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 COMMERCIAL LAW REVIEWER 

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SAINT LOUIS UNIVERSITY BAR OPERATIONS

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ANTI-MONEY LAUNDERING ACT
(R.A. 9160)
Anti-Money Laundering
- A crime whereby the proceeds of an unlawful
activity are translated thereby making them
appear to have originated from legitimate
sources.

Purposes:
1. integrity & confidentiality of bank accounts shall be
protected and preserved
2. Ensure that the Philippines shall not be used as a money
laundering site for the proceeds of any unlawful activity.
3. Philippines shall not extend cooperation in transnational
and prosecutions of persons involved in money laundering
activities wherever committed.

Three stages:
1. Placement/infusion
- physical and actual delivery of cash proceeds
that originated from an illegal activity such as:
a. smuggling of bulk currency
b. illegal-sourced money with legitimate deposits
c. cash deposits in small denominations
d. cash deposits with several banks
2.

3.

Layering
- Process of separating the illicit proceeds from
their source by creating "layers" of transactions
with the end in view of disguising the source and
make it appear as insignificant.

Integration
- Layered accounts are then re-introduced into the
economy under the stamp of legitimacy; through
the re-entry into the financial system it would
appear that the laundered money is normal or
legitimate business funds.

DEFINITIONS
• transaction
- any act establishing any right or obligation or
giving rise to any contractual or legal relationship
between the parties; includes any movement or
activity concerning funds by any means with a
covered institution
• proceeds
- Amount taken from an unlawful activity; includes
material results, profits, effect and any amount
realized from any illegal activity.
- All monetary, financial or economic means,
documents, papers, things or devices used in
having or having any relation to any unlawful
activity and all moneys, expenditures, payments,
disbursements, costs, outlays, charges, accounts
for the financing operations and maintenance of
any illegal activity.
• monetary instrument
- coins, currency of legal tender in the Philippines,
or of any other country
- drafts, checks and notes


securities or negotiable instruments, bonds,
commercial papers, deposit certificates, trust
certificates, custodial receipts or deposit
substitute instruments, trading orders, transaction
tickets and confirmation of sale or investments
and money market instruments

client
-

any person or corporate entity that maintains an
account or transacts business with any financial
institution on whose behalf an account is
maintained or a transaction is conducted, as well
as the beneficiary of said transaction.
suspicious transaction
- one that merits closer examination, in order to
verify that it is from a legitimate source such as
a. no underlying legal/trade obligation
b. client is not properly identified
c. amount involved is not commensurate with the
business or financial capacity of the client
d. client's transaction is structured in order to avoid
being the subject of reporting requirements
e. 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 institution
f. transaction is in a way related to an unlawful
activity under this Act that is about to be, is being
or has been committed
g. Any transaction that is similar OR ANALOGOUS
to any of the foregoing.
unlawful activities
a. drug trafficking or violation of RA No. 9165
(Comprehensive Dangerous Act of 2002)
b. kidnap for ransom
c. anti-graft and corrupt practices act
d. plunder
e. robbery and extortion
f. jueteng and masiao ( illegal gambling)
g. piracy on the high seas
h. qualified theft
i. swindling
j. smuggling (under RPC and RA Nos. 455 &1937)
k. violations of E-commerce Act of 2000
l. hijacking
covered institutions
- banks, non-banks, quasi-banks, trust entities
- insurance companies
- those supervised by SEC
threshold
- Highest/significant level of deposit or placement
an account may reach on a transactional basis.
covered transaction
- Transaction in cash or other equivalent monetary
instrument involving a total amount in excess of
P500, 000.00 within one banking day.

ANTI-MONEY LAUNDERING COUNCIL (AMLC)
Composition:
1. Governor of Bangko Sentral ng Pilipinas as Chairman
2. Insurance Commissioner
3. Chairman of Security & Exchange Commissioner

 Prepared by the COMMERCIAL LAW SECTION  Chief MARLON CORPUZ Assistant Chief MA. LOURDES COMTIAG Members MARLON
BACUNO, VOLTAIRE GARCIA, JEANNYLENE ISIP, BEVERLY MANZANO, KATHRYN BOLINAS, LOTTA OBADO, GRESIL SANTOS
and VENUS DUGAYON. All Rights Reserved by the SAINT LOUIS UNIVERSITY COLLEGE OF LAW BAR OPERATIONS  2003.

