REPUBLIC ACT NO.

9160 September 29, 2001

AN ACT DEFINING THE CRIME OF MONEY LAUNDERING, PROVIDING
PENALTIES THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
Section 1. Short Title. This Act shall be known as the "Anti-Money Laundering
Act of 2001."
Section 2. Declaration of Policy. It is hereby declared 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. Consistent with its foreign policy, the State
shall extend cooperation in transnational investigations and prosecutions of
persons involved in money laundering activities whenever committed.
Section 3. Definitions. For purposes of this Act, the following terms are hereby
defined as follows:
"(a) Covered persons, natural or juridical, refer to:
"(1) banks, non-banks, quasi-banks, trust entities, foreign exchange
dealers, pawnshops, money changers, remittance and transfer
companies and other similar entities and all other persons and their
subsidiaries and affiliates supervised or regulated by the Bangko
Sentral ng Pilipinas (BSP);
"(2) insurance companies, pre-need companies and all other
persons supervised or regulated by the Insurance Commission (IC);
"(3) (i) securities dealers, brokers, salesmen, investment houses and
other similar persons managing securities or rendering services as
investment agent, advisor, or consultant, (ii) mutual funds, close-end
investment companies, common trust funds, and other similar
persons, and (iii) 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);
"(4) jewelry dealers in precious metals, who, as a business, trade in
precious metals, for transactions in excess of One million pesos
(P1,000,000.00);
"(5) jewelry dealers in precious stones, who, as a business, trade in
precious stones, for transactions in excess of One million pesos
(P1,000,000.00);
"(6) company service providers which, as a business, 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; and
"(7) 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.
"Notwithstanding the foregoing, the term covered persons
shall exclude 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: 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."
(b) 'Covered transaction' is a transaction in cash or other equivalent
monetary instrument involving a total amount in excess of Five hundred
thousand pesos (PhP 500,000.00) within one (1) banking day.
"(b-1) 'Suspicious transaction' are transactions with covered institutions,
regardless of the amounts involved, where any of the following
circumstances exist:
1. there is no underlying legal or trade obligation, purpose or economic
justification;
2. the client is not properly identified;
3. the amount involved is not commensurate with the business or financial
capacity of the client;
4. taking into account all known circumstances, it may be perceived that
the client's transaction is structured in order to avoid being the subject of
reporting requirements under the Act;
5. any circumstances relating to the transaction which is observed to
deviate from the profile of the client and/or the client's past transactions
with the covered institution;
6. the transactions is in a way related to an unlawful activity or offense
under this Act that is about to be, is being or has been committed; or
7. any transactions that is similar or analogous to any of the foregoing."
(c) "Monetary Instrument" refers to:
(1) coins or currency of legal tender of the Philippines, or of any
other country;
(2) drafts, checks and notes;
(3) securities or negotiable instruments, bonds, commercial papers,
deposit certificates, trust certificates, custodial receipts or deposit
substitute instruments, trading orders, transaction tickets and
confirmations of sale or investments and money marked
instruments; and
(4) other similar instruments where title thereto passes to another by
endorsement, assignment or delivery.
(d) "Offender" refers to any person who commits a money laundering
offense.
(e) "Person" refers to any natural or juridical person.
(f) "Proceeds" refers to an amount derived or realized from an unlawful
activity.
(g) "Supervising Authority" refers to the appropriate supervisory or
regulatory agency, department or office supervising or regulating the
covered institutions enumerated in Section 3(a).
(h) "Transaction" refers to 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.
"(i) Unlawful activity refers to any act or omission or series or
combination thereof involving or having direct relation to the following:
"(1) Kidnapping for ransom under Article 267 of Act No. 3815,
otherwise known as the Revised Penal Code, as amended;
"(2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Republic
Act No. 9165, otherwise known as the Comprehensive Dangerous
Drugs Act of 2002;
"(3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No.
