THE BANK SECRECY LAW

Q: Do deposits in the Philippine banks have confidentiality? Can they be examined
and scrutinized by anyone out of mere curiosity? 
A: Yes, deposits in the Philippine banks enjoy a great degree of confidentiality and
they cannot be scrutinized or inquired upon by anyone out of mere curiosity. Republic
Act No. 1405, or the bank secrecy law that was approved as early as 1955, prohibits
the disclosure of, or inquiry into, all deposits in banks and banking institutions in
the Philippines.  This has been the government’s way of building depositors’ trust and
confidence, encourage Filipino citizens to patronize banking industry and improve the
stability of economic condition in the country.
Section 2 of the bank secrecy law provides that all deposits in whatever nature with
banks or banking institutions are of an “absolutely confidential nature and may not
be examined, inquired or looked into by any person, government official, bureau or
office.”
 
EXCEPTIONS TO THE COVERAGE OF BANK SECRECY:

1. If there is a written consent of the depositor,

2. In cases of impeachment,
3. Upon order of a competent court in cases of bribery or dereliction of duty of
public officials, or;
4. In cases where the money deposited or invested is the subject matter of litigation.
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All deposits of whatever nature with banks or banking institutions in the Philippines
including investments in bonds issued by the Government of the Philippines, its
political subdivisions and its instrumentalities, are hereby considered as of an
absolutely confidential nature and may not be examined, inquired or looked into by
any person, government official, bureau or office, except upon written permission of
the depositor, or in cases of impeachment, or upon order of a competent court in cases
of bribery or dereliction of duty of public officials, or in cases where the money
deposited or invested is the subject matter of the litigation.
 
It shall be unlawful for any official or employee of a banking institution to disclose to
any person other than those mentioned above any information concerning said
deposits.
 
Any violation of this law will subject offender upon conviction, to an
imprisonment of not more than five (5) years or a fine of not more than twenty
thousand pesos (P20,000.00) or both, in the discretion of the court.
============================  

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QUESTION: Is there a conflict between the purpose of Republic Act No. 1405 (a
general law) and Republic Act No. 6426 (a special law) insofar as the confidentiality
of bank deposits is concerned?
 
NONE. As a background, Republic Act No. 1405 was enacted in 1955. Section 2
thereof was first amended by Presidential Decree No. 1792 in 1981 and further
amended by Republic Act No. 7653 in 1993. It now reads:
 
Section 2. All deposits of whatever nature with banks or banking institutions in the
Philippines including investments in bonds issued by the Government of the
Philippines, its political subdivisions and its instrumentalities, are hereby considered
as of an absolutely confidential nature and may not be examined, inquired or looked
into by any person, government official, bureau or office, except upon written
permission of the depositor, or in cases of impeachment, or upon order of a competent
court in cases of bribery or dereliction of duty of public officials, or in cases where
the money deposited or invested is the subject matter of the litigation.
 
On the other hand, Section 8 of Republic Act No. 6426, which was enacted in 1974,
and amended by Presidential Decree No. 1035 and later by Presidential Decree No.
1246, provides:
 
Section 8. Secrecy of Foreign Currency Deposits. – All foreign currency deposits
authorized under this Act, as amended by Presidential Decree No. 1035, as well as
foreign currency deposits authorized under Presidential Decree No. 1034, are hereby
declared as and considered of an absolutely confidential nature and, except upon the
written permission of the depositor, in no instance shall foreign currency deposits be
examined, inquired or looked into by any person, government official, bureau or
office whether judicial or administrative or legislative or any other entity whether
public or private; Provided, however, That said foreign currency deposits shall be
exempt from attachment, garnishment, or any other order or process of any court,
legislative body, government agency or any administrative body whatsoever. (As
amended by PD No. 1035, and further amended by PD No. 1246, prom. Nov. 21,
1977.)
 
Now, Republic Act No. 1405 provides for four (4) exceptions when records of
deposits may be disclosed. These are under any of the following instances: a) upon
written permission of the depositor, (b) in cases of impeachment, (c) upon order of a
competent court in the case of bribery or dereliction of duty of public officials or, (d)
when the money deposited or invested is the subject matter of the litigation, and e) in
cases of violation of the Anti-Money Laundering Act (AMLA), the Anti-Money
Laundering Council (AMLC) may inquire into a bank account upon order of any
competent court. On the other hand, the lone exception to the non-disclosure of
foreign currency deposits, under Republic Act No. 6426, is disclosure upon the
written permission of the depositor.

