ANTI-MONEY LAUNDERING ACT (RA 9160) a.

Securities dealers, brokers, salesmen,

"Anti-Money Laundering Act of 2001" investment houses, and other similar persons
Purposes managing securities or rendering services such
● to protect and preserve the integrity and as investment agents, advisors, or consultants.
confidentiality of bank accounts and b. mutual funds or open-end companies, closed-
● to ensure that the Philippines shall not be end investment companies or issuers, and other
used as a money-laundering site for the proceeds of similar entities;
any unlawful activity c. other entities administering or otherwise
● Consistent with its foreign policy, dealing in commodities, or financial derivatives
The Philippines shall extend cooperation in based thereon, valuable objects, cash
transnational investigations and prosecutions of substitutes and other similar monetary
persons involved in money laundering activities instruments or properties supervised and
wherever committed. regulated by the SEC.

Covered Institutions 4. The following Designated Non-Financial Businesses

"Person" refers to any natural or juridical person. and Professions (DNFBPs):
1. Persons supervised or regulated by BSP, such a. Jewelry dealers, dealers in precious metals, and
as: dealers in precious stones.
a. Banks; b. Company service providers which, as a
b. Non-banks; business, provide any of the following services
c. Quasi-banks; to third parties:
d. Trust entities; ● acting as a formation agent of juridical persons;
e. Pawnshops; ● acting as a director or corporate secretary
f. Non-stock savings and loan ● providing a registered office; business address
associations; or
g. Electronic money issuers; and accommodation, correspondence, or
h. All other persons and their subsidiaries administrative address for a company, a partnership or
and affiliates any other legal person or arrangement; and
supervised or regulated by the BSP. acting as a nominee shareholder for another
RIRR- foreign exchange dealers, money changers, and person.
remittance and transfer companies c. Persons, including lawyers and accountants,
2. Persons supervised or regulated by IC, such as: who provide any of the following services:
a. Insurance companies; ● Managing of client money, securities or other
b. Pre-need companies; assets;
c. Insurance agents; ● Management of bank, savings, securities, assets
d. Insurance brokers; ● Organization of contributions for the creation,
e. Professional reinsurers; operation or management of companies; and
f. Reinsurance brokers; ● Creation, operation or management of juridical
g. Holding companies; persons or and buying arrangements, and selling
h. Holding company systems; business entities.
i. Mutual benefit associations; and
j. All other persons and their subsidiaries
and affiliates i
supervised or regulated by the IC. ndependent legal professionals are not covered person
3. Persons supervised or regulated by SEC, such as:
D? Casinos, including internet and ship-based casinos,
with respect to their casino cash transactions related to intangible property;
they gaming operations 3. Drafts, checks and notes;
4. Stocks or shares, participation or interest in a
Covered Transactions corporation or in a commercial enterprise or
1. A transaction in cash or other equivalent profit-making venture and evidenced by a
monetary instrument exceeding Five Hundred certificate, contract, instrument, whether
Thousand pesos (Php500, OOO.OO) within one written or electronic in character, including
banking day those enumerated in Section 3 of the Securities
2. A transaction exceeding One Million pesos (Php Regulation Code;
l, OOO,OOO.OO) in cases of jewelry dealers, 5. Participation or interest in any non-stock,
dealers in precious metals and dealers in non-profit corporation;
precious stones. 6. Securities or negotiable instruments, bonds,
commercial papers, deposit certificates, trust
“Covered Transaction Report” (CTR) certificates, custodial receipts, or deposit substitute
- Report of a covered person to AMLC instruments, trading orders, transaction tickets and
confirmations of sale or investments and money
Suspicious Transactions- regardless of the amount market instruments;
1. there is no underlying legal or trade obligation, 7. Contracts or policies of insurance, life, or non-
purpose or economic justification; life, contracts of suretyship, pre-need plans and
2. the client is not properly identified; member certificates issued by mutual benefit
3. the amount involved is not commensurate with association; and
the business or financial capacity of the client; 8. Other similar instruments where title thereto
4. taking into account all known circumstances, it passes to another by endorsement, assignment or
maybe perceived that the client's transaction is delivery.
