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REPUBLIC ACT NO.

9160
AN ACT DEFINING THE CRIME OF
MONEY LAUNDERING, PROVIDING
PENALTIES THEREFOR AND FOR
OTHER PURPOSES.

Secti! 1. S"#t Tit$e. % This Act shall be known as
the "Anti-Money Laundering Act of 2001."
Sec. &. Dec$'#'ti! ( P$ic). %
It is hereby declared the olicy of the !tate
1. to rotect and reser"e the integrity and
confidentiality of bank accounts and
2. to ensure that the #hiliines shall not be used as a
$oney laundering site for the roceeds of any
unlawful acti"ity.
%onsistent with its foreign olicy&
the !tate shall e'tend cooeration in
transnational in"estigations and rosecutions
of ersons in"ol"ed in $oney laundering
acti"ities where"er co$$itted.
Sec. *. De(i!iti!+. % (or uroses of this Act& the
following ter$s are hereby defined as follows)
*a+ ,C-e#e. i!+tit/ti!, refers to)
*1+
1+ banks&
2+ non-banks&
,+ -uasi-banks&
.+ trust entities& and
/+ all other institutions and their subsidiaries and
affiliates suer"ised or regulated by the 0angko
!entral ng #iliinas *0!#+1
*2+ insurance co$anies and all other institutions
suer"ised or regulated by the Insurance %o$$ission1
and

*,+
a. securities dealers& brokers& sales$en& in"est$ent
houses and other si$ilar entities $anaging securities
or rendering ser"ices as in"est$ent agent& ad"isor& or
consultant1
b. $utual funds& close-end in"est$ent co$anies&
co$$on trust funds& re-need co$anies and other
si$ilar entities1
c. foreign e'change cororations& $oney changers&
$oney ay$ent& re$ittance& and transfer co$anies
and other si$ilar entities1 and
d. other entities ad$inistering or otherwise dealing in
currency& co$$odities or financial deri"ati"es based
thereon& "aluable ob2ects& cash substitutes and other
si$ilar $onetary instru$ents or roerty suer"ised or
regulated by the !ecurities and 3'change
%o$$ission.
*b0 ,C-e#e. t#'!+'cti!, is
a single& series& or co$bination of transactions in"ol"ing a
total a$ount in e'cess of (our Million #hiliine esos
*#h#.&000&000.00+ or an e-ui"alent a$ount in foreign
currency based on the re"ailing e'change rate within fi"e
*/+ consecuti"e banking days e'cet those between a
co"ered institution and a erson who& at the ti$e of the
transaction was a roerly identified client and the a$ount
is co$$ensurate with the business or financial caacity of
the client1 or
those with an underlying legal or trade obligation&
urose& origin or econo$ic 2ustification.
It likewise refers to a single& series or co$bination or
attern of unusually large and co$le' transactions in
e'cess of (our Million #hiliine esos *#h#.&000&000.00+
esecially cash deosits and in"est$ents ha"ing no
credible urose or origin& underlying trade obligation or
contract.
*c+ ,M!et'#) i!+t#/1e!t" refers to)
*1+ coins or currency of legal tender of the #hiliines& or
of any other country1
*2+ drafts& checks and notes1
*,+ securities or negotiable instru$ents& bonds&
co$$ercial aers& deosit certificates& trust certificates&
custodial receits or deosit substitute instru$ents&
trading orders& transaction tickets and confir$ations of
sale or in"est$ents and $oney $arket instru$ents1 and
*.+ other si$ilar instru$ents where title thereto asses to
another by endorse$ent& assign$ent or deli"ery.
*d+ "4ffender" refers to any erson who co$$its a $oney
laundering offense.
*e+ "#erson" refers to any natural or 2uridical erson.
*f+ "#roceeds" refers to an a$ount deri"ed or reali5ed fro$
an unlawful acti"ity.
