GROUP 4 _AMLA LAW

8.
4 AMLA LAW
Prepared by:
BORJA, Mary Gabrielle
BUCASAS, Kyla Chelsey
CABANBAN, Jheriemae
CAMARA, Ross Mariel
CARBONEL, Mark Kelcy
CARIAGA, Aprilyn
8.4.1 Purpose, Policies, and Principles:
The purpose of the Anti-Money Laundering Act (AMLA), as stated in Section 1 of Republic Act
No. 9160, is to “protect and preserve the integrity and confidentiality of bank accounts and to
ensure that the Philippines shall not be used as a money laundering site for the proceeds of any
unlawful activity.” The law is designed to maintain the stability and credibility of the financial
system by preventing it from being exploited by criminals to legitimize illicit proceeds.
Example: Banking Integrity: Consider a scenario where a drug cartel attempts to deposit large
sums of money into a local bank to legitimize their earnings. Without the AMLA, the bank might
unknowingly facilitate this, damaging its reputation and the country’s financial integrity. AMLA
prevents such exploitation by requiring banks to report suspicious activities.
Policies of the AMLA:
1. Declaration of Policy (Section 2): The law declares that it is the policy of the State to
“protect and preserve the integrity and confidentiality of bank accounts and to ensure that
the Philippines shall not be used as a money laundering site for the proceeds of any
unlawful activity.” The law also extends cooperation in the transnational investigation
and prosecution of persons involved in money laundering wherever committed.
Example: Global Cooperation: If a foreign government is investigating money

laundering involving funds transferred through Philippine banks, the AMLA allows
Philippine authorities to assist in the investigation. This cooperation helps to track and
prosecute money launderers globally.
2. International Cooperation (Section 14): The AMLA mandates that the Philippines provide
“mutual assistance in criminal matters” with foreign governments, particularly
concerning investigations and prosecutions of money laundering offenses. This includes
the exchange of information and collaboration on cases involving cross-border financial
crimes.
Case Example: Republic of the Philippines vs. Sandiganbayan (G.R. No. 152154, July
15, 2003): The case involved the recovery of ill-gotten wealth transferred abroad. The
Supreme Court emphasized that international cooperation under AMLA is crucial for
recovering assets and prosecuting offenders.
3. Reporting Requirements (Section 9): Covered institutions are required to “report to the
Anti-Money Laundering Council (AMLC) all covered and suspicious transactions”
within five (5) working days from the occurrence thereof. Failure to report these
transactions can lead to penalties, including fines and imprisonment.
Suspicious Transaction Reporting: Suppose a client attempts to make a series of large cash
deposits just below the threshold that would trigger a report. The bank must report this
suspicious activity to the AMLC to prevent potential money laundering.
Case Example: AMLC vs. Banco Filipino (CTA EB Case No. 903, July 17, 2012): Banco
Filipino was penalized for failing to report suspicious transactions, emphasizing the importance
of compliance with AMLA’s reporting requirements.
Principles of the AMLA:
1. Confidentiality (Section 9(c)):
The law ensures that all reports and information submitted to the AMLC, including
covered and suspicious transactions, are “confidential,” and any unauthorized disclosure
of such information is prohibited and punishable by law.
Example: Protecting Client Privacy: If a bank reports a suspicious transaction involving

a high-profile client, the information remains confidential to protect the client’s privacy
unless required for legal proceedings.
Case: Bank of the Philippine Islands vs. Securities and Exchange Commission (G.R. No.
164197, December 14, 2004): The Supreme Court ruled that banks must adhere to
confidentiality provisions under AMLA, protecting sensitive financial information unless
disclosure is legally mandated.
2. Due Process (Section 7):
The AMLA ensures due process by requiring that no assets be frozen or forfeited without
proper legal proceedings. The law mandates that any order to freeze assets be based on
“probable cause” and must be subjected to judicial determination.
Explanation: Fair Legal Process: If authorities suspect that a business is involved in

money laundering, they cannot freeze the business’s assets without first establishing
probable cause and obtaining a court order, ensuring the business’s rights are protected.
Case Example: AMLC vs. Sps. Bautista (G.R. No. 174536, August 7, 2007): The Supreme
Court emphasized that AMLC must follow due process when freezing assets, requiring
legal justification and evidence.
3. Risk-Based Approach (Section 12(c)):

The AMLA adopts a risk-based approach, requiring covered institutions to apply
“appropriate measures based on the risks and context of their activities and customers” to
effectively identify and prevent money laundering activities.
Example: Targeted Monitoring: A financial institution may focus its anti-money

laundering efforts on high-risk sectors such as real estate or international wire transfers,
where money laundering is more likely to occur.
4. Cooperation and Collaboration (Section 13):
The AMLA promotes cooperation between government agencies, financial institutions,

and other relevant sectors to combat money laundering. The law encourages “close
coordination with the AMLC” to effectively implement anti-money laundering measures.
Explanation: Joint Efforts: Government agencies like the Bureau of Internal Revenue
(BIR) and the Philippine National Police (PNP) may work together with the AMLC to
investigate a large-scale money laundering scheme involving multiple sectors.
Case Example: Philippine National Bank vs. AMLC (G.R. No. 167965, September 12,
2006): The Supreme Court highlighted the importance of collaboration between financial
institutions and the AMLC in identifying and preventing money laundering.
5. Proportionality (Section 10): The AMLA provides for penalties that are proportional to
the severity of the offense. The law specifies that penalties, including fines and
imprisonment, should be “commensurate with the gravity of the offense.” This ensures
that the consequences for violating the AMLA are fair and reflect the seriousness of the
crime committed.
Explanation: Graduated Penalties: If a financial institution is found guilty of minor

infractions, such as delayed reporting of a suspicious transaction, the penalties may
involve smaller fines. However, if the institution is involved in large-scale money
laundering schemes, the penalties could include substantial fines and imprisonment for
individuals involved, reflecting the gravity of the offenses.
Case Example: AMLC vs. Subido, Pagente, Certeza, Mendoza & Binay Law Offices
(G.R. No. 215867, August 8, 2018): The Supreme Court affirmed that penalties under the
AMLA should be proportional to the offense, ensuring that while the law imposes strict
penalties, they are just and appropriate to the nature of the violation.
8.4.2 Definition of Terms
Under Republic Act [Sec. 3], the term "covered persons" includes various entities and
individuals involved in financial and business activities that are subject to regulatory oversight.
These entities and individuals are categorized based on the nature of their activities and the
regulatory bodies that supervise them. The detailed classifications are as follows:
1. Financial Institutions: This category includes "banks, non-banks, quasi-banks, trust

entities, foreign exchange dealers, pawnshops, money changers, remittance and transfer
companies, and other similar entities." It also covers "all other persons and their
subsidiaries and affiliates supervised or regulated by the Bangko Sentral ng Pilipinas
(BSP)" [Sec. 3(a)(1)].
*These institutions handle financial transactions and services, making them significant in
monitoring financial flows and ensuring compliance with financial regulations.
2. Insurance Entities: This includes "insurance companies, pre-need companies, and all
other persons supervised or regulated by the Insurance Commission (IC)" [Sec. 3(a)(2)].
*These entities provide various insurance products and services, requiring oversight to
prevent fraudulent activities and ensure that they meet their obligations to policyholders.
3. Securities and Investment Entities: Encompassing "securities dealers, brokers,

salesmen, investment houses, and other similar persons managing securities or rendering
services as investment agents, advisors, or consultants," as well as "mutual funds, closed-
end investment companies, common trust funds, and other similar persons." This
category also includes "other entities administering or otherwise dealing in currency,
commodities or financial derivatives based thereon, valuable objects, cash substitutes and
other similar monetary instruments or property supervised or regulated by the Securities
and Exchange Commission (SEC)" [Sec. 3(a)(3)].
*These entities engage in trading and managing investments, making them critical
players in the financial markets.
4. Jewelry Dealers: This covers dealers "in precious metals" who trade in such metals for
"transactions in excess of One million pesos (P1,000,000.00)" and dealers "in precious
stones" who conduct similar high-value transactions [Sec. 3(a)(4) and Sec. 3(a)(5)].
*These dealers are included due to the high value and liquidity of precious metals and
stones, which can be used for money laundering or other illicit financial activities.
5. Company Service Providers: These are entities that "provide any of the following
services to third parties: (i) acting as a formation agent of juridical persons; (ii) acting as
(or arranging for another person to act as) a director or corporate secretary of a company,
a partner of a partnership, or a similar position in relation to other juridical persons; (iii)
providing a registered office, business address or accommodation, correspondence or
administrative address for a company, a partnership or any other legal person or
arrangement; and (iv) acting as (or arranging for another person to act as) a nominee
shareholder for another person" [Sec. 3(a)(6)].
*These services are often essential for the establishment and operation of companies,
making them important for regulatory oversight to prevent the misuse of corporate
structures.
6. Service Providers: This includes persons who "provide any of the following services: (i)
managing of client money, securities or other assets; (ii) management of bank, savings or
securities accounts; (iii) organization of contributions for the creation, operation or
management of companies; and (iv) creation, operation or management of juridical
persons or arrangements, and buying and selling business entities" [Sec. 3(a)(7)].
*These providers play key roles in managing financial and corporate assets,
necessitating their inclusion for monitoring potential financial crimes.
7. Casinos: The definition includes "casinos, including internet and ship-based casinos,
with respect to their casino cash transactions related to the gaming operations" [Sec. 3(a)
(8)]. Casinos are included due to the large volumes of cash transactions they handle,
which can be exploited for money laundering.
8. Real Estate: This category includes "real estate developers and brokers" [Sec. 3(a)(9)].
*The real estate sector involves substantial transactions and investments, which can be
used to launder money or hide illicit gains.
9. Offshore Gaming Operations: This includes "offshore gaming operations, as well as

their service providers, supervised, accredited, or regulated by the Philippine Amusement
and Gaming Corporation (PAGCOR) or any government agency" [Sec. 3(a)(10)].
*These entities are included due to their involvement in online gaming and betting, which
can be associated with financial crimes if not properly regulated.
Exclusions: The Act specifically excludes "lawyers and accountants acting as independent legal
professionals in relation to information concerning their clients or where disclosure of
information would compromise client confidences or the attorney-client relationship." This
exclusion applies provided that "these lawyers and accountants are authorized to practice in the
Philippines and shall continue to be subject to the provisions of their respective codes of conduct
and/or professional responsibility or any of its amendments" [Sec. 3].
This ensures that professional confidentiality is maintained while also ensuring compliance with
ethical standards.
Under Republic Act [Sec. 3], the terms "covered transaction" and "suspicious transaction"
are precisely defined to establish clear criteria for identifying financial activities and transactions
that require reporting to regulatory authorities. These definitions are crucial for monitoring and
preventing money laundering, terrorism financing, and other illicit activities.
Covered Transaction:
A "covered transaction" refers to financial activities involving significant sums of money, which
necessitate reporting to authorities due to the potential risk they pose for money laundering or
other illicit purposes. These transactions are categorized based on the nature of the activity and
the threshold amounts, as outlined below:
1. General Cash Transactions:

○ This includes any transaction involving cash or an equivalent monetary
instrument where the total amount exceeds Five hundred thousand pesos
(P500,000.00) within a single banking day [Sec. 3(b)]. The threshold is set to
capture large cash movements that may indicate suspicious activity, prompting
mandatory reporting.
2. Jewelry and Precious Metals/Stones Dealers:
○ Transactions involving cash or equivalent monetary instruments that exceed One
million pesos (P1,000,000.00) are reportable when conducted by jewelry dealers,
dealers in precious metals, or dealers in precious stones [Sec. 3(b)]. The high
value of these goods makes such transactions vulnerable to exploitation for
money laundering.
3. Casino Transactions:
○ For casinos, a "covered transaction" is defined as any single casino cash
transaction that involves an amount in excess of Five million pesos
(P5,000,000.00) or its equivalent in any other currency [Sec. 3(b)]. This applies
specifically to the gaming sector, where large sums are frequently exchanged,
creating potential risks for money laundering.
4. Real Estate Transactions:
○ In the real estate sector, a "covered transaction" occurs when a single cash
transaction exceeds Seven million five hundred thousand pesos (P7,500,000.00)
or its equivalent in any other currency [Sec. 3(b)]. Due to the high value
associated with real estate transactions, they are closely monitored to prevent their
use in laundering large amounts of money.
Suspicious Transaction:
A "suspicious transaction" refers to any financial activity, regardless of the amount involved,
that exhibits unusual characteristics or potentially illicit circumstances, suggesting a connection
to illegal activities such as money laundering or terrorism financing. The following criteria
outline what constitutes a suspicious transaction:
1. Lack of Legal Basis or Economic Justification:

○ A transaction is deemed suspicious if "there is no underlying legal or trade
obligation, purpose, or economic justification" [Sec. 3(b-1)(1)].
○ This criterion highlights transactions that lack a clear, legitimate purpose, raising
red flags for potential illicit activities.
2. Improper Client Identification:
○ Transactions where "the client is not properly identified" [Sec. 3(b-1)(2)] are
considered suspicious, as proper identification is essential for ensuring the
legitimacy of financial activities and preventing the involvement of anonymous or
fraudulent entities.
3. Inconsistent Amounts:
○ When "the amount involved is not commensurate with the business or financial
capacity of the client" [Sec. 3(b-1)(3)], it indicates that the transaction might be
unusual or suspicious, potentially involving funds that are inconsistent with the
client's known financial status.
4. Structuring to Avoid Reporting:
○ A transaction is suspicious if "the client's transaction is structured in order to
avoid being the subject of reporting requirements under the Act" [Sec. 3(b-1)(4)].
○ This refers to deliberate actions taken to divide large transactions into smaller
amounts to evade detection and reporting.
5. Deviation from Client Profile:
○ Transactions that "deviate from the profile of the client and/or the client's past
transactions with the covered person" [Sec. 3(b-1)(5)] are flagged as suspicious,
as they may indicate unusual activity that does not align with the client's typical
financial behavior.
6. Connection to Unlawful Activity:
○ Any transaction that is "related to an unlawful activity or offense under this Act
that is about to be, is being, or has been committed" [Sec. 3(b-1)(6)] is inherently
suspicious, as it directly involves illegal actions.
7. Similar or Analogous Transactions:
○ Finally, "any transaction that is similar or analogous to any of the foregoing"
[Sec. 3(b-1)(7)] is also considered suspicious, ensuring that all potentially illicit
activities are captured, even if they don't perfectly match the other criteria.
Monetary Instrument [Sec. 3(c)]:
A "monetary instrument" includes various financial tools and assets used in transactions or as a
store of value. These instruments are defined in the Act as follows:
1. Legal Tender:
○ This includes "coins or currency of legal tender of the Philippines, or of any other
country," which are officially recognized forms of money that can be used to
settle transactions.
2. Drafts, Checks, and Notes:
○ These are instruments such as "drafts, checks, and notes" used in financial
transactions to transfer funds, make payments, or settle obligations. They serve as
a written promise or order to pay a specified amount.
3. Securities and Negotiable Instruments:
○ This category covers "securities or negotiable instruments, bonds, commercial
papers, deposit certificates, trust certificates, custodial receipts or deposit
substitute instruments," along with "trading orders, transaction tickets and
confirmations of sale or investments, and money market instruments." These are
financial assets that can be traded or transferred between parties, often used in
investment or financing activities.
4. Other Similar Instruments:
○ The Act also includes "other similar instruments where title thereto passes to
another by endorsement, assignment, or delivery," ensuring that all relevant
financial tools that can be transferred between parties are encompassed under the
law.
Offender [Sec. 3(d)]:
An "offender" is any person, defined in the Act as "any person who commits a money laundering
offense." This term is crucial for identifying and prosecuting those involved in illegal financial
activities, ensuring that individuals or entities engaging in such crimes are held accountable.
Person [Sec. 3(e)]:
The term "person" includes "any natural or juridical person." This broad definition ensures that
both individuals and legal entities, such as corporations or organizations, are subject to the
obligations and penalties outlined in the Act. It reflects the law's comprehensive approach to
covering all potential actors in financial transactions.
Proceeds [Sec. 3(f)]:
"Proceeds" refer to "an amount derived or realized from an unlawful activity." This definition is
key in the context of anti-money laundering efforts, as it helps authorities trace and identify the
financial benefits obtained through illegal means, which are often the focus of legal action under
the Act.
Supervising Authority [Sec. 3(g)]:
A "supervising authority" is defined as "the appropriate supervisory or regulatory agency,

department, or office supervising or regulating the covered institutions enumerated in Section
3(a)." This authority plays a vital role in ensuring that financial institutions comply with the legal
requirements set forth in the Act, particularly those related to preventing financial crimes such as
money laundering.
Transaction [Sec. 3(h)]:
The term "transaction" encompasses "any act establishing any right or obligation or giving rise to
any contractual or legal relationship between the parties thereto." It also includes "any movement
of funds by any means with a covered institution." This broad definition covers all forms of
financial activity that could potentially be linked to money laundering, ensuring that they are
subject to the scrutiny and reporting requirements mandated by the Act.
These definitions within the Republic Act provide a comprehensive legal framework that
supports the identification, regulation, and prevention of illicit financial activities. By explicitly
defining these key terms, the Act strengthens efforts to combat financial crimes and ensures that
all relevant aspects of financial transactions are covered under the law.
8.4.3 Unlawful Activities
Under Republic Act No. 9160 [Sec. 3(i)], the term "unlawful activity" is defined to include a
broad range of criminal acts or omissions that are directly related to money laundering and
related offenses. This comprehensive definition is crucial for the effective identification,
prosecution, and prevention of financial crimes. The following summarizes the specific unlawful
activities covered by the Act, incorporating relevant phrases from the original legislation:
1. Kidnapping for Ransom [Article 267, Revised Penal Code]:

○ Defined as the act of unlawfully seizing and carrying away a person with the
intent to demand ransom for their release. This severe offense, characterized by its
demand for monetary compensation, is included as an unlawful activity due to its
direct relation to substantial illicit gains.
2. Violations under the Comprehensive Dangerous Drugs Act of 2002 [Republic Act
No. 9165]:
○ Includes serious offenses such as drug trafficking, manufacturing, and
distribution. These violations are considered unlawful activities due to the
significant financial transactions and illicit profits derived from illegal drug
operations.
3. Anti-Graft and Corrupt Practices Act [Sec. 3(b, c, e, g, h, i), Republic Act No. 3019]:
○ Covers various forms of corruption, including bribery, extortion, and other
corrupt practices by public officials. These offenses undermine the integrity of
public service and involve significant financial misconduct, making them critical
to the Act's scope on unlawful activities.
4. Plunder [Republic Act No. 7080]:
○ Refers to the large-scale misappropriation of public wealth by government
officials. The Act defines plunder as an unlawful activity due to the magnitude of
illicit gains involved and the severe impact on public resources.
5. Robbery and Extortion [Articles 294-302, Revised Penal Code]:
○ Encompasses various forms of robbery and extortion, including armed robbery
and threats for financial gain. These offenses are recognized as unlawful activities
due to their direct financial implications and the generation of illicit proceeds.
6. Illegal Gambling [Presidential Decree No. 1602]:
○ Includes illegal gambling operations such as "jueteng" and "masiao," which are
prevalent in the Philippines. The Act includes these activities as unlawful due to
their association with organized crime and substantial illicit profits.
7. Piracy on the High Seas [Revised Penal Code and Presidential Decree No. 532]:
○ Refers to acts of piracy, including hijacking and armed robbery at sea. These
offenses are defined as unlawful activities due to their significant financial
consequences and the substantial illicit gains involved.
8. Qualified Theft [Article 310, Revised Penal Code]:
○ Involves theft committed with a breach of trust, typically by an individual
entrusted with the property. The Act considers this a serious form of theft due to
the trust violation and the substantial sums often involved.
9. Swindling and Other Forms of Swindling [Articles 315-316, Revised Penal Code]:
○ Includes fraudulent schemes designed to deceive and unlawfully obtain money or
property. These activities are recognized as unlawful due to their potential to
generate significant illicit financial gains.
10. Smuggling [Republic Act Nos. 455 and 1937]:
○ Involves the illegal importation or exportation of goods to evade customs duties
and regulations. Smuggling is categorized as an unlawful activity due to its
financial implications and the illicit profits generated.
11. Electronic Commerce Act Violations [Republic Act No. 8792]:
○ Encompasses offenses related to online fraud and cybercrimes, including financial
schemes conducted through electronic means. These violations are considered
unlawful due to their sophisticated nature and significant financial impact.
12. Hijacking, Destructive Arson, and Murder [Republic Act No. 6235]:
○ Includes severe crimes such as aircraft hijacking, deliberate arson with intent to
destroy, and murder. These offenses are categorized as unlawful due to their
severe impact and substantial illicit gains.
13. Terrorism and Conspiracy to Commit Terrorism [Republic Act No. 9372]:
○ Encompasses acts of terrorism and conspiracies to commit such acts, including
the provision of financial support for terrorism. The Act considers these offenses
unlawful due to their threat to national and international security and the financial
networks involved.
14. Financing of Terrorism [Republic Act No. 10168]:
○ Addresses the provision of funds or financial resources to support terrorist
activities. This unlawful activity is highlighted due to its critical role in sustaining
terrorist operations and the need to disrupt such financial flows.
15. Bribery and Corruption of Public Officers [Articles 210-212, Revised Penal Code]:
○ Involves acts of bribery and corrupt practices by public officials, including the
acceptance of bribes. The Act includes these offenses as unlawful due to their
impact on public trust and the substantial illicit gains involved.
16. Frauds and Illegal Exactions [Articles 213-216, Revised Penal Code]:
○ Refers to fraudulent acts by public officials, including illegal exactions and
demands for undue payments. These activities are considered unlawful due to
their impact on public trust and the generation of illicit funds.
17. Malversation of Public Funds and Property [Articles 217-222, Revised Penal Code]:
○ Involves the embezzlement or misuse of public funds or property by government
officials. This serious form of corruption is categorized as an unlawful activity
due to its significant financial impact and misuse of public resources.
18. Forgeries and Counterfeiting [Articles 163-176, Revised Penal Code]:
○ Includes the forgery of documents and counterfeiting of currency. These offenses
are recognized as unlawful due to their role in producing fraudulent financial
instruments used for money laundering.
19. Anti-Trafficking in Persons Act Violations [Republic Act No. 9208]:
○ Encompasses offenses related to human trafficking, including forced labor and
sexual exploitation. These violations are categorized as unlawful due to their
severe human rights impacts and connection to organized crime.
20. Violations of the Revised Forestry Code [Presidential Decree No. 705]:
○ Involves illegal logging and other breaches of forestry regulations. The Act
includes these activities as unlawful due to their environmental impact and the
illicit profits generated.
21. Violations of the Philippine Fisheries Code [Republic Act No. 8550]:
○ Includes illegal fishing practices and overfishing. These offenses are considered
unlawful due to their impact on marine resources and the potential for illicit gains.
22. Violations of the Philippine Mining Act [Republic Act No. 7942]:
○ Refers to illegal mining activities and violations of mining regulations. The Act
defines these activities as unlawful due to their significant environmental and
financial implications.
23. Violations of the Wildlife Resources Conservation and Protection Act [Republic Act
No. 9147]:
○ Covers illegal activities related to the exploitation of wildlife and their habitats.
These offenses are categorized as unlawful due to their detrimental effects on
biodiversity and the illicit profits involved.
24. Violations of the National Caves and Cave Resources Management Protection Act
[Republic Act No. 9072]:
○ Involves unauthorized activities that damage or exploit caves and cave resources.
The Act includes these offenses as unlawful due to their impact on environmental
conservation.
25. Anti-Carnapping Act Violations [Republic Act No. 6539]:
○ Refers to the illegal taking or stealing of motor vehicles. This offense is
categorized as unlawful due to the substantial financial implications and
connection to organized crime.
26. Illegal Possession of Firearms and Explosives [Presidential Decree No. 1866]:
○ Involves the unauthorized possession, manufacture, and trafficking of firearms,
ammunition, or explosives. These activities are considered unlawful due to their
potential to support organized crime and violence.
27. Anti-Fencing Law Violations [Presidential Decree No. 1612]:
○ Covers the act of buying, receiving, or possessing stolen property. This law
identifies such activities as unlawful due to their role in perpetuating theft and
other crimes.
28. Violations of the Migrant Workers Act [Republic Act No. 8042]:
○ Involves offenses related to the exploitation or abuse of migrant workers. These
violations are categorized as unlawful due to their severe impact on individuals
and their connection to organized crime.
29. Violations of the Intellectual Property Code [Republic Act No. 8293]:
○ Includes offenses such as copyright infringement, trademark violations, and other
intellectual property crimes. These activities are recognized as unlawful due to
their impact on innovation and potential for illicit profits.
30. Anti-Photo and Video Voyeurism Act Violations [Republic Act No. 9995]:
○ Refers to the unauthorized recording and distribution of intimate images or
videos. These violations are considered unlawful due to their infringement on
privacy and potential for illicit gains.
31. Anti-Child Pornography Act Violations [Republic Act No. 9775]:
○ Covers offenses related to the creation, distribution, and possession of child
pornography. These violations are categorized as unlawful due to the severe harm
they cause to children and their association with organized crime.
32. Special Protection of Children Against Abuse Violations [Republic Act No. 7610]:
○ Involves offenses related to child abuse, exploitation, and discrimination. The Act
recognizes these activities as unlawful due to their severe impact on the welfare of
children.
33. Securities Regulation Code Violations [Republic Act No. 8799]:
○ Includes fraudulent practices and other violations in the securities and investment
markets. These offenses are considered unlawful due to their impact on financial
markets and investor protection.
34. Strategic Trade Management Act Violations [Republic Act No. 10697]:
○ Refers to offenses related to the proliferation of weapons of mass destruction and
their financing. These activities are recognized as unlawful due to their threat to
global security and financial systems.
35. Tax Evasion and Related Offenses [Section 254, National Internal Revenue Code]:
○ Covers serious tax crimes involving fraudulent schemes to evade tax liabilities
exceeding P25 million per taxable year. These offenses are considered unlawful
due to their significant financial implications and impact on public revenue.
36. Felonies or Offenses of a Similar Nature:
○ Any comparable crimes punishable under the laws of other countries. This broad
category emphasizes the Act's global reach in combating financial crimes,
including those beyond national borders.
These defined unlawful activities ensure that a wide array of criminal behaviors directly related
to money laundering are addressed. By including these activities in the Act, a comprehensive
framework is established to facilitate effective legal actions against financial crimes and support
international efforts to combat money laundering.
Precious Metals [Sec. 3(j)]:
○ Definition: Precious metals are defined as gold, silver, platinum, palladium,

rhodium, ruthenium, iridium, and osmium. Each of these metals must have a
purity level of 500 parts per 1,000 (50%) or more. This category also includes
alloys of these metals, as well as solders and plating chemicals.
○ Specific Examples: The Act includes specific chemicals used in various
applications, such as rhodium and palladium plating solutions, which are
employed in both industrial and decorative contexts. Potassium gold cyanide,
containing at least 68.3% gold, potassium silver cyanide, with at least 68% silver,
and silver cyanide in salt solution, containing at least 54% silver, are also covered.
These substances are used in electroplating and other processes requiring high-
purity metals.
Precious Stones [Sec. 3(k)]:
○ Definition: Precious stones include diamonds, rubies, emeralds, sapphires, opals,

amethysts, beryls, topazes, and garnets. These stones are utilized primarily in
jewelry making due to their beauty and rarity. The definition also extends to
stones that were previously classified as semi-precious but are now recognized for
their significant value and utility in high-end jewelry.
Casino [Sec. 3(l)(1)]:
○ General Definition: A casino is a business authorized by the appropriate

government agency to engage in gaming operations, which includes various forms
of gambling.
○ Internet-Based Casino: Refers to casinos operating online, where participants
engage in gaming activities through remote communication technologies such as
the internet, telephone, or other electronic means. This definition includes any
form of electronic or digital interaction used to facilitate gambling.
○ Ship-Based Casino: Refers to casinos located on vessels, ships, boats, or other
watercraft that are specifically designed for gambling. The operations of these
casinos are regulated in a manner similar to land-based casinos but are conducted
on water.
Casino Cash Transaction [Sec. 3(l)(2)]:
○ Definition: This term refers to any transaction involving the receipt of cash by a
casino from or on behalf of a customer, or the payout of cash by a casino to a
customer or on their behalf. Such transactions are critical for monitoring financial
activity within casinos to ensure compliance with anti-money laundering
regulations.
Gaming Operations [Sec. 3(l)(3)]:
○ Definition: Gaming operations encompass all activities related to the offering of

games of chance, including various forms and variations of gambling that are
approved by the appropriate government authorities. This includes all operational
aspects of running a casino or similar gaming establishment.
Offshore Gaming Operator [Sec. 3(l)(4)]:
○ Definition: An offshore gaming operator is an entity that provides online games

of chance or sports betting services via the internet. These operators use a network
and software to facilitate gaming activities, either independently or in
collaboration with local service providers who support their operations.
Service Providers [Sec. 3(l)(5)]:
○ Definition: Service providers are business corporations that supply components

necessary for the functioning of offshore gaming operations. They provide
various services, including technology and support, crucial for the operation of
online gaming platforms.
Real Estate Developer [Sec. 3(m)]:
○ Definition: A real estate developer is any natural or juridical person involved in

the business of developing real estate projects. These projects are then offered for
sale or lease. The developer is responsible for planning, constructing, and
marketing the properties.
Real Estate Broker [Sec. 3(n)]:
○ Definition: A real estate broker is a licensed professional who, for a fee or

commission, acts as an agent in real estate transactions. This role includes
offering, advertising, soliciting, listing, promoting, mediating, negotiating, and
finalizing real estate deals, such as sales, purchases, exchanges, mortgages, leases,
and joint ventures.
Targeted Financial Sanctions [Sec. 3(o)]:
○ Definition: Targeted financial sanctions involve measures such as asset freezing

and prohibitions designed to prevent funds or assets from being used for the
benefit of individuals, entities, or persons designated by relevant United Nations
Security Council resolutions. These sanctions are intended to limit financial
resources available to designated parties and prevent their use in unlawful
activities.
Proliferation Financing [Sec. 3(p)]:
○ Definition: Proliferation financing refers to the act of making assets available,

providing financial services, or conducting financial transactions with the
knowledge or reckless disregard that such activities are intended to facilitate the
proliferation of weapons of mass destruction. This definition is in line with United
Nations Security Council Resolutions 1718 of 2006 and 2231 of 2015, which
address the spread of such weapons and their financing.
These definitions and provisions from Republic Act No. 9160 establish a comprehensive
framework for regulating various financial and business activities related to precious metals,
precious stones, gaming operations, real estate, and targeted financial sanctions. By including
these specific terms and their applications, the Act aims to ensure effective monitoring and
control over financial transactions and activities associated with money laundering and other
financial crimes.
8.4.4 Covered Persons
The following are the covered persons under the AMLA:
A. The following financial institutions:

1. Persons supervised and/or regulated by BSP, including their subsidiaries and
affiliates, which are also covered persons, supervised and/or regulated by the BSP
such as:
a. Banks;
b. Quasi-banks;
c. Trust entities
d. Pawnshops;
e. Non-stock savings and loan associations;
f. Other Non-bank financial institutions which under special laws are subject
to BSP supervision and/or regulation;
g. Electronic money issuers; and
h. Foreign exchange dealers, money changers, and remittance and transfer
companies.
2. Persons supervised or regulated by Insurance Commission, such as:

a. Insurance companies;
b. Pre-need companies;
c. Insurance agents;
d. Insurance brokers;
e. Professional reinsurers;
f. Reinsurance brokers;
g. Holding companies;
h. Holding company systems;
i. Mutual benefit associations; and
j. All other persons and their subsidiaries and affiliates supervised or
regulated by the IC.
3. Persons supervised or regulated by SEC, such as:
a. Securities dealers, brokers, salesmen, investment houses, and other similar

persons managing securities or rendering services, such as investment
agents, advisors, or consultants;
b. mutual funds or open-end investment companies, closed-end investment
companies or issuers, and other similar entities; and
c. other entities, administering or otherwise dealing in commodities, or
financial derivatives based thereon, valuable objects, cash substitutes, and
other similar monetary instruments or properties, supervised or regulated
by the SEC.
B. The following Designated Non-Financial Businesses and Professions (DNFBP):
1. Jewelry dealers.
2. Dealers in precious metals, and dealers in precious stones.
3. Company service providers, which, as a business, provide any of the following services
to third parties:
a. acting as a formation agent of juridical persons;
b. acting as (or arranging for another person to act as) a director or corporate
secretary of a company, a partner of a partnership, or a similar position in relation
to other juridical persons;
c. providing a registered office; business address or accommodation,
correspondence or administrative address for a company, a partnership or any
other juridical person or legal arrangement; and
d. acting as (or arranging for another person to act as) a nominee shareholder for
another person.
4. Persons, including lawyers, accountants and other professionals, who provide any of the
following services:
a. Managing of client money, securities or other assets;

b. Management of bank, savings, securities or other assets;
c. Organization of contributions for the creation, operation or management of
companies; and
d. Creation, operation or management of juridical persons or arrangements, and
buying and selling business entities.
5. Casinos, including internet-based casinos and ship-based casinos, with respect to their
casino cash transactions related to their gaming operations.
The “Casino Implementing Rules and Regulations of Republic Act No. 10927”
shall govern the implementation of the AMLA with regard to casinos, unless,
otherwise indicated therein by the AMLC and the AGAs.
NOTE:
Republic Act No. 11521 included the following as covered persons:
1. Real estate developers and brokers; and

2. Offshore gaming operation, as well as their service providers, supervised, accredited or
regulated by the Philippine Amusement and Gaming Corporation (PAGCOR) or any
government agency.
http://www.amlc.gov.ph/images/PDFs/FINAL%202018%20IRRv1.pdf
8.4.5 Money Laundering, Terrorism and Financing, and Asset Forfeiture
MONEY LAUNDERING AND TERRORISM FINANCING
Section 1. Money Laundering.
Money Laundering Offense – Money laundering is committed by any person who, knowing that
any monetary instrument or property represents, involves, or relates to the proceeds of any
unlawful activity:
a. transacts said monetary instrument or property;

b. converts, transfers, disposes of, moves, acquires, possesses or uses said monetary
instrument or property;
c. conceals or disguises the true nature, source, location, disposition, movement or
ownership of or rights with respect to said monetary instrument or property;
d. attempts or conspires to commit Money Laundering offenses referred to in (1),
(2), or (3) above;
e. aids, abets, assists in, or counsels the commission of the ML offenses referred to
in (1), (2), or (3) above; and
f. performs or fails to perform any act as a result of which he facilitates the offense
of ML referred to in items (a), (b), or (c) above.
Money laundering is also committed by any covered person who, knowing that a covered or
suspicious transaction is required under this Act to be reported to the Anti-Money Laundering
Council (AMLC), fails to do so.
Section 2. Predicate Offenses to Money Laundering.

All unlawful activities, as defined herein, are the predicate offenses to money laundering
committed under Rule 9, Section 1(a) hereof.
Section 3. Jurisdiction over Money Laundering Cases.
3.1. Regional Trial Court.
The regional trial courts shall have jurisdiction to try ML cases committed by private individuals,
and public officers not covered by the jurisdiction of the Sandiganbayan.
3.2. Sandiganbayan.
The Sandiganbayan shall have jurisdiction to try ML cases committed by public officers under
its jurisdiction, and private persons who are in conspiracy with such public officers.
Section 4. Prosecution of Money Laundering Cases.
a. Any person may be charged with and convicted of both the offense of money laundering
and the unlawful activity as herein defined.
b. The prosecution of any offense or violation under this Act shall proceed independently
of any proceeding relating to the unlawful activity.
Prosecution of Money Laundering Cases.
1. Independent Proceedings.
The prosecutions of ML and the associated unlawful activity shall proceed independently. Any
person may be charged with and convicted of both ML and the associated unlawful activity.
2. Separate and Distinct Elements.
The elements of ML are separate and distinct from the elements of the associated unlawful
activity. The elements of the unlawful activity, including the identity of the perpetrators and the
details of the commission of the unlawful activity, need not be established by proof beyond
reasonable doubt in the case for ML.
3. Knowledge.
The element of knowledge may be established by direct or circumstantial evidence. The

deliberate non-performance of the preventive measures under the AMLA, this IRR, AMLC
issuances, and SA’s guidelines by a covered person’s responsible directors, officers and
employees shall be considered in determining knowledge of the commission of ML offenses.
4. Rules of Procedure.
The Rules of Court shall govern all proceedings concerning the prosecution of ML. The
prosecution of ML and other violations of the AMLA shall be handled by the Department of
Justice, through its public prosecutors, the Office of the Ombudsman, through the Office of the
Special Prosecutor, pursuant to the Rules on Criminal Procedure.
5. No Money Laundering Case During Election Period.
No case for ML may be filed against a candidate for an electoral office during an election period.
Section 5. Terrorism Financing.
The provisions of the Terrorism Financing Prevention and Suppression Act (TFPSA - RA.
10168) and its 2018 Implementing Rules and Regulations (IRR) shall govern matters relating to
Terrorism Financing (TF), including the implementation of the relevant targeted financial
sanctions.
RULE 12 – ASSET FORFEITURE
Section 1. General Rules on Asset Forfeiture.
The following rules shall be observed in asset forfeiture proceedings:
a. No prior criminal charge, pendency of a case, or conviction for an unlawful activity or

ML offense is necessary for the commencement or the resolution of a petition for civil
forfeiture.
b. No asset shall be attached or forfeited to the prejudice of a candidate for an electoral

office during an election period.
Section 1. Civil Forfeiture.
1.1. Petition for Civil Forfeiture.
Upon determination that probable cause exists that any monetary instrument or property is in any
way related to an unlawful activity or ML offense, the AMLC shall file with the regional trial
court, through the Office of the Solicitor General, a verified petition for civil forfeiture.
1.2. Equal Value Assets.
The petition for civil forfeiture shall include other monetary instrument or property of equal
value in cases where the monetary instrument or property that should be subject of forfeiture:
a. cannot be located despite due diligence;

b. has been substantially altered, destroyed, diminished in value or otherwise rendered
worthless by any act or omission;
c. has been concealed, removed, converted, or otherwise transferred;
d. is located outside the Philippines or has been placed or brought outside the jurisdiction of
the court; or
e. has been commingled with other monetary instrument or property belonging to either the
offender himself or a third person or entity, thereby rendering the same difficult to
identify or be segregated for purposes of forfeiture.
1.3. Rule of Procedure.
Civil forfeiture proceedings shall be governed by the “Rule of Procedure in Cases of Civil
Forfeiture, Asset Preservation, and Freezing of Monetary Instrument, Property, or Proceeds
Representing, Involving, or Relating to an Unlawful Activity or Money Laundering Offense
under Republic Act No. 9160, as Amended” (A.M. No. 05-11-04-SC).
1.4. Asset Preservation Order.
Upon verified petition by the AMLC, with prayer for issuance of asset preservation order, and
after determination that probable cause exists that any monetary instrument or property is in any
way related to an unlawful activity, the Regional Trial Court may issue an asset preservation
order, in accordance with the “Rule of Procedure in Cases of Civil Forfeiture, Asset
Preservation, and Freezing of Monetary Instrument, Property, or Proceeds Representing,
Involving, or Relating to an Unlawful Activity or Money Laundering Offense under Republic
Act No. 9160, as Amended” (A.M. No. 05-11-04-SC), which shall be effective immediately,
forbidding any transaction, withdrawal, deposit, transfer, removal, conversion, concealment or
other disposition of the subject monetary instrument or property.
1.5. Motion to Discharge.
a. A person whose monetary instrument or property has been preserved may file a motion to
discharge the asset preservation order.
b. If an asset preservation order is imposed on an account of a covered person that it uses
for payment of salary, rent, suppliers, and/or taxes in the ordinary course of a legitimate
business, the covered person may apply with the court which issued the asset preservation
order to discharge the same by submitting a bond or other acceptable securities of equal
value to the amount or value subject of the asset preservation order. The bond or security
when approved by the court shall secure the payment or enforcement of any order or
judgment that the AMLC may recover in the appropriate action relating to the asset
preservation order.
Section 2. Asset Forfeiture in Money Laundering Cases.
Where there is conviction for ML, the court shall issue a judgment of forfeiture in favor of the
Government of the Philippines with respect to the monetary instrument or property found to be
proceeds of or related to an unlawful activity.
Section 3. Claim on Forfeited Assets.
a. Where the court has issued an order of forfeiture of the monetary instrument or property
in a criminal prosecution for any ML offense, the offender or any other person claiming
an interest therein may apply, by verified petition, for a declaration that the same
legitimately belongs to him and for segregation or exclusion of the monetary instrument
or property corresponding thereto.
b. The verified petition shall be filed with the court which rendered the judgment of
forfeiture, within fifteen (15) days from the date of the finality of the order of forfeiture,
in default of which the said order shall become executory.
c. This provision shall also apply in civil forfeiture.
Section 4. Payment in Lieu of Forfeiture.
4.1 Where the court has issued an order of forfeiture of the monetary instrument or property
subject of an ML offense, and said order cannot be enforced because:
a. any particular monetary instrument or property cannot, with due diligence, be located;
b. it has been substantially altered, destroyed, diminished in value or otherwise rendered
worthless by any act or omission, directly or indirectly, attributable to the offender;
c. it has been concealed, removed, converted, or otherwise transferred to prevent the same
from being found or to avoid forfeiture thereof;
d. it is located outside the Philippines or has been placed or brought outside the jurisdiction
of the court; or
e. it has been commingled with other monetary instruments or property belonging to either
the offender himself or a third person or entity, thereby rendering the same difficult to
identify or be segregated for purposes of forfeiture, the court may, instead of enforcing
the order of forfeiture of the monetary instrument or property or part thereof or interest
therein, accordingly order the convicted offender to pay an amount equal to the value of
said monetary instrument or property.
4.2. This provision shall apply in both civil and criminal forfeiture.
http://www.amlc.gov.ph/images/PDFs/FINAL%202018%20IRRv1.pdf
8.4.6 Preventive Measures and Obligations of Covered Persons
SEC. 9. Prevention of Money Laundering; Customer Identification Requirements and