3019, as amended, otherwise known as the Anti-Graft and Corrupt
Practices Act;
"(4) Plunder under Republic Act No. 7080, as amended;
"(5) Robbery and extortion under Articles 294, 295, 296, 299, 300,
301 and 302 of the Revised Penal Code, as amended;
"(6) Jueteng and Masiao punished as illegal gambling under
Presidential Decree No. 1602;
"(7) Piracy on the high seas under the Revised Penal Code, as
amended and Presidential Decree No. 532;
"(8) Qualified theft under Article 310 of the Revised Penal Code, as
amended;
"(9) Swindling under Article 315 and Other Forms of Swindling under
Article 316 of the Revised Penal Code, as amended;
"(10) Smuggling under Republic Act Nos. 455 and 1937;
"(11) Violations of Republic Act No. 8792, otherwise known as the
Electronic Commerce Act of 2000;
"(12) Hijacking and other violations under Republic Act No. 6235;
destructive arson and murder, as defined under the Revised Penal
Code, as amended;
"(13) Terrorism and conspiracy to commit terrorism as defined and
penalized under Sections 3 and 4 of Republic Act No. 9372;
"(14) Financing of terrorism under Section 4 and offenses
punishable under Sections 5, 6, 7 and 8 of Republic Act No. 10168,
otherwise known as the Terrorism Financing Prevention and
Suppression Act of 2012:
"(15) Bribery under Articles 210, 211 and 211-A of the Revised
Penal Code, as amended, and Corruption of Public Officers under
Article 212 of the Revised Penal Code, as amended;
"(16) Frauds and Illegal Exactions and Transactions under Articles
213, 214, 215 and 216 of the Revised Penal Code, as amended;
"(17) Malversation of Public Funds and Property under Articles 217
and 222 of the Revised Penal Code, as amended;
"(18) Forgeries and Counterfeiting under Articles 163, 166, 167, 168,
169 and 176 of the Revised Penal Code, as amended;
"(19) Violations of Sections 4 to 6 of Republic Act No. 9208,
otherwise known as the Anti-Trafficking in Persons Act of 2003;
"(20) Violations of Sections 78 to 79 of Chapter IV, of Presidential
Decree No. 705, otherwise known as the Revised Forestry Code of
the Philippines, as amended;
"(21) Violations of Sections 86 to 106 of Chapter VI, of Republic Act
No. 8550, otherwise known as the Philippine Fisheries Code of
1998;
"(22) Violations of Sections 101 to 107, and 110 of Republic Act No.
7942, otherwise known as the Philippine Mining Act of 1995;
"(23) Violations of Section 27(c), (e), (f), (g) and (i), of Republic Act
No. 9147, otherwise known as the Wildlife Resources Conservation
and Protection Act;
"(24) Violation of Section 7(b) of Republic Act No. 9072, otherwise
known as the National Caves and Cave Resources Management
Protection Act;
"(25) Violation of Republic Act No. 6539, otherwise known as the
Anti-Carnapping Act of 2002, as amended;
"(26) Violations of Sections 1, 3 and 5 of Presidential Decree No.
1866, as amended, otherwise known as the decree Codifying the
Laws on Illegal/Unlawful Possession, Manufacture, Dealing In,
Acquisition or Disposition of Firearms, Ammunition or Explosives;
"(27) Violation of Presidential Decree No. 1612, otherwise known as
the Anti-Fencing Law;
"(28) Violation of Section 6 of Republic Act No. 8042, otherwise
known as the Migrant Workers and Overseas Filipinos Act of 1995,
as amended by Republic Act No. 10022;
"(29) Violation of Republic Act No. 8293, otherwise known as the
Intellectual Property Code of the Philippines;
"(30) Violation of Section 4 of Republic Act No. 9995, otherwise
known as the Anti-Photo and Video Voyeurism Act of 2009;
"(31) Violation of Section 4 of Republic Act No. 9775, otherwise
known as the Anti-Child Pornography Act of 2009;
"(32) Violations of Sections 5, 7, 8, 9, 10(c), (d) and (e), 11, 12 and
14 of Republic Act No. 7610, otherwise known as the Special
Protection of Children Against Abuse, Exploitation and
Discrimination;
"(33) Fraudulent practices and other violations under Republic Act
No. 8799, otherwise known as the Securities Regulation Code of
2000; and
"(34) Felonies or offenses of a similar nature that are punishable
under the penal laws of other countries."
"(j) Precious metals shall mean gold, silver, platinum, palladium,
rhodium, ruthenium, iridium and osmium. These include alloys of precious
metals, solders and plating chemicals such as rhodium and palladium
plating solutions and potassium gold cyanide and potassium silver cyanide
and silver cyanide in salt solution.