*g+ "!uer"ising Authority" refers to the aroriate
suer"isory or regulatory agency& deart$ent or office
suer"ising or regulating the co"ered institutions
enu$erated in !ection ,*a+.
*h+ "Transaction" refers to any act establishing any right or
obligation or gi"ing rise to any contractual or legal
relationshi between the arties thereto. It also includes
any $o"e$ent of funds by any $eans with a co"ered
institution.
*i+ "6nlawful acti"ity" refers to any act or o$ission or series
or co$bination thereof in"ol"ing or ha"ing relation to the
following)
*1+ 7idnaing for ranso$ under Article 289 of Act :o.
,;1/& otherwise known as the <e"ised #enal %ode& as
a$ended1
*2+ !ections ,& .& /& 9& ; and = of Article Two of <eublic
Act :o. 8.2/& as a$ended& otherwise known as the
>angerous >rugs Act of 1=921
*,+ !ection , aragrahs 0& %& 3& ?& @ and I of <eublic
Act :o. ,01=& as a$ended& otherwise known as the Anti-
?raft and %orrut #ractices Act1
*.+ #lunder under <eublic Act :o. 90;0& as a$ended1
*/+ <obbery and e'tortion under Articles 2=.& 2=/& 2=8&
2==& ,00& ,01 and ,02 of the <e"ised #enal %ode& as
a$ended1
*8+ Aueteng and Masiao unished as illegal ga$bling
under #residential >ecree :o. 18021
*9+ #iracy on the high seas under the <e"ised #enal
%ode& as a$ended and #residential >ecree :o. /,21
*;+ Bualified theft under Article ,10 of the <e"ised #enal
%ode& as a$ended1
*=+ !windling under Article ,1/ of the <e"ised #enal
%ode& as a$ended1
*10+ !$uggling under <eublic Act :os. .// and 1=,91
*11+ Ciolations under <eublic Act :o. ;9=2& otherwise
known as the 3lectronic %o$$erce Act of 20001
*12+ @i2acking and other "iolations under <eublic Act :o.
82,/1 destructi"e arson and $urder& as defined under the
<e"ised #enal %ode& as a$ended& including those
eretrated by terrorists against non-co$batant ersons
and si$ilar targets1
*1,+ (raudulent ractices and other "iolations under
<eublic Act :o. ;9==& otherwise known as the !ecurities
<egulation %ode of 20001
*1.+ (elonies or offenses of a si$ilar nature that are
unishable under the enal laws of other countries.
Sec. 2. M!e) L'/!.e#i!3 O((e!+e. D Money
laundering is a cri$e whereby the roceeds of an unlawful
acti"ity are transacted& thereby $aking the$ aear to
ha"e originated fro$ legiti$ate sources. It is co$$itted by
the following)
*a+ Any erson knowing that any $onetary instru$ent or
roerty reresents& in"ol"es& or relates to& the roceeds
of any unlawful acti"ity& transacts or atte$ts to transact
said $onetary instru$ent or roerty.
*b+ Any erson knowing that any $onetary instru$ent or
roerty in"ol"es the roceeds of any unlawful acti"ity&
erfor$s or fails to erfor$ any act as a result of which he
facilitates the offense of $oney laundering referred to in
aragrah *a+ abo"e.
*c+ Any erson knowing that any $onetary instru$ent or
roerty is re-uired under this Act to be disclosed and
filed with the Anti-Money Laundering %ouncil *AML%+& fails
to do so.
Sec. 4. 5/#i+.icti! ( M!e) L'/!.e#i!3
C'+e+. D The regional trial courts shall ha"e 2urisdiction
to try all cases on $oney laundering. Those co$$itted by
ublic officers and ri"ate ersons who are in consiracy
with such ublic officers shall be under the 2urisdiction of
the !andiganbayan.
Sec. 6. P#+ec/ti! ( M!e) L'/!.e#i!3. %
*a+ Any erson $ay be charged with and con"icted of both
the offense of $oney laundering and the unlawful acti"ity
as herein defined.
