ANTI-MONEY LAUNDERING ACT the identification and prosecution not only

(R.A. NO. 9160, AS AMENDED BY R.A. NO. of the perpetrators of the crime of money
9194, 10167, 10365, 10927, AND 11521) laundering but also the perpetrators of the
[hereinafter referred as AMLA] predicate offence. Locating the proceeds of
the crime leads to the detection of the
1. What is the State Policy of the Anti- crime generating the proceeds and hence
Money Laundering Act to the apprehension of the perpetrator.

(1) To protect and preserve the integrity and (b) The fight against anti-money laundering
confidentiality of bank accounts; has pragmatic economic justification.
(2) To ensure that the Philippines shall not be "Depriving potential money launderers of
used as a money laundering site for the access to financial markets helps those
proceeds of any unlawful activity; markets maintain a reputation for integrity
(3) To extend cooperation in transnational which enhances their stability and hence
investigations and prosecutions of persons attractiveness. And legitimate businesses
involved in money laundering activities are spared the distortions in competition
wherever committed, as well as in the caused by unlawfully financed enterprises
implementation of targeted financial for which money laundering and not
sanctions related to the financing of the commercial profit is the prime objective.
proliferation of weapons of mass (E.P. Ellinger, Eva Lomnicka, and R.J.A.
destruction, terrorism, and financing of Hooley, Ellinger's Modern Banking Law, 4th
terrorism, pursuant to the resolution of the Ed., 2006, p. 94, hereinafter referred to as
United Nations Security Council. (Sec. 2, Ellinger's Modern Banking Law)
R.A. No. 9160, as amended by R.A. No.
11521) 3. What is the jurisdiction of AMLA?

2. What is its Deterrence Function? Section 5 of AMLA vests jurisdiction over all
cases on money laundering with the Regional
The Anti-Money Laundering Act is meant to stop Trial Courts. Those committed by public officers
not only the practice of money laundering in all and private persons who are in conspiracy with
its stages but more importantly the crimes that such public officers shall be under the
generated the proceeds that are being jurisdiction of the Sandiganbayan. This is further
laundered. The process of money laundering is clarified in Rule 5 of the 2016 RIRR, which
normally divided into three stages, namely: provides:

(1) Placement stage - The proceeds of the Rule 5. Jurisdiction over Money Laundering
crime often cash, are deposited in a Cases.
financial institution.
(a) Regional Trial Court. The regional trial
(2) Layering stage - The proceeds are courts shall have jurisdiction to try money
moved, usually through a series of laundering cases committed by private
transactions, which may involve different individuals, and public officers not covered
entities, different assets and different by the jurisdiction of the Sandiganbayan.
jurisdictions, so as to sever any audit trail (b) Sandiganbayan. The Sandiganbayan shall
to make the tracing of the source harder. have jurisdiction to try money laundering
cases committed by public officers under its
(3) Integration stage - The criminal jurisdiction, and private persons who are in
resumes control of the proceeds, free conspiracy with such public officers. (Rule
from any link to the criminal source. 5, 2016 RIRR of R.A. No. 9160, as
amended)
(a) Anti-money laundering laws are designed to
facilitate early detection, especially at the 4. Does AMLC exercise quasi-judicial
"Placement stage," so that it may lead to powers?
 (c) all other persons
No. The AMLC does not exercise quasi-judicial
powers and is simply an investigatory body. The (3) Supervised or regulated by the
AMLC's investigatory powers does not seep into Securities and Exchange Commission:
and approximates a quasi-judicial agency's
inquisitorial powers. The AMLC's investigation of a. Securities dealers, brokers, salesmen,
money laundering offenses and its determination investment houses and other similar
of possible money laundering offenses, persons managing securities or
specifically its inquiry into certain bank accounts rendering services as investment agent,
allowed by court order, does not transform it advisor, or consultant,
into an investigative body exercising quasi- b. Mutual funds, closed-end investment
judicial powers. (Shu v. Dee, as cited in Subido companies, common trust funds, and
Pagente Certeza Mendoza and Binay Law Offices other similar persons, and
v. CA. G.R. No. 216914, December 6. 2016) c. Other entities administering or otherwise
dealing in currency, commodities or
5. What are the Covered Persons? financial derivatives based thereon,
valuable objects, cash substitutes and
Covered “Institutions” was changed to Covered other similar monetary instruments or
“Persons” under Sec. 3[a], R.A. No. 9160, as property;
amended.
(4) Designated Non-Financial Businesses
The "covered persons" under AMLA may be and Professions (DNFBPs). While not
natural or juridical persons. An important regulated by either BSP, IC, or SEC, these
component of the scheme to prevent money- DNFBPs, which are non-financial in nature,
laundering is the registration of these persons are covered persons by reason of their
with AMLC and the submission of reports by being designated by law as such. These
these covered persons. The registration of include the following:
Covered Persons becomes even more important (a) Jewelry dealers
for non-bank entities which are subject to less i. in precious metals, who, as a
stringent regulator or there is no specialized business, trade in precious metals,
agency that monitors them. Under Section 3[a] for transactions in excess of One
of AMLA, as amended by R.A. No. 10365 and million pesos (P1,000,000.00);
R.A. No. 10927, "Covered Persons" refers to the ii. in precious stones, who, as a
following: business, trade in precious stones,
for transactions in excess of One
(1) Supervised or regulated by the million pesos (P1,000,000.00);
Bangko Sentral ng Pilipinas (BSP): (b) Company service providers which,
(a) banks, as a business, provide any of the
(b) non-banks, following services to third parties:
(c) quasi-banks, i. Acting as a formation agent of
(d) trust entities, juridical persons;
(e) foreign exchange dealers, ii. Acting as (or arranging for another
(f) pawnshops, person to act as) a director or
(g) money changers, corporate secretary of a company, a
(h) remittance and transfer companies and partner of a partnership, or a similar
other similar entities and position in relation to other juridical
(i) all other persons and their subsidiaries persons;
and affiliates iii. Providing a registered office,
business address or
(2) Supervised or regulated by the accommodation, correspondence or
Insurance Commission (IC): administrative address for a
(a) Insurance companies, company, a partnership or any other
(b) pre-need companies and legal person or arrangement; and
 iv. Acting as (or arranging for another Refer to casinos in which persons
person to act as) a nominee participate by the use of remote cone,
shareholder for another person; and television, radio or any other kind of
(c) Persons, including lawyers, accountant electronic or other technology for
Persons who provide any of the facilitating communication. (ibid.)
following services (Sec. 1, Rule 4,
2018 Implementing Rules and ii. Ship-based casino
Regulations of R.A. No. 9160, as Refer to casinos, the operation of
amended): which is undertaken on board a vessel,
i. Managing of client money, ship, boat, or any other water-based
securities, or other assets; craft wholly or partly intended for
ii. Management of bank, savings, or gambling. (ibid.)
securities account;
iii. Organization or contribution for the (6) Real estate developers and brokers;
creation, operation, or management (Sec. 3[a], R.A. No. 9160, as amended by
of companies; and R.A. No. 11521)
iv. Creation, operation or management
of juridical persons or i. Real Estate Developers
arrangements, and buying and Refers to any natural or juridical
selling business entities. (Sec. 3[a], person engaged in the business of
R.A. No. 9160, as amended by R.A. developing real estate development
No. 10365) project for the account of the
developer and offering them for sale or
Lawyers and accountants are not lease. (ibid.)
considered as covered persons if they
render services under item 6 provided ii. Real Estate Brokers
the following requisites are present. Refers to any natural or juridical person
i. They are acting as independent engaged in the business of developing
legal professionals real estate development project for the
ii. Authorized to practice in the account of the developer and offering
Philippines; and them for sale or lease. (ibid.)
iii. They are subject to the
provisions of their respective (7) Offshore gaming operators, as well as
codes of conduct and/or their service providers, supervised,
professional responsibility or any accredited or regulated by the Philippine
of its amendments. (Sec. 3[a], Amusement and Gaming Corporation
R.A. No. 9160, as amended by (PAGCOR) or any government agency.
R.A. No. 10365) (Sec. 2 of RA 11521 amending Sec. 3(a),
RA 9160)
They shall be excluded from the coverage of
the Anti-Money Laundering Act in relation to i. Offshore Gaming Operator
information concerning their clients or where
the disclosure of information would Refers to an entity engaged in offering
compromise client confidences or the attorney- online games of chance or sporting
client relationship. events via the internet using a network
and software program, by themselves or
(5) Casinos, including internet and ship- through local service providers. (ibid.)
based casinos, with respect to their
casino cash transactions related to the ii. Service Providers
gaming operations; (Sec. 3[a], R.A. No.
9160, as amended by R.A. No. 10927) Refers to duly constituted business
corporations who provide components of
i. Internet-based casinos
 offshore gaming operations to offshore purely legal or
gaming operators. (ibid.) accounting services to
their clients. (Sec. 1,
6. What are the Primary Duties of Covered Rule 2, 2018 IRR of R.A.
Persons? No. 9160, as amended)