"(k) Precious stones shall mean diamond, ruby, emerald, sapphire, opal,
amethyst, beryl, topaz, and garnet that are used in jewelry making,
including those formerly classified as semi-precious stones."
SEC. 4. 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 paragraphs (a), (b) or (c);
"(e) aids, abets, assists in or counsels the commission of the money
laundering offenses referred to in paragraphs (a), (b) or (c) above;
and
"(f) performs or fails to perform any act as a result of which he
facilitates the offense of money laundering referred to in paragraphs
(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 5. Jurisdiction of Money Laundering Cases. The regional trial courts
shall have jurisdiction to try all cases on money laundering. Those committed by
public officers and private persons who are in conspiracy with such public officers
shall be under the jurisdiction of the Sandiganbayan.
SEC. 6. Prosecution of Money Laundering.
"(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."
""SEC. 7. Creation of Anti-Money Laundering Council (AMLC). The Anti-Money
Laundering Council is hereby created and shall be composed of the Governor of
the Bangko Sentral ng Pilipinas as Chairman, the Commissioner of the Insurance
Commission and the Chairman of the Securities and Exchange Commission, as
members. The AMLC shall act unanimously in the discharge of its functions as
defined hereunder:
"(1) to require and receive covered or suspicious transaction reports from
covered institutions;
"(2) to issue orders addressed to the appropriate Supervising Authority or
the covered institutions to determine the true identity of the owner of any
monetary instrument or preperty subject of a covered transaction or
suspicious transaction report or request for assistance from a foreign
State, or believed by the Council, on the basis fo substantial evidence, to
be, in whole or in part, wherever located, representing, involving, or related
to directly or indirectly, in any manner or by any means, the proceeds of an
unlawful activitity.
"(3) to institute civil forfeiture proceedings and all other remedial
proceedings through the Office of th Solicitor General;
"(4) to cause the filing of complaints with the Department of Justice or the
Ombudsman for the prosecution of money laundering offenses;
"(5) to investigate suspicious transactions and covered transactions
deemed suspicious after an investigation by AMLC, money laundering
activities and other violations of this Act;
"(6) to apply before the Court of Appeals, ex parte, for the freezing of any
monetary instrument or property alleged to be laundered, proceeds from,
or instrumentalities used in or intended for use in any unlawful activity as
defined in Section 3(i) hereof;
"(7) to implement such measures as may be necessary and justified under
this Act to counteract money laundering;
"(8) to receive and take action in respect of, any request from foreign
states for assistance in their own anti-money laundering operations
provided in this Act;
"(9) to develop educational programs on the pernicious effects of money
laundering, the methods and techniques used in the money laundering, the
viable means of preventing money laundering and the effective ways of
prosecuting and punishing offenders;
"(10) to enlist the assistance of any branch, department, bureau, office,
agency, or instrumentality of the government, including government-owned
and -controlled corporations, in undertaking any and all anti-money
laundering operations, which may include the use of its personnel, facilities
and resources for the more resolute prevention, detection, and
investigation of money laundering offenses and prosecution of offenders;
and
"(11) to impose administrative sanctions for the violation of laws, rules,
regulations, and orders and resolutions issued pursuant thereto."
"(12) to require the Land Registration Authority and all its Registries of
Deeds to submit to the AMLC, reports on all real estate transactions
involving an amount in excess of Five hundred thousand pesos
(P500,000.00) within fifteen (15) days from the date of registration of the
transaction, in a form to be prescribed by the AMLC. The AMLC may also
require the Land Registration Authority and all its Registries of Deeds to
submit copies of relevant documents of all real estate transactions."
Section 8. Creation of a Secretariat. The AMLC is hereby authorized to
establish a secretariat to be headed by an Executive Director who shall be
appointed by the Council for a term of five (5) years. He must be a member of the
Philippine Bar, at least thirty-five (35) years of age and of good moral character,
unquestionable integrity and known probity. All members of the Secretariat must
have served for at least five (5) years either in the Insurance Commission, the
Securities and Exchange Commission or the Bangko Sentral ng Pilipinas (BSP)
and shall hold full-time permanent positions within the BSP.