*b+ Any roceeding relating to the unlawful acti"ity shall be
gi"en recedence o"er the rosecution of any offense or
"iolation under this Act without re2udice to the free5ing
and other re$edies ro"ided.
Sec. 6. C#e'ti! ( A!ti7M!e) L'/!.e#i!3
C/!ci$ 8AMLC0. % The Anti-Money Laundering
%ouncil is hereby created and shall be co$osed of the
?o"ernor of the 0angko !entral ng #iliinas as chair$an&
the %o$$issioner of the Insurance %o$$ission and the
%hair$an of the !ecurities and 3'change %o$$ission as
$e$bers. The AML% shall act unani$ously in the
discharge of its functions as defined hereunder)
*1+ to re-uire and recei"e co"ered transaction reorts fro$
co"ered institutions1
*2+ to issue orders addressed to the aroriate
!uer"ising Authority or the co"ered institution to
deter$ine the true identity of the owner of any $onetary
instru$ent or roerty sub2ect of a co"ered transaction
reort or re-uest for assistance fro$ a foreign !tate& or
belie"ed by the %ouncil& on the basis of substantial
e"idence& to be& in whole or in art& where"er located&
reresenting& in"ol"ing& or related to& directly or indirectly&
in any $anner or by any $eans& the roceeds of an
unlawful acti"ity1
*,+ to institute ci"il forfeiture roceedings and all other
re$edial roceedings through the 4ffice of the !olicitor
?eneral1
*.+ to cause the filing of co$laints with the >eart$ent of
Austice or the 4$buds$an for the rosecution of $oney
laundering offenses1
*/+ to initiate in"estigations of co"ered transactions&
$oney laundering acti"ities and other "iolations of this Act1
*8+ to free5e any $onetary instru$ent or roerty alleged
to be roceeds of any unlawful acti"ity1
*9+ to i$le$ent such $easures as $ay be necessary and
2ustified under this Act to counteract $oney laundering1
*;+ to recei"e and take action in resect of& any re-uest
fro$ foreign states for assistance in their own anti-$oney
laundering oerations ro"ided in this Act1
*=+ to de"elo educational rogra$s on the ernicious
effects of $oney laundering& the $ethods and techni-ues
used in $oney laundering& the "iable $eans of re"enting
$oney laundering and the effecti"e ways of rosecuting
and unishing offenders1 and
*10+ to enlist the assistance of any branch& deart$ent&
bureau& office& agency or instru$entality of the
go"ern$ent& including go"ern$ent-owned and -controlled
cororations& in undertaking any and all anti-$oney
laundering oerations& which $ay include the use of its
ersonnel& facilities and resources for the $ore resolute
re"ention& detection and in"estigation of $oney
laundering offenses and rosecution of offenders.
Sec. 9. C#e'ti! ( ' Sec#et'#i't. D The AML% is
hereby authori5ed to establish a secretariat to be headed
by an 3'ecuti"e >irector who shall be aointed by the
%ouncil for a ter$ of fi"e */+ years. @e $ust be a $e$ber
of the #hiliine 0ar& at least thirty-fi"e *,/+ years of age
and of good $oral character& un-uestionable integrity and
known robity. All $e$bers of the !ecretariat $ust ha"e
ser"ed for at least fi"e */+ years either in the Insurance
%o$$ission& the !ecurities and 3'change %o$$ission or
the 0angko !entral ng #iliinas *0!#+ and shall hold full-
ti$e er$anent ositions within the 0!#.
Sec. 9. P#e-e!ti! ( M!e) L'/!.e#i!3:
C/+t1e# I.e!ti(ic'ti! Re;/i#e1e!t+ '!.
