uses

said monetary instrument or property;

“(c) conceals or disguises the true nature, source, location, disposition,

movement or ownership of or rights with respect to said monetary
instrument or property;

“(d) attempts or conspires to commit money laundering offenses referred to

in paragraphs (a), (b) or (c);

“(e) aids, abets, assists in or counsels the commission of the money

laundering offenses referred to in paragraphs (a), (b) or (c) above; and

“(f) performs or fails to perform any act as a result of which he facilitates the
offense of money laundering referred to in paragraphs (a), (b) or (c) above.

“Money laundering is also committed by any covered person who, knowing

that a covered or suspicious transaction is required under this Act to be
reported to the Anti-Money Laundering Council (AMLC), fails to do so.”
(RA10365)

SEC. 5. Jurisdiction of Money Laundering Cases. — The regional trial courts

shall have jurisdiction to try all cases on money laundering. Those
committed by public officers and private persons who are in conspiracy with
such public officers shall be under the jurisdiction of the Sandiganbayan.

“SEC. 6. Prosecution of Money Laundering. –

“(a) Any person may be charged with and convicted of both the offense of
money laundering and the unlawful activity as herein defined.

“(b) The prosecution of any offense or violation under this Act shall proceed
independently of any proceeding relating to the unlawful activity.” (RA10365)

"Section 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 investigate suspicious transactions and covered transactions

deemed suspicious after determination by AMLC, money laundering
activities and other violations of this Act. (RA11521)

(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 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 Justice or the
Ombudsman for the prosecution of money laundering offenses;

(5) to initiate investigations of covered transactions, 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 laundered, proceeds from, or
instrumentalities used in or intended for use in any unlawful activity as
defined in Section 3(i) hereof; ; (RA10365)

(7) to implement such measures as may be necessary and justified under

this Act to counteract money laundering;

(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; and

(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.

(11) to impose administrative sanctions for the violation of laws, rules,

regulations and orders and resolutions issued pursuant thereto” (RA_)

“(12) to require the Land Registration Authority and all its Registries of Deeds
to submit to the AMLC, reports on all real estate transactions involving an
amount in excess of Five hundred thousand pesos (P500,000.00) within
fifteen (15) days from the date of registration of the transaction, in a form to
be prescribed by the AMLC. The AMLC may also require the Land
Registration Authority and all its Registries of Deeds to submit copies of
relevant documents of all real estate transactions.” (RA10365)

"(13) in the conduct of its investigation, the AMLC shall apply for the issuance
of a search and seizure order with any competent court;

"(14) in the conduct of its investigation, the AMLC shall apply for the issuance
of subpoena ad testificandum and/or subpoena duces tecum with any
competent court;

"(15) to implement targeted financial sanctions in relation to proliferation of

weapons of mass destruction and its financing, including ex parte freeze,
without delay, against all funds and other assets that are owned and
controlled, directly or indirectly, including funds and assets derived or
generated therefrom, by individuals or entities designated and listed under
United Nations Security Council Resolution Numbers 1718 of 2006 and 2231
of 2015 and their successor resolutions as well as any binding resolution of
the Security Council; and

"(16) to preserve, manage or dispose assets pursuant to a freeze order,

asset preservation order, or judgment of forfeiture: Provided, however, That
pending their turnover to the national government, all expenses incurred in
relation to the duties herein mentioned shall be deducted from the amount to
be turned over to the national government." (RA11521)

SEC. 8. Creation of a Secretariat. — The AMLC is hereby authorized to

establish a secretariat to be headed by an Executive Director who shall be
appointed by the Council for a term of five (5) years. He must be a member
of the Philippine Bar, at least thirty-five (35) years of age and of good moral
character, unquestionable integrity and known probity. All members of the
Secretariat must have served for at least five (5) years either in the Insurance
Commission, the Securities and Exchange Commission or the Bangko
Sentral ng Pilipinas (BSP) and shall hold full-time permanent positions within
the BSP.