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.
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.
(b) Record Keeping All records of all transactions of covered institutions
shall be maintained and safely stored for five (5) years from the date of
transactions. With respect to closed accounts, the records on customer
identification, account files and business correspondence, shall be
preserved and safety stored for at least five (5) years from the dates when
they were closed.
"(c) Reporting of Covered and Suspicious Transactions. Covered
persons shall report to the AMLC 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.
"Lawyers and accountants acting as independent legal professionals are
not required to report covered and suspicious transactions if the relevant
information was obtained in circumstances where they are subject to
professional secrecy or legal professional privilege.
"Should a transaction be determined to be both a covered transaction and
a suspicious transaction, the covered institution shall be required to report
the same as a suspicious transaction.
"When reporting covered or suspicious transactions to the AMLC, covered
institutions and their officers and employees shall not be deemed to have
violated Republic Act No. 1405, as amended, Republic Act No. 6426, as
amended, Republic Act No. 8791 and other similar laws, but are prohibited
from communicating, directly or indirectly, in any manner or by an means,
to any person, the fact that a covered or suspicious transaction report was
made, the contents thereof, or any other information in relation thereto. In
case of violation thereof, the concerned officer and employee of the
covered institution shall be criminally liable. However, no administrative,
criminal or civil proceedings, shall lie against any person for having made a
covered or suspicious transaction report in the regular performance of his
duties in good faith, whether or not such reporting results in any criminal
prosecution under this Act of any other law.
"When reporting covered or suspicious transactions to the AMLC, covered
persons and their officers and employees are prohibited from
communicating, directly or indirectly, in any manner or by any means, to
any person or entity, the media, the fact that a covered or suspicious
transaction has been reported or is about to be reported, the contents of
the report, or any other information in relation thereto. Neither may such
reporting be published or aired in any manner or form by the mass media",
electronic mail, or other similar devices. In case of violation thereof, the
concerned officer and employee of the covered person and media shall be
held criminally liable."
"SEC. 10. Freezing of Monetary Instrument or Property. Upon a 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, and which shall not exceed six (6)
months depending upon the circumstances of the case: Provided, That if there is
no case filed against a person whose account has been frozen within the period
determined by the court, the freeze order shall be deemed ipso facto lifted:
Provided, further, That this new rule shall not apply to pending cases in the
courts. 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 freeze
order.
"No court shall issue a temporary restraining order or a writ of injunction against
any freeze order, except the Supreme Court."
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
Section 12. Forfeiture Provisions.
"(a) Civil Forfeiture. Upon determination by the AMLC 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) or a money laundering
offense under Section 4 hereof, the AMLC shall file with the appropriate
court through the Office of the Solicitor General, a verified ex parte petition
for forfeiture, and the Rules of Court on Civil Forfeiture shall apply.
"The forfeiture shall include those other monetary instrument or property
having an equivalent value to that of the monetary instrument or property
found to be related in any way to an unlawful activity or a money
laundering offense, when with due diligence, the former cannot be located,
or it has been substantially altered, destroyed, diminished in value or
otherwise rendered worthless by any act or omission, or it has been
concealed, removed, converted, or otherwise transferred, or it is located
outside the Philippines or has been placed or brought outside the
jurisdiction of the court, or it 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.
"(b) Claim on Forfeited Assets. Where the court has issued an order of
forfeiture of the monetary instrument or property in a criminal prosecution
for any money laundering offense defined under Section 4 of this Act, 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. 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 final and executor. This provision shall apply in both
civil and criminal forfeiture.
"(c) Payment in Lieu of Forfeiture. Where the court has issued an order
of forfeiture of the monetary instrument or property subject of a money
laundering offense defined under Section 4, and said order cannot be
enforced because any particular monetary instrument or property cannot,
with due diligence, be located, or 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, or it has been
concealed, removed, converted, or otherwise transferred to prevent the
same from being found or to avoid forfeiture thereof, or it is located outside
the Philippines or has been placed or brought outside the jurisdiction of the
court, or 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. This provision shall
apply in both civil and criminal forfeiture."
Section 13. Mutual Assistance among States.