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These two laws both support the confidentiality of bank deposits. There is no conflict
between them. Republic Act No. 1405 was enacted for the purpose of giving
encouragement to the people to deposit their money in banking institutions and to
discourage private hoarding so that the same may be properly utilized by banks in
authorized loans to assist in the economic development of the country. It covers all
bank deposits in the Philippines and no distinction was made between domestic and
foreign deposits.
 
Thus, Republic Act No. 1405 is considered a law of general application. On the other
hand, Republic Act No. 6426 was intended to encourage deposits from foreign lenders
and investors. It is a special law designed especially for foreign currency deposits in
the Philippines. A general law does not nullify a specific or special law. Generalia
specialibus non derogant. 
 
Source: GSIS vs. Honorable 15th Division of the Court of Appeals and Industrial
Bank of Korea (G.R. No. 189206; June 08, 2011)

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 TRUTH IN LENDING ACT - BACKGROUND

It has been said that one of the greatest disservice you can do a man is to lend him
money that he can’t pay back.
Republic Act No. 3765, aptly entitled “Truth in Lending Act”, aims to protect the
public from lack of awareness of the true cost of credit by requiring from the creditor
the disclosure of full information incident to a credit transaction.
A creditor is required to supply to the borrower prior to each credit transaction a clear
statement in writing of the following information: the amount of the loan or credit
service extended; any down payment or trade-in made; individually itemized charges,
fees and other related costs; the total amount to be financed or amount of loan
extended; the interest or finance charge to be paid, expressed in terms of pesos and
centavos; and  the percentage that the interest or finance charge bears to the total
amount to be financed. The interest must be expressed as a simple annual rate.
It is not just banks and other financial institutions that must follow these requirements.
Any person in the business of extending loans, or selling or renting property or
services on a time, credit, or installment basis, either as principal or as agent, is
required to make the same written disclosure. Thus, if you are acquiring a vehicle
under a financing scheme, or purchasing a mobile phone on installment basis, the
seller is required to provide you the information enumerated above.
The creditor’s failure to comply with these requirements does not mean that the debt
is forgiven, or that the goods purchased on credit or installment basis are deemed fully
paid. The transactions remain valid and enforceable. The lender, however, will have
no right to collect such charge or increases thereof, even if stipulated in the
promissory note (Development Bank of the Philippines vs Arcilla, 462  SCRA 599).
In one case decided by the Supreme Court, although the creditor failed to state the
penalty charges in the disclosure statement, the penalty charges were upheld because
the borrower signed a promissory note detailing the penalty charges. Since the
promissory note was signed on the same date as the disclosure statement, and the
promissory note is an acknowledgment of a debt and commitment to repay it on the
date and under the conditions that the parties agreed on, the same is a valid contract.
In another case, the Supreme Court held that a promissory note which grants the
creditor the power to unilaterally fix the interest rate means that the promissory note
does not contain a clear statement in writing of the finance charge. Such provision is
illegal not only because it violates the principle of mutuality of contracts but it also
contravenes the Truth in Lending law (UCPB vs Veloso, 530 SCRA 567).
In case there is a violation, the borrower may file a civil case for recovery of damages
in the amount of Php 100 or of twice the finance charged required by the creditor,
whichever is greater, but not to exceed P2,000. A criminal case may also be filed
against the creditor. The action to recover the penalty should be brought within one
year from the date of the occurrence of the violation and may be instituted by the
aggrieved private person separately and independently from the criminal offense.
With the disclosure required by law, it is expected that borrowers are able to weigh
the pros and cons of borrowing. Such information allows them to evaluate their

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options in arriving at business decisions. Thus, even in matters of credit, knowing the
truth sets us free.
 