(1) Covered persons shall comply with all the 8. What are the three obligations of
requirements under the AMLA, its IRR and covered institutions?
other AMLC issuances. They shall have the
duty to cooperate with the AMLC in the
discharge of the latter’s mandate and
execution of its lawful orders and issuances (1) Customer identification - (“Know Your
to protect their business or professions Client” KYC)
from being used in money-laundering
activities. Covered institutions shall establish and
(2) The covered persons’ board of directors, record the true identity of its clients based
partners or sole proprietors shall be on official documents. They shall maintain a
ultimately responsible for the covered system of verifying the true identity of their
person’s compliance with the AMLA, its IRR, clients and, in case of corporate clients,
and other AMLC issuances (Rule 4, 2018 require a system of verifying their legal
IRR of R.A. No. 9160, as amended) existence and organizational structure, as
well as the authority and identification of all
7. Who are Professionals Excluded from persons purporting to act on their behalf.
“Covered Persons”?
The provisions of existing laws to the
Notwithstanding the foregoing, the term contrary notwithstanding, anonymous
‘covered persons’ shall exclude lawyers and accounts, accounts under fictitious names,
accountants acting as independent legal and all other similar accounts shall be
professionals in relation to information absolutely prohibited. Peso and foreign
concerning their clients or where disclosure of currency non-checking numbered accounts
information would compromise client shall be allowed. (Sec. 9 [a], R.A. No. 9160)
confidences or the attorney-client relationship:
Provided, That these lawyers and accountants (2) Record keeping
are authorized to practice in the Philippines and
shall continue to be subject to the provisions of All records of all transactions of covered
their respective codes of conduct and/or institutions shall be maintained and safely
professional responsibility or any of its stored for five (5) years from the date of
amendments. (Sec. 3[a], R.A. No. 9160) transactions. With respect to closed
accounts, the records on customer
General Rule Exception identification, account files and business
Lawyers and If they act as an correspondence, shall be preserved and
accountants are “Independent safely stored for at least five (5) years from
considered as Legal/Accounting the dates when they were closed. (Sec. 9
Covered Persons Professional”. An [b], R.A. No. 9160)
under the “Independent Legal or
definition in the Accounting Professional” Exception: If a case has been filed in court
AMLA. (Sec. 1, refers to involving the account, records must be
Rule 4, 2018 IRR lawyers/accountants retained and safely kept beyond the five (5)-
of R.A. No. 9160, working in a private firm year period, until it is officially confirmed by
as amended) or as a sole the AMLC Secretariat that the case has been
practitioner who, by resolved, decided or terminated with finality.
way of business or (Sec. 3, Rule 20, 2018 Implementing Rules
occupation, provides
 and Regulations of R.A. No. 9160, as otherwise, it would contravene its direct
amended) mandate under Sec. 7, R.A. No. 9160.

The record keeping provisions under the AMLC is not merely a repository of reports and
AMLA pertains to the obligation of covered information on covered and suspicious
institutions to maintain and safely store all transactions. It is created precisely to
records of transactions for five years for investigate and institute charges against the
purposes of determining possible violations offenders. Sec. 7 clearly states that it is tasked
of the AMLA. A bank cannot use this to institute civil forfeiture proceedings and other
provision to escape proper accounting of remedial proceedings, and to file complaints
client’s deposits on the pretext that all with the Department of Justice or the Office of
documents pertaining to closed accounts the Ombudsman for anti-money laundering
and settled loans have already been offenses. The criminal prosecution of such
disposed. Ultimately, as between its five- offenses would be unduly hampered if it were to
year holding policy versus its legal and be prohibited from disclosing such information.
jurisprudential fiduciary duty to exercise the For the AMLC to refuse disclosing the
highest degree of care in conducting its information required of it would be to go against
affairs, the latter consideration certainly its own functions under the law. (Republic of the
prevails. (Metrobank vs. Cruz, G.R. No. Philippines, Represented by the AMLC v.
221220, January 19, 2021) Sandiganbayan. G.R. Nos. 232724-27, Feb. 12,
2021)
(3) Reporting of covered and suspicious
transactions 9. What are the Prohibited
Communications?
General Rule: Exception:
Covered persons The AMLC When reporting covered or suspicious
shall report to the prescribes a transactions to the AMLC, covered persons and
AMLC all covered different period not their officers and employees are prohibited
transactions and exceeding fifteen from:
suspicious (15) working days.
transactions within (1) Communicating, directly or indirectly, in any
five (5) working manner or by any means, to any person,
days from the fact that a covered or suspicious
occurrence thereof. transaction report was made, the contents
(Sec. 9, R.A. No. 9160, as amended by R.A. thereof, or any other information in relation
No. 10365) thereto.

Note: Should a transaction be determined to NOTE: If the reporting is done by any

be both a covered transaction and a person in the regular performance of his
suspicious transaction, the covered person duties in good faith, no administrative,
shall be required to report the same as a criminal, or civil proceedings shall lie
suspicious transaction. (ibid.) against said person, whether or not such
reporting results in any criminal prosecution
According to the wording of R.A. No. 9160, the under this Act of any other law (Safe
AMLC “is not one of the covered institutions Harbor Provision).
prohibited from disclosing information on
covered and suspicious transactions,” and that (2) Communicating, directly or indirectly, in any
the rationale for the prohibition does not extend manner or by any means, to any person or
to the AMLC. Unlike covered institutions, the entity, the media, the fact that a covered or
AMLC is mandated to investigate and file a case suspicious transaction has been reported or
against violators based on the information it is about to be reported, the contents of the
obtains. Furthermore, the prohibition and report, or any other information in relation
confidentiality cannot apply to the AMLC; thereto.
 (2) The client is not properly identified;
(3) Publishing or airing such reporting in any (3) The amount involved is not commensurate
manner or form by the mass media, with the business or financial capacity of
electronic mail, or other similar devices. the client;
(4) Taking into account all known
In case of violation of these prohibitions, the circumstances, it may be perceived that the
concerned officer and employee of the covered client’s transaction is structured in order to
person and media shall be held criminally liable avoid being the subject of reporting
(Sec. 9, R.A. No. 9160) requirements under Act;
(5) Any circumstance relating to the transaction
10. What are the Covered Transactions? which is observed to deviate from the
profile of the client and/or the client’s past
Refers to any act establishing any right or transactions with the covered institution.
obligation or giving rise to any contractual or (6) The transactions is in anyway related to an
legal relationship between the parties thereto. It unlawful activity or offense under this Act
also includes any movement of funds by any that is about to be, is being or has been
means with a covered institution. (Sec. 3[h], committed; or
R.A. No. 9160) (7) Any transaction that is similar or analogous
to any of the foregoing. (Sec. 3[b-1], R.A.
It is a transaction in cash or other equivalent No. 9160, as amended by R.A No. 11521).
monetary instrument involving a total amount in
excess of P500,000.00 within one banking day. 13. What is the Distinction between a
(Sec. 3[b], R.A. No. 9160, as amended by R.A. "covered transaction report and a
No. 10927) "suspicious transaction report?

11. What are the exceptions from the A covered transaction report involves
covered transactions? transaction/s in cash or other equivalent
monetary instrument involving generally a total
(1) For casinos amount in excess of P500,000.00 within one (1)
a single casino transaction involving an banking day, while suspicion transaction report
amount in excess of P5 Million or its involves transactions with cover institutions
equivalent in any other currency (Sec. 3[a] regardless of the amounts involved made under
[8], R.A. No. 9160, as amended by R.A. No. any the suspicious circumstances enumerated by
10927); law. (Bar 2015; Divina, Divina on Commercial
(2) For real estate developers and brokers Law a Comprehensive Guide Vol. II, 2021, p.
a single cash transaction involving an 168)
amount in excess of Seven million five
hundred thousand pesos (P7,500,000.00) 14. What are the Prohibited Acts During
or its is equivalent in any other currency Reporting of Covered or Suspicious
(Sec. 3[b], R.A. No. 9160, as amended by Transactions?
R.A No. 11521).
When reporting covered or suspicious
12. What are the governing laws related to transactions, covered institution and its officers
bank secrecy of deposits? and employees are prohibited from:
(1) Communicating to any person or media of
“Suspicious transactions” are transactions with such fact
covered institutions, regardless of the amounts (2) Publish or air such report by the mass
involved, where any of the following media, e-mail, or other device (Sec. 9[c],
circumstances exist: R.A. No. 9160).