Record Keeping. -
(a) Customer Identification - Covered institutions shall establish and record the true identity of
its clients based on official documents. They shall maintain a system of verifying the true
identity of their clients and, in case of corporate clients, require a system of verifying their legal
existence and organizational structure, as well as the authority and identification of all persons
purporting to act on their behalf.
(b) Record Keeping
Availability of Records
1. Covered persons shall ensure that all Customer Due Diligence (CDD) information and
transaction records are available swiftly to domestic competent authorities in the exercise of their
official functions or upon order by a competent authority.
2. Covered persons shall take measures to ensure that customer records are submitted in the
manner, quality and period as would assist the AML in its prompt financial investigations and
institution of legal actions.
(c) Reporting of Covered and Suspicious Transactions - Covered persons shall report to the AML
all covered transactions and suspicious transactions within five (5) working days from
occurrence thereof, unless the AMLC prescribes a different period not exceeding fifteen (15)
working days.
Primary Duties of Covered Persons

1. Covered persons shall comply with all the requirements under the AMLA and Terrorism
Financing Prevention and Suppression Act (TFPSA), their respective IRR, and other
AMLC issuances.
2. The covered persons' board of directors, partners or sole proprietors shall be ultimately
responsible for the covered persons' compliance with the AMLA and TFPSA, their
respective IRR, and other AMLC issuances.
Covered persons shall have the following duties in relation to AMLC investigations:
1. Give the authorized personnel of the AML, full access to all information, documents or
objects pertaining to the account, transaction and/or person subject of the investigation
immediately upon receipt of the request or order;
2. Submit within 5 working days from receipt of the request or order from the AMLC,
certified true copies of the documents pertaining to account, transaction and/or person
subject of the investigation; and
3. Keep the confidentiality of the investigation and ensure that the owner of any monetary
instrument or property, or other unauthorized personnel, shall not be informed about the
investigation, to prevent tipping off.
Covered persons shall have the following duties in relation to bank inquiry orders:
1. The concerned covered persons shall immediately, upon receipt of the court order or
AMLC Resolution, give the AMLC and/or its Secretariat full access to all information,
documents or objects pertaining to the deposit, investment, account and or transaction.
2. Certified true copies of the documents pertaining to deposit, investment account and/or
transaction subject of the bank inquiry shall be submitted to the AMLC Secretariat,
within 5 working days from receipt of the court order or notice of AMLC Resolution.
3. Keep the confidentiality of the inquiry, and ensure that the owner of any monetary
instrument or property or other unauthorized personnel shall not be informed about the
inquiry, to prevent tipping-off.
8.4.6.1 Prohibited Accounts
The provisions of existing laws to the contrary notwithstanding, anonymous accounts, accounts
under fictitious names, and all other similar accounts shall be absolutely prohibited. Peso and
foreign currency non-checking numbered accounts shall be allowed. The BSP may conduct
annual testing solely limited to the determination of the existence and true identity of the owners
of such accounts.
Anonymous Accounts: Accounts that are not registered in the true name of the owner. This
includes any accounts under fictitious names, aliases, or those that cannot be linked to a
verifiable identity.
Accounts Under Fictitious Names: Similar to anonymous accounts, these are accounts where
the identity of the account holder is falsified or obscured.
Accounts Subject to Strict Scrutiny (Not explicitly prohibited but closely monitored):
1. Accounts with Suspicious Transaction Patterns: Accounts that show activity inconsistent
with the customer's known profile or business nature. These accounts are not prohibited
but are monitored for any signs of money laundering or terrorist financing.
2. Accounts Linked to Designated Individuals or Entities: Accounts associated with
individuals or entities on international or domestic sanctions lists (such as those related to
terrorism financing or money laundering) are subject to freezing or restrictions.
3. Dormant Accounts Used for Unusual Transactions: Dormant accounts that suddenly
show significant activity may be investigated, though they are not outright prohibited.
4. Shell Company Accounts: Accounts held by entities that have no active business
operations and are used mainly to hide the true origin of funds are flagged for additional
scrutiny.
8.4.6.2 Customer Due Diligence
Customer Due Diligence (CDD) refers to the procedure of identifying and verifying the true
identity of customers, and their agents and beneficial owners, including understanding and
monitoring of their transactions and activities.
Section 1. Purpose and Applicability of CDD
1.1. Purpose of CDD
Covered persons shall conduct CDD for the following purposes:
a. To identify the customer, and its agents and beneficial owners;

b. To determine the risk posed by each customer;
c. To establish, maintain, close or terminate the account or business relationship; and
d. To assess the level of monitoring to be applied.
1.2. When is a CDD Required?
Covered persons shall undertake CDD measures when:
1. Establishing a Business Relationship:

2. Occasional Transaction:
3. Suspicious Transaction:
4. Doubts About Customer Identity and:
5. Existing Accounts:
Section 2. CDD Procedures
Financial institutions must follow specific procedures to conduct CDD, including:
● Customer Identification: Collecting and verifying the identity of customers using

reliable and independent sources of information.
● Understanding the Customer’s Business: Obtaining information on the purpose and
intended nature of the business relationship, including understanding the customer’s
activities and assessing the risks involved.
● Ongoing Monitoring: Continuously monitoring customer transactions and activities to
ensure they are consistent with the institution’s knowledge of the customer and to detect
any suspicious behavior.
Section 3. Record-Keeping
Financial institutions must keep records of CDD information and transactions for a specified
period, typically five years, as required by RA 9160. These records must be readily available for
review by competent authorities and should be maintained in a manner that ensures
confidentiality and security.
Section 4. Reporting Obligations
Financial institutions are required to report suspicious transactions to the Anti-Money

Laundering Council (AMLC) promptly. Failure to comply with CDD and reporting requirements
may result in penalties and sanctions under RA 9160.
These rules ensure that financial institutions play a crucial role in detecting and preventing
financial crimes, thereby contributing to the overall stability and integrity of the financial system.
8.4.7 Beneficial Ownership
Beneficial ownership- refers to the natural person(s) who ultimately own or control a customer,
or the natural person on whose behalf a transaction is being conducted. It also includes those
persons who exercise ultimate effective control over a legal entity or arrangement, such as a
corporation, trust, or partnership.
Section 1. Purpose and Applicability of Beneficial Ownership
The concept of Beneficial Ownership under Republic Act No. 9160, also known as the Anti-
Money Laundering Act of 2001, is designed to identify the natural person(s) who ultimately own
or control a customer or the person on whose behalf a transaction is being conducted.
Understanding beneficial ownership is crucial for financial institutions to prevent the misuse of
corporate vehicles or other legal entities for money laundering, terrorist financing, or other illicit
activities.
Section 2. When is Beneficial Ownership Identification Required?
Beneficial ownership identification is required in the following scenarios:

1. Establishing a Business Relationship: When a financial institution enters into a new
business relationship with a customer, it must identify and verify the beneficial owner(s).
2. Occasional Transactions: For significant one-time transactions, financial institutions
must determine whether the customer is acting on behalf of another person and, if so,
identify the beneficial owner(s).
3. Suspicious Transactions: If there are suspicions that a customer is engaging in illegal
activities, financial institutions must identify and verify the beneficial owner(s) involved.
4. Complex or Unusual Structures: When dealing with corporate entities or trusts that
have complex ownership structures, financial institutions must take additional steps to
understand the ownership and control mechanisms to identify the beneficial owner(s).
Section 3. Procedures for Identifying Beneficial Ownership
Financial institutions must undertake the following steps to identify beneficial ownership:
1. Customer Information Collection: Collect sufficient information from the customer to

understand the ownership and control structure of the entity.
2. Verification: Verify the identity of the beneficial owner(s) using reliable, independent
sources. This may involve examining documents, conducting independent searches, or
requesting additional information.
3. Understanding the Nature of Ownership: Determine the level of control or ownership
interest held by the beneficial owner(s) to assess the risk associated with the customer.
4. Ongoing Monitoring: Continuously monitor the customer’s transactions and activities,
especially if the ownership structure changes, to ensure the beneficial owner(s) remain
accurately identified.
Section 4. Record-Keeping and Reporting Obligations
Financial institutions are required to:
● Maintain Records: Keep detailed records of the beneficial ownership information for a
period specified by the law, typically five years, ensuring these records are secure and
accessible for review by authorities.
● Report to AMLC: Report any suspicious transactions related to beneficial ownership to
the Anti-Money Laundering Council (AMLC). Failure to identify and report beneficial
ownership can result in penalties and sanctions under RA 9160.
Section 5. Compliance and Penalties
Non-compliance with beneficial ownership requirements can lead to significant penalties,

including fines, sanctions, and potential criminal liability for financial institutions and their
officers. Ensuring compliance with these rules is essential for maintaining the integrity of the
financial system and supporting efforts to combat financial crimes.
8.4.8 Record Keeping Requirements
1. Period for Retention

