ANTI-MONEY LAUNDERING LAW

(AMLA Law)

• R.A. 9160 a.k.a. Anti Money Laundering Act of 2001

• as amended by R.A. 9194 and R.A. 10168 a.k.a. Terrorism Financing Prevention and Suppression Act of 2012
• and RA 10365 a.k.a AN ACT FURTHER STRENGTHENING THE ANTI-MONEY LAUNDERING LAW
OBJECTIVES/PURPOSES/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 Philippines shall extend cooperation in transnational
investigations and prosecutions of persons involved in money laundering activities wherever committed.

DEFINITION OF MONEY LAUNDERING

• 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: (Acts punishable as Money Laundering)

• 1. Transacts said monetary instrument or property;

• 2. Converts, transfers, disposes of, moves, acquires, possesses or uses said monetary instruments or
property or proceeds of any unlawful activity;

• 3. Conceals or disguises the true nature, source, location, disposition, movement or ownership of or
rights with respect to said monetary instruments or property or proceeds of unlawful activity;

• 4. Attempts or conspires to commit Money Laundering referred to in par. 1), 2) & 3);

• 5. Aids, abets, assists in or counsels the commission of the Money Laundering offenses referred to in
par. 1), 2) & 3) above;

• 6. Performs or fails to perform any act as a result of which he facilitates the offense of Money
Laundering referred to in par. 1), 2) & 3) above; or 7. Any covered person who, knowing that a covered
or suspicious transaction is required under the AMLA to be reported to the AMLC, fails to do so.

PREDICATE CRIMES OF MONEY LAUNDERING (34 CRIMES)

1. Kidnapping for ransom under the Revised Penal Code (RPC) 9. Swindling/Estafa (RPC)

2. Drug Trafficking and other violations of the Comprehensive

10. Smuggling (R.A. Nos. 455 & 1937)
Dangerous Act of 2002

11. Violations of Electronic Commerce Act of 2000

3. Graft and Corruption (R.A. No. 3019, as amended)
(R.A. No. 8792)
 12. Hijacking (R.A. No. 6235), Destructive Arson and
4. Plunder (R.A. No. 7080, as amended)
Murder (RPC)

13. Terrorism and Conspiracy to Commit Terrorism

5. Robbery and extortion (RPC)
(R.A. No. 9372).

6. Jueteng and Masino (PD 1602) 14. Financing of Terrorism (R.A. No. 10165)

7. Piracy (RPC & PD 532) 15. Bribery and Corruption of Public Officers (RPC)

16. Frauds and Illegal Exactions and Transactions

8. Qualified Theft (RPC)
(RPC);

PREDICATE CRIMES OF MONEY LAUNDERING (34 CRIMES)

17. Malversation of Public Funds (RPC) 27. Fencing (PD 1612)

18. Forgeries and Counterfeiting (RPC); 28. Illegal Recruitment (R.A. No. 8042),

29. Violations of the Intellectual Property

19. Trafficking in Persons (R.A. No. 9208
Code;

20. Violations of the Revised Forestry Code (PD 705); 30. Voyeurism (R.A. No. 9995);

21. Violations of the Philippine Fisheries Code of 1998 (R.A. No. 8550); 31. Child Pornography (R.A. No. 9775);

32. Child Prostitution, Trafficking, and

22. Violations of the Philippine Mining Act of 1995 (R.A. No. 7942),
other forms of Abuse (R.A. No. 7610);

23. Violations of the Wildlife Resources Conservation and Protection Act 33. Fraudulent practices and other
(R.A. No. 9147), 24.Violations of the National Caves and Cave Resources violations of the Securities Regulation
Management Protection Act (R.A. No. 9072), Code (R.A. No. 8799),

34. Felonies or offenses of a similar nature

25. Carnapping (R.A. No. 6539); that are punishable under the penal laws
of other countries

26. Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition or

Disposition of Firearms, Ammunitions and Explosives
TYPES OF REPORTABLE TRANSACTIONS TO AMLC

• Covered Transactions are those transactions involving covered persons that breached the quantitative threshold
provided by AMLA for reporting purposes to AMLC and therefore must be reported by covered persons to
AMLC.