"SEC. 8-A. Information Security and Confidentiality. - The AMLC and its
Secretariat shall securely protect information received or processed and
shall not reveal, in any manner, any information known to them by reason of
their office. This prohibition shall apply even after their separation from the
AMLC.

"The AMLC shall formulate rules governing information exchange and

dissemination, the security and confidentiality of such information, including
procedures for handling, storage, and protection of, as well as access to such
information." (RA11521)

SEC. 9. Prevention of Money Laundering; Customer Identification

Requirements and Record Keeping. – (a) Customer Identification. — Covered
institutions shall establish and record the true identity of its clients based on
official documents. They shall maintain a system of verifying the true identity
of their clients and, in case of corporate clients, require a system of verifying
their legal existence and organizational structure, as well as the authority
and identification of all persons purporting to act on their behalf.

The provisions of existing laws to the contrary notwithstanding, anonymous

accounts, accounts under fictitious names, and all other similar accounts
shall be absolutely prohibited. Peso and foreign currency non-checking
numbered accounts shall be allowed. The BSP may conduct annual testing
solely limited to the determination of the existence and true identity of the
owners of such accounts.

(b) Record Keeping. — All records of all transactions of covered institutions

shall be maintained and safely stored for five (5) years from the dates of
transactions. With respect to closed accounts, the records on customer
identification, account files and business correspondence, shall be
preserved and safely stored for at least five (5) years from the dates when
they were closed.

“(c) Reporting of Covered and Suspicious Transactions. – Covered persons

shall report to the AMLC all covered transactions and suspicious
transactions within five (5) working days from occurrence thereof, unless the
AMLC prescribes a different period not exceeding fifteen (15) working days.

“Lawyers and accountants acting as independent legal professionals are not

required to report covered and suspicious transactions if the relevant
information was obtained in circumstances where they are subject to
professional secrecy or legal professional privilege. (RA10365)
When reporting covered transactions to the AMLC, covered institutions and
their officers, employees, representatives, agents, advisors, consultants or
associates 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 transaction report was made, the contents thereof, or any other
information in relation thereto. In case of violation thereof, the concerned
officer, employee, representative, agent, advisor, consultant or associate 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 transaction report in the regular performance of his duties and in
good faith, whether or not such reporting results in any criminal prosecution
under this Act or any other Philippine law.

When reporting covered transactions to the AMLC, covered institutions and

their officers, employees, representatives, agents, advisors, consultants or
associates are prohibited from communicating, directly or indirectly, in any
manner or by any means, to any person, entity, the media, the fact that a
covered 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, employee,
representative, agent, advisor, consultant or associate of the covered
institution, or media shall be held criminally liable.

“When reporting covered or suspicious transactions to the AMLC, covered

persons 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
has been reported or is about to be reported, the contents of the report, 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 person and media shall be held criminally
liable.” (RA10365)

"Section 10. Freezing Monetary Instrument or Property. -

"(a) Upon a verified ex parte petition 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, the Court
of Appeals may issue a freeze order which shall be effective immediately, for
a period of twenty (20) days. Within the twenty (20) day period, the Court of
Appeals shall conduct a summary hearing, with notice to the parties, to
determine whether or not to modify or lift the freeze order, or extend its
effectivity. The total period of the freeze order issued by the Court of Appeals
under this provision shall not exceed six (6) months. This is without prejudice
to an asset preservation order that the Regional Trial Court having
jurisdiction over the appropriate anti-money laundering case or civil forfeiture
case may issue on the same account depending on the circumstances of the
case, where the Court of Appeals will remand the case and its
records: Provided, That if there is no case filed against a person whose
account has been frozen within the period determined by the Court of
Appeals, not exceeding six (6) months, the freeze order shall be
deemed ipso facto lifted: Provided,further, That this new rule shall not apply
to pending cases in the courts. In any case, the court should act on the
petition to freeze within twenty-four (24) hours from filing of the petition. If the
application is filed a day before a nonworking day, the computation of the
twenty-four (24) hour period shall exclude the nonworking days.