(a) Request for Assistance from a Foreign State. Where a foreign
State makes a request for assistance in the investigation or prosecution of
a money laundering offense, the AMLC may execute the request or refuse
to execute the same and inform the foreign State of any valid reason for
not executing the request or for delaying the execution thereof. The
principles of mutuality and reciprocity shall, for this purpose, be at all times
recognized.
(b) Power of the AMLC to Act on a Request for Assistance from a
Foreign State. The AMLC may execute a request for assistance from a
foreign State by: (1) tracking down, freezing, restraining and seizing assets
alleged to be proceeds of any unlawful activity under the procedures laid
down in this Act; (2) giving information needed by the foreign State within
the procedures laid down in this Act; and (3) applying for an order of
forfeiture of any monetary instrument or property in the court: Provided,
That the court shall not issue such an order unless the application is
accompanied by an authenticated copy of the order of a court in the
requesting State ordering the forfeiture of said monetary instrument or
properly of a person who has been convicted of a money laundering
offense in the requesting State, and a certification of an affidavit of a
competent officer of the requesting State stating that the conviction and the
order of forfeiture are final and then no further appeal lies in respect or
either.
(c) Obtaining Assistance from Foreign States. The AMLC may make
a request to any foreign State for assistance in (1) tracking down, freezing,
restraining and seizing assets alleged to be proceeds of any unlawful
activity; (2) obtaining information that it needs relating to any covered
transaction, money laundering offense or any other matter directly or
indirectly, related thereto; (3) to the extent allowed by the law of the
Foreign State, applying with the proper court therein for an order to enter
any premises belonging to or in the possession or control of, any or all of
the persons named in said request, and/or search any or all such persons
named therein and/or remove any document, material or object named in
said request: Provided, That the documents accompanying the request in
support of the application have been duly authenticated in accordance with
the applicable law or regulation of the foreign State; and (4) applying for an
order of forfeiture of any monetary instrument or property in the proper
court in the foreign State: Provided, That the request is accompanied by an
authenticated copy of the order of the regional trial court ordering the
forfeiture of said monetary instrument or property of a convicted offender
and an affidavit of the clerk of court stating that the conviction and the
order of forfeiture are final and that no further appeal lies in respect of
either.
(d) Limitations on Request for Mutual Assistance. The AMLC may
refuse to comply with any request for assistance where the action sought
by the request contravenes any provision of the Constitution or the
execution of a request is likely to prejudice the national interest of the
Philippines unless there is a treaty between the Philippines and the
requesting State relating to the provision of assistance in relation to money
laundering offenses.
(e) Requirements for Requests for Mutual Assistance from Foreign
State. A request for mutual assistance from a foreign State must (1)
confirm that an investigation or prosecution is being conducted in respect
of a money launderer named therein or that he has been convicted of any
money laundering offense; (2) state the grounds on which any person is
being investigated or prosecuted for money laundering or the details of his
conviction; (3) gives sufficient particulars as to the identity of said person;
(4) give particulars sufficient to identity any covered institution believed to
have any information, document, material or object which may be of
assistance to the investigation or prosecution; (5) ask from the covered
institution concerned any information, document, material or object which
may be of assistance to the investigation or prosecution; (6) specify the
manner in which and to whom said information, document, material or
object detained pursuant to said request, is to be produced; (7) give all the
particulars necessary for the issuance by the court in the requested State
of the writs, orders or processes needed by the requesting State; and (8)
contain such other information as may assist in the execution of the
request.
(f) Authentication of Documents. For purposes of this Section, a
document is authenticated if the same is signed or certified by a judge,
magistrate or equivalent officer in or of, the requesting State, and
authenticated by the oath or affirmation of a witness or sealed with an
official or public seal of a minister, secretary of State, or officer in or of, the
government of the requesting State, or of the person administering the
government or a department of the requesting territory, protectorate or
colony. The certificate of authentication may also be made by a secretary
of the embassy or legation, consul general, consul, vice consul, consular
agent or any officer in the foreign service of the Philippines stationed in the
foreign State in which the record is kept, and authenticated by the seal of
his office.
(g) Extradition. The Philippines shall negotiate for the inclusion of
money laundering offenses as herein defined among extraditable offenses
in all future treaties.
SEC. 14. Penal Provisions. (a) Penalties for the Crime of Money Laundering.