CREDIT:  Divina Law; Truth Will Set Us Free
https://www.divinalaw.com/dose-of-law/truth-will-set-us-free/

TRUTH IN LENDING ACT - SALIENT FEATURES

REPUBLIC ACT No. 3765 -- AN ACT TO REQUIRE THE DISCLOSURE OF

FINANCE CHARGES IN CONNECTION WITH EXTENSIONS OF CREDIT
known as the "Truth in Lending Act."
Approved: 22 June 1963
 
Salient Provisions of Republic Act No. 3765 (“Truth in Lending Act”)
 It is the policy of the State to protect its citizens from a lack of awareness of the true
cost of credit to the user by assuring a full disclosure of such cost with a view of
preventing the uninformed use of credit to the detriment of the national economy.
Definition of Terms

 “Board” means the Monetary Board of the Central Bank of the Philippines.
 “Credit” means any loan, mortgage, deed of trust, advance, or discount; any
conditional sales contract; any contract to sell, or sale or contract of sale of
property or services, either for present or future delivery, under which part or all
of the price is payable subsequent to the making of such sale or contract; any
rental-purchase contract; any contract or arrangement for the hire, bailment, or
leasing of property; any option, demand, lien, pledge, or other claim against, or
for the delivery of, property or money; any purchase, or other acquisition of, or
any credit upon the security of, any obligation of claim arising out of any of the
foregoing; and any transaction or series of transactions having a similar purpose
or effect.
 “Finance charge” includes interest, fees, service charges, discounts, and such
other charges incident to the extension of credit as the Board may be regulation
prescribe.
 “Creditor” means any person engaged in the business of extending credit
(including any person who as a regular business practice makes loans or sells or
rents property or services on a time, credit, or installment basis, either as principal
or as agent) who requires as an incident to the extension of credit, the payment of
a finance charge.
 “Person” means any individual, corporation, partnership, association, or other
organized group of persons, or the legal successor or representative of the
foregoing, and includes the Philippine Government or any agency thereof, or any
other government, or of any of its political subdivisions, or any agency of the
foregoing.

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Each person to whom credit is extended, prior to the consummation of the transaction,
shall be furnished a clear statement in writing setting forth, to the extent applicable
and in accordance with rules and regulations prescribed by the Monetary Board, the
following information:

 the cash price or delivered price of the property or service to be acquired;

 the amounts, if any, to be credited as down payment and/or trade-in;
 the difference between the amounts set forth under clauses (1) and (2);
 the charges, individually itemized, which are paid or to be paid by such person in
connection with the transaction but which are not incident to the extension of
credit;
 the total amount to be financed;
 the finance charge expressed in terms of pesos and centavos; and
 the percentage that the finance charge bears to the total amount to be financed
expressed as a simple annual rate on the outstanding unpaid balance of the
obligation.
The disclosure statement in writing is a required attachment to the credit transaction
contract.  The borrower has a right to demand a copy of the disclosure statement.
Section 6. (a) Any creditor who in connection with any credit transaction fails to
disclose to any person any information in violation of this Act or any regulation
issued thereunder shall be liable to such person in the amount of P100.00 or in an
amount equal to twice the finance charged required by such creditor in connection
with such transaction, whichever is the greater, except that such liability shall not
exceed P2,000.00 on any credit transaction. Action to recover such penalty may be
brought by such person within one year from the date of the occurrence of the
violation, in any court of competent jurisdiction. In any action under this subsection in
which any person is entitled to a recovery, the creditor shall be liable for reasonable
attorney's fees and court costs as determined by the court.
(b) Except as specified in subsection (a) of this section, nothing contained in this Act
or any regulation contained in this Act or any regulation thereunder shall affect the
validity or enforceability of any contract or transactions.
(c) Any person who willfully violates any provision of this Act or any regulation
issued thereunder shall be fined by not less than P1,000.00 or more than P5,000.00 or
imprisonment for not less than 6 months, nor more than one (1) year or both.
(d) No punishment or penalty provided by this Act shall apply to the Philippine
Government or any agency or any political subdivision thereof.
(e) A final judgment hereafter rendered in any criminal proceeding under this Act to
the effect that a defendant has willfully violated this Act shall be prima facie evidence
against such defendant in an action or proceeding brought by any other party against
such defendant under this Act as to all matters respecting which said judgment would
be an estoppel as between the parties thereto.

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 THE CRIME OF MONEY LAUNDERING: ITS BACKGROUND AND
PUNISHABLE ACTS

Q: What is Anti-Money Laundering Council (AMLC)?