"The freeze order or asset preservation order issued under this Act shall be
limited only to the amount of cash or monetary instrument or value of
property that court finds there is probable cause to be considered as
proceeds of a predicate offense, and the freeze order or asset preservation
order shall not apply tyo amounts in the same account in excess of the
amount or value of the proceeds of the predicate offense.

"A person whose account has been frozen may file a motion to lift the freeze
order and the court must resolve this motion before the expiration of the
freeze order.

"No court shall issue a temporary restraining order or a writ of injunction

against any freeze order, except the Supreme Court.

"(b) For purposes of implementing targeted financial sanctions in relation to

proliferation of weapons of mass destruction and its financing, as provided
under Section 3(15), the AMLC shall have the power to issue, ex porte, an
order to freeze without delay.

"The freeze order shall be effective until the basis for its issuance shall have
been lifted. During the effectivity of the freeze order, the aggrieved party may,
within twenty (20) days from issuance, file with the Court of Appeals a petition
to determine the basis of the freeze order according to the principle of
effective judicial protection: Provided, That the person whose property or
funds have been frozen may withdraw such sums as the AMLC determines
to be reasonably needed for monthly family needs and sustenance including
the services of counsel and the family medical needs of such person.

"The AMLC, if circumstance warrant, may initiate civil forfeiture proceedings

to preserve the assets and to protect it from dissipation.vNo court shall issue
a temporary restraining order or a writ of injunction against the freeze order,
except the Court of Appeals or the Supreme Court." (RA11521)

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 involved are in any way related to a
money laundering offense: Provided, That this provision shall not apply to
deposits and investments made prior to the effectivity of this Act.

Section 12 of the same Act is hereby amended to read as follows:

“(a) Civil Forfeiture. – Upon determination by the AMLC 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) or a money laundering offense
under Section 4 hereof, the AMLC shall file with the appropriate court
through the Office of the Solicitor General, a verified ex parte petition for
forfeiture, and the Rules of Court on Civil Forfeiture shall apply.

“The forfeiture shall include those other monetary instrument or property

having an equivalent value to that of the monetary instrument or property
found to be related in any way to an unlawful activity or a money laundering
offense, when with due diligence, the former cannot be located, or it has
been substantially altered, destroyed, diminished in value or otherwise
rendered worthless by any act or omission, or it has been concealed,
removed, converted, or otherwise transferred, or it is located outside the
Philippines or has been placed or brought outside the jurisdiction of the
court, or it has been commingled with other monetary instrument or property
belonging to either the offender himself or a third person or entity, thereby
rendering the same difficult to identify or be segregated for purposes of
forfeiture.

“(b) Claim on Forfeited Assets. – Where the court has issued an order of
forfeiture of the monetary instrument or property in a criminal prosecution
for any money laundering offense defined under Section 4 of this Act, the
offender or any other person claiming an interest therein may apply, by
verified petition, for a declaration that the same legitimately belongs to him
and for segregation or exclusion of the monetary instrument or property
corresponding thereto. The verified petition shall be filed with the court
which rendered the judgment of forfeiture, within fifteen (15) days from the
date of the finality of the order of forfeiture, in default of which the said order
shall become final and executor. This provision shall apply in both civil and
criminal forfeiture.

“(c) Payment in Lieu of Forfeiture. – Where the court has issued an order of
forfeiture of the monetary instrument or property subject of a money
laundering offense defined under Section 4, and said order cannot be
enforced because any particular monetary instrument or property cannot,
with due diligence, be located, or it has been substantially altered, destroyed,
diminished in value or otherwise rendered worthless by any act or omission,
directly or indirectly, attributable to the offender, or it has been concealed,
removed, converted, or otherwise transferred to prevent the same from
being found or to avoid forfeiture thereof, or it is located outside the
Philippines or has been placed or brought outside the jurisdiction of the
court, or it has been commingled with other monetary instruments or
property belonging to either the offender himself or a third person or entity,
thereby rendering the same difficult to identify or be segregated for purposes
of forfeiture, the court may, instead of enforcing the order of forfeiture of the
monetary instrument or property or part thereof or interest therein,
accordingly order the convicted offender to pay an amount equal to the value
of said monetary instrument or property. This provision shall apply in both
civil and criminal forfeiture.” (RA10365)

"(d) No court shall issue a temporary restraining order (TRO) or a writ of

injunction against any provisional asset preservation order or asset
preservation, except the Court of Appeals or the Supreme Court." (RA11521)

SEC. 13. Mutual Assistance among States.