● All records of all transactions of covered institutions shall be maintained and safely
stored for five (5) years from the dates of transactions.
○ Existing and New Accounts and New Transactions: All records shall be
maintained and safely stored for five (5) years from October 17, 2001 or from the
dates of the accounts or transactions, whichever is later.
○ Closed Accounts: The record on customer identification, account files and
business correspondence shall be preserved and safely stored for at least five (5)
years from the dates when they were closed.
● Covered institutions shall likewise keep the electronic copies of all covered and
suspicious transaction reports for at least five (5) years from the dates of submission to
the AMLC.
2. Retention of Records Where a Case of Money Laundering, Civil Forfeiture or

Underlying Unlawful Activity, Has Been Filed in Court
● The records must be retained and safely kept beyond the 5-year period until it is
confirmed that the case has been resolved, decided or terminated with finality by the
court.
3. Kinds of Records
● Customer Identification
● Transaction Records
● Suspicious Transaction Reports
4. Form of Records
● Records shall be retained as originals in such forms as are admissible in court pursuant to
existing laws and the applicable rules promulgated by the Supreme Court.
8.4.9 Safe Harbor
1. Protection from Legal Action

● No administrative, criminal or civil proceedings, shall lie against any person for having
made a covered transaction report in the regular performance of his duties and in good
faith, whether or not such reporting results in any criminal prosecution under Republic
Act No. 9160 or any other Philippine law. (Sec. 9)
2. Confidentiality of Reports
● When reporting covered transactions to the AMLC, covered institutions and their
officers, employees, representatives, agents, advisors, consultants or associates are
prohibited from communicating, directly or indirectly, in any manner or by any means, to
any person, entity, the media, the fact that a covered transaction report was made, the
contents thereof, or any other information in relation thereto. Neither may such reporting
be published or aired in any manner or form by the mass media, electronic mail, or other
similar devices. (Sec. 9)
○ Violation: The concerned officer, employee, representative, agent, advisor,
consultant or associate of the covered institution, or media shall be held
criminally liable. (Sec. 9)
REPUBLIC ACT NO. 9194 (AMENDMENT TO RA NO. 9160)
AN ACT AMENDING REPUBLIC ACT NO. 9160, OTHERWISE KNOWN AS THE

“ANTI-MONEY LAUNDERING ACT OF 2001”
Key Points on Amended Sections:

Section 3 Amendments:
1. Paragraph (b) - Covered Transaction:

○ A "covered transaction" is defined as any cash or monetary instrument transaction
exceeding P500,000.00 within one banking day.
2. New Paragraph (b-1) - Suspicious Transaction:
○ Introduces the concept of "suspicious transactions" regardless of amount,
including scenarios where there is no legal or economic basis for the transaction,
where the client isn't properly identified, or where the transaction deviates from
the client's usual profile, among others.
3. Paragraph (i) - Unlawful Activity:
○ Expands the definition of "unlawful activity" to include a wide range of criminal
offenses such as kidnapping for ransom, drug offenses, corruption, plunder,
robbery, illegal gambling, piracy, qualified theft, fraud, smuggling, and certain
electronic and securities-related crimes.
Section 4 Amendment:
● Money Laundering Offense:

○ Clarifies the definition of a money laundering offense, detailing three specific
acts: transacting with knowledge that the funds are illicit, facilitating money
laundering, and failing to report required information to the Anti-Money
Laundering Council (AMLC).
● Creation of the AMLC:

○ Establishes the AMLC and outlines its functions, including receiving transaction
reports, investigating suspicious activities, initiating civil forfeiture proceedings,
and applying for freeze orders on assets related to unlawful activities.
Section 9(c) Amendment:
● Reporting of Covered and Suspicious Transactions:

○ Requires covered institutions to report suspicious transactions within 5 working
days, prohibits communication of these reports to unauthorized persons, and
provides immunity to institutions reporting in good faith.
● Freezing of Monetary Instruments or Property:

○ Empowers the Court of Appeals to issue a freeze order on assets suspected of
being related to unlawful activities, with a freeze period of up to 6 months. The
order can be contested by the affected party.
● Authority to Inquire into Bank Deposits:

○ Allows the AMLC to inquire into bank deposits with a court order, or without a
court order in cases involving kidnapping for ransom or certain fraud-related
activities, and applies to both peso and foreign currency deposits.
Section 14 Amendments:
1. Paragraph (c) - Malicious Reporting:

○ Penalizes malicious or false reporting of money laundering with imprisonment of
6 months to 4 years and fines ranging from P100,000.00 to P500,000.00.
2. Paragraph (d) - Breach of Confidentiality:
○ Establishes penalties for breaching confidentiality, including imprisonment of 3 to
8 years and fines of P500,000.00 to P1,000,000.00. Includes additional penalties
for corporate offenders, aliens, and public officials.
● Effectivity:
○ Specifies that the Act will take effect 15 days after publication in the Official
Gazette or in two national newspapers.
REPUBLIC ACT NO. 10167 (AMENDMENT TO RA 9160)
AN ACT TO FURTHER STRENGTHEN THE ANTI-MONEY LAUNDERING LAW,

AMENDING FOR THE PURPOSE SECTIONS 10 AND 11 OF REPUBLIC ACT NO.
9160, OTHERWISE KNOWN AS THE ANTI-MONEY LAUNDERING ACT OF 2001, AS
AMENDED, AND FOR OTHER PURPOSES
RA 10167 was enacted to enhance the Anti-Money Laundering Act of 2001 (RA 9160) by
refining and streamlining procedures related to asset freezing and the inquiry into bank deposits.
This is aimed at improving the effectiveness of the Anti-Money Laundering Council (AMLC) in
addressing money laundering and related financial crimes.
Section 1: Amendments to Section 10 (Freezing of Monetary Instrument or Property)
Original Provision (RA 9160):
"SEC. 10. Freezing of Monetary Instrument or Property. – Upon verified ex parte

petition by the AMLC and after determination that probable cause exists that any
monetary instrument or property is in any way related to an unlawful activity as defined
in Section 3(i) hereof, the Court of Appeals may issue a freeze order, which shall be
effective immediately. The freeze order shall be for a period of twenty (20) days unless
extended by the court. In any case, the court should act on the petition to freeze within
twenty-four (24) hours from filing of the petition. If the application is filed a day before a
nonworking day, the computation of the twenty-four (24)-hour period shall exclude the
nonworking days."
"A person whose account has been frozen may file a motion to lift the freeze order and the court
must resolve this motion before the expiration of the twenty (20)-day original freeze order."
"No court shall issue a temporary restraining order or a writ of injunction against any freeze
order, except the Supreme Court."
Amended Provision (RA 10167):
"SEC. 10. Freezing of Monetary Instrument or Property. – Upon verified ex parte

petition by the AMLC and after determination that probable cause exists that any
monetary instrument or property is in any way related to an unlawful activity as defined
in Section 3(i) hereof, the Court of Appeals may issue a freeze order, which shall be
effective immediately. The freeze order shall be for a period of twenty (20) days unless
extended by the court. In any case, the court should act on the petition to freeze within
twenty-four (24) hours from filing of the petition. If the application is filed a day before a
nonworking day, the computation of the twenty-four (24)-hour period shall exclude the
nonworking days."
"A person whose account has been frozen may file a motion to lift the freeze order and the court
must resolve this motion before the expiration of the twenty (20)-day original freeze order."
"No court shall issue a temporary restraining order or a writ of injunction against any freeze
order, except the Supreme Court."
Detailed Explanation:
1. Freeze Order Duration and Processing:

○ The amendment clarifies that the freeze order issued by the Court of Appeals is
immediately effective for a 20-day period but can be extended by the court if
needed. This period allows for the initial investigation and ensures that assets
linked to potential money laundering are secured promptly.
○ The requirement for the court to act within 24 hours ensures that the freeze order
is processed without unnecessary delays. This rapid response is crucial for
preventing the dissipation or concealment of assets during investigations.
2. Motion to Lift Freeze:
○ Affected individuals have the right to file a motion to lift the freeze order. The
court is required to address this motion before the original 20-day freeze period
expires. This provides a legal remedy for those who believe the freeze was
improperly imposed and ensures that their rights are protected.
3. Restriction on Injunctions:
○ Only the Supreme Court can issue a restraining order or injunction against a
freeze order. This restriction prevents lower courts from delaying or obstructing
the freeze process, thus ensuring the effectiveness of asset seizures in anti-money
laundering efforts.
Comparison to RA 9194:
● RA 9194 introduced preliminary amendments but did not detail the procedural aspects as
RA 10167 does. RA 10167 enhances RA 9194’s provisions by adding explicit timelines
for court actions and restricting injunctions, which helps in the swift implementation of
freeze orders.
Specific Reason for Amendment:
● Inefficiencies in Asset Freezing:

○ Problem: Under RA 9160, the process for obtaining a freeze order could be
delayed due to the lack of specific timelines for court action. This sometimes
resulted in delays that allowed suspected funds to be dissipated before they could
be frozen.
○ Amendment: RA 10167 mandates that the Court of Appeals must act on a
petition to freeze assets within 24 hours of filing, with the initial freeze order
effective for 20 days unless extended. This was introduced to ensure rapid
response in freezing assets to prevent their dissipation.
Amended Section:
● Old Provision (RA 9160): The law did not specify a strict timeframe for court action on
freeze orders.
● New Provision (RA 10167): "The Court of Appeals shall act on the petition to freeze
within twenty-four (24) hours from filing of the petition. The freeze order shall be for a
period of twenty (20) days unless extended by the court."
Reasoning: This amendment addresses previous inefficiencies and ensures that asset freezing
processes are handled promptly to prevent the movement or concealment of suspected illicit
funds.
Section 2: Amendments to Section 11 (Authority to Inquire into Bank Deposits)
Original Provision (RA 9160):
"SEC. 11. Authority to Inquire into Bank Deposits. – Notwithstanding the provisions of
Republic Act No. 1405, as amended; Republic Act No. 6426, as amended; Republic Act
No. 8791; and other laws, the AMLC may inquire into or examine any particular deposit
or investment, including related accounts, with any banking institution or non-bank
financial institution upon order of any competent court based on an ex parte application
in cases of violations of this Act, when it has been established that there is probable cause
that the deposits or investments, including related accounts involved, are related to an
unlawful activity as defined in Section 3(i) hereof or a money laundering offense under
Section 4 hereof; except that no court order shall be required in cases involving activities
defined in Section 3(i)(1), (2), and (12) hereof, and felonies or offenses of a nature
similar to those mentioned in Section 3(i)(1), (2), and (12), which are Punishable under
the penal laws of other countries, and terrorism and conspiracy to commit terrorism as
defined and penalized under Republic Act No. 9372."
"The Court of Appeals shall act on the application to inquire into or examine any deposit or
investment with any banking institution or non-bank financial institution within twenty-four (24)
hours from filing of the application."
"To ensure compliance with this Act, the Bangko Sentral ng Pilipinas may, in the course of a
periodic or special examination, check the compliance of a Covered institution with the
requirements of the AMLA and its implementing rules and regulations."
"For purposes of this section, ‘related accounts’ shall refer to accounts, the funds and sources of
which originated from and/or are materially linked to the monetary instrument(s) or property(ies)
subject of the freeze order(s)."
"A court order ex parte must first be obtained before the AMLC can inquire into these related
Accounts: Provided, That the procedure for the ex parte application of the ex parte court order
for the principal account shall be the same with that of the related accounts."
"The authority to inquire into or examine the main account and the related accounts shall comply
with the requirements of Article III, Sections 2 and 3 of the 1987 Constitution, which are hereby
incorporated by reference."
Amended Provision (RA 10167):
"SEC. 11. Authority to Inquire into Bank Deposits. – Notwithstanding the provisions of
Republic Act No. 1405, as amended; Republic Act No. 6426, as amended; Republic Act
No. 8791; and other laws, the AMLC may inquire into or examine any particular deposit
or investment, including related accounts, with any banking institution or non-bank
financial institution upon order of any competent court based on an ex parte application
in cases of violations of this Act, when it has been established that there is probable cause
that the deposits or investments, including related accounts involved, are related to an
unlawful activity as defined in Section 3(i) hereof or a money laundering offense under
Section 4 hereof; except that no court order shall be required in cases involving activities
defined in Section 3(i)(1), (2), and (12) hereof, and felonies or offenses of a nature
similar to those mentioned in Section 3(i)(1), (2), and (12), which are punishable under
the penal laws of other countries, and terrorism and conspiracy to commit terrorism as
defined and penalized under Republic Act No. 9372."
"The Court of Appeals shall act on the application to inquire into or examine any deposit or
investment with any banking institution or non-bank financial institution within twenty-four (24)
hours from filing of the application."
"To ensure compliance with this Act, the Bangko Sentral ng Pilipinas may, in the course of a
periodic or special examination, check the compliance of a Covered institution with the
requirements of the AMLA and its implementing rules and regulations."
"For purposes of this section, ‘related accounts’ shall refer to accounts, the funds and sources of
which originated from and/or are materially linked to the monetary instrument(s) or property(ies)
subject of the freeze order(s)."
"A court order ex parte must first be obtained before the AMLC can inquire into these related
Accounts: Provided, That the procedure for the ex parte application of the ex parte court order
for the principal account shall be the same with that of the related accounts."
"The authority to inquire into or examine the main account and the related accounts shall comply
with the requirements of Article III, Sections 2 and 3 of the 1987 Constitution, which are hereby
incorporated by reference."
1. Inquiries and Exceptions:

○ AMLC Authority:
■ The AMLC is granted the authority to investigate any specific bank
deposit or investment if it has a court order based on an ex parte
application. This means that the AMLC can access financial information
related to potential money laundering or unlawful activities only if it can
establish probable cause.
■ Probable Cause:
■ Probable cause must be established for the court to issue an order
for inquiry. This requirement ensures that the AMLC cannot
conduct intrusive investigations without sufficient evidence that
the funds are linked to illegal activities.
■ Exceptions to Court Orders:
■ No court order is needed in cases involving severe offenses such as
those defined in Section 3(i)(1), (2), and (12) of the AMLA. This
includes offenses like drug trafficking, terrorism, and related
crimes. The rationale is to expedite the AMLC’s response to high-
risk situations where waiting for a court order might hinder timely
intervention.
2. Court Action Timeline:
○ 24-Hour Requirement:
■ The Court of Appeals must act on an application to investigate deposits
within 24 hours of its filing. This swift action is critical to prevent the
potential dissipation of assets and ensures that investigations proceed
without unnecessary delays.
○ Impact:
■ This provision helps in maintaining the integrity of the financial
investigation process by ensuring that any delay in processing the inquiry
does not undermine the effectiveness of the investigation.
3. Role of the BSP:
○ Compliance Checks:
■ The Bangko Sentral ng Pilipinas (BSP) is empowered to check the
compliance of covered institutions with AMLA requirements. This role is
important for ensuring that financial institutions adhere to anti-money
laundering regulations and guidelines.
○ Periodic or Special Examination:
■ The BSP can conduct regular or special examinations of financial
institutions to verify their adherence to AMLA. This helps in identifying
any lapses in compliance and addressing them proactively.
4. Related Accounts:
○ Definition:
■ "Related accounts" are defined as those accounts whose funds or sources
are materially linked to the primary accounts subject to a freeze order.
This includes accounts that may be indirectly related to the primary
accounts through financial transactions or transfers.
○ Court Order for Related Accounts:
■ The AMLC must obtain a separate court order to inquire into related
accounts. This ensures that any investigation into these accounts is also
backed by judicial oversight, maintaining the balance between effective
enforcement and individual rights.
5. Constitutional Compliance:
○ Rights and Safeguards:
■ The authority to inquire into or examine bank accounts must comply with
the requirements of Article III, Sections 2 and 3 of the 1987 Philippine
Constitution. This includes respecting constitutional rights such as the
right to privacy and due process.
○ Incorporation by Reference:
■ The reference to these constitutional provisions ensures that AMLC’s
inquiries and examinations are conducted in a manner that respects
fundamental rights, thereby enhancing the law's credibility and fairness.
Comparison to RA 9194:
● RA 9194 initially broadened the AMLA’s scope but did not address the specifics of
handling related accounts or the BSP's role in compliance checks as comprehensively as
RA 10167.
● RA 10167 adds clarity on the definition of related accounts and strengthens compliance
measures, thus addressing gaps in RA 9194 and reinforcing the regulatory framework for
combating money laundering.
Specific Reasons for Amendment:
● Need for Enhanced Inquiry Powers:

○ Problem: The original law required court orders for inquiries into bank deposits
and investments in all cases, which could delay investigations. The process
needed improvement to address urgent situations effectively, especially when
dealing with severe offenses.
○ Amendment: RA 10167 allows the AMLC to inquire into bank deposits and
related accounts with a court order in cases where probable cause exists for
unlawful activities. It eliminates the need for a court order in cases of terrorism,
drug trafficking, and other severe crimes, facilitating quicker access to financial
information.
Amended Section:
● Old Provision (RA 9160): Required court orders for all inquiries into bank deposits and
related accounts.
● New Provision (RA 10167): "Notwithstanding the provisions of other laws, the AMLC
may inquire into or examine any deposit or investment with any banking institution upon
order of any competent court, except in cases involving terrorism and severe offenses as
defined under RA No. 9372 and similar crimes under international penal laws."
Reasoning: The amendment responds to the need for more effective and timely investigations
into high-risk financial activities. It ensures that the AMLC can act swiftly without unnecessary
procedural delays, especially in critical cases involving severe crimes.
REPUBLIC ACT NO. 10365
AN ACT FURTHER STRENGTHENING THE ANTI-MONEY LAUNDERING LAW,

AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9160, OTHERWISE KNOWN
AS THE “ANTI-MONEY LAUNDERING ACT OF 2001”, AS AMENDED
Sections Amended by RA 10365
1. Section 3(a)
a. The definition of "covered persons" was expanded to include more types of non-
financial businesses and professions (DNFBPs). The amendment specifically
included:
i. Jewelry dealers, real estate agents, dealers in precious metals and
stones, and company service providers.
2. Section 3(i)
a. RA 10365 added more crimes to the list that could lead to money laundering.
New crimes include terrorism financing, human trafficking, and environmental
crimes. This expansion was necessary to keep up with the ways criminals were
finding new ways to launder money. It added nos. 15-34.
3. Section 3
a. The amendment added dealers in precious metals and stones to the list of
"covered persons." This means that businesses involved in buying, selling, or
dealing with items like gold, diamonds, and other valuable stones or metals now
have obligations under the Anti-Money Laundering Act. These businesses must:
i. Report Suspicious Transactions: If they notice any transactions that
seem unusual or potentially linked to illegal activities, they are required to
report them to the Anti-Money Laundering Council (AMLC).
ii. Monitor Large Transactions: Any large transactions, particularly those
that exceed a certain threshold, need to be carefully monitored and
documented to ensure they are not part of a money laundering scheme.
4. Section 4
a. The amendment to Section 4 provided a clearer and more comprehensive
definition of money laundering. It emphasized that any act of engaging in or
attempting to engage in, directly or indirectly, a transaction involving the
proceeds of any unlawful activity is considered money laundering. This includes:
i. Conversion or Transfer: Converting or transferring illicit funds to
conceal their illegal origin or to help someone evade legal consequences
related to the crime.
ii. Concealment or Disguise: Hiding or disguising the true nature, source,
location, ownership, or control of illicitly acquired assets.
iii. Acquisition, Possession, or Use: Acquiring, possessing, or using assets
known to be the proceeds of unlawful activities.
iv. Aiding and Abetting: Assisting or facilitating the commission of money
laundering, including acting as an intermediary or helping to organize
transactions that involve illegal funds.
● Inclusion of Attempted Acts: The amendment also clarified that even attempting to
perform any of the above acts is considered a money laundering offense, not just
successful transactions.
5. Section 6(a)
a. The amendment gave the AMLC broader powers, particularly in freezing
transactions and properties that are suspected to be related to money laundering or
its predicate crimes. Under the amendment, the AMLC can:
i. Freeze Without Court Order: The AMLC now has the authority to
freeze any suspicious transaction or property without the need for a court
order. This freeze can be imposed for up to 20 days if there is probable
cause to believe that the assets are involved in money laundering.
ii. Extension of Freeze Order: After the initial 20 days, the AMLC can seek
approval from the Court of Appeals to extend the freeze for another six
months if necessary.
iii. Expedited Action: This amendment allows the AMLC to act swiftly in
preventing the dissipation, transfer, or concealment of assets that are
suspected of being tied to illegal activities. The ability to freeze assets
without a court order ensures that suspected funds or properties can be
secured immediately, reducing the risk of them being moved out of reach.
6. Section 7 (Powers of the Anti-Money Laundering Council)
a. The powers of the Anti-Money Laundering Council (AMLC) were expanded,
particularly in relation to freezing transactions and properties. The AMLC was
given the authority to freeze assets without a court order for a period not
exceeding 20 days in cases of probable cause.
7. Section 9(c)
a. The amendment introduced enhanced customer due diligence (CDD) measures,
requiring covered persons to conduct thorough checks on customers, particularly
for high-risk clients such as politically exposed persons (PEPs).
8. Section 10
a. This section was revised to allow the AMLC to freeze monetary instruments or
properties suspected to be related to money laundering without a court order, for a
period not exceeding 20 days, subject to extension by the Court of Appeals.
9. Section 12
a. The amendment to Section 12 under RA 10365 ensures that financial institutions
and their employees are protected from any legal action when they report
suspicious transactions in good faith. This protection encourages more institutions
to report potentially illegal activities without fear of repercussions.
10. Section 14
a. This section was clarified to include penalties for both malicious and grossly
negligent reporting of suspicious transactions.
11. Section 20(new section)
a. This section clarifies that the Anti-Money Laundering Council (AMLC) cannot
interfere with or participate in the operations of the Bureau of Internal Revenue
(BIR). It ensures that the AMLC's functions and powers do not extend to
influencing or managing the activities of the BIR, maintaining a clear separation
between the two agencies.
12. Section 21(new section)
a. This section establishes that any inquiry or examination of financial accounts
must adhere to constitutional protections, specifically:
i. Due Process: Compliance with Article III, Sections 2 and 3 of the 1987
Constitution, which guarantee the right to privacy and protection against
unreasonable searches and seizures.
ii. No Ex Post Facto Laws or Bills of Attainder: The implementation of the
Act must respect constitutional prohibitions against laws that impose
penalties for actions done before the law was enacted (ex post facto) and
laws that declare individuals guilty without trial (bills of attainder).
AN ACT DESIGNATING CASINOS AS COVERED PERSONS UNDER REPUBLIC

ACT NO. 9160, OTHERWISE KNOWN AS THE “ANTI-MONEY LAUNDERING ACT
OF 2001”, AS AMENDED
Sections Amended by RA 10927
Section 3 Amendments
1. Section 3(a)
● The definition of "covered persons" was expanded to include casinos, including internet
and ship-based casinos, with respect to their casino cash transactions related to their
gaming operations.
2. Section 3(b)
● A new provision specifies the reporting threshold for casinos, which is any single cash
transaction in excess of PHP 5,000,000 or its equivalent in other currencies. This
provision is included in the revised "Covered Transaction" definition.
● ‘Covered transaction’ is a transaction in cash or other equivalent monetary instrument
involving a total amount in excess of Five hundred thousand pesos (P500,000.00)
within one (1) banking day; for covered persons under Section 3(a)(8), a single casino
cash transaction involving an amount in excess of Five million pesos (P5,000,000.00) or
its equivalent in any other currency.
3. Section 3
● Inserted a new paragraph to define the terms ‘Casino’, ‘Internet-based casino’, ‘Ship-
based casino’, ‘Casino cash transaction’ and ‘Gaming operations’.
Section 10 Amendment
● Modified the powers of the Anti-Money Laundering Council (AMLC) to enable it to
apply for a freeze order on any monetary instrument or property that is in any way related
to an unlawful activity, particularly concerning newly covered entities such as casinos.
Section 18 Amendment
● Inserted a new paragraph to read as follows:
● “Within ninety (90) days from the effectivity of this Act. the AMLC, the Philippine
Amusement and Gaming Corporation (PAGCOR) and other government regulatory
agencies shall jointly promulgate the rules and regulations to implement the provisions of
this Act as applicable to casinos as covered institutions. The implementing rules
applicable to other covered institutions shall not apply to casinos unless it is expressly so
provided under the rules and regulations to implement the provisions of this Act.”
AN ACT FURTHER STRENGTHENING THE ANTI-MONEY LAUNDERING LAW,

AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9160, OTHERWISE KNOWN
AS THE "ANTI-MONEY LAUNDERING ACT OF 2001", AS AMENDED
Amendments present in RA 11521:
Section 2: Policy Update
● The State now explicitly aims to prevent money laundering and cooperate internationally
on financial sanctions related to WMD proliferation and terrorism.
Section 3: Definitions Update
● Expanded Definitions:
○ Covered Persons: Includes real estate developers, brokers, and offshore gaming
operators.
○ Covered Transactions: Includes large transactions in cash or casinos.
○ Suspicious Transactions: Includes transactions lacking clear purpose or deviating
from known patterns.
○ Unlawful Activities: Adds specific financial crimes and violations related to tax
evasion and strategic trade.
Section 7: AMLC Structure and Functions

● Specifies that the AMLC is headed by the BSP Governor and includes the Insurance
Commissioner and SEC Chairman.
● Outlines AMLC responsibilities like investigating suspicious activities, applying for court
orders, and managing frozen assets.
Section 8-A: Information Security (new section)
● Confidentiality: AMLC must protect sensitive information and has rules for handling and
securing it.
Section 10: Freezing Orders
● Allows AMLC to request asset freezes from the Court of Appeals, which can last up to 6
months. Limits are placed on the amounts that can be frozen.
Section 12: Asset Preservation Orders
● Only the Court of Appeals or Supreme Court can issue orders against asset preservation.
Section 14(d): Penalties for Breach of Confidentiality
● Imposes fines and imprisonment for breaches of confidentiality, with additional penalties
for public officials and media involved.
Section 20: Non-Intervention in BIR Operations
● AMLC cannot interfere with BIR operations but can collaborate on investigations
involving money laundering.
Implementing Rules and Regulations
● Requires the AMLC to create necessary rules and regulations within 90 days of the Act’s
effectivity.
SUBMITTED BY:
BORJA, Mary Gabrielle
BUCASAS, Kyla Chelsey
CABANBAN, Jheriemae
CAMARA, Ross Mariel
CARBONEL, Mark Kelcy
CARIAGA, Aprilyn Ann
References:

GROUP 4 _AMLA LAW

Uploaded by

Copyright:

Available Formats

GROUP 4 _AMLA LAW

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

GROUP 4 _AMLA LAW

Uploaded by

Copyright:

Available Formats

8.

8.4.1 Purpose, Policies, and Principles:

Policies of the AMLA:

Example: Global Cooperation: If a foreign government is investigating money

Principles of the AMLA:

1. Confidentiality (Section 9(c)):

Example: Protecting Client Privacy: If a bank reports a suspicious transaction involving

2. Due Process (Section 7):

Explanation: Fair Legal Process: If authorities suspect that a business is involved in

3. Risk-Based Approach (Section 12(c)):

Example: Targeted Monitoring: A financial institution may focus its anti-money

4. Cooperation and Collaboration (Section 13):

The AMLA promotes cooperation between government agencies, financial institutions,

Explanation: Graduated Penalties: If a financial institution is found guilty of minor

8.4.2 Definition of Terms

1. Financial Institutions: This category includes "banks, non-banks, quasi-banks, trust

3. Securities and Investment Entities: Encompassing "securities dealers, brokers,

9. Offshore Gaming Operations: This includes "offshore gaming operations, as well as

1. General Cash Transactions:

1. Lack of Legal Basis or Economic Justification:

Monetary Instrument [Sec. 3(c)]:

Offender [Sec. 3(d)]:

Proceeds [Sec. 3(f)]:

Supervising Authority [Sec. 3(g)]:

A "supervising authority" is defined as "the appropriate supervisory or regulatory agency,

Transaction [Sec. 3(h)]:

8.4.3 Unlawful Activities

1. Kidnapping for Ransom [Article 267, Revised Penal Code]:

Precious Metals [Sec. 3(j)]:

○ Definition: Precious metals are defined as gold, silver, platinum, palladium,

Precious Stones [Sec. 3(k)]:

○ Definition: Precious stones include diamonds, rubies, emeralds, sapphires, opals,

Casino [Sec. 3(l)(1)]:

○ General Definition: A casino is a business authorized by the appropriate

Casino Cash Transaction [Sec. 3(l)(2)]:

Gaming Operations [Sec. 3(l)(3)]:

○ Definition: Gaming operations encompass all activities related to the offering of

Offshore Gaming Operator [Sec. 3(l)(4)]:

○ Definition: An offshore gaming operator is an entity that provides online games

Service Providers [Sec. 3(l)(5)]:

○ Definition: Service providers are business corporations that supply components

Real Estate Developer [Sec. 3(m)]:

○ Definition: A real estate developer is any natural or juridical person involved in

Real Estate Broker [Sec. 3(n)]:

○ Definition: A real estate broker is a licensed professional who, for a fee or

Targeted Financial Sanctions [Sec. 3(o)]:

○ Definition: Targeted financial sanctions involve measures such as asset freezing

Proliferation Financing [Sec. 3(p)]:

○ Definition: Proliferation financing refers to the act of making assets available,

8.4.4 Covered Persons

The following are the covered persons under the AMLA:

A. The following financial institutions:

2. Persons supervised or regulated by Insurance Commission, such as:

3. Persons supervised or regulated by SEC, such as:

a. Securities dealers, brokers, salesmen, investment houses, and other similar

B. The following Designated Non-Financial Businesses and Professions (DNFBP):

a. Managing of client money, securities or other assets;

Republic Act No. 11521 included the following as covered persons:

1. Real estate developers and brokers; and

8.4.5 Money Laundering, Terrorism and Financing, and Asset Forfeiture