REPUBLIC ACT NO.

9160
AN ACT DEFINING THE CRIME OF MONEY LAUNDERING, PROVIDING PENALTIES THEREFOR
AND FOR OTHER PURPOSES

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 whenever committed.
Section 3. Definitions. For purposes of this Act, the
following terms are hereby defined as follows:
(a) "Covered Institution" refers to:
(1) banks, non-banks, quasi-banks, trust entities,
and all other institutions and their subsidiaries and
affiliates supervised or regulated by the Bangko
Sentral ng Pilipinas (BSP);
(2) Insurance companies and all other institutions
supervised or regulated by the Insurance
Commission; and
(3) (i) securities dealers, brokers, salesmen,
investment houses and other similar entities
managing securities or rendering services as
investment agent, advisor, or consultant, (ii)
mutual funds, close and investment companies,
common trust funds, pre-need companies and
other similar entities, (iii) foreign exchange
corporations, money changers, money payment,
remittance, and transfer companies and other
similar entities, and (iv) 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 Securities and
Exchange Commission.
(b) "Covered transaction" is a single, series, or
combination of transactions involving a total
amount in excess of Four million Philippine pesos
(Php4,000,000.00) or an equivalent amount in
foreign currency based on the prevailing exchange
rate within five (5) consecutive banking days
except those between a covered institution and a
person who, at the time of the transaction was a
properly identified client and the amount is
commensurate with the business or financial
capacity of the client; or those with an underlying
legal or trade obligation, purpose, origin or
economic justification.
It likewise refers to a single, series or combination
or pattern of unusually large and complex
transactions in excess of Four million Philippine
pesos (Php4,000,000.00) especially cash deposits
and investments having no credible purpose or
origin, underlying trade obligation or contract.
(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
marked 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.
(l) "Unlawful activity" refers to any act or omission
or series or combination thereof involving or
having 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 3, 4, 5, 7, 8 and 9 of Article Two of
Republic Act No. 6425, as amended, otherwise
known as the Dangerous Drugs Act of 1972;
(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 of the Revised
Penal Code, as amended;
(10) Smuggling under Republic Act Nos. 455 and
1937;
(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;
(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. Money Laundering Offense. – Money
laundering is a crime whereby the proceeds of an
unlawful activity 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.
Section 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.
Section 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) Any proceeding relating to the unlawful activity
shall be given precedence over the prosecution of
any offense or violation under this Act without
prejudice to the freezing and other remedies
provided.
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 require and receive covered transaction
reports from covered institutions;
(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, whenever 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 freeze any monetary instrument or property
alleged to be proceed of any unlawful activity;
(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.
Section 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.
Section 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 date of transactions. With respect to
closed accounts, the records on customer
identification, account files and business
correspondence, shall be preserved and safety
stored for at least five (5) years from the dates
when they were closed.
(c) Reporting of Covered Transactions. – Covered
institutions shall report to the AMLC all covered
transactions within five (5) working days from
occurrence thereof, unless the Supervising
Authority concerned prescribes a longer period not
exceeding ten (10) working days.
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.
Section 10. Authority to Freeze. – Upon
determination that probable cause exists that any
deposit or similar account is in any way related to
an unlawful activity, the AMLC may issue a freeze
order, which shall be effective immediately, on the
account for a period not exceeding fifteen (15)
days. Notice to the depositor that his account has
been frozen shall be issued simultaneously with
the issuance of the freeze order. The depositor
shall have seventy-two (72) hours upon receipt of
the notice to explain why the freeze order should
be lifted. The AMLC has seventy-two (72) hours to
dispose of the depositor's explanation. If it falls to
act within seventy-two (72) hours from receipt of
the depositor's explanation, the freeze order shall
automatically be dissolved. The fifteen (15)-day
freeze order of the AMLC may be extended upon
order of the court, provided that the fifteen (15)-
day period shall be tolled pending the court's
decision to extend the period.
No court shall issue a temporary restraining order
or writ of injunction against any freeze order
issued by the AMLC except the Court of Appeals
or the Supreme Court.
Section 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. Forfeiture Provisions. –
(a) Civil Forfeiture. – When there is a covered
transaction report made, and the court has, in a
petition filed for the purpose ordered seizure of
any monetary instrument or property, in whole or
in part, directly or indirectly, related to said report,
the Revised Rules of Court on civil forfeiture shall
apply.
(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 conviction and order of forfeiture,
within fifteen (15) days from the date of the order
or forfeiture, in default of which the said order shall
become final and executory. 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.
Section 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) Power 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 properly of a person who has been convicted of
a money laundering offense in the requesting
State, and a certification of an affidavit of a
competent officer of the requesting State stating
that the conviction and the order of forfeiture are
final and then no further appeal lies in respect or
either.
(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 State. – 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) gives sufficient particulars as
to the identity of said person; (4) give particulars
sufficient to identity 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 detained
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.
Section 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 (Php
3,000,000.00) 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) 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
(Php 1,500,000.00) but not more than Three
million Philippine pesos (Php 3,000,000.00), shall
be imposed upon a person convicted under
Section 4(b) 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 (Php
100,000.00) but not more than Five hundred
thousand Philippine pesos (Php 500,000.00), or
both, shall be imposed on a person convicted
under Section 4(c) of this Act.
(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 (Php
100,000.00) but not more than Five hundred
thousand Philippine pesos (Php 500,000.00), 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 (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 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 (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).
Section 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.
Section 16. Prohibitions Against Political
Harassment. – This Act shall not be used for
political prosecution 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.
Section 17. Restitution. – Restitution for any
aggrieved party shall be governed by the
provisions of the New Civil Code.
Section 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
effectivity 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.
Section 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. Appropriations Clause. – The AMLC
shall be provided with an initial appropriation of
Twenty-five million Philippine pesos (Php
25,000,000.00) to be drawn from the national
government. Appropriations for the succeeding
years shall be included in the General
Appropriations Act.
Section 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.
Section 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.
Section 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.