(a) Request for Assistance from a Foreign State. — Where a foreign State
makes a request for assistance in the investigation or prosecution of a
money laundering offense, the AMLC may execute the request or refuse to
execute the same and inform the foreign State of any valid reason for not
executing the request or for delaying the execution thereof. The principles of
mutuality and reciprocity shall, for this purpose, be at all times recognized.

(b) Powers of the AMLC to Act on a Request for Assistance from a Foreign
State. — The AMLC may execute a request for assistance from a foreign
State by: (1) tracking down, freezing, restraining and seizing assets alleged
to be proceeds of any unlawful activity under the procedures laid down in
this Act; (2) giving information needed by the foreign State within the
procedures laid down in this Act; and (3) applying for an order of forfeiture
of any monetary instrument or property in the court: Provided, That the court
shall not issue such an order unless the application is accompanied by an
authenticated copy of the order of a court in the requesting State ordering
the forfeiture of said monetary instrument or property of a person who has
been convicted of a money laundering offense in the requesting State, and a
certification or an affidavit of a competent officer of the requesting State
stating that the conviction and the order of forfeiture are final and that no
further appeal lies in respect of either. AEDISC

(c) Obtaining Assistance from Foreign States. — The AMLC may make a
request to any foreign State for assistance in (1) tracking down, freezing,
restraining and seizing assets alleged to be proceeds of any unlawful
activity; (2) obtaining information that it needs relating to any covered
transaction, money laundering offense or any other matter directly or
indirectly related thereto; (3) to the extent allowed by the law of the foreign
State, applying with the proper court therein for an order to enter any
premises belonging to or in the possession or control of, any or all of the
persons named in said request, and/or search any or all such persons named
therein and/or remove any document, material or object named in said
request: Provided, That the documents accompanying the request in support
of the application have been duly authenticated in accordance with the
applicable law or regulation of the foreign State; and (4) applying for an order
of forfeiture of any monetary instrument or property in the proper court in the
foreign State: Provided, That the request is accompanied by an
authenticated copy of the order of the regional trial court ordering the
forfeiture of said monetary instrument or property of a convicted offender
and an affidavit of the clerk of court stating that the conviction and the order
of forfeiture are final and that no further appeal lies in respect of either.

(d) Limitations on Request for Mutual Assistance. — The AMLC may refuse
to comply with any request for assistance where the action sought by the
request contravenes any provision of the Constitution or the execution of a
request is likely to prejudice the national interest of the Philippines unless
there is a treaty between the Philippines and the requesting State relating to
the provision of assistance in relation to money laundering offenses.

(e) Requirements for Requests for Mutual Assistance from Foreign States. —
A request for mutual assistance from a foreign State must (1) confirm that
an investigation or prosecution is being conducted in respect of a money
launderer named therein or that he has been convicted of any money
laundering offense; (2) state the grounds on which any person is being
investigated or prosecuted for money laundering or the details of his
conviction; (3) give sufficient particulars as to the identity of said person; (4)
give particulars sufficient to identify any covered institution believed to have
any information, document, material or object which may be of assistance
to the investigation or prosecution; (5) ask from the covered institution
concerned any information, document, material or object which may be of
assistance to the investigation or prosecution; (6) specify the manner in
which and to whom said information, document, material or object obtained
pursuant to said request, is to be produced; (7) give all the particulars
necessary for the issuance by the court in the requested State of the writs,
orders or processes needed by the requesting State; and (8) contain such
other information as may assist in the execution of the request.