(1) There is no underlying legal or trade 15. What is Safe Harbor Provision?
obligation, purpose or economic
justification;
When reporting covered or suspicious 19. What are the elements of Money
transactions to the AMLC, covered institutions Laundering?
and their officers and employees, shall not be
deemed to have violated the secrecy of bank (1) The monetary instrument or property
deposits law and similar laws. (Rule 9.3.c., represents, involves or relates to the
RIRR) proceeds of any unlawful activity;
(2) Knowledge of the offender that the
In fact, no administrative, criminal or civil monetary instrument or property
proceedings shall lie against any person for represents, involves or relates to the
having made a covered or suspicious transaction (3) proceeds of the unlawful activity;
report in the regular performance of his duties (4) The offender commits any of the following:
and in good faith, whether or not such reporting (a) Transacts said monetary instrument or
results in any criminal prosecution under this Act property;
or any other Philippine law ( Rule 9.3.e, RIRR, in (b) Converts, transfers, disposes of,
relation to Sec. 7, AMLC Regulatory Issuance A, moves, acquires, possesses or uses
B, and C No. 1 Series of 2021) said monetary instrument or property;
(c) Conceals or disguises the true nature,
source, location, disposition,
16. In reporting of covered or suspicious movement or ownership of or rights
transactions, when may a covered with respect to said monetary
institution deemed not to have instrument or property;
committed a violation? (d) Attempts or conspires to commit
money laundering offenses referred to
(1) The Law on Secrecy of Bank Deposits of in paragraphs (1), (2) or (3);
R.A. No. 1405, as amended; (e) Aids, abets, assists in or counsels the
(2) Foreign Currency Deposit Act of the commission of the money laundering
Philippines or R.A. No. 6426, as amended; offenses referred to in paragraphs (1),
(3) General Banking Law of 2000 or R.A. No. (2) or (3) above; and
8791; and (f) Performs or fails to perform any act as
(4) Other similar laws. (Sec. 9[c], R.A. No. a result of which he facilitates the
9160, as amended by R.A. No. 9194) offense of money laundering referred
to in paragraphs (1), (2) or (3) above.
17. What is Money Laundering? (Sec. 4, R.A. No. 10365, amending
Sec. 4, R.A. No. 9160)
A crime whereby the proceeds of an unlawful
activity are transacted, thereby making them 20. What is the effect of Failure to file a
appear to have originated from legitimate report a money laundering offense?
sources. (Sec. 4, R.A. No. 9160)
Any covered institution or person who, knowing
Laundering: The term used to describe that a covered or suspicious transaction is
investment or other transfer of money flowing required under the Anti-Money Laundering Act
from racketeering, drug transactions, and other to be reported to the Anti-Money Laundering
illegal sources into legitimate channels so that Council, fails to do so. (Sec. 4, R.A. No. 9160, as
its original source cannot be traced. (Black’s amended by R.A. No. 9194 and R.A. No. 10365)
Law Dictionary, 6th ed.)
21. What is Monetary Instrument?
18. How is Money Laundering committed?
“Monetary Instrument” refers to proceeds of, or
Money Laundering is also committed by any instruments related to an unlawful activity. This
covered person who, knowing that a covered or may refer to any of the following:
suspicious transaction is required under this Act
to be reported to the AMLC, fails to do so. (1) Coins or currency of legal tender of the
Philippines, or of any other country;
 (2) Drafts, checks, and notes; (4) Plunder under Republic Act No. 7080, as
(3) Securities or negotiable instruments, bonds, amended;
commercial papers, deposit certificates, (5) Robbery and extortion under Articles 294,
trust certificates, custodial receipts, or 295, 296, 299, 300, 301 and 302 of the
deposit substitute instruments, trading Revised Penal Code, as amended;
orders, transaction tickets and (6) Jueteng and Masiao punished as illegal
confirmations of sale or investments and gambling under Presidential Decree No.
money market instruments; and 1602;
(4) Other similar instruments where title (7) Piracy on the high seas under the Revised
thereto passes to another by endorsement, Penal Code, as amended and Presidential
assignment, or delivery. (Sec. 3[c], R.A. Decree No. 532;
No. 9160) (8) Qualified theft under Article 310 of the
Revised Penal Code, as amended;
22. What are the three basic steps in Money (9) Swindling under Article 315 and Other
Laundering? Forms of Swindling under Article 316 of
the Revised Penal Code, as amended;
(1) Placement (10) Smuggling under Republic Act Nos. 455
At this stage, the launderer inserts the dirty and 1937;
money into a legitimate financial institution (11) Violations of Republic Act No. 8792,
usually in the form of cash bank deposits. otherwise known as the Electronic
Commerce Act of 2000;
(2) Layering (12) Hijacking and other violations under
Involves sending money through various Republic Act No. 6235; destructive arson
financial transactions to change its form and and murder, as defined under the Revised
make it more difficult to follow. It may Penal Code, as amended;
consist of bank-to-bank transfers, changing (13) Terrorism and conspiracy to commit
currency, or purchasing high value items. terrorism as defined and penalized under
Sections 3 and 4 of Republic Act No.
(3) Integration 9372;
The money re-enters mainstream economy (14) Financing of terrorism under Section 4
in legitimate-looking form, appearing to and offenses punishable under Sections 5,
have come from some legitimate 6, 7 and 8 of Republic Act No. 10168,
transaction. otherwise known as the Terrorism
Financing Prevention and Suppression Act
23. What are the Unlawful Activities or of 2012:
Predicate Crimes? (15) Bribery under Articles 210, 211 and 211-A
of the Revised Penal Code, as amended,
“Unlawful activity” refers to any act or and Corruption of Public Officers under
omission or series or combination thereof Article 212 of the Revised Penal Code, as
involving or having direct relation to the amended;
following: (16) Frauds and Illegal Exactions and
Transactions under Articles 213, 214, 215
(1) Kidnapping for ransom under Article 267 and 216 of the Revised Penal Code, as
of Act No. 3815, otherwise known as the amended;
Revised Penal Code, as amended; (17) Malversation of Public Funds and Property
(2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, under Articles 217 and 222 of the Revised
15 and 16 of Republic Act No. 9165, Penal Code, as amended;
otherwise known as the Comprehensive (18) Forgeries and Counterfeiting under
Dangerous Drugs Act of 2002; Articles 163, 166, 167, 168, 169 and 176
(3) Section 3 paragraphs B, C, E, G, H and I of the Revised Penal Code, as amended;
of Republic Act No. 3019, as amended, (19) Violations of Sections 4 to 6 of Republic
otherwise known as the Anti-Graft and Act No. 9208, otherwise known as the
Corrupt Practices Act; Anti-Trafficking in Persons Act of 2003;
(20) Violations of Sections 78 to 79 of Chapter (33) Fraudulent practices and other violations
IV, of Presidential Decree No. 705, under Republic Act No. 8799, otherwise
otherwise known as the Revised Forestry known as the Securities Regulation Code
Code of the Philippines, as amended; of 2000 (Sec. 3[i], R.A. No. 9160 as
(21) Violations of Sections 86 to 106 of amended by R.A. No. 10365, amending)
Chapter VI, of Republic Act No. 8550,
otherwise known as the Philippine 24. What are the amendments introduced
Fisheries Code of 1998; under RA 11521?
(22) Violations of Sections 101 to 107, and 110
of Republic Act No. 7942, otherwise (34) Violation of Section 19 (a)(3) of Republic
known as the Philippine Mining Act of Act No. 10697, otherwise known as the
1995; ‘Strategic Trade Management Act’, in
(23) Violations of Section 27(c), (e), (f), (g) relation to the proliferation of weapons of
and (i), of Republic Act No. 9147, mass destruction and its financing
otherwise known as the Wildlife pursuant to United Nations Security
Resources Conservation and Protection Council Resolution Numbers 1718 of 2006
Act; and 2231 of 2015;
(24) Violation of Section 7(b) of Republic Act (35) Violations of Section 254 of Chapter II,
No. 9072, otherwise known as the Title X of the National Internal Revenue
National Caves and Cave Resources Code of 1997, as amended, where the
Management Protection Act; deficiency basic tax due in the final
(25) Violation of Republic Act No. 6539, assessment is in excess of Twenty-five
otherwise known as the Anti-Carnapping million pesos (PhP 25,000,000.00) per
Act of 2002, as amended; taxable year, for each tax type covered
(26) Violations of Sections 1, 3 and 5 of and there has been a finding of probable
Presidential Decree No. 1866, as cause by the competent authority;
amended, otherwise known as the decree Provided, further, That there must be a
Codifying the Laws on Illegal/Unlawful finding of fraud, willful misrepresentation
Possession, Manufacture, Dealing In, or malicious intent on the part of the
Acquisition or Disposition of Firearms, taxpayer: Provided, finally, That in no
Ammunition or Explosives; case shall the AMLC institute forfeiture
(27) Violation of Presidential Decree No. 1612, proceedings to recover monetary
otherwise known as the Anti-Fencing Law; instruments, property, or proceeds
(28) Violation of Section 6 of Republic Act No. representing, involving, or relating to a
8042, otherwise known as the Migrant tax crime, if the same has already been
Workers and Overseas Filipinos Act of recovered or collected by the Bureau of
1995, as amended by Republic Act No. Internal Revenue (BIR) in a separate
10022; proceeding; and
(29) Violation of Republic Act No. 8293, (36) Felonies and offenses of a similar nature
otherwise known as the Intellectual that are punishable under the penal laws
Property Code of the Philippines; of other countries. (Sec. 3[i], R.A. No.
(30) Violation of Section 4 of Republic Act No. 9160 as amended by R.A. No. 11521)
9995, otherwise known as the Anti-Photo
and Video Voyeurism Act of 2009; 25. When can there be a finding of
(31) Violation of Section 4 of Republic Act No. Probable Cause?
9775, otherwise known as the Anti-Child
Pornography Act of 2009; The Court finds probable cause to charge for
(32) Violations of Sections 5, 7, 8, 9, 10(c), (d) money laundering as defined in Section 4(a) of
and (e), 11, 12 and 14 of Republic Act No. RA 9160 when:
7610, otherwise known as the Special
Protection of Children Against Abuse, (1) there was only one beneficial owner of the
Exploitation and Discrimination; 471 bank accounts with the Legacy Banks
 of the 86 individual depositor’s respondent institutions and persons (Sec. 7, R.A. No.
Manu Gidwani; 9160, as amended by R.A. No. 9194);
(2) when 142 of these 471 accounts, with the (2) Issue orders addressed to the appropriate
total amount of P20,966,439.09, were in Supervising Authority or the covered
the names of helpers and rank-and-file institution to determine the true identity
employees of the Gidwani spouses who do of the owner of any monetary instrument
not have the financial capacity to deposit or property subject to a covered
the amounts recorded under their names; transaction or suspicious transaction
(3) when the helpers and rank-and-file report or request for assistance from a
employees who reside and are employed in foreign State, or believed by the AMLC, on
Bacolod City maintained bank accounts in the basis of substantial evidence, to be, in
Legacy Banks located in different parts of whole or in part, wherever located,
the country. representing, involving, or related to,
(4) That these individuals reported either directly or indirectly, in any manner or by
respondent Manu's office or business any means, the proceeds from an
address as their own further arouses unlawful activity R.A. No. 9160, Sec. 7, as
serious suspicion on the true ownership of amended by R.A. No. 9194;
the funds deposited. (3) Institute civil forfeiture proceedings and
all other remedial proceedings through
It gives the impression that the helpers and the the Office of the Solicitor General (Sec. 7,
rank-and-file employees had been used by R.A. No. 9160);
respondent as dummies, and their purported (4) Cause the filing of complaints with the
ownership mere subterfuge, in order to increase Department of Justice or the Ombudsman
the amount of his protected deposit. (PDIC v. for the prosecution of money laundering
Gidwani, G.R. 234616, June 20, 2018) offenses;
(5) Investigate suspicious transactions and
26. What is the Anti-Money Laundering covered transactions deemed suspicious
Council (AMLC). after an investigation by the AMLC, money
laundering activities, and other violations
The Anti-Money Laundering Act created the of the AMLA (Sec. 7, R.A. No. 9160 as
entity known as the Anti-Money Laundering amended by R.A. No. 9194);
Council (AMLC). (6) Apply before the Court of Appeals, ex
parte for the freezing of any monetary
27. What is the composition of AMLC? instrument or property alleged to be
laundered, proceeds from, or
(1) Governor of Bangko Sentral ng Pilipinas as instrumentalities used or intended to be
its Chairman; used in any unlawful activity (R.A. No.
(2) The Commissioner of the Insurance 9160 as amended by R.A. No. 10365);
Commission as a member; (7) Implement such measures as may be
(3) The Chairman of the Securities and necessary and justified under the AMLA to
Exchange Commission as a member. (Sec. counteract money laundering (Sec 7, R.A.
7, R.A. No. 9160, as amended by R.A. No. No. 9160);
9194 and R.A. No. 10365) (8) Receive and take action in respect of, any
request from foreign states for assistance
The AMLC shall act unanimously in the discharge in their own anti-money laundering
of its functions. operations (Sec 7, R.A. No. 9160);
(9) Develop educational programs on the
28. What are the Functions of the AMLC? pernicious effects of money laundering,
the methods and techniques used in
The AMLC has the following functions: money laundering, the viable means of
preventing money laundering and the
(1) Require and receive covered or suspicious effective ways of prosecuting and
transaction reports from covered
 punishing offenders (Sec. 7, R.A. No. derived or generated therefrom, by
9160); individuals or entities designated and
(10) Enlist the assistance of any branch, listed under United Nations Security
department, bureau, office, agency, or Council Resolution Numbers 1718 of 2006
instrumentality of the government, and 2231 of 2015 and their successor
including government-owned and resolutions as well as any binding
controlled corporations, in undertaking resolution of the Security Council; and
any and all anti- money laundering (16) to preserve, manage or dispose assets
operations, which may include the use of pursuant to a freeze order, asset
its personnel, facilities and resources for preservation order, or judgment of
the more resolute prevention, detection, forfeiture: Provided, however, That
and investigation of money laundering pending their turnover to the national
offenses and prosecution of offenders government, all expenses incurred in
(Sec. 7, R.A. No. 9160); relation to the duties herein mentioned
(11) Impose administrative sanctions for the shall be deducted from the amount to be
violation of laws, rules, regulations and turned over to the national government.
orders, and resolutions issued pursuant (Sec. 3, R.A. 10365)
thereto (Sec. 7, R.A. No. 9160, as
amended by R.A. No. 9194); The Anti-Money Laundering Council is not
(12) Require the Land Registration Authority merely a repository of reports and information
and all its Registries of Deeds to submit to on covered and suspicious transactions. It was
the AMLC reports on all real estate created precisely to investigate and institute
transactions involving an amount in charges against those suspected to commit
excess of Five Hundred Thousand Pesos money laundering activities.
(P500,000.00) within fifteen (15) days
from the date of the registration of the The criminal prosecution of such offenses would
transaction, in a form to be prescribed by be unduly hampered if it were to be prohibited
the AMLC. The AMLC may also require the from disclosing such information. For the Anti-
Land Registration Authority and all its Money Laundering Council to refuse disclosing
Registries of Deeds to submit copies of the information required of it would be to go
relevant documents of all real estate against its own functions under the law.
transactions. (Sec. 7, R.A. No. 9160, as (Republic v. Sandiganbayan, G.R. Nos. 232724-
amended by R.A. No. 10365) 27, February 15, 2021)