structured in order to avoid being the subject of
reporting requirements under the AMLA; Unlawful Activities
5. any circumstance relating to the transaction 1. Kidnapping for Ransom
which is observed to deviate from the profile of 2. Comprehensive Dangerous Drugs Act of 2002
the client and/or the client's past transactions 3. Anti-Graft and Corrupt Practices Act
with the covered person; 4. Plunder
6. the transaction is in any way related to an 5. "Robbery" and "Extortion"
unlawful 6. "Jueteng" (Luzon) and "Masiao" (vis/mmin)
activity or any money laundering activity or offense that 7. Piracy on the High Seas
is about to be committed, is being or has been 8. "Qualified Theft"
committed; or 9. "Swindling"
7. any transaction that is similar, analogous, or 10. "Smuggling" "Tariff and Customs Code of the
identical to any of the foregoing. The Philippines";
11. "Electronic Commerce Act of 2000";
“Suspicious Transaction Report” (STR) 12. "Hijacking" "Anti-Hijacking Law"; "Destructive
- report of a covered person to AMLC Arson";
and "Murder", as defined under the Revised Penal
Monetary Instruments Code, as amended;
1. Coins or currency of legal tender of the 13. "Terrorism" and "Conspiracy to Commit Terrorism"
The Philippines, or of any other country; 14. "Financing of Terrorism"
2. Credit instruments, including bank deposits, 15. "Bribery" "Corruption of Public Officers"
financial interest, royalties, commissions and other 16. "Frauds and Illegal Exactions
17. "Malversation of Public Funds" 6. performs or fails to perform any act as a result of
18. "Forgeries" and "Counterfeiting" which he facilitates the offense of money laundering
19. "Anti-Trafficking in Persons Act of 2003", referred to in (1), (2), or (3) above.
20. "Revised Forestry Code of the Philippines
21. "Philippine Fisheries Code of 1998"; B. Any covered person who, knowing that a covered or
22. Philippine Mining Act of 1995"; a suspicious transaction is required under the AMLA to
23. "Wildlife Resources Conservation and Protection be reported to the AMLC, fails to do so.
Act";
24. National Caves and Cave Resources Management Jurisdiction of money laundering cases
Protection Act"; A. Regional Trial Court. - The regional trial courts shall
25. Anti-Carnapping Act of 2002, as amended"; have the jurisdiction to try money laundering cases
26. "Codifying the Laws on Illegal/Unlawful Possession, committed by private individuals, and public officers
Manufacture, Dealing In, Acquisition, or Disposition of not covered by the jurisdiction of the Sandiganbayan.
Firearms, Ammunition or Explosives"; B. Sandiganbayan. - The Sandiganbayan shall have
27. "Anti-Fencing Law"; jurisdiction to try money laundering cases committed
28. "Migrant Workers and Overseas Filipinos Act of by public officers under its jurisdiction, and private
1995", as amended by Republic Act No. 10022; persons who are in conspiracy with such public
29. Violation of Republic Act No. 8293, otherwise known officers.
as the "Intellectual Property Code of the Philippines, as
amended"; Prosecution of money laundering
30. "Anti-Photo and Video Voyeurism Act of 2009"; A. Independent Proceedings. - The prosecution of
31. "Anti-Child Pornography Act of 2009"; money laundering and the unlawful activity shall
32. "Special Protection of Children Against Abuse, proceed independently.