(f) Authentication of Documents. — For purposes of this Section, a

document is authenticated if the same is signed or certified by a judge,
magistrate or equivalent officer in or of, the requesting State, and
authenticated by the oath or affirmation of a witness or sealed with an
official or public seal of a minister, secretary of State, or officer in or of, the
government of the requesting State, or of the person administering the
government or a department of the requesting territory, protectorate or
colony. The certificate of authentication may also be made by a secretary of
the embassy or legation, consul general, consul, vice consul, consular agent
or any officer in the foreign service of the Philippines stationed in the foreign
State in which the record is kept, and authenticated by the seal of his office.

(g) Extradition. — The Philippines shall negotiate for the inclusion of money
laundering offenses as herein defined among extraditable offenses in all
future treaties.

“SEC. 14. Penal Provisions. – (a) Penalties for the Crime of Money
Laundering. The penalty of imprisonment ranging from seven (7) to fourteen
(14) years and a fine of not less than Three million Philippine pesos
(Php3,000,000.00) but not more than twice the value of the monetary
instrument or property involved in the offense, shall be imposed upon a
person convicted under Section 4(a), (b), (c) and (d) of this Act.

“The penalty of imprisonment from four (4) to seven (7) years and a fine of
not less than One million five hundred thousand Philippine pesos
(Php1,500,000.00) but not more than Three million Philippine pesos
(Php3,000,000.00), shall be imposed upon a person convicted under Section
4(e) and (f) of this Act.

“The penalty of imprisonment from six (6) months to four (4) years or a fine
of not less than One hundred thousand Philippine pesos (Php100,000.00)
but not more than Five hundred thousand Philippine pesos (Php500,000.00),
or both, shall be imposed on a person convicted under the last paragraph of
Section 4 of this Act. (RA10365)

(b) Penalties for Failure to Keep Records. The penalty of imprisonment from
six (6) months to one (1) year or a fine of not less than One hundred
thousand Philippine pesos (Php100,000.00) but not more than Five hundred
thousand Philippine pesos (Php500,000.00), or both, shall be imposed on a
person convicted under Section 9(b) of this Act.

(c) Malicious Reporting. Any person who, with malice, or in bad faith, report
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 (Php100,000.00) but not more than Five
hundred thousand Philippine pesos (Php500,000.00), at the discretion of the
court: Provided, That the offender is not entitled to avail the benefits of the
Probation Law.

"(d) Breach of Information Security and 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 (P500,000.00) but not more
than One million Philippine pesos (P1,000,000.00), shall be imposed on a
person convicted for a violation under Section 9(c) 0r Section 8-A on
information security and confidentiality of this Act. If the offender is public
official or employee, he shall, in addition to the penalties prescribed herein,
suffer the penalty of perpetual or temporary absolute disqualification from
public office, as the case may be. 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." (RA11521)

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 the commission of the crime or who shall
have knowingly permitted or failed to prevent its commission. 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.

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 (Php500,000.00) but not more than One million Philippine
pesos (Php1,000,000.00), shall be imposed on a person convicted for a
violation under Section 9(c).

“(e) The penalty of imprisonment ranging from four (4) to seven (7) years
and a fine corresponding to not more than two hundred percent (200%) of
the value of the monetary instrument or property laundered shall be imposed
upon the covered person, its directors, officers or pesonnel who knowingly
participated in the commission of the crime of money laundering.

“(f) Imposition of Administrative Sanctions. The imposition of the

administrative sanctions shall be without prejudice to the filing of criminal
charges against the persons responsible for the violation.

“After due notice and hearing, the AMLC shall, at its discretion, impose
sanctions, including monetary penalties, warning or reprimand, upon any
covered person, its directors, officers, employees or any other person for the
violation of this Act, its implementing rules and regulations, or for failure or
refusal to comply with AMLC orders, resolutions and other issuances. Such
monetary penalties shall be in amounts as may be determined by the AMLC
to be appropriate, which shall not be more than Five hundred thousand
Philippine pesos (P500,000.00) per violation.
“The AMLC may promulgate rules on fines and penalties taking into
consideration the attendant circumstances, such as the nature and gravity
of the violation or irregularity.”