Rec#. <ee=i!3. %

*a+ %usto$er Identification. - %o"ered institutions shall
establish and record the true identity of its clients based
on official docu$ents. They shall $aintain a syste$ of
"erifying the true identity of their clients and& in case of
cororate clients& re-uire a syste$ of "erifying their legal
e'istence and organi5ational structure& as well as the
authority and identification of all ersons urorting to act
on their behalf.
The ro"isions of e'isting laws to the contrary
notwithstanding& anony$ous accounts& accounts under
fictitious na$es& and all other si$ilar accounts shall be
absolutely rohibited. #eso and foreign currency non-
checking nu$bered accounts shall be allowed. The 0!#
$ay conduct annual testing solely li$ited to the
deter$ination of the e'istence and true identity of the
owners of such accounts.
*b+ <ecord 7eeing. - All records of all transactions of
co"ered institutions shall be $aintained and safely stored
for fi"e */+ years fro$ the dates of transactions. Eith
resect to closed accounts& the records on custo$er
identification& account files and business corresondence&
shall be reser"ed and safely stored for at least fi"e */+
years fro$ the dates when they were closed.
*c+ <eorting of %o"ered Transactions. - %o"ered
institutions shall reort to the AML% all co"ered
transactions within fi"e */+ working days fro$ occurrence
thereof& unless the !uer"ising Authority concerned
rescribes a longer eriod not e'ceeding ten *10+ working
days.
Ehen reorting co"ered transactions to the AML%&
co"ered institutions and their officers& e$loyees&
reresentati"es& agents& ad"isors& consultants or
associates shall not be dee$ed to ha"e "iolated <eublic
Act :o. 1.0/& as a$ended1 <eublic Act :o. 8.28& as
a$ended1 <eublic Act :o. ;9=1 and other si$ilar laws&
but are rohibited fro$ co$$unicating& directly or
indirectly& in any $anner or by any $eans& to any erson
the fact that a co"ered transaction reort was $ade& the
contents thereof& or any other infor$ation in relation
thereto. In case of "iolation thereof& the concerned officer&
e$loyee& reresentati"e& agent& ad"isor& consultant or
associate of the co"ered institution& shall be cri$inally
liable.
@owe"er& no ad$inistrati"e& cri$inal or ci"il roceedings&
shall lie against any erson for ha"ing $ade a co"ered
transaction reort in the regular erfor$ance of his duties
and in good faith& whether or not such reorting results in
any cri$inal rosecution under this Act or any other
#hiliine law.
Ehen reorting co"ered transactions to the AML%&
co"ered institutions and their officers& e$loyees&
reresentati"es& agents& ad"isors& consultants or
associates are rohibited fro$ co$$unicating& directly or
indirectly& in any $anner or by any $eans& to any erson&
entity& the $edia& the fact that a co"ered transaction reort
was $ade& the contents thereof& or any other infor$ation
in relation thereto. :either $ay such reorting be
ublished or aired in any $anner or for$ by the $ass
$edia& electronic $ail& or other si$ilar de"ices. In case of
"iolation thereof& the concerned officer& e$loyee&
reresentati"e& agent& ad"isor& consultant or associate of
the co"ered institution& or $edia shall be held cri$inally
liable.
Sec. 10. A/t"#it) t F#ee>e. D 6on deter$ination
that robable cause e'ists that any deosit or si$ilar
account is in any way related to an unlawful acti"ity& the
AML% $ay issue a free5e order& which shall be effecti"e
i$$ediately& on the account for a eriod not e'ceeding
fifteen *1/+ days. :otice to the deositor that his account
has been fro5en shall be issued si$ultaneously with the
issuance of the free5e order. The deositor shall ha"e
se"enty-two *92+ hours uon receit of the notice to
e'lain why the free5e order should be lifted. The AML%
has se"enty-two *92+ hours to disose of the deositorFs
e'lanation. If it fails to act within se"enty-two *92+ hours
fro$ receit of the deositorFs e'lanation& the free5e
order shall auto$atically be dissol"ed. The fifteen *1/+-day
free5e order of the AML% $ay be e'tended uon order of
the court& ro"ided that the fifteen *1/+-day eriod shall be
tolled ending the courtFs decision to e'tend the eriod.