Additional functions of AMLC under Sec. 3, R.A. 29. What is the main Function of the AMLC
10365, 2021, amending Sec. 7, R.A. No. 9160. and its Secretariat?

(13) in the conduct of its investigation, the Information Security and Confidentiality.
AMLC shall apply for the issuance of a The AMLC and its Secretariat shall securely
search and seizure order with any protect information received or processed and
competent court; shall not reveal, in any manner, any information
(14) in the conduct of its investigation, the known to them by reason of their office. This
AMLC shall apply for the issuance prohibition shall apply even after their separation
of subpoena ad from the AMLC. (Sec. 4, R.A. No. 11521, a new
testificandum and/or subpoena duces Sec. 8-A was after Section 8 (Creation of a
tecum with any competent court; Secretariat) of R.A. No. 9160)
(15) to implement targeted financial sanctions
in relation to proliferation of weapons of Executive Director
mass destruction and its financing, To support the AMLC, a secretariat is established
including ex parte freeze, without delay, headed by an Executive Director who shall be
against all funds and other assets that are appointed by the Council for a term of five (5)
owned and controlled, directly or years. He must be a member of the Philippine
indirectly, including funds and assets Bar, at least thirty-five (35) years of age and of
good moral character, unquestionable integrity FIRST ELEMENT: Court Order Ex Parte must
and known probity. All members of the first be obtained before the AMLC can inquire
Secretariat must have served for at least five (5) into these related Accounts: Provided, That the
years either in the BSP, IC, or SEC, and shall procedure for the ex parte application of the ex
hold full-time permanent positions within the parte court order for the principal account shall
BSP. (Rule 8 [A], 2016 RIRR of R.A. No. 9160, be the same with that of the related accounts.
as amended)
Court of Appeals action on application
30. What is the Extraordinary Power of the within 24 Hours
AMLC? Court of Appeals shall act on the application to
inquire into or examine any deposit or
The power or authority to Inquire into investment with any banking institution or non-
Bank Deposits. The AMLC may inquire into or bank financial institution within twenty-four (24)
examine any particular deposit or investment hours from filing of the application.
with any banking institution or non-bank financial
institution. This can be either upon order of the Authority of BSP to check compliance
court or even without court order in certain Bangko Sentral ng Pilipinas may, in the course
exceptional cases. (Sec 11, RA 9160) of a periodic or special examination, check the
compliance of a Covered institution with the
A court order ex parte must first be obtained requirements of the AMLA and its implementing
before the AMLC can inquire into Related rules and regulations.
Accounts. (Sec 1[1.2], Rule 11, 2018 IRR, RA
9160) Definition of Related Accounts
Related Accounts shall refer to accounts, the
AMLC may inquire into or examine any particular funds and sources of which originated from
deposit or investment, including related and/or are materially linked to the monetary
accounts, with any banking institution or non- instrument(s) or property(ies) subject of the
bank financial institution upon order of any freeze order(s).
competent court based on an ex parte
application in cases of violations of this Act, SECOND ELEMENT: Probable Cause.
when it has been established that there is In the context of bank inquiry, probable cause
probable cause that the deposits or refers to such facts and circumstances which
investments, including related accounts would lead a reasonably discreet, prudent, or
involved, are related to an unlawful activity as cautious man to believe that any monetary
defined in Section 3(i) (unlawful activities) instrument or property sought to be inquired
hereof or a money laundering offense under into is in any way related to any unlawful activity
Section 4. (Sec. 11, R.A. No. 9160 as amended and/or money laundering offense. Otherwise
by R.A. No. 10167) stated, it is necessary to show specific facts and
circumstances that provide a link between an
31. What are the Elements of Sec. 11 of the unlawful activity or a money laundering offense,
AMLA as amended? on the one hand, and the account or monetary
instrument or property sought to be examined
(1) Ex-parte application by the AMLC; on the other hand. (Republic v. Bolante. G.R.
(2) Determination of probable cause by the CA; No. 186717, April 17, 2017)
and
(3) In case of exception from court order in Bank Inquiry is not a search warrant or
cases involving unlawful activities defined in warrant of arrest. A bank inquiry order does
Secs. 3(i)(1), (2), and (12). (Subido not necessitate a finding of probable cause
Pagente Certeza Mendoza and Binay Law similar to that in search warrant or warrant of
Offices vs. CA., G.R. No. 216914, December arrest. The Constitution and the Rules of Court
6, 2016) prescribe particular requirements attaching to
search warrants that are not imposed by the
AMLA with respect to bank inquiry orders. A
constitutional warrant requires that the judge application for issuance of bank inquiry
personally examine under oath or order?
affirmation the complainant and the witnesses
he may produce, such examination being in the No prior criminal charge, pendency of a case, or
form of searching questions and answers. Those conviction for an unlawful activity or money
are impositions which the legislative did not laundering offense is necessary for the filing or
specifically prescribe as to the bank inquiry the resolution of an application for issuance of
order under the AMLA. Simply put, a bank bank inquiry order. If the contrary position is
inquiry order is not a search warrant or warrant adopted, then the bank inquiry order would be
of arrest as it contemplates a direct object but limited in purpose as a tool in aid of litigation of
not the seizure of persons or property. (Republic live cases, and wholly inutile as a means for the
vs. Eugenio. G.R. No. 174629, February 14, government to ascertain whether there is
2008) sufficient evidence to sustain an intended
prosecution of the account holder for violation of
THIRD ELEMENT (OPTIONAL): Without the AMLA. Should that be the situation, in all
Court Order likelihood, the AMLC would be virtually deprived
of its character as a discovery tool, and thus
Except that no court order shall be required in would become less circumspect in filing
cases involving activities defined below: complaints against suspect account holders.
After all, under such set-up the preferred
(1) Sec. 3(i)(1) or Kidnapping for ransom under strategy would be to allow or even encourage
Art. 267 of Act No. 3815, otherwise known the indiscriminate filing of complaints under the
as the Revised Penal Code, as amended; AMLA with the hope or expectation that the
(2) Sec. 3(i)(2) or Sections 3, 4, 5, 7, 8 and 9 evidence of money laundering would somehow
of Article 2, R.A. No. 6425, as amended, surface during the trial. Since the AMLC could
otherwise known as the Dangerous Drugs not make use of the bank inquiry order to
Act of 1972; determine whether there is evidentiary basis to
(3) Sec. 3(i)(12) or Hijacking and other prosecute the suspected malefactors, not filing
violations under R.A. No. 6235; destructive any case at all would not be an alternative.
arson and murder, as defined under the (Republic vs. Eugenio. G.R. No. 174629,
Revised Penal Code, as amended, including February 14, 2008)
those perpetrated by terrorists against non-
combatant persons and similar targets; 34. Does Section 11 of R.A. No. 9160
(4) Felonies or offenses of a nature similar to violate procedural due process?
those mentioned in Section 3(i)(1), (2), and
(12), which are Punishable under the penal No. AMLC, in investigating probable money
laws of other countries, and terrorism and laundering activities, does not exercise quasi-
conspiracy to commit terrorism as defined judicial powers, but merely acts as an
and penalized under R.A. No. 9372. (Sec. investigatory body with the sole power of
11, R.A. No. 9160 as amended by R.A. No. investigation similar to the functions of the
10167) National Bureau of Investigation (NBI). Hence,
the ex parte application for the bank inquiry
32. What is the Constitutional Requirement order cannot be said to violate any person's
that must be complied? constitutional right to procedural due process.
(Estrada v. Sandiganbayan, AMLC, and People
The authority to inquire into or examine the of the Philippines, G.R. 217682, July 17, 2018)
main account and the related accounts shall
comply with the requirements of Article III, As the AMLC does not exercise quasi-judicial
Sections 2 and 3 of the 1987 Constitution, functions, its inquiry by court order into bank
which are hereby incorporated by reference. deposits or investments cannot be said to violate
any person's constitutional right to procedural
33. Is a Condition Precedent necessary for due process. (Anti-Money Laundering Council v.
the filing or the resolution of an Bolante et. al, G.R. 186717, April 17, 2017)
 inquiry order does not involve the seizure of
There is no violation of substantive due process, persons or property.
because the physical seizure of the targeted
corporeal property is not contemplated in any Lastly, the holder of a bank account subject of a
form by the law. The AMLC may indeed be bank inquiry order issued ex parte is not without
authorized to apply ex parte for an inquiry into recourse. He has the opportunity to question the
bank accounts, but only in pursuance of its issuance of the bank inquiry order after a freeze
investigative functions akin to those of the order is issued against the account. He can then
National Bureau of Investigation. (Anti-Money assail not only the finding of probable cause for
Laundering Council v. Bolante et. al, G.R. the issuance of the freeze order, but also the
186717, April 17, 2017) finding of probable cause for the issuance of the
bank inquiry order. (Estrada v. Sandiganbayan,
35. Does Section 11 of R.A. No. 9160 AMLC, and People of the Philippines, G.R.
violate right to privacy? 217682, July 17, 2018)