A: The Anti-Money Laundering Council (AMLC) is the agency of the Government
of the Philippines that is tasked to implement the mandatory provisions of Republic
Act No. 9160, also known as the “Anti-Money Laundering Act of 2001” (AMLA),
as amended, and Republic Act No. 10168, also known as the “Terrorism
Financing Prevention and Suppression Act of 2012” (TFPSA).
It serves as the Philippines' central anti-money laundering/counter-terrorism financing
(AML/CTF) authority. As such, it functions as the AML/CTF regulator and
supervisor, financial intelligence unit, and primary law enforcement agency of the
Philippines against money laundering and terrorist financing.
The AMLC may refer to (1) the government agency or (2) the Council, which heads
the said government agency.
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Q: What is money laundering?
A: Money laundering is an act or series or combination of acts whereby proceeds of
an unlawful activity, whether in cash, property or other assets, are converted,
concealed or disguised to make them appear to have originated from legitimate
sources. One way of laundering money is through the financial system. Republic Act
No. 9160, otherwise known as the Anti-Money Laundering Act of 2001 (AMLA), as
amended, defined money laundering as a scheme whereby proceeds of an unlawful
activity are transacted or attempted to be transacted, thereby making them
appear to have originated from legitimate sources.
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Q: What makes Money Laundering a crime?
A: Money laundering itself is a crime because it allows criminals to preserve and
enjoy the proceeds of their predicate crimes, thus providing them with the incentives
and the means to continue their illegal activities. At the same time, it provides them
the opportunity to appear in public like legitimate entrepreneurs. Organized crime,
through money laundering, is known to have the capacity to destabilize governments
and undermine their financial systems. It is thus a threat to national security.
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Q: Give the historical background of anti-money laundering policies in the country:
A: The Philippines enacted Republic Act (R.A.) No. 9160 (The Anti-Money
Laundering Act of 2001), which took effect on 17 October 2001. Certain provisions
of AMLA were amended by R.A. No. 9194 (An Act Amending R.A. 9160) effective
23 March 2003. It has also issued the Revised Implementing Rules and Regulations
(RIRR) implementing R.A. No. 9160, as amended.

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Q: How is money laundered through the financial system?

1. By Placement– involves initial placement or introduction of the illegal funds into

the financial system. Financial institutions are usually used at this point.
2. By Layering– involves a series of financial transactions during which the dirty
money is passed through a series of procedures, putting layer upon layer of
persons and financial activities into the laundering process. Ex. wire transfers, use
of shell corporations, etc.
3. By Integration– the money is once again made available to the criminal with the
occupational and geographic origin obscured or concealed. The laundered funds
are now integrated back into the legitimate economy through the purchase of
properties, businesses and other investments.
-----------------------------------------
Q: What are considered unlawful activities under the AMLA, as amended?
A: There are 14 unlawful activities or predicate crimes covered by the AMLA. These
are, in the order enumerated in the law:

1. Kidnapping for ransom

2. Drug offenses
3. Graft and corrupt practices
4. Plunder
5. Robbery and extortion
6. Jueteng and masiao
7. Piracy on the high seas
8. Qualified theft
9. Swindling
10. Smuggling
11. Electronic Commerce crimes
12. Hijacking, destructive arson and murder, including those perpetrated against non-
combatant persons (terrorist acts)
13. Securities fraud; and
14. Felonies or offenses of a similar nature punishable under penal laws of other
countries.
The foregoing predicate crimes are associated to the acts of money laundering which
our government is keenly monitoring through suspicious covered transactions.
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NOTE: A predicate crime is an offense that is a component of a more serious crime.
It serves as a tool or instrument to actualize or achieve the evil end of another crime.
For example, producing unlawful funds is the primary offense and money laundering
is the predicate offence. The term “predicate offense” is usually used in referenced to
money laundering or terrorism financing activities.
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Q: What are covered transactions under AMLA?

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A: Transaction with covered institutions in cash or other equivalent monetary
instruments involving a total amount in excess of P500,000.00 within one (1) business
day.
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Q: What are the covered institutions?

1. Banks, offshore banking units, quasi-banks, trust entities, non-stock savings

and loan associations, pawnshops, and all other institutions, including their
subsidiaries and affiliates supervised and/or regulated by the Bangko Sentral ng
Pilipinas (BSP);
2. Insurance companies, holding companies and all other institutions supervised
or regulated by the Insurance Commission (IC); and
3. Securities dealers, brokers, pre-need companies, foreign exchange
corporations, investment houses, trading advisers, as well as other entities
supervised or regulated by the Securities and Exchange Commission (SEC).
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NOTE: The covered institutions shall monitor and report to AMLC two (2) things
namely covered transactions; and suspicious transactions as hereinafter discussed.
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Q: What are the salient features of our AMLA?