:o court shall issue a te$orary restraining order or writ
of in2unction against any free5e order issued by the AML%
e'cet the %ourt of Aeals or the !ure$e %ourt.
Sec. 11. A/t"#it) t I!;/i#e i!t B'!?
De=+it+. % :otwithstanding the ro"isions of <eublic
Act :o. 1.0/& as a$ended1 <eublic Act :o. 8.28& as
a$ended1 <eublic Act :o. ;9=1& and other laws& the
AML% $ay in-uire into or e'a$ine any articular deosit
or in"est$ent with any banking institution or non-bank
financial institution uon order of any co$etent court in
cases of "iolation of this Act when it has been established
that there is robable cause that the deosits or
in"est$ents in"ol"ed are in any way related to a $oney
laundering offense) #ro"ided& That this ro"ision shall not
aly to deosits and in"est$ents $ade rior to the
effecti"ity of this Act.
Sec. 1& F#(eit/#e P#-i+i!+. %

*a+ %i"il (orfeiture. - Ehen there is a co"ered transaction
reort $ade& and the court has& in a etition filed for the
urose ordered sei5ure of any $onetary instru$ent or
roerty& in whole or in art& directly or indirectly& related to
said reort& the <e"ised <ules of %ourt on ci"il forfeiture
shall aly.
*b+ %lai$ on (orfeited Assets. - Ehere the court has
issued an order of forfeiture of the $onetary instru$ent or
roerty in a cri$inal rosecution for any $oney
laundering offense defined under !ection . of this Act& the
offender or any other erson clai$ing an interest therein
$ay aly& by "erified etition& for a declaration that the
sa$e legiti$ately belongs to hi$ and for segregation or
e'clusion of the $onetary instru$ent or roerty
corresonding thereto. The "erified etition shall be filed
with the court which rendered the 2udg$ent of con"iction
and order of forfeiture& within fifteen *1/+ days fro$ the
date of the order of forfeiture& in default of which the said
order shall beco$e final and e'ecutory. This ro"ision
shall aly in both ci"il and cri$inal forfeiture.
*c+ #ay$ent in Lieu of (orfeiture. - Ehere the court has
issued an order of forfeiture of the $onetary instru$ent or
roerty sub2ect of a $oney laundering offense defined
under !ection .& and said order cannot be enforced
because any articular $onetary instru$ent or roerty
cannot& with due diligence& be located& or it has been
substantially altered& destroyed& di$inished in "alue or
otherwise rendered worthless by any act or o$ission&
directly or indirectly& attributable to the offender& or it has
been concealed& re$o"ed& con"erted or otherwise
transferred to re"ent the sa$e fro$ being found or to
a"oid forfeiture thereof& or it is located outside the
#hiliines or has been laced or brought outside the
2urisdiction of the court& or it has been co$$ingled with
other $onetary instru$ents or roerty belonging to either
the offender hi$self or a third erson or entity& thereby
rendering the sa$e difficult to identify or be segregated for
uroses of forfeiture& the court $ay& instead of enforcing
the order of forfeiture of the $onetary instru$ent or
roerty or art thereof or interest therein& accordingly
order the con"icted offender to ay an a$ount e-ual to the
"alue of said $onetary instru$ent or roerty. This
ro"ision shall aly in both ci"il and cri$inal forfeiture.
Sec. 1*. M/t/'$ A++i+t'!ce '1!3 St'te+. %

*a+ <e-uest for Assistance fro$ a (oreign !tate. - Ehere
a foreign !tate $akes a re-uest for assistance in the
in"estigation or rosecution of a $oney laundering
offense& the AML% $ay e'ecute the re-uest or refuse to
e'ecute the sa$e and infor$ the foreign !tate of any "alid
reason for not e'ecuting the re-uest or for delaying the
e'ecution thereof. The rinciles of $utuality and
recirocity shall& for this urose& be at all ti$es
recogni5ed.