To issue orders addressed to the appropriate supervising authority or the covered institution to determine the true identity of the owner of any monetary instrument or property subject of a covered transaction or suspicious transaction report or request for assistance from a foreign state. BEVERLY MANZANO. or believed by the council.through conventions. identity of said person d. the viable means of preventing money laundering and the effective ways of prosecuting and punishing offender . diminished in value c. concealed. for the freezing of any monetary instrument or property alleged to be the proceeds of any unlawful activity . the officer designated shall act in his stead. all members of Secretariat. money laundering activities. but not limited to TELECONFERENCING & VIDEOCONFERENING @BUDGET: appropriated by Congress . all covered transactions and suspicious transactions shall be reported to AMLC within 5 working days from occurrence thereof. department. absence or disability.Used to defray operational expenses. resolutions & other directives of any organizations of which Philippines is a member. GRESIL SANTOS and VENUS DUGAYON.effective immediately upon determination of probable cause .to heighten awareness of the public of their civic duty 11. including indemnification for LEGAL COST & EXPENSES. SEC or BSP & shall hold full-time permanent position within the BSP. 9.. Bar b. of good moral character d. unless the Supervising Authority prescribes a longer period not exceeding 10 working days. Must have served for at least 5 years in Insurance Commission. or related to. bureau. when: a. To enlist the assistance of any branch. on the basis of substantial evidence. or any government offices authorized by law @MEETING: AMLC shall meet every first Monday of the month or as often as may be necessary at the call of Chairman .shall be for a period of 20 days unless extended by the court To implement such measures as may be necessary and justified under the law to counteract money laundering To receive and take action in respect to any request from foreign states for assistance in their own anti-money laundering operations . at least 35 years of age c. covered institution believed to have been any information which may be of assistance to the investigation e. SECRETARIAT . substantially alleged. AMLC may refuse to comply with such request. all particulars necessary for the issuance of the order/processes f. grounds c. appointed by AMLC for a term of % years . the Revised Penal code shall apply when the court ordered for the seizure of any monetary instrument or property. Director. COMMERCIAL LAW REVIEWER  2 SAINT LOUIS UNIVERSITY BAR OPERATIONS @AMLC is a collegial body where Chairman & members of AMLC are entitled to one vote each - General Rule: Members of AMLC. JEANNYLENE ISIP.qualifications: a. KATHRYN BOLINAS. General Rule: AMLC acts unanimously in discharge of functions Exception: In case of incapacity. 6.Headed by Exec. ex parte. to be in whole or in part. 8. and other violations of this Act To apply before the Court of Appeals.through nationwide information campaigns . investigation/prosecution b. VOLTAIRE GARCIA. removed to prevent the same from being found d. HOWEVER. member of Phil. To cause the filing of complaints with the Department of Justice or the Ombudsman for the prosecution of money laundering offenses To investigate suspicious transactions deemed suspicious after an investigation by the AMLC. on secondment shall not reveal in any manner any information by reason of their office Exception: Under any orders of the court. on detail. LOURDES COMTIAG Members MARLON BACUNO. in any manner or by any means.through modern technologies such as. Commingled with other monetary instruments or property belonging to either the offender himself or third person. it contravenes provision of Constitution b. other information 10. agency or instrumentality of the government including government-owned and controlled corporations in undertaking any and all anti-money laundering operations. Executive Director. the methods and techniques used in money laundering. Functions: 1. place or brought outside the jurisdiction of the court f. -  Prepared by the COMMERCIAL LAW SECTION  Chief MARLON CORPUZ Assistant Chief MA. All Rights Reserved by the SAINT LOUIS UNIVERSITY COLLEGE OF LAW BAR OPERATIONS  2003. in whole or in part. involving. wherever located representing. office. located outside the Philippines e. To develop educational programs on the pernicious effects of money laundering. be located b. directly or indirectly. . it prejudices national interest of the Philippines a. Congress. any member to discharge his functions. To require and receive covered or suspicious transaction reports from covered institution 2. with due diligence. 7. the proceeds of an unlawful activity 4. 3. To institute civil forfeiture proceedings and all other remedial proceedings through the Office of the Solicitor General payment in lieu of forfeiture any particular money cannot. requirements for requests for mutual assistance from foreign sates: a. with unquestionable integrity & known probity e. LOTTA OBADO. destroyed. directly or indirectly 5.