No. The source of the right to privacy respecting The Court clarified that the AMLC, in
bank deposits is statutory, not constitutional; investigating probable money laundering
hence, the Congress may validly carve out activities, does not exercise quasi-judicial
exceptions to the rule on the secrecy of bank powers, but merely acts as an investigatory
deposits, as illustrated in Section 11 of R.A. No. body with the sole power of investigation similar
9160. (Estrada v. Sandiganbayan, AMLC, and to the functions of the National Bureau of
People of the Philippines, G.R. 217682, July 17, Investigation (NBI). Hence, the ex
2018) parte application for the bank inquiry order
cannot be said to violate any person's
36. Does Section 11 of R.A. No. 9160 constitutional right to procedural due
violate the proscription against ex post process. Also, the source of the right to privacy
facto laws? respecting bank deposits is statutory, not
constitutional; hence, the Congress may validly
The amendment introduced by R.A. No. 10167 carve out exceptions to the rule on the secrecy
does away with the notice to the account holder of bank deposits, as illustrated in Section 11
at the time when the bank inquiry order is of R.A. No. 9160. (ibid.)
applied for. The elimination of the requirement
of notice, by itself, is not a removal of any lawful
37. What are Related Accounts?
protection to the account holder because the
AMLC is only exercising its investigative powers
Related accounts shall refer to accounts, funds
at this stage. Indeed, R.A. No. 10167, in
and sources of which originated from and/or are
recognition of the ex post facto clause of the
materially linked to the monetary instruments or
Constitution, explicitly provides that "the penal
properties subject of the freeze order(s) or an
provisions shall not apply to acts done prior to
order of inquiry, regardless of the layer of
the effectivity of the AMLA on October 17, 2001.
accounts that the funds had passed through or
transactions that they had undergone. (Sec. 1,
Furthermore, the AMLC's inquiry and
Rule 2, 2018 IRR, R.A. No.9160)
examination into bank accounts are not
undertaken whimsically based on its
Note: The Court of Appeals must act on the
investigative discretion. The AMLC and the CA
application within 24 hours from the filing
are respectively required to ascertain the
thereof.
existence of probable cause before any bank
inquiry order is issued. Section 11 of R.A. 9160,
38. Where does the power to determine the
even with the allowance of an ex parte
existence of probable cause lodged?
application therefor, cannot be categorized as
authorizing the issuance of a general warrant.
In the issuance of a bank inquiry order, the
This is because a search warrant or warrant of
power to determine the existence of probable
arrest contemplates a direct object but the bank
cause is lodged in the trial court. The court
receiving the application for inquiry order cannot inquiry order authorizes is
simply take the AMLC's word that probable the examination of the
cause exists that the deposits or investments are particular deposits or
related to an unlawful activity. It will have to investments in banking
exercise its own determinative function to be institutions or non-bank
convinced of such fact. financial institutions.

39. What are the requites in the Issuance The monetary instruments or
of a Bank Inquiry Order? property deposited with such
banks or financial institutions
For the trial court to issue a bank inquiry order, are not seized in a physical
it is necessary for the AMLC to be able to show: sense, but are examined on
particular details such as the
(1) Specific facts and circumstances that account holder's record of
provide a link between an unlawful activity deposits and transactions.
or a money laundering offense, and (Subido vs. CA, G.R. No.
(2) The account or monetary instrument or 216914, December 06, 2016)
property sought to be examined. (Anti- Examinatio (1) Kidnapping for ransom
Money Laundering Council v. Bolante et. al, n by AMLA under Article 267 of Act
G.R. 186717, April 17, 2017) where the No. 3815, otherwise
Court Order known as the Revised
Court Order as a requisite to inquiry is not Penal Code, as
required amended;
Examinatio In cases of violations of (2) Sections 4, 5, 6, 8, 9,
n by AMLA AMLA, when it has been 10, 11, 12, 13, 14, 15
where the established upon ex parte and 16 of Republic Act
Court Order application that there is No. 9165, otherwise
required probable cause that the known as the
deposits or investments Comprehensive
including related accounts Dangerous Drugs Act of
involved are related to. 2002;
(1) An Unlawful Activity; or (3) Hijacking and other
(2) A Money laundering violations under Republic
offense (Sec. 11, R.A. Act No. 6235;
No. 9160) destructive arson and
murder, as defined
Note: On the issue of under the Revised Penal
constitutionality of Sec. 11 of Code, as amended;
AMLA, the Supreme Court (4) Felonies or offenses of a
held that the Sec. 11 nature similar to those
providing for ex-parte mentioned in Section
application and inquiry by the 3(i) (1), (2), and (12)
AMLC into certain bank which are punishable
deposits and investments under the penal laws of
does not violate substantive other countries;
due process, there being no Terrorism and
physical seizure of property conspiracy to commit
involved at that stage. A terrorism as defined and
bank inquiry order under Sec. penalized under Republic
11 does not necessitate any Act No. 9372; and (Sec.
form of physical seizure of 11, AMLA)
property of the account (5) Financing of terrorism
holder. What the bank under Section 4 and
 offenses punishable 42. Is the pre-existing case a requirement
under Sections 5, 6, 7 to be able to Inquiry into deposit?
and 8 of the Terrorism
Financing Prevention No. Inquiry into deposits under Section 11 does
and Suppression Act not require a pre-existing criminal case.
(TFPSA). (Sec. 2.1, 2018 (Republic vs. Eugenio, G.R. No. 174629,
RIRR of AMLA) February 14, 2008)

40. May the AMLC may inquire into the 43. May the holder of the bank account
bank deposits even without court question the issuance of bank inquiry
order? order?