The penalty of imprisonment ranging from seven (7) to fourteen (14) years and a
fine of not less than Three million Philippine pesos (Php3,000,000.00) but not
more than twice the value of the monetary instrument or property involved in the
offense, shall be imposed upon a person convicted under Section 4(a), (b), (c)
and (d) of this Act.
"The penalty of imprisonment from four (4) to seven (7) years and a fine of not
less than One million five hundred thousand Philippine pesos (Php1,500,000.00)
but not more than Three million Philippine pesos (Php3,000,000.00), shall be
imposed upon a person convicted under Section 4(e) and (f) of this Act.
"The penalty of imprisonment from six (6) months to four (4) years or a fine of not
less than One hundred thousand Philippine pesos (Php100,000.00) but not more
than Five hundred thousand Philippine pesos (Php500,000.00), or both, shall be
imposed on a person convicted under the last paragraph of Section 4 of this Act.
(a) Penalties for the Crime of Money Laundering. The penalty of
imprisonment ranging from seven (7) to fourteen (14) years and a fine of
not less than Three million Philippine pesos (Php 3,000,000.00) but not
more than twice the value of the monetary instrument or property involved
in the offense, shall be imposed upon a person convicted under Section
4(a) of this Act.
The penalty of imprisonment from four (4) to seven (7) years and a fine of
not less than One million five hundred thousand Philippine pesos (Php
1,500,000.00) but not more than Three million Philippine pesos (Php
3,000,000.00), shall be imposed upon a person convicted under Section
4(b) of this Act.
The penalty of imprisonment from six (6) months to four (4) years or a fine
of not less than One hundred thousand Philippine pesos (Php 100,000.00)
but not more than Five hundred thousand Philippine pesos (Php
500,000.00), or both, shall be imposed on a person convicted under
Section 4(c) of this Act.
(b) Penalties for Failure to Keep Records. The penalty of imprisonment
from six (6) months to one (1) year or a fine of not less than One hundred
thousand Philippine pesos (Php 100,000.00) but not more than Five
hundred thousand Philippine pesos (Php 500,000.00), or both, shall be
imposed on a person convicted under Section 9(b) of this Act.
"(c) Malicious Reporting. Any person who, with malice, or in bad faith,
reports or files a completely unwarranted or false information relative to
money laundering transaction against any person shall be subject to a
penalty to six (6) months to four (4) years imprisonment and a fine of not
less than One hundred thousand Philippine pesos (Php100,000.00) but not
more than Five hundred thousand Philippine pesos (Php500,000.00), at
the discretion of the court: Provided, That the offender is not entitled to
avail the benefits of the Probation Law.
"If the offender is a corporation, association, partnership or any juridical
person, the penalty shall be imposed upon the responsible officers, as the
case may be, who participated in, or allowed by their gross negligence, the
commission of the crime. If the offender is a juridical person, the court may
suspend or revoke its license. If the offer is an alien, he shall, in addition to
the penalties herein prescribed, be deported without further proceedings
after serving the penalties herein prescribed. If the offender is a public
official or employee, he shall, in addition to the penalties prescribed herein,
suffer perpetual or temporary absolute disqualification from office, as the
case may be.
"Any public official or employee who is called upon to testify and refuses to
do the same or purposely fails to testify shall suffer the same penalties
prescribed herein.
"(d) Breach of Confidentiality. The punishment of imprisonment ranging
from three (3) to eight (8) years and a fine of not less than Five hundred
thousand Philippine pesos (Php500,000.00) but not more than One million
Philippine pesos (Php1,000,000.00) shall be imposed on a person
convicted for a violation under Section 9(c). In the case of a breach of
confidentiality that is published or reported by media, the responsible
reporter, writer, president, publisher, manager and editor-in-chief shall be
liable under this Act.
"(e) The penalty of imprisonment ranging from four (4) to seven (7) years
and a fine corresponding to not more than two hundred percent (200%) of
the value of the monetary instrument or property laundered shall be
imposed upon the covered person, its directors, officers or pesonnel who
knowingly participated in the commission of the crime of money
laundering.
"(f) Imposition of Administrative Sanctions. The imposition of the
administrative sanctions shall be without prejudice to the filing of criminal
charges against the persons responsible for the violation.
