Anti-Money Laundering Act
Salient Features
•Criminalizes money laundering
•Creates a financial intelligence unit
•Imposes requirements on customer identification,
record keeping and reporting of covered and suspicious
transactions
•Relaxes strict bank deposits secrecy laws
•Provides for bank inquiry and freeze ex parte
petition/seizure/forfeiture/recovery of dirty
money/property
•Provides for international cooperation
Money Laundering
• A crime committed by any person who
knowing that any monetary instrument or
property represents, involves, or relates to the
proceeds of any unlawful activity:
(1) Transacts said monetary instrument or
property;
(2) Converts, transfers, disposes of, moves,
acquires, possesses or uses said monetary
instrument or property;
(3) Conceals or disguises the true nature, source,
location, disposition, movement or ownership of
or rights with respect to said monetary
instrument or property;
(4) Attempts or conspires to commit money
laundering offenses referred to in (1), (2), or (3)
(5) aids, abets, assists in or counsels the
commission of the money laundering offenses
referred to in (1), (2)
(6) Performs or fails to perform any act as a
result of which he facilitates the offenses of
money laundering referred to in (1),(2), or (3);
(7) This is also committed by failure to report to
the Anti-Money Laundering Council (AMLC) by
any covered person knowing that a covered or
suspicious transaction is required under the
Anti-Money Laundering Law to be reported
thereto (R.A. 9160 as amended by R.A. 10365)
Money Laundering Offenses and
Penalties
1. Knowingly transacting or attempting to transact any
monetary instrument/property which represents,
involves or relates to the proceeds of an unlawful
activity. Penalty is 7 to 14 years imprisonment and
a fine of not less than P3M but not more than twice
the value of the monetary instrument/property.
2. Knowingly performing or failing to perform an act in
relation to any monetary instrument/property
involving the proceeds of any unlawful activity as a
result of which he facilitated the offense of money
laundering. Penalty is 4 to 7 years imprisonment and a
fine of not less than P1.5M but not more than P3M.
3. Knowingly failing to disclose and file with the AMLC any
monetary instrument/property required to be disclosed and
filed. Penalty is 6 months to 4 years imprisonment or a fine of
not less than P100,000 but not more than P500,000, or both.
Unlawful Activity
•is the offense which generates dirty money or property. It is
commonly called the predicate crime. It refers to any act or
omission or series or combination thereof involving or
having direct relation to the following:
Predicate Crimes/Unlawful Activities
• Kidnapping for ransom
•Drug trafficking and related offenses
•Graft and corrupt practices
•Plunder
• Robbery and Extortion
•Jueteng and Masiao
•Piracy
•Qualified theft
•Swindling
•Smuggling
•Violations under the Electronic Commerce Act of 2000
•Hijacking; destructive arson; and murder, including those perpetrated by terrorists
against non-combatant persons and similar targets
Predicate Crimes/Unlawful Activities
• Fraudulent practices and other violations under the Securities Regulation
Code of 2000
• Felonies or offenses of a similar nature that are punishable under the
penal laws of other countries.
• Terrorism financing and organizing or directing others to commit terrorism
financing (R.A. 10168).Attempt/conspiracy to commit terrorism financing
and organizing or directing others to commit terrorism financing (R.A.
10168).
• Attempt/conspiracy to commit dealing with property or funds of
designated person.
• Accomplice to terrorism financing or conspiracy to commit terrorism
financing.
• Accessory to terrorism financing.
Covered Transactions:
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.
Suspicious transactions
•are transactions with covered institutions, regardless of the
amounts involved, where any of the following circumstances
exists:
•there is no underlying legal/trade obligation, purpose or
economic justification;
• the client is not properly identified;
•the amount involved is not commensurate with the business
or financial capacity of the client;
•the transaction is structured to avoid being the subject of
reporting requirements under the AMLA;
•there is a deviation from the client’s profile/past transactions;
•the transaction is related to an unlawful activity/offense under
the AMLA;
•and transactions similar or analogous to the above.
Covered Institutions
Covered Institutions are those mandated by the AMLA to submit
covered and suspicious transaction reports to the AMLC.
These are:
Banks and all other entities, including their subsidiaries and affiliates,
supervised and regulated by the Bangko Sentral ng Pilipinas
Insurance companies, pre-need companies and all other institutions
supervised or regulated by the Insurance Commission
Securities dealers and other entities supervised or regulated by the
Securities and Exchange Commission
Obligations of Covered Institutions:
1. Customer Identification
2. Record Keeping
3. Reporting of Covered and Suspicious
Transactions
Freezing of Monetary Instrument or
Property
AMLC may file before Court of Appeals, before the verified
application ex parte (without notice to the other party) after
determination that probable cause exists that any monetary
instrument or property is in any way related to an unlawful
activity. The freeze order shall be effective immediately. The
freeze order shall be for a period of 20 days unless extended
by the court.
Authority to Inquire into Bank
Deposits
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 the AMLA 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.
Court order required:
• Examination by AMLC based on a Court Order
upon Ex Parte Application, when it has been
established that there is probable cause that
the deposits or investments, including related
accounts involved, are related to :
1. Unlawful activity; or
2. A money laundering offense.
• Related accounts shall refer to accounts, the
funds and sources of which originated and/or
are materially linked to the monetary
instrument(s) or property(ies) subject of the
freeze order(s).
• The CA must act on the application within 24
hours from the filing.
No court order shall be required
• for the examination of bank deposits by AMLC
in cases involving:
1. Kidnapping for ransom
2. RA 9165 or Comprehensive Dangerous Drugs Act
3. Hijacking and other violations, destructive arson
4. Felonies or offenses of similar nature to the aforementioned, which are
punishable under the penal laws of other countries
5. Terrorism and conspiracy to commit terrorism