Yes. AMLC may inquire into the bank deposits Yes. The holder of a bank account that is the
even without court order but only in exceptional subject of a bank inquiry order issued ex parte
cases. Section 11, AMLA, as amended by R.A. has the opportunity to question the issuance of
No. 10167, provides that the “AMLC may inquire such an order after a freeze order has been
into or examine any particular deposit or issued against the account.
investment, including related accounts, with any
banking institution or non-bank financial The account holder can then question
institution. This can be either upon order of the
court or even without court order in certain (1) The finding of probable cause for the
exceptional cases.” issuance of the freeze order, and;
(2) The finding of probable cause for the
Section 11 allows the AMLC to inquire into bank issuance of the bank inquiry order. (Anti-
accounts without having to obtain a judicial Money Laundering Council v. Bolante et. al,
order in cases where there is probable cause G.R. 186717, April 17, 2017)
that the deposits or investments are related to
kidnapping for ransom, certain violations of the 44. What is a Freeze Order?
Comprehensive Dangerous Drugs Act of 2002,
hijacking and other violations under R.A. No. A Freeze Order is an order issued by the Court
6235, destructive arson and murder. Absent any of Appeals that blocks or restrains monetary
of the mentioned predicate crimes, a court order instruments or properties in any way related to
is necessary to inquire into bank deposits. an unlawful activity from being transacted,
(Republic vs. Eugenio, G.R. No. 174629, withdrawn, deposited, transferred, removed,
February 14, 2008) converted, concealed, or otherwise moved or
disposed without affecting the ownership. This is
Note: By virtue of R.A. No. 10168, Anti- in line with the state policy of our Anti-Money
Financing of Terrorism is now included as one of Laundering laws to protect and preserve the
the predicate crimes where a court order is not integrity of the Philippine financial system.
necessary to examine or inquire into bank
deposits. A freeze order is a provisional remedy aimed at
blocking or restraining monetary instruments or
41. Is it imperative that the Examination by properties in any way related to an unlawful
AMLA comply with the requirement of activity from being transacted, converted,
the Constitution? concealed, moved, or disposed without affecting
the ownership thereof. It is an extraordinary and
Yes. The authority of AMLC to inquire into or interim relief to prevent the dissipation, removal,
examine the main account and the related or disposal of properties that are suspected to
accounts shall comply with the requirements of be the proceeds of, or related to, unlawful
Article III, Sections 2 and 3 of the 1987 activities. The relief is pre-emptive in character,
Constitution. meant to prevent the owner from disposing his
property and thwarting the State’s effort in
building its case and eventually filing civil Court and petition by the AMLC and after
forfeiture proceedings and/or prosecuting the Period of determination that probable
owner. (Ligot v. Republic, G.R. No. 176944, effectivity of cause exists that any monetary
March 6, 2013) the Freeze instrument or property is in
A provisional asset preservation aimed at Order any way related to an unlawful
preserving monetary instruments or properties activity as defined in Section
in any way related to an unlawful activity or 3(i) hereof, the Court of
money laundering offense for a period of twenty Appeals may issue a freeze
(20) days during which time the court shall order which shall be effective
determine whether the same should be modified immediately, for a period of
or lifted or an asset preservation order should twenty (20) days.
issue and act accordingly. The provisional asset Summary Within the twenty (20) day
preservation order shall be issued ex parte and if Hearing to period, the Court of Appeals
probable cause is established. (Republic of the Determine shall conduct a summary
Philippines, Represented by the AMLC vs. Ng Modification hearing, with notice to the
and Metropolitan Bank and Trust Company, G.R. of Freeze parties, to determine whether
No. 239047, June 16, 2021) Order; or not to modify or lift the
Period; freeze order, or extend its
45. What is the nature of Freeze Order? Total Period effectivity.
of Freeze
A Freeze Order is temporary in nature. However, Order The total period of the freeze
the period of six months may be extended in order issued by the Court of
certain cases. (Ibid.) Appeals under this provision
shall not exceed six (6)
A freeze order is merely an interim relief and months.
pre-emptive in character, such that the A freeze order may only be
monetary instruments or property that are in effective for a maximum period
any way related to an unlawful activity or money of six months; hence, even
laundering are temporarily preserved by assuming that the Urgent
preventing the owner from utilizing them during Motion for Additional Period of
the duration of the freeze order. Moreover, Freeze Order should have been
Section 10 of R.A. 9160, as amended, provides granted, the six-month
clearly that the freeze order shall be ipso maximum period has
facto lifted if there is no case filed against a elapsed. (Republic v.
person whose account was frozen within the Bloomberry Resorts and
period determined by the CA, but not exceeding Hotels, Inc., G.R. No. 224112,
6 months. In other words, the freeze order is September 2, 2020)
not permanent and it is time-bound. (Beacon Freeze This is without prejudice to an
Currency Exchange, Inc. v. Republic, G.R. No. order in asset preservation order that
255099 (Notice), March 18, 2021) relation to the Regional Trial Court having
Asset jurisdiction over the
The relief is pre-emptive in character, meant to preservation appropriate anti-money
prevent the owner from disposing his property order of the laundering case or civil
and thwarting the State's effort in building its RTC forfeiture case may issue on
case and eventually filing civil forfeiture the same account depending
proceedings and/or prosecuting the on the circumstances of the
owner. (Yambao v. Republic, G.R. No. 171054, case, where the Court of
January 26, 2021) Appeals will remand the case
and its records.
Section 10. Freezing Monetary Instrument Automatic Provided, That if there is no
or Property Lifting case filed against a person
whose account has been frozen
Issuing Upon a verified ex parte within the period determined
 by the Court of Appeals, not The freeze order or asset preservation order
exceeding six (6) months, the issued under this Act shall be limited only to the
freeze order shall be deemed amount of cash or monetary instrument or value
ipso facto lifted. of property that court finds there is probable
cause to be considered as proceeds of a
Provided, further, That this predicate offense, and the freeze order or asset
new rule shall not apply to preservation order shall not apply tyo amounts
pending cases in the courts. in the same account in excess of the amount or
value of the proceeds of the predicate offense.
Period In any case, the court should (Sec. 10[a][2], R.A. No. 9160 as amended by
within act on the petition to freeze R.A. No. 11521)
which within twenty-four (24) hours
Petition to from filing of the petition. 47. What may a person whose account has
Freeze must been frozen file?
be acted If the application is filed a day
upon by the before a nonworking day, the Motion to Lift the Freeze Order. A person
CA computation of the twenty-four whose account has been frozen may file a
(24) hour period shall exclude motion to lift the freeze order and the court
the nonworking days. must resolve this motion before the expiration of
(Sec. 10[a][1], R.A. No. 9160 as amended by the freeze order. (Sec. 10[a][3], R.A. No. 9160
R.A. No. 11521) as amended by R.A. No. 11521)

A freeze order may only be effective for a 48. What is the rule on Prohibition on
maximum period of six months. It shall be courts against injunction of freeze
deemed ipso facto lifted upon the expiration of order?
the six-month period, unless a petition for civil
forfeiture against the frozen monetary General Rule Exception
instrument or property has been filed. In No court shall issue a except the Supreme
which case, the freeze order shall remain temporary restraining Court
effective until an asset preservation order is order or a writ of
issued. injunction against any
freeze order
Thus, a freeze order is merely an interim relief (Sec. 10[a][4], R.A. No. 9160 as amended by
intended to temporarily preserve monetary R.A. No. 11521)
instruments. It is pre-emptive in character,
meant to prevent the owner from disposing 49. What are the Rules on targeted
the property and thwarting the State's effort in financial sanctions in relation to
building its case and eventually filing civil proliferation of weapons of mass
forfeiture proceedings and/or prosecuting the destruction and their financing?
owner. (Hawkson's Truck and Parts Center
Corp. v. Honorable Court of Appeals, G.R. No. For purposes of implementing targeted financial
250078 (Notice), June 15, 2022) sanctions in relation to proliferation of weapons
of mass destruction and its financing, as
Clearly, a Freeze Order may not be issued provided under Section 3(15), the AMLC shall
indefinitely, lest the same be characterized as a have the power to issue, ex porte, an order to
violation of the person's right to due process and freeze without delay.
to be presumed innocent of a charge. (Republic
v. Bloomberry Resorts and Hotels, Inc., G.R. No. The freeze order shall be effective until the basis
224112, September 2, 2020) for its issuance shall have been lifted. During the
effectivity of the freeze order, the aggrieved
46. What is the Scope of Freeze Order? 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 account or any monetary instrument or
judicial protection: Provided, That the person property subject thereof?
whose property or funds have been frozen may
withdraw such sums as the AMLC determines to Probable cause as "such facts and circumstances
be reasonably needed for monthly family needs which would lead a reasonably discreet, prudent
and sustenance including the services of counsel or cautious man to believe that an unlawful
and the family medical needs of such person. activity and/or a money laundering offense is
about to be, is being or has been committed and
The AMLC, if circumstance warrant, may initiate that the account or any monetary instrument or
civil forfeiture proceedings to preserve the property subject thereof sought to be frozen is
assets and to protect it from dissipation. No in any way related to said unlawful activity
court shall issue a temporary restraining order or and/or money laundering offense. (Rule 10.2 of
a writ of injunction against the freeze order, the Revised Rules and Regulations
except the Court of Appeals or the Supreme Implementing Republic Act No. 9160, as
Court.” (Sec. 10[b], R.A. No. 9160 as amended Amended by Republic Act No. 9194, defined)
by R.A. No. 11521)
The Court of Appeals’ finding that probable
50. When may the Court of Appeals issue a cause exists was sustained by the Supreme
Freeze Order? Court when based on the AMLC’s ex parte
application and the Ombudsman’s complaint, it
The power of the AMLC to freeze accounts has is established that a military officer admitted
been deleted under RA 9194. that his income came from his salary as an
officer of the Armed Forces; yet, the
However, the CA may issue a freeze order under Ombudsman’s investigation revealed that the
the following conditions: bank accounts, investments and properties in
the name of military officer and his family
(1) There must be a verified Ex parte petition amount to more than Fifty-Four Million Pesos
by the AMLC (P54,000,000.00). Since these assets are grossly
(2) CA must determine that Probable Cause disproportionate to the military officer’s income,
exists that any monetary instrument of as well as the lack of any evidence that the
property is in any way related to any military officer and his family have other sources
unlawful activity as defined in the AMLA of income, the Court of Appeals properly found
(3) The freeze order shall be effective that probable cause exists that these funds have
immediately been illegally acquired or are related or product
(4) The freeze order shall be for a period not of an unlawful activity. (Ligot v. Republic,
exceeding 6 months (Sec. 10, R.A. No. March. G.R. No. 176944. March 6, 2013. Brion,
9160) J.)