no asset shall be forfeited to the prejudice of a candidate for an electoral office during an election period.penalty: 6 mos-4 years. AMLC may apply for provisional remedies to prevent monetary instrument or property subject thereof from being removed.000. not less than 100.6 mos-4 years.3-8 years.-4 years. any proceeding relating to unlawful activity shall be given precedence over the prosecution of any offense or violation without prejudice to the freezing order & other remedies 3. not less than 3M and not more than twice the value of monetary instrument or property involved in the offense 2. 2. facilities and resources for the more resolute prevention.000.00.00 but not more than 500. and Deportation • if offender is a public official/employee . with malice. this prohibition shall not constitute a bar to the prosecution of any money laundering case filed in court before the election period.7-14 years.000. when it has been established that there is probable cause that the deposits or investments are related to an unlawful activity or a money laundering offense except that no court is needed for cases qualified by the law.00 but not more than 500.00.00 AND Perpetual/Temporary Disqualification 5.inquire into or examine any particular deposit or investment with any banking institution or nonbank financial institution upon order of any competent court in cases of violation of the law.all cases on money laundering Sandiganbayan .00.000. and converted with other organizations where there is conviction for money laundering. regulations and orders and resolutions Scope of authority of the AMLC to inquire into bank deposits. All Rights Reserved by the SAINT LOUIS UNIVERSITY COLLEGE OF LAW BAR OPERATIONS  2003.any person who.in case of breach of confidentiality that is published or reported by media. concealed. 5. To impose administrative sanctions for the violation of laws.00 but not more than 500.000. No case of money laundering may be filed to the prejudice of a candidate for an electoral office during an election period.5M but not more than 3M Knowledge that any monetary instrument or instrument is required to be disclosed and files with AMLC fails to do so. transact or attempts to transact said monetary instrument or property . LOTTA OBADO. the court shall issue judgment of forfeiture in favor of government of Philippines. not less than100.acts/omissions by public officers and private persons who are in conspiracy with such public officers Prosecution of money laundering 1.000. HOWEVER. or both. - knowledge that any monetary instrument or property involves proceeds of any unlawful activity. JEANNYLENE ISIP. not less than 100.. manager and editor-in-chief shall be liable .000. BEVERLY MANZANO. LOURDES COMTIAG Members MARLON BACUNO.00 at the discretion of the court.Shall remain in force for a period of 30 days after the affectivity of RA 9194. not less than 100.) Crime of money laundering 1. any person maybe charged with & convicted of both the offense of money laundering & unlawful activity 2. Effect when freeze orders are ordered by the AMLC with the passage of RA 9194: . or both 3. HOWEVER.00.) Malicious reporting . .000.000. president publisher.penalty: revocation of license • if offender is an alien . performs or fails to perform any act as a result of which he facilitates the offense of money laundering 4-7 years. Restitution for any aggrieved party Prevention of Money Laundering  Prepared by the COMMERCIAL LAW SECTION  Chief MARLON CORPUZ Assistant Chief MA. not less than 500. .000. the offender is not entitled to avail of the benefits of the Probation Law • if offender is a corporation (who participated in the commission or shall have knowingly permitted or failed to prevent its participation) .00 but not more than 500. GRESIL SANTOS and VENUS DUGAYON. KATHRYN BOLINAS.000.) Breach of confidentiality . at discretion of the court. knowledge of offender that monetary instrument relates to proceeds of unlawful activity shall be established by DIRECT EVIDENCE or inferred from attendant circumstances 4. 6. 6 mos.penalty: 6 mos-4 years. 3. or both 4.000.00 but not more than 1M Jurisdiction of Money Laundering cases: RTC . Offenses and their respective penalties: 1. reports or files a completely unwarranted or false - information relative to money laundering transaction against any person 6 mos-4 years. Provided. involved or relates the proceeds of any unlawful activity. detection and investigation of money laundering offense and prosecution of offenders 12.00 but not more than 500. not less than 1. knowledge that any monetary instrument or property represents.) Failure to keep records . COMMERCIAL LAW REVIEWER  3 SAINT LOUIS UNIVERSITY BAR OPERATIONS which may include the use of its personnel. writer.000.) Failure to report covered transactions . not less than 100. UNLESS extended by the Court of Appeals.6 mos -1 year. not less than 100. the responsible reporter. VOLTAIRE GARCIA.00 but not more than 500. rules.penalty shall be imposed upon the responsible officers • if offender is a juridical person . or in bad faith.

specimen signature h. source of funds i. name b. All Rights Reserved by the SAINT LOUIS UNIVERSITY COLLEGE OF LAW BAR OPERATIONS  2003.shall be preserved and safely stored for at least 5 years from the dates when they were closed records in case a money laundering case has been filed in court . a. VOLTAIRE GARCIA.4 1. if any g. date & place of birth d. Creation of an anti-money laundering council or task force 5. present address c. c.  COMMERCIAL LAW REVIEWER  SAINT LOUIS UNIVERSITY BAR OPERATIONS Customer Identification requirement . SSS. b. c. beneficial owners. 2001 from the dates of the accounts or transactions whichever is later closed accounts . Key Elements in Fighting Money Laundering 1. .the ff. KATHRYN BOLINAS. names of beneficiaries in case of insurance contracts and whenever applicable for Corporate and Juridical entities: articles of incorporation/partnership by-laws list of directors/partners list of principal stockholders owning at least 2% of the capital stock e. as the case may be until it is confirmed that case has finally resolved or terminated by the court. Institution of a system of suspicious transactions 3. Institution of procedures for effective international cooperation  Prepared by the COMMERCIAL LAW SECTION  Chief MARLON CORPUZ Assistant Chief MA. GSIS number g. tax identification number. verification of the authority and identification of the person purporting to act on behalf of the client Recordkeeping Requirements existing and new accounts .shall be maintained and stored for 5 years from Oct 17. b. LOURDES COMTIAG Members MARLON BACUNO. GRESIL SANTOS and VENUS DUGAYON. minimum documents shall be obtained for Individual customers: a. 2. JEANNYLENE ISIP. LOTTA OBADO. d. BEVERLY MANZANO. The criminalization of money laundering 2. contact numbers f.Said file must be retained beyond the period stipulated in the two preceding subsections. Relaxing of bank secrecy laws 4. a. nationality e. nature of work and name of employer or nature of self-employment/business f.