1) It criminalizes money laundering, meaning it makes money laundering a

crime, and provides penalties for its commission, including hefty fines and
imprisonment.
2) It states clearly the determination of the government to prevent the
Philippines from becoming a haven for money laundering, while ensuring to
preserve the integrity and confidentiality of good bank accounts.
3) It creates an Anti-Money Laundering Council (AMLC) that is tasked to
oversee the implementation of the law and to act as a financial intelligence unit to
receive and analyze covered and suspicious transaction reports.
4) It establishes the rules and the administration process for the prevention,
detection and prosecution of money laundering activities.
5) It relaxes the bank deposit secrecy laws authorizing the AMLC and the
Bangko Sentral ng Pilipinas access to deposit and investment accounts in specific
circumstances.
6) It requires covered institutions to report covered and suspicious transactions
and to cooperate with the government in prosecuting offenders. It also requires
them to know their customers and to safely keep all records of their transactions.
7) It carries provisions to protect innocent parties by providing penalties for
causing the disclosure to the public of confidential information contained in the
covered and suspicious transactions.
8) It establishes procedures for international cooperation and assistance in the
apprehension and prosecution of money laundering suspects.

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 THE ANTI-MONEY LAUNDERING COUNCIL

Q: What are the powers/authorities of Anti-Money Laundering Council (AMLC)?

A: The AMLC is the Philippines’ financial intelligence unit, which is tasked to
implement the AMLA. It is composed of the Governor of the Bangko Sentral ng
Pilipinas (BSP) as Chairman & the Commissioner of the Insurance Commission (IC)
and the Chairman of the Securities and Exchange Commission (SEC) as members.
The AMLC is authorized to:

1. Require and receive covered or suspicious transaction reports from covered

institutions.
2. Issue orders to determine the true identity of the owner of any monetary
instrument or property that is the subject of a covered or suspicious transaction
report, and to request the assistance of a foreign country if the Council believes it
is necessary.
3. Institute civil forfeiture and all other remedial proceedings through the Office of
the Solicitor General.
4. Cause the filing of complaints with the Department of Justice or the Ombudsman
for the prosecution of money laundering offenses.
5. Investigate suspicious transactions, covered transactions deemed suspicious,
money laundering activities and other violations of the AMLA.
6. Secure the order of the Court of Appeals to freeze any monetary instrument or
property alleged to be the proceeds of unlawful activity.
7. Implement such measures as may be necessary and justified to counteract money
laundering.
8. Receive and take action on any request from foreign countries for assistance in
their own anti-money laundering operations.
9. Develop educational programs to make the public aware of the pernicious effects
of money laundering and how they can participate in bringing the offenders to the
fold of the law.
10. Enlist the assistance of any branch of government for the prevention, detection
and investigation of money laundering offenses and the prosecution of offenders.
In this connection, the AMLC can require intelligence agencies of the
government to divulge any information that will facilitate the work of the Council
in going after money launderers.
11. Impose administrative sanctions on those who violate the law, and the rules,
regulations, orders and resolutions issued in connection with the enforcement of
the law.
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Q:  What are the Customer Identification Requirements – KYC (Know Your
Customer Rule) among the covered institutions?
A: Under AMLA, the covered institutions shall:

1. Establish and record the true identity of their clients based on official
documents.

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 2. In case of individual clients, maintain a system of verifying the true identity
of their clients.
3. In case of corporate clients, require a system verifying their legal existence
and organizational structure, as well as the authority and identification of all
persons purporting to act in their behalf.
4. Establish appropriate systems and methods based on internationally
compliant standards and adequate internal controls for verifying and recording
the true and full identify of their customers.
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Q: What are the Record-Keeping Requirements?
A: All covered institutions shall:

1. Maintain and safely store all records of all their transactions for 5 years from the
transaction dates;
2. Ensure that said records/files contain the full and true identity of the owners or
holders of the accounts involved in the covered transactions and all other
identification documents;
3. Undertake the necessary adequate measures to ensure the confidentiality of such
files;
4. Prepare and maintain documentation, in accordance with client identification
requirements, on their customer accounts, relationships and transactions such that
any account, relationship or transaction can be so reconstructed as to enable the
AMLC and/or the courts to establish an audit trail for money laundering;
5. Maintain and safely store all records of existing and new accounts and of new
transactions for 5 years from October 17, 2001 or from the dates of the accounts
or transactions, whichever is later;
6. Anent closed accounts, preserve and safely store the records on customer
identification, account files and business correspondence for at least 5 years from
the dates they were closed;
7. If a money laundering case based on any record kept by the covered institution
has been filed in court, retain said files until it is confirmed that the case has been
finally resolved or terminated by the court; and
8. Retain records as originals in such forms as are admissible in court.
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Q: What are “suspicious transactions”? How is it differentiated from “covered
transactions” under AMLA?
A: Under AMLA, the mandatory “covered transactions” are those involving cash or
other equivalent monetary instruments in excess of P500,000.00 within one (1)
business day. The covered institution has the duty to report the same to AMLC.
On the other hand, “suspicious transactions” are those involving an amount of less
than P500T in one (1) business day but circumstances are present that are sufficient
to call the attention of the authorities. Thus, the covered institution still has the duty
to monitor and report the same to AMLC.
 

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Indeed, transactions shall still be considered “suspicious” and must alert the attention
of the covered institutions, regardless of the amount involved, where the
following circumstances exist:
1. if there is no underlying legal or trade obligation, purpose or economic
justification;
2. if the client is not properly identified;
3. if the amount involved is not commensurate with the business or financial capacity
of the client;
4. if 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. if 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;
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 the foregoing.
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NOTE: Hence, it is mandatory for covered institutions to monitor and report
transactions involving amount in excess of P500T in one business day. Nonetheless,
even if the transaction is less than said amount, the duty to monitor and report still
applies for as long the same falls within the character of a suspicious one.
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Q: What are the reporting requirements?
A: Covered institutions shall report to the AMLC all “covered transactions” and
“suspicious transactions” within five (5) working days from occurrence thereof,
unless the Supervision Authority (the BSP, the SEC, or the Insurance Commission)
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, it shall
be reported as suspicious transaction.
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Q: How is reporting done?
A: The reports on covered and/or suspicious transactions shall be accomplished in
the prescribed formats and submitted within five (5) business days from occurrence of
the transactions in a secured manner to the AMLC in electronic form, either via
diskettes, leased lines, or through internet facilities. The corresponding hard copy for
suspicious transactions shall be sent to AMLC at the 5th Floor EDPC Building,
Bangko Sentral ng Pilipinas Complex, Manila, Philippines.
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Q: What is the penalty for failure to report covered or suspicious transactions?

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A: Any person, required to report covered and suspicious transactions who failed to
do so will be subjected to penalty of 6 months to 4 years imprisonment or a fine of not
less than P= 100,000.00 but not more than P= 500,000.00, or both. (RA 9160)
-------------------------------------------------------
Q: Are there confidentiality restrictions on the reporting of covered transaction and/or
suspicious transaction?
A: Yes. When reporting covered transactions 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,
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, the concerned personnel of the
covered institution or media is criminally liable.
-------------------------------------------------
Q: What are the other offenses punishable under the AMLA, as amended?
1. Failure to keep records is committed by any responsible official or employee of a
covered institution who fails to maintain and safely store all records of transactions
for 5 years from the dates the transactions were made or when the accounts were
closed. The penalty is 6 months to 1 year imprisonment or a fine of not less than P=
100,000.00 but not more than P= 500,000.00, or both.
2. Malicious reporting is committed by any person who, with malice or in bad faith,
reports or files a completely unwarranted or false information regarding a money
laundering transaction against any person. The penalty is 6 months to 4 years
imprisonment and a fine of not less than P= 100,000.00 but not more than P=
500,000.00. The offender is not entitled to the benefits of the Probation Law.
3. Breach of Confidentiality. For this offense, the penalty is 3 to 8 years
imprisonment and a fine of not less than P= 500,000.00 but not more than P= 1
million. In case the prohibited information is reported by media, the responsible
reporter, writer, president, publisher, manager, and editor-in-chief are held
criminally liable.
4. Administrative offenses. The AMLC, after due investigation, can impose fines from
P=100,000.00 to P=500,000.00 on officers and employees of covered institutions or
any person who violates the provisions of the AMLA as amended, its IRR and orders
and resolutions issued pursuant thereto.

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