Similarly, the bank does not have the unilateral As the Court observed in Subido, this definition
right to freeze the accounts of its clients on refers to probable cause for the issuance of a
mere suspicion that the depositor does not have freeze order against an account or any monetary
a right over them. (Philippine Commercial Bank instrument or property subject thereof.
v. Balmaceda, G.R. No. 158143, September 2, Nevertheless, the Court shall likewise be guided
2011) by the pronouncement in Ligot v. Republic that
"probable cause refers to the sufficiency of the
However, a bank has the authority to relation between an unlawful activity and the
temporarily freeze the bank account of a property or monetary instrument." (Anti-Money
deceased depositor under Sec. 97, R.A. No. Laundering Council v. Bolante et. al, G.R.
8424 or the Tax Reform Act. 186717, April 17, 2017)

51. What is the Probable cause for the In resolving the issue of whether probable cause
issuance of a freeze order against an exists, the CA's statutorily-guided
determination's focus is not on the probable
commission of an unlawful activity (or money with other monetary instrument
laundering) that the OMB has already or property belonging to either
determined to exist, but on whether the bank the offender himself or a third
accounts, assets, or other monetary instruments person or entity, thereby
sought to be frozen are in any way related to rendering the same difficult to
any of the illegal activities enumerated identify or be segregated for
under R.A. No. 9160, as amended. Otherwise purposes of forfeiture
stated, probable cause refers to the sufficiency Probable In the context of civil forfeiture,
of the relation between an unlawful activity and cause probable cause refers to such
the property or monetary instrument which is facts and circumstances which
the focal point of Section 10 of R.A. No. 9160, would lead a reasonably discreet,
as amended. (Yambao v. Republic, G.R. No. prudent, or cautious man to
171054, January 26, 2021) believe that any monetary
instrument or property sought to
52. What are the Forfeiture Provisions? be preserved is in any way
related to any unlawful activity
Section 12. Forfeiture Provisions and/or money laundering
offense. (Republic of the
Civil Upon determination by the AMLC Philippines, Represented by the
Forfeiture that probable cause exists that AMLC vs. Ng and Metropolitan
any monetary instrument or Bank and Trust Company, G.R.
property is in any way related to No. 239047, June 16, 2021)
an unlawful activity as defined in Claim on Where the court has issued an
Section 3(i) or a money Forfeited order of forfeiture of the
laundering offense under Section Assets monetary instrument or property
4 hereof, the AMLC shall file with in a criminal prosecution for any
the appropriate court through money laundering offense
the Office of the Solicitor defined under Section 4 of this
General, a verified ex parte Act, the offender or any other
petition for forfeiture, and the person claiming an interest
Rules of Court on Civil Forfeiture therein may apply, by verified
shall apply. petition, for a declaration that
the same legitimately belongs to
The forfeiture shall include those him and for segregation or
other monetary instrument or exclusion of the monetary
property having an equivalent instrument or property
value to that of the monetary corresponding thereto.
instrument or property found to
be related in any way to an The verified petition shall be filed
unlawful activity or a money with the court which rendered
laundering offense, when with the judgment of forfeiture, within
due diligence, the former cannot fifteen (15) days from the date of
be located, or it has been the finality of the order of
substantially altered, destroyed, forfeiture, in default of which the
diminished in value or otherwise said order shall become final and
rendered worthless by any act or executor. This provision shall
omission, or it has been apply in both civil and criminal
concealed, removed, converted, forfeiture.
or otherwise transferred, or it is Payment Where the court has issued an
located outside the Philippines or in Lieu of order of forfeiture of the
has been placed or brought Forfeiture monetary instrument or property
outside the jurisdiction of the subject of a money laundering
court, or it has been commingled offense defined under Section 4,
 and said order cannot be Civil Forfeiture refers to the non-conviction-
enforced because any particular based proceedings aimed at forfeiting, in favor
monetary instrument or property of the government, monetary instruments or
cannot, with due diligence, be properties related to an unlawful activity or
located, or it has been money laundering offense defined herein. (Sec.
substantially altered, destroyed, 1[r], Rule 2, 2018 RIRR of AMLA)
diminished in value or otherwise
rendered worthless by any act or Who The AMLC shall institute civil
omission, directly or indirectly, initiates forfeiture proceedings and all
attributable to the offender, or it other remedial proceedings,
has been concealed, removed, through the Office of the Solicitor
converted, or otherwise General, to confiscate all
transferred to prevent the same monetary instruments or
from being found or to avoid properties related to ML/TF or
forfeiture thereof, or it is located associated unlawful activity, in
outside the Philippines or has accordance with Rule 12 hereof.
been placed or brought outside (Sec. 1.11, Rule 6[D)], 2018
the jurisdiction of the court, or it RIRR, R.A. No. 9160)
has been commingled with other When Upon determination that
monetary instruments or and probable cause exists that any
property belonging to either the Where monetary instrument or property
offender himself or a third to file is in any way related to an
person or entity, thereby unlawful activity or ML offense,
rendering the same difficult to the AMLC shall file with the
identify or be segregated for regional trial court, through the
purposes of forfeiture, the court Office of the Solicitor General, a
may, instead of enforcing the verified petition for civil
order of forfeiture of the forfeiture.
monetary instrument or property
or part thereof or interest The petition for civil forfeiture
therein, accordingly order the shall include other monetary
convicted offender to pay an instrument or property of equal
amount equal to the value of value in cases where the
said monetary instrument or monetary instrument or property
property. This provision shall that should be subject of
apply in both civil and criminal forfeiture:
forfeiture
(Sec. 12, R.A. No. 9160 as amended by R.A. No. (a) Cannot be located despite
10365) due diligence;
(b) Has been substantially
Section 12 is hereby amended by inserting a altered, destroyed,
new paragraph to read as follows: diminished in value or
otherwise rendered worthless
No court shall issue a temporary restraining by any act or omission;
order (TRO) or a writ of injunction (WOI) (c) Has been concealed,
against any provisional asset preservation order removed, converted, or
or asset preservation order, except the Court of otherwise transferred;
Appeals or the Supreme Court. (Sec. 3[a] R.A. (d) Is located outside the
No. 9160, as amended by R.A. No. 11521) Philippines or has been
placed or brought outside the
53. What is a Civil Forfeiture? jurisdiction of the court; or
(e) Has been commingled with
other monetary instrument or
 property belonging to either from the publication in case
the offender himself or a service of notice was by
third person or entity, publication.
thereby rendering the same The comment or opposition
difficult to identify or be shall (a) state whether
segregated for purposes of respondent admits the
forfeiture. (Sections 1.1 and allegations of the petition; (b)
1.2, Rule 12, 2018 RIRR of specify such inaccuracies or
RA 9160, in relation to falsities in petitioner’s
Section 12[a] of the said Act) statement of facts; and (c)
– Equal Asset Value state clearly and concisely the
respondent’s defense in law
54. What is Asset of equivalent value. and the specific and pertinent
The forfeiture shall include those other monetary provisions of the law and
instrument or property having an equivalent their applicability to
value to that of the monetary instrument or respondent.
property found to be related in any way to an Sec. 10. If no comment or opposition
unlawful activity or a money laundering offense, Effect of is filed within the
when with due diligence, the former cannot be failure to file reglementary period, the
located, or it has been substantially altered, comment or court shall hear the case ex
destroyed, diminished in value or otherwise opposition. parte and render such
rendered worthless by any act or omission, or it judgment as may be
has been concealed, removed, converted, or warranted by the facts
otherwise transferred, or it is located outside the alleged in the petition and its
Philippines or has been placed or brought outside supporting evidence.
the jurisdiction of the court, or it has been Sec. 35. Where the court has issued
commingled with other monetary instrument or Notice to file an order of forfeiture of the
property belonging to either the offender himself claims monetary instrument or
or a third person or entity, thereby rendering the property in a civil forfeiture
same difficult to identify or be segregated for petition for any money
purposes of forfeiture. (Sec. 2, R.A. No. 9160, as laundering offense defined
amended by R.A. No. 10365) under Section 4 of Republic
Act No. 9160, as amended,
55. What are the Pertinent provisions of the any person who has not been
Rules of Procedure in Civil Forfeiture as impleaded nor intervened
regards to Claim on Forfeited Assets? claiming an interest therein
may apply, by verified
Where the court has issued an order of petition, for a declaration that
forfeiture of the monetary instrument or the same legitimately belongs
property in a criminal prosecution for any ML to him and for segregation or
offense, the offender or any other person exclusion of the monetary
claiming an interest therein may apply, by instrument or property
verified petition, for a declaration that the same corresponding thereto. The
legitimately belongs to him and for segregation verified petition shall be filed
or exclusion of the monetary instrument or with the court which rendered
property corresponding thereto. the order of forfeiture within
fifteen days from the date of
Sec. 9. The respondent shall file a finality of the order of
Comment or verified comment or forfeiture, in default of which
opposition. opposition, not a motion to the said order shall be
dismiss the petition, within executory and bar all other
fifteen days from service of claims.
notice or within thirty days Sec. 36. How In his petition, the claimant
 to file a must state the complete (2) It has been substantially altered, destroyed,
claim; facts, attach the affidavits of diminished in value or otherwise rendered
contents his witnesses, supporting worthless by any act or omission, directly or
documents and other indirectly, attributable to the offender;
evidence, and personally (3) It has been concealed, removed, converted,
verify the claim. The claimant or otherwise transferred to prevent the
shall file the petition with the same from being found or to avoid
clerk of court, pay the docket forfeiture thereof;
and other lawful fees and (4) It is located outside the Philippines or has
submit proof of service of a been placed or brought outside the
copy of the claim upon the jurisdiction of the court; or
petitioner. (5) It has been commingled with other
Sec. 37. The court may dismiss the monetary instruments or property
Effect of non- claim outright if it is not belonging to either the offender himself or
compliance sufficient in form and a third person or entity, thereby rendering
with substance and is manifestly the same difficult to identify or be
requirements filed for delay. Otherwise, it segregated for purposes of forfeiture, the
. shall issue a notice to the court may, instead of enforcing the order of
petitioner to file its comment forfeiture of the monetary instrument or
on the claim. property or part thereof or interest therein,
Sec. 39. The court may, without accordingly order the convicted offender to
Disposition of hearing, issue an appropriate pay an amount equal to the value of said
admitted or order approving any claim monetary instrument or property. (Sec.
uncontested admitted or not contested by 12[c], R.A. No. 9160)
claim. the petitioner.
(A.M. No. 21-03- 13-SC, or the Rule on Asset This provision shall apply in both civil and
Preservation, Seizure, and Forfeiture in Criminal criminal forfeiture.
Cases Under Republic Act No. 9160 as
Amended, 2021) 56. What is Mutual Legal Assistance (MLA)?