Exploitation and Discrimination"; B. Separate and Distinct Elements. - The elements
33. "Securities Regulation Code of 2000"; of money laundering are separate and distinct from the
34. Felonies or offenses of a nature similar to the elements of the unlawful activity. The elements of the
aforementioned unlawful activities that are punishable unlawful activity, including the identity of the
under the penal laws of other countries. perpetrators and the details of the commission of the
unlawful activity, need not be established by proof
Money Laundering Offenses beyond a reasonable doubt in the case for money
A. Any person who, knowing that any monetary laundering.
instrument or property represents, involves, or relates C. Knowledge. - The element of knowledge may be
to the proceeds of any unlawful activity: established by direct or circumstantial evidence.
1. transacts said monetary instrument or property; D. Rules of Procedure. - The Rules of Court shall
2. converts, transfers, disposes of, moves, acquires, govern all proceedings concerning the prosecution of
possesses or uses said monetary instrument or money laundering.
property;
3. conceals or disguises the true nature, source,
location, disposition, movement, or ownership of or
rights with respect to the said monetary instrument or Anti-money laundering council (AMLC)
property; The AMLC is composed of the:
4. attempts or conspires to commit money laundering ● Governor of the BSP as Chairperson
offenses referred to in (1), (2) or (3) above; ● Commissioner of the IC
5. aids, abets, assists in or counsels the commission of ● Chairperson of the SEC, as Members.
the money laundering offenses referred to in (1), (2) - Must be a unanimous decision
or (3) above; and
The AMLC Secretariat. 9. to develop educational programs, including
A. Executive Director awareness campaign on the pernicious effects, methods
- Head of AMLC secretariat and techniques, prevention, ways of prosecuting
- Appointed by AMLC by 5 year term offenders
- Member of philippine bar (CPA-LAWYER can be) 10. to enlist the assistance of any branch, department,
- At least 35 years of age bureau, office, agency or instrumentality of the
- Served atleast 5 years in BSP, IC, SEC government, including government-owned and
- good moral character, unquestionable integrity - controlled corporations, in undertaking any and
and known probity all anti-money laundering operations, which
B. Composition may include the use of its personnel, facilities,
e. Detail and Secondment and resources for the more resolute prevention,
detection, and investigation of money
Functions of AMLC laundering offenses and prosecution of
1. to require and receive covered or suspicious offenders.
transaction 11. to impose administrative sanctions for the violation
reports from covered persons; of laws, rules, regulations, orders, and resolutions
2. to issue orders addressed to the appropriate issued pursuant thereto.
Supervising Authority or the covered person to 12. to require the Land Registration Authority and all
determine the true identity of the owner of any its Registries of Deeds to submit to the AMLC, reports
monetary instrument or property subject of a CTR/STR on all real estate transactions involving an amount in
3. to institute civil forfeiture proceedings and all other excess of Five hundred thousand pesos (P500, OOO.OO)
remedial proceedings through the Office of the Solicitor within fifteen (15) days from the date of registration of
General; the transaction, in a form to be prescribed by the
4. to file complaints with the DOJ or the Office of the AMLC. The AMLC may also require the Land Registration
Ombudsman for the prosecution of money laundering Authority and all its Registries of Deeds to submit copies
offenses and other violations under the AMLA; of relevant documents of all real estate transactions.
5. to investigate suspicious transactions and covered
transactions deemed suspicious after an investigation Prevention of money laundering
by the money laundering activities and other violations A. Customer Due Diligence
of the AMLA; B. Record Keeping
6. to file with the Court of Appeals, ex parte through Covered persons shall maintain and safely store for
the Office of the Solicitor General: five (5) years from the dates of transactions all records
a. petition for the freezing of any monetary of customer identification and transaction documents of
instrument or property that is in any way their customers.
related to unlawful activity; or ● Retention of Records Where the account is the
b. an application for authority to inquire into or Subject of a Case
examine any particular deposit or investment, ● Closed Accounts
including related ● Form of Records
accounts, with any banking institution or non-bank C. Transaction Reporting
financial institution.