• Suspicious Transactions are those transactions that do not breach the quantitative threshold provided by AMLA for
reporting purposes to AMLC but must still be reported to AMLC by covered persons because of the suspicious nature of
the transactions.

AMOUNT OF COVERED TRANSACTION FOR REPORTING TO AMLC .

• A transaction in cash or other equivalent monetary instrument exceeding Five Hundred Thousand pesos .

• A transaction exceeding One Million pesos (P1.000.000) in cases of jewelry dealers, dealers in precious metals
and dealers in precious stones.

• Covered transaction now includes 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,"

SUSPICIOUS TRANSACTIONS THAT SHALL ALSO BE REPORTED TO AMLC

• 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 AMLA;

• 5. any circumstance relating to the transaction which is observed to deviate from the profile of the client and/or
the client's past transactions with the covered person;

• 6. the transaction is in any way related to an unlawful activity or any money laundering activity or offense that is
about to be committed, is being or has been committed;

• 7. or any transaction that is similar, analogous or identical to any of the foregoing.

Covered persons, natural or juridical, required to report to AMLC covered transactions and suspicious transactions
1. Under Bangko Sentral ng Pilipinas 2. Under Insurance Commission

a. Banks a. Insurance companies

b. Non-banks b. Pre-need companies

c. Quasi-banks c. Insurance agents

d. Trust entities d. Insurance brokers

e. Nonstock savings and loan associations e.Professional reinsurers

f. Foreign exchange dealers, f. Holding companies

g. Electronic money issuers g. Holding company system

h. Pawnshops, h. Mutual benefit associations

i. All other persons and their subsidiaries and affiliated

i. Money changers
supervised or regulated by the Insurance Commission

j. Remittance and transfer companies

k. All other persons and their subsidiaries and

affiliated supervised or regulated by the BSP.,

UNDER SECURITIES AND EXCHANGE COMMISSION

• Securities dealers, brokers, salesmen, investment houses, and other similar persons managing securities or
rendering services such as investment agents. b. mutual funds or open-end companies, close-end investment,
investment companies or issuers and other similar 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 and regulated by the SEC.

OTHER DESIGNATED NON-FINANCIAL BUSINESS AND PROFESSIONALS

• a. Jewelry dealers, dealers in precious metals, and dealers in precious stones for transactions in excess

• b. Land Registration Authority and all of its Register of Deeds on all real estate transaction with price c. Casino
refers to a business authorized by the appropriate government agency to engage in gaming operations for single
casino transaction in excess of P5,000,000.

• i. Internet-based casino shall refer to casinos in which persons participate by the use of remote
communication facilities such as, but not limited to, internet, telephone, television, radio or any other
kind of electronic or other technology for facilitating communication.

• ii. Ship-based casino shall refer to casinos, the operation of which is undertaken on board at vessel, ship,
boat or any other water-based craft wholly or partly intended for gambling.
 • d. Company service providers to 3rd parties including CPAs and Lawyers

• 1. acting as a formation agent of juridical persons;

• 2. acting as (or arranging for another person to act as) a director or corporate secretary of a company,
partner of a partnership, or a similar position in relation to other juridical persons;

• 3. 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

• 4. acting as (or arranging for another person to act as) a nominee shareholder for another person.

• e. Person providing the following services including CPAs and lawyers

• 1. managing of client money, securities or other assets;

• 2. management of bank, savings or securities accounts;

• 3. organization of contributions for the creation, operation or management of companies; and

• 4. creation, operation or management of juridical persons or arrangements, and buying and selling
business entities.