The rules clearly require that a comment to the Mutual Legal Assistance (MLA) refers to the
petition must (a) state whether respondent formal method of cooperation between two
admits the allegations of the petition; (b) specify jurisdictions for purposes of seeking assistance
such inaccuracies or falsities in petitioner's in the production of documents, asset freezing
statement of facts; and (c) state clearly and and forfeiture, extradition, enforcement of
concisely the respondent's defense in law and foreign judgment, and other kinds of legal
the specific and pertinent provisions of the law assistance in criminal matters. (Sec. 1[jjj], Rule
and their applicability to respondent. Otherwise, 2, 2018 RIRR, R.A. No. 9160)
the allegations in the petition are deemed
admitted. (Republic v. Manalo, G.R. No. 220072 General Where a foreign State makes an
(Notice), March 23, 2022) Rule MLA request in the investigation
or prosecution of a
Payment in lieu of forfeiture ML/Terrorism Financing (TF)
offense, the AMLC may execute
Where the court has issued an order of the request or refuse to execute
forfeiture of the monetary instrument or the same and inform the foreign
property subject of an ML offense, and said State of any valid reason for not
order cannot be enforced because: executing the request or for
delaying the execution thereof.
(1) Any particular monetary instrument or Exception The AMLC may refuse to comply
property cannot, with due diligence, be with any MLA request where the
located; action sought in the request:
 (1) Contravenes any provision object obtained pursuant to said request, is
of the Constitution; or to be produced;
(2) The execution of the (7) Give all the particulars necessary for the
request is likely to issuance by the court in the requested
prejudice the national State of the writs, orders or processes
interest of the Philippines. needed by the requesting State; and
Exception There is a treaty between the (8) Contain such other information as may
to the Philippines and the requesting assist in the execution of the request,
exception State relating to the provision of including the statement of the specific legal
assistance in relation to ML/TF provision of the penal law on ML/TF or
or associated unlawful activity. associated unlawful that was violated in the
(Sec. 1, Rule 29, 2018 RIRR, R.A. No. 9160) requested State. Provided, that the felonies
or offenses punishable under the penal laws
57. What is the Basis for Making and Acting of the requesting State are of a nature
on Mutual Legal Assistance Request? similar to the unlawful activities as herein
defined. (Sec. 3, Rule 29, 2018 RIRR, R.A.
A foreign State may make, and the Philippines No. 9160)
may execute, an MLA request pursuant to
conventions, treaties and international 59. What are the Procedure for Mutual
agreements over which the Philippines is a Legal Assistance Requests from Foreign
party. The principles of mutuality and reciprocity States?(Sec. 4, Rule 29, 2018 IRRA of
shall, at all times, be recognized. (Sec. 2, Rule AMLA)
29, 2018 IRR of AMLA)
Receipt of MLA Request
58. What are the Requirements for Mutual MLA requests shall be received by the following
Legal Assistance from Foreign States? government agencies:
(1) All MLA requests from foreign States shall
All MLA requests from a foreign State must: be filed with the DOJ, as the central
(1) Confirm that an investigation or prosecution authority on all MLA matters; or
is being conducted in respect of a money (2) The AMLC may directly receive and act on
launderer or terrorism financer named MLA requests made on the basis of
therein, or that he has been convicted of reciprocity; Provided, that all actions taken
any ML/TF offense or associated unlawful on such requests shall be transmitted to the
activity; DOJ for formal response to the requesting
(2) State the grounds on which any person is State. (Sec. 4[4.1], Rule 29, 2018 IRR, R.A.
being investigated or prosecuted for ML/TF No. 9160)
or associated unlawful activity or the details
of his conviction; 60. What are the Powers of the AMLC to Act
(3) Give sufficient particulars as to the identity on Mutual Legal Assistance Requests?
of said person, including specific monetary
instrument or property; The AMLC may execute an MLA request from a
(4) Give particulars sufficient to identify any foreign State by:
covered person believed to have any
information, document, material or object (1) Tracking down, freezing, restraining and
which may be of assistance to the seizing assets alleged to be proceeds of or
investigation or prosecution; related to any unlawful activity under the
(5) Specify the concerned covered person from procedures laid down in the AMLA and
which any information, document, material TFPSA, their respective IRR, and other
or object that may be of assistance to the AMLC issuances
investigation or prosecution may be (2) Giving information or documents needed
gathered; by the foreign State, for evidentiary
(6) Specify the manner in which and to whom purposes, within the procedures laid down
said information, document, material or
 in the AMLA and TFPSA, their respective warrants, production of bank documents and
IRR, and other AMLC issuances; and other materials, and all other actions not
(3) Applying for an order of forfeiture of any specified in the AMLA and TFPSA, their
monetary instrument or property with the respective IRR, and other AMLC issuances, and
court: Provided, that the court shall not assistance for any of the aforementioned
issue such an order unless the application actions, which is subject of a request by a
is accompanied by an authenticated copy foreign State, resort may be had to the
of the order of a court in the requesting proceedings pertinent thereto under the Rules of
State ordering the forfeiture of said Court. (Sec. 4[4.4], Rule 29, 2018 IRR, R.A. No.
monetary instrument or property of a 9160)
person who has been convicted of a
ML/TF offense or an unlawful activity in Results of AMLC Action
the requesting State, and a certification or
an affidavit of a competent officer of the The results of the actions taken by the AMLC
requesting State stating that the shall be transmitted to the DOJ for formal
conviction and the order of forfeiture are response to the requesting State. (Sec. 4[4.5],
final and that no further appeal lies in Rule 29, 2018 IRR, R.A. No. 9160)
respect of either. (Sec. 4[4.2], Rule 29,
2018 IRR, R.A. No. 9160)

61. When may the Investigation, Freeze

Order, Bank Inquiry and Civil Forfeiture
apply to MLA?

(1) The provisions on AMLC investigation, and

freeze order, bank inquiry and civil
forfeiture, shall apply to MLA requests when
necessary to affect the assistance to be
extended.
(2) The AMLC shall adopt a flexible mechanism
for:
(a) coordinating with other States
regarding requests for freezing and
forfeiture of assets; and
(b) managing, including disposal, of
frozen, preserved and forfeited
assets.
(3) The AMLC shall coordinate, if necessary,
with the requesting State on the, procedure
for, and mode of, turnover of the portion of
the forfeited assets that belongs to the
relevant persons in the requesting State.
(Sec. 4[4.3], Rule 29, 2018 IRR, R.A. No.
9160)

62. What is the Suppletory Application of

the Rules of Court?

For attachment of Philippine properties in the

name of persons convicted of any unlawful
activity, execution and satisfaction of final
judgments of forfeiture, application for
examination of witnesses, procuring search