*b+ #owers of the AML% to Act on a <e-uest for
Assistance fro$ a (oreign !tate. - The AML% $ay
e'ecute a re-uest for assistance fro$ a foreign !tate by)
*1+ tracking down& free5ing& restraining and sei5ing assets
alleged to be roceeds of any unlawful acti"ity under the
rocedures laid down in this Act1 *2+ gi"ing infor$ation
needed by the foreign !tate within the rocedures laid
down in this Act1 and *,+ alying for an order of forfeiture
of any $onetary instru$ent or roerty in the court)
#ro"ided& That the court shall not issue such an order
unless the alication is acco$anied by an authenticated
coy of the order of a court in the re-uesting !tate
ordering the forfeiture of said $onetary instru$ent or
roerty of a erson who has been con"icted of a $oney
laundering offense in the re-uesting !tate& and a
certification or an affida"it of a co$etent officer of the
re-uesting !tate stating that the con"iction and the order
of forfeiture are final and that no further aeal lies in
resect of either.
*c+ 4btaining Assistance fro$ (oreign !tates. - The AML%
$ay $ake a re-uest to any foreign !tate for assistance in
*1+ tracking down& free5ing& restraining and sei5ing assets
alleged to be roceeds of any unlawful acti"ity1 *2+
obtaining infor$ation that it needs relating to any co"ered
transaction& $oney laundering offense or any other $atter
directly or indirectly related thereto1 *,+ to the e'tent
allowed by the law of the foreign !tate& alying with the
roer court therein for an order to enter any re$ises
belonging to or in the ossession or control of& any or all of
the ersons na$ed in said re-uest& andGor search any or
all such ersons na$ed therein andGor re$o"e any
docu$ent& $aterial or ob2ect na$ed in said re-uest)
#ro"ided& That the docu$ents acco$anying the re-uest
in suort of the alication ha"e been duly authenticated
in accordance with the alicable law or regulation of the
foreign !tate1 and *.+ alying for an order of forfeiture of
any $onetary instru$ent or roerty in the roer court in
the foreign !tate) #ro"ided& That the re-uest is
acco$anied by an authenticated coy of the order of the
regional trial court ordering the forfeiture of said $onetary
instru$ent or roerty of a con"icted offender and an
affida"it of the clerk of court stating that the con"iction and
the order of forfeiture are final and that no further aeal
lies in resect of either.
*d+ Li$itations on <e-uests for Mutual Assistance. - The
AML% $ay refuse to co$ly with any re-uest for
assistance where the action sought by the re-uest
contra"enes any ro"ision of the %onstitution or the
e'ecution of a re-uest is likely to re2udice the national
interest of the #hiliines unless there is a treaty between
the #hiliines and the re-uesting !tate relating to the
ro"ision of assistance in relation to $oney laundering
offenses.
*e+ <e-uire$ents for <e-uests for Mutual Assistance fro$
(oreign !tates. - A re-uest for $utual assistance fro$ a
foreign !tate $ust *1+ confir$ that an in"estigation or
rosecution is being conducted in resect of a $oney
launderer na$ed therein or that he has been con"icted of
any $oney laundering offense1 *2+ state the grounds on
which any erson is being in"estigated or rosecuted for
$oney laundering or the details of his con"iction1 *,+ gi"e
sufficient articulars as to the identity of said erson1 *.+
gi"e articulars sufficient to identify any co"ered institution
belie"ed to ha"e any infor$ation& docu$ent& $aterial or
ob2ect which $ay be of assistance to the in"estigation or
rosecution1 */+ ask fro$ the co"ered institution
concerned any infor$ation& docu$ent& $aterial or ob2ect
which $ay be of assistance to the in"estigation or
rosecution1 *8+ secify the $anner in which and to who$
said infor$ation& docu$ent& $aterial or ob2ect obtained
ursuant to said re-uest& is to be roduced1 *9+ gi"e all the
articulars necessary for the issuance by the court in the
re-uested !tate of the writs& orders or rocesses needed
by the re-uesting !tate1 and *;+ contain such other
infor$ation as $ay assist in the e'ecution of the re-uest.