PERSONS EXCLUDED TO REPORT COVERED TRANSACTIONS OR SUSPICIOUS TRANSACTIONS TO AMLC

• 1. Lawyers if acting as independent legal professionals in relation to information concerning their clients
disclosure of information would compromise client confidences or the attorney-client relationship or where

• 2. Certified public accountants if acting as independent legal professionals in relation to information concerning
their clients or where disclosure of information would compromise client confidences or the CPA-client
relationship

JURISDICTION OVER MONEY LAUNDERING CASES

• a. Regional Trial Court The regional trial courts shall have the jurisdiction to try money laundering cases
committed by private individuals, and public officers not covered by the jurisdiction of the Sandiganbayan.

• b. Sandiganbayan. - The Sandiganbayan shall have jurisdiction to try money laundering cases committed by
public officers under its jurisdiction, and private persons who are in conspiracy with such public officers.

PROSECUTION OF MONEY LAUNDERING CASES

• a. Independent Proceedings. The prosecution of money laundering and the unlawful activity shall proceed
independently. Any person may be charged with and convicted of both money laundering and the unlawful

• b. Separate and Distinct Elements. The elements of money laundering are separate and distinct from the
elements of the 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 money laundering.

• c. Knowledge. The element of knowledge may be established by direct or circumstantial evidence

THE COUNCIL
 • Anti-Money Laundering Council - refers to the financial intelligence unit of the Republic of the Philippines which
is the government agency tasked to implement the AMLA.

• a. Composition of Anti-Money Laundering Council

• i. Chairperson-BSP Governor

• ii. Member-Insurance Commissioner

• iii. Member-SEC Chairperson

• b. Unanimous Decision. The AMLC shall act unanimously in discharging its functions. In case of incapacity,
absence, or disability of any member, the officer duly designated or authorized to discharge the functions of the
Governor of the BSP, the Commissioner of the IC, and the Chairperson of the SEC, as the case may be, shall act in
his stead in the AMLC

PREVENTIVE MEASURES

• a. Customer Due Diligence - Covered persons shall establish and record the true identity of their clients based on
official documents, as defined under Rule 3 of RIRR of AMLA.

• b. Customer Identification

• a.Face-to-Face Contact Covered persons shall conduct face-to-face contact at the commencement of the
relationship, or as reasonably practicable so as not to interrupt the normal conduct of business

• b. Minimum Customer Information and Identification Documents

• b.b. MINIMUM CUSTOMER INFORMATION AND IDENTIFICATION DOCUMENTS

c. PROHIBITED ACCOUNTS

• 1. Anonymous Accounts and Accounts under Fictitious Names. - Covered persons shall maintain customers'
account only in the true and full name of the account owner or holder. Anonymous accounts, accounts under
fictitious names, and all other accounts shall be absolutely prohibited.

• 2. Numbered Accounts - Numbered accounts, except non-checking numbered accounts, shall not be allowed.
Covered and suspicious transaction reports involving non-checking numbered accounts shall contain the true
name of the account holder.

• B. Record Keeping. - Covered persons shall maintain and safely store for five (5) years from the dates of
transactions all records of customer identification and transaction documents of their customers or five (5) years
from the date

• C. Transaction Reporting, Covered persons shall report to the AMLC all covered transactions and suspicious
transactions within five (5) working days, unless the AMLC prescribes a different period not exceeding fifteen
(15) working days, from the occurrence thereof.

• D. For Suspicious transactions, "occurrence" refers to the date of determination of the suspicious nature of the
transaction, which determination should be mads not exceeding ten (10) calendar days from the date of
transaction. However, if the transaction is in any way related to, or the person transacting is involved in or
connected to, an unlawful activity or incaey laundering offense, the 10-day period for determination shall be
reckoned from the date the covered person knew or should have known the suspicious transaction indicator.
FREEZE ORDER

• Freeze Order Freeze Order.- 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, the Court of
deals may issue a freeze order, which shall be effective immediately for a period of 20 days. Within 20-day
period, the Court of Appeals shall conduct a summary hearing, with notice to the parties, to determine whether
or not to modify or life the freeze order or to extend its effectivity

• a. Freezing of Related Accounts and Materially-Linked Accounts. Considering the intricate and diverse
web of interlocking accounts that a person may create in different covered persons, and the high
probability that these accounts are utilized to divert, move, conceal, and disguise the monetary
instrument or property subject of the freeze order, the AMLC may include in its petition the freezing of
related and materially-linked accounts, 

• b. Period to Resolve Petition. The Court of Appeals shall resolve the petition to freeze within twenty-four
24 hours from filing thereof.