“(g) The provision of this law shall not be construed or implemented in a

manner that will discriminate against certain customer types, such as
politically-exposed persons, as well as their relatives, or against a certain
religion, race or ethnic origin, or such other attributes or profiles when used
as the only basis to deny these persons access to the services provided by
the covered persons. Whenever a bank, or quasi-bank, financial institution or
whenever any person or entity commits said discriminatory act, the person
or persons responsible for such violation shall be subject to sanctions as
may be deemed appropriate by their respective regulators.” (RA10365)

SEC. 15. System of Incentives and Rewards. — A system of special incentives

and rewards is hereby established to be given to the appropriate government
agency and its personnel that led and initiated an investigation, prosecution
and conviction of persons involved in the offense penalized in Section 4 of
this Act.

SEC. 16. Prohibitions Against Political Harassment. — This Act shall not be
used for political persecution or harassment or as an instrument to hamper
competition in trade and commerce.

No case for money laundering may be filed against and no assets shall be
frozen, attached or forfeited to the prejudice of a candidate for an electoral
office during an election period.

SEC. 17. Restitution. — Restitution for any aggrieved party shall be governed
by the provisions of the New Civil Code.

SEC. 18. Implementing Rules and Regulations. — Within thirty (30) days from
the effectivity of this Act, the Bangko Sentral ng Pilipinas, the Insurance
Commission and the Securities and Exchange Commission shall promulgate
the rules and regulations to implement effectively the provisions of this Act.
Said rules and regulations shall be submitted to the Congressional Oversight
Committee for approval.

Covered institutions shall formulate their respective money laundering

prevention programs in accordance with this Act including, but not limited
to, information dissemination on money laundering activities and its
prevention, detection and reporting, and the training of responsible officers
and personnel of covered institutions.

SEC. 19. Congressional Oversight Committee. — There is hereby created a

Congressional Oversight Committee composed of seven (7) members from
the Senate and seven (7) members from the House of Representatives. The
members from the Senate shall be appointed by the Senate President based
on the proportional representation of the parties or coalitions therein with at
least two (2) Senators representing the minority. The members from the
House of Representatives shall be appointed by the Speaker also based on
proportional representation of the parties or coalitions therein with at least
two (2) members representing the minority.

The Oversight Committee shall have the power to promulgate its own rules,
to oversee the implementation of this Act, and to review or revise the
implementing rules issued by the Anti-Money Laundering Council within
thirty (30) days from the promulgation of the said rules.

"Section 20. Non-Intervention in the Bureau of Internal Revenue (BIR)

Operations. - Nothing contained in this Act nor in related antecedent laws or
existing agreements shall be construed to allow the AMLC to participate in
any manner in the operation of the BIR. The AMLC, may, however,
coordinate with the BIR On investigations in relating to violations of Section
254 of NIRC, as amended, as a predicate offense to money laundering."

“SEC. 21. The authority to inquire into or examine the main account and the
related accounts shall comply with the requirements of Article III, Sections 2
and 3 of the 1987 Constitution, which are hereby incorporated by reference.
Likewise, the constitutional injunction against ex post facto laws and bills of
attainder shall be respected in the implementation of this Act.” (RA10365)

SEC. 20. Appropriations Clause. — The AMLC shall be provided with an initial
appropriation of Twenty-five million Philippine pesos (Php25,000,000.00) to
be drawn from the national government. Appropriations for the succeeding
years shall be included in the General Appropriations Act.

SEC. 21. Separability Clause. — If any provision or section of this Act or the
application thereof to any person or circumstance is held to be invalid, the
other provisions or sections of this Act, and the application of such provision
or section to other persons or circumstances, shall not be affected thereby.

SEC. 22. Repealing Clause. — All laws, decrees, executive orders, rules and
regulations or parts thereof, including the relevant provisions of Republic Act
No. 1405, as amended; Republic Act No. 6426, as amended; Republic Act No.
8791, as amended and other similar laws, as are inconsistent with this Act,
are hereby repealed, amended or modified accordingly.

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.

The provisions of this Act shall not apply to deposits and investments made
prior to its effectivity.

Approved: SEP 29 2001

(Sgd.) GLORIA MACAPAGAL-ARROYO
President of the Philippines