7. to formulate and implement such measures as may Reporting of covered and suspicious transactions
be necessary and justified under the AMLA to - Covered persons shall report to the AMLC all
counteract money laundering. covered transactions and suspicious
8. to receive and take action in respect of any request transactions within five (5) working days, unless
from foreign states for assistance in their own anti- the AMLC prescribes a different period not
money laundering operations as provided in the AMLA
 exceeding fifteen (15) working days, from the participated in the commission of the crime of
occurrence thereof. money laundering.
● Substance and Form of Reports. C. Penalties for Failure to Keep Records. -
● Confidentiality of Reporting 6 months to 1 year
● Safe Harbor Provision fine of not less than one hundred thousand
● Enrollment with the AMLC's Reporting pesos (Php100,000.00) but not more than five
System hundred thousand pesos (Php5OO,OOO.OO), or
- For suspicious transaction, occurrence means it both
should be made not exceeding 10 calendar days shall be imposed on a person convicted
from date of transaction but it must be under Section 9(b) of the AM LA
reckoned when th person transacting is D. Penalties for Malicious Reporting. - Any person who,
involved in unlawful activity with malice, or in bad faith, reports or files a completely
unwarranted or false information relative to money
Penalties for the crime of money laundering laundering transaction against any person shall be
A. Penalties for Money Laundering. - The following are subject
the penalties to be imposed on persons convicted of to
money laundering: 6 months to 4 years
1. Penalties for Section 4(a), (b), (c) and (d) of the AMLA. a fine of not less than one hundred thousand pesos
-7 to 14 yrs. Imprisonment (Php100,000.00) but not more than five hundred
a fine of not less than three million pesos thousand pesos (Php500,OOO.OO), at the discretion of
(Php3,000,000.00), but not more than twice the value the court:
of Provided, that the offender is not entitled to avail of
the monetary instrument or property involved in the the benefits of the Probation Law.
offense If the offender is a corporation, association,
2. Penalties for Section 4(e) and (f) of the AMLA. - partnership or any other juridical person, the penalty
4-7 yrs imprisonment of imprisonment and/or fine shall be imposed upon
a fine of not less than one million five the responsible officers, as the case may be, who
hundred thousand pesos (Php1,SOO,000.00) but not participated in, or allowed by their gross negligence
more the commission of the crime and the court may
than three million pesos (Php3,000,000.00) suspend or revoke its license.
3. Penalties for the Last Paragraph of Section 4 of the If the offender is an alien, he shall, in addition to the
AMLA. penalties herein prescribed, be deported without
6 months to 4 years further proceedings after serving the penalties herein
fine of not less than one hundred thousand prescribed.
pesos (Php100,000.00) but not more than five hundred If the offender is a public official or employee, he
thousand pesos (PhpSOO,OOO.OO), or both, shall, in addition to the penalties prescribed herein,
B. Penalties for Knowingly Participating in the suffer perpetual or temporary absolute
Commission disqualification from office, as the case may be. Any
of Money Laundering. - public official or employee who is called upon to testify
4-7 yrs and refuses to do the same or purposely fails to testify
shall suffer the same penalties herein prescribed.
a fine corresponding to not more than two E. Penalties for Breach of Confidentiality. -
hundred percent (200%) of the value of the monetary -3 to 8 yrs
instrument or property laundered -fine of not less than five hundred thousand pesos
shall be imposed upon the covered person, (Php500,OOO.OO) but not more than one million pesos
its directors, officers or personnel who knowingly (Php1,OOO,OOO.OO)
-In case of a breach of confidentiality that is published
or
reported by the media, the responsible reporter, writer,

president, publisher, manager and editor-inchief shall

be
liable under the AM LA.
F. Criminal Liability of Corporate Entities. - If the
offender is a
corporate entity, the penalties herein shall be imposed
upon the
responsible officers who participated in, or allowed by
their gross
negligence the commission of the crime; and/or
directors or trustees
who willfully and knowingly voted for or assented to
violate the
AMLA, this RIRR, or other AMLC issuances.