*f+ Authentication of >ocu$ents. - (or uroses of this
!ection& a docu$ent is authenticated if the sa$e is signed
or certified by a 2udge& $agistrate or e-ui"alent officer in
or of& the re-uesting !tate& and authenticated by the oath
or affir$ation of a witness or sealed with an official or
ublic seal of a $inister& secretary of !tate& or officer in or
of& the go"ern$ent of the re-uesting !tate& or of the
erson ad$inistering the go"ern$ent or a deart$ent of
the re-uesting territory& rotectorate or colony. The
certificate of authentication $ay also be $ade by a
secretary of the e$bassy or legation& consul general&
consul& "ice consul& consular agent or any officer in the
foreign ser"ice of the #hiliines stationed in the foreign
!tate in which the record is ket& and authenticated by the
seal of his office.
*g+ 3'tradition. - The #hiliines shall negotiate for the
inclusion of $oney laundering offenses as herein defined
a$ong e'traditable offenses in all future treaties.
Sec. 12. Pe!'$ P#-i+i!+. % *a+ #enalties for the
%ri$e of Money Laundering. - The enalty of
i$rison$ent ranging fro$ se"en *9+ to fourteen *1.+
years and a fine of not less than Three Million #hiliine
esos *#h#,&000&000.00+ but not $ore than twice the
"alue of the $onetary instru$ent or roerty in"ol"ed in
the offense& shall be i$osed uon a erson con"icted
under !ection .*a+ of this Act.
The enalty of i$rison$ent fro$ four *.+ to se"en *9+
years and a fine of not less than 4ne $illion fi"e hundred
thousand #hiliine esos *#h#1&/00&000.00+ but not
$ore than Three $illion #hiliine esos
*#h#,&000&000.00+& shall be i$osed uon a erson
con"icted under !ection .*b+ of this Act.
The enalty of i$rison$ent fro$ si' *8+ $onths to four
*.+ years or a fine of not less than 4ne hundred thousand
#hiliine esos *#h#100&000.00+ but not $ore than (i"e
hundred thousand #hiliine esos *#h#/00&000.00+& or
both& shall be i$osed on a erson con"icted under
!ection .*c+ of this Act.
*b+ #enalties for (ailure to 7ee <ecords. - The enalty of
i$rison$ent fro$ si' *8+ $onths to one *1+ year or a fine
of not less than 4ne hundred thousand #hiliine esos
*#h#100&000.00+ but not $ore than (i"e hundred
thousand #hiliine esos *#h#/00&000.00+& or both& shall
be i$osed on a erson con"icted under !ection =*b+ of
this Act.
*c+ Malicious <eorting. - Any erson who& with $alice& or
in bad faith& reorts or files a co$letely unwarranted or
false infor$ation relati"e to $oney laundering transaction
against any erson shall be sub2ect to a enalty of si' *8+
$onths to four *.+ years i$rison$ent and a fine of not
less than 4ne hundred thousand #hiliine esos
*#h#100&000.00+ but not $ore than (i"e hundred
thousand #hiliine esos *#h#/00&000.00+& at the
discretion of the court) #ro"ided& That the offender is not
entitled to a"ail the benefits of the #robation Law.