• c. Effectivity of Freeze Order. The total period of the freeze order issued by the Court of Appeals under
this provision shall not exceed six months. This is without prejudice to an asset preservation order that
the Regional Trial Court having jurisdiction over the appropriate money-laundering case or civil
forfeiture case may issue on the same accounting depending upon the circumstances of the case, where
the Court of Appeals will remand the case and its records: Provided, That if there is no case filed against
a person whose account has been frozen within the period determined by the Court of Appeals, no
exceeding six months, the freeze order shall be deemed ipso 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 24 hours from filing of the petition. If the application is filed a day before a nonworking day, the
computation of the 24-hour period shall exclude the nonworking days. The freeze order or asset
preservation order issued under this Act shall be limited only to the amount of cash or monetary
instrument or value of property that the court finds there is probable cause to be considered as
proceeds of a predicate offense, and the freeze order or asset preservation order shall not apply to
amounts in the same account in excess of the amount or value of the proceeds of the predicate offense.

BANK INQUIRY WITH COURT ORDER.

• 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 account, including related accounts, with any banking institution or non-bank financial institution,
upon order by the Court of Appeal on an ex parte application in cases of violation of the AMLA when it has been
established that probable cause exists that the deposits or investments involved, including related accounts, are
in any way related to an unlawful activity or a money laundering offense.

• Period to Resolve Application - The Court of Appeals shall resolve the application within twenty-four 24
hours from filing thereof.

• b. Inquiry into or Examination of Related Accounts. A court order ex parte must be obtained before the
AMLC can inquire into the related accounts. The procedure for the ex parte application for an order of
inquiry into the principal account shall be the same for that of the related accounts.
 • c. Compliance with Article III Sections 2 and 3 of the Constitution. 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.

BANK INQUIRY WITHOUT COURT ORDER

• The AMLC shall issue a resolution authorizing the AMLC Secretariat to Inquire into or examine any particular
deposit or investment account, including related accounts, with any banking institution or non-bank financial
institution and their subsidiaries and affiliates when it has been established that probable cause exists that the
deposits or investments involved, including related accounts, are in any way related to any of the following
unlawful activities: (Predicate crimes that may authorize AMIC to inquire bank accounts even without Court
Order from Court of Appeals)

• a Kidnapping for ransom under Article 267 of Act No. 3815,otherwise known as the Revised Penal Code,
as amended,

• b. 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,

• C. Hijacking and other violations un for Republic Act No. 6235;

• d. Destructive arson and murder, as defined under the Revised Penal Code, as amended;

• e Felonies or offenses of a nature similar to those mentioned in Section 3(1) (1), (2) and (12) of the
AMLA which are punishable under the penal laws of other countries,

• f. Terrorism and conspiracy to commit as defined and penalized under Republic Act No. 9372; and

• g, 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.

ASSET FORFEITURE

• A. Civil Forfeiture. Upon determination that probable cause exists that any monetary instrument or property is
in any way related to an unlawful activity or a money laundering offense, the AMLC shall file with the regional
trial court, through the Office of the Solicitor General, a verified petition for civil forfeiture.

• b. No Prior Criminal Charge, Pendency of or Conviction Necessary. - No prior criminal charge, pendency of or
conviction for an unlawful activity or money laundering offense is necessary for the commencement or the
resolution of a petition for civil forfeiture.

• c. Asset Forfeiture in Money Laundering Cases. Where there is conviction for money laundering, 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 an unlawful activity.