"After due notice and hearing, the AMLC shall, at its discretion, impose
sanctions, including monetary penalties, warning or reprimand, upon any
covered person, its directors, officers, employees or any other person for
the violation of this Act, its implementing rules and regulations, or for
failure or refusal to comply with AMLC orders, resolutions and other
issuances. Such monetary penalties shall be in amounts as may be
determined by the AMLC to be appropriate, which shall not be more than
Five hundred thousand Philippine pesos (P500,000.00) per violation.1wphi1
"The AMLC may promulgate rules on fines and penalties taking into
consideration the attendant circumstances, such as the nature and gravity
of the violation or irregularity.
"(g) The provision of this law shall not be construed or implemented in a
manner that will discriminate against certain customer types, such as
politically-exposed persons, as well as their relatives, or against a certain
religion, race or ethnic origin, or such other attributes or profiles when used
as the only basis to deny these persons access to the services provided by
the covered persons. Whenever a bank, or quasi-bank, financial institution
or whenever any person or entity commits said discriminatory act, the
person or persons responsible for such violation shall be subject to
sanctions as may be deemed appropriate by their respective regulators."
Section 15. Prohibitions Against Political Harassment. This Act shall not be
used for political prosecution or harassment or as an instrument to hamper
competition in trade and commerce.
No case for money laundering may be filed against and no assets shall be
frozen, attached or forfeited to the prejudice of a candidate for an electoral office
during an election period.
Section 16. Restitution. Restitution for any aggrieved party shall be governed
by the provisions of the New Civil Code.
Section 17. Implementing Rules and Regulations. Within thirty (30) days from
the effectivity of this Act, the Bangko Sentral ng Pilipinas, the Insurance
Commission and the Securities and Exchange Commission shall promulgate the
rules and regulations to implement effectivity the provisions of this Act. Said rules
and regulations shall be submitted to the Congressional Oversight Committee for
approval.
Covered institutions shall formulate their respective money laundering prevention
programs in accordance with this Act including, but not limited to, information
dissemination on money laundering activities and its prevention, detection and
reporting, and the training of responsible officers and personnel of covered
institutions.
Section 18. Congressional Oversight Committee. There is hereby created a
Congressional Oversight Committee composed of seven (7) members from the
Senate and seven (7) members from the House of Representatives. The
members from the Senate shall be appointed by the Senate President based on
the proportional representation of the parties or coalitions therein with at least
two (2) Senators representing the minority. The members from the House of
Representatives shall be appointed by the Speaker also based on proportional
representation of the parties or coalitions therein with at least two (2) members
representing the minority.
The Oversight Committee shall have the power to promulgate its own rules, to
oversee the implementation of this Act, and to review or revise the implementing
rules issued by the Anti-Money Laundering Council within thirty (30) days from
the promulgation of the said rules.
Section 19. Appropriations Clause. The AMLC shall be provided with an initial
appropriation of Twenty-five million Philippine pesos (Php 25,000,000.00) to be
drawn from the national government. Appropriations for the succeeding years
shall be included in the General Appropriations Act.
"SEC. 20. Non-intervention in the Bureau of Internal Revenue (BIR) Operations.
Nothing contained in this Act nor in related antecedent laws or existing
agreements shall be construed to allow the AMLC to participate in any manner in
the operations of the BIR."
"SEC. 21. 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. Likewise,
the constitutional injunction against ex post facto laws and bills of attainder shall
be respected in the implementation of this Act."
Section 22. Separability Clause. If any provision or section of this Act or the
application thereof to any person or circumstance is held to be invalid, the other
provisions or sections of this Act, and the application of such provision or section
to other persons or circumstances, shall not be affected thereby.
Section 23. Repealing Clause. All laws, decrees, executive orders, rules and
regulations or parts thereof, including the relevant provisions of Republic Act No.
1405, as amended; Republic Act No. 6426, as amended; Republic Act No. 8791,
as amended and other similar laws, as are inconsistent with this Act, are hereby
repealed, amended or modified accordingly.
SEC. 24. Effectivity. -- This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) national
newspapers of general circulation.
The provisions of this Act shall not apply to deposits and investments made prior
to its effectivity.
Approved,