If the offender is a cororation& association& artnershi or
any 2uridical erson& the enalty shall be i$osed uon
the resonsible officers& as the case $ay be& who
articiated in the co$$ission of the cri$e or who shall
ha"e knowingly er$itted or failed to re"ent its
co$$ission. If the offender is a 2uridical erson& the court
$ay susend or re"oke its license. If the offender is an
alien& he shall& in addition to the enalties herein
rescribed& be deorted without further roceedings after
ser"ing the enalties herein rescribed. If the offender is a
ublic official or e$loyee& he shall& in addition to the
enalties rescribed herein& suffer eretual or te$orary
absolute dis-ualification fro$ office& as the case $ay be.
Any ublic official or e$loyee who is called uon to
testify and refuses to do the sa$e or urosely fails to
testify shall suffer the sa$e enalties rescribed herein.
*d+ 0reach of %onfidentiality. - The unish$ent of
i$rison$ent ranging fro$ three *,+ to eight *;+ years and
a fine of not less than (i"e hundred thousand #hiliine
esos *#h#/00&000.00+ but not $ore than 4ne $illion
#hiliine esos *#h#1&000&000.00+& shall be i$osed on
a erson con"icted for a "iolation under !ection =*c+.
Sec. 14. S)+te1 ( I!ce!ti-e+ '!. Re@'#.+. D
A syste$ of secial incenti"es and rewards is hereby
established to be gi"en to the aroriate go"ern$ent
agency and its ersonnel that led and initiated an
in"estigation& rosecution and con"iction of ersons
in"ol"ed in the offense enali5ed in !ection . of this Act.
Sec. 16. P#"iAiti!+ A3'i!+t P$itic'$
H'#'++1e!t. D This Act shall not be used for olitical
ersecution or harass$ent or as an instru$ent to ha$er
co$etition in trade and co$$erce.
:o case for $oney laundering $ay be filed against and no
assets shall be fro5en& attached or forfeited to the
re2udice of a candidate for an electoral office during an
election eriod.
Sec. 16. Re+tit/ti!. D <estitution for any aggrie"ed
arty shall be go"erned by the ro"isions of the :ew %i"il
%ode.
Sec. 19. I1=$e1e!ti!3 R/$e+ '!. Re3/$'ti!+.
D Eithin thirty *,0+ days fro$ the effecti"ity of this Act& the
0angko !entral ng #iliinas& the Insurance %o$$ission
and the !ecurities and 3'change %o$$ission shall
ro$ulgate the rules and regulations to i$le$ent
effecti"ely the ro"isions of this Act. !aid rules and
regulations shall be sub$itted to the %ongressional
4"ersight %o$$ittee for aro"al.
%o"ered institutions shall for$ulate their resecti"e $oney
laundering re"ention rogra$s in accordance with this
Act including& but not li$ited to& infor$ation disse$ination
on $oney laundering acti"ities and its re"ention&
detection and reorting& and the training of resonsible
officers and ersonnel of co"ered institutions.
Sec. 19. C!3#e++i!'$ O-e#+i3"t C11ittee.
D There is hereby created a %ongressional 4"ersight
%o$$ittee co$osed of se"en *9+ $e$bers fro$ the
!enate and se"en *9+ $e$bers fro$ the @ouse of
<eresentati"es. The $e$bers fro$ the !enate shall be
aointed by the !enate #resident based on the
roortional reresentation of the arties or coalitions
therein with at least two *2+ !enators reresenting the
$inority. The $e$bers fro$ the @ouse of <eresentati"es
shall be aointed by the !eaker also based on
roortional reresentation of the arties or coalitions
therein with at least two *2+ $e$bers reresenting the
$inority.
The 4"ersight %o$$ittee shall ha"e the ower to
ro$ulgate its own rules& to o"ersee the i$le$entation of
this Act& and to re"iew or re"ise the i$le$enting rules
issued by the Anti-Money Laundering %ouncil within thirty
*,0+ days fro$ the ro$ulgation of the said rules.
Sec. &0. A==#=#i'ti!+ C$'/+e. D The AML% shall
be ro"ided with an initial aroriation of Twenty-fi"e
$illion #hiliine esos *#h#2/&000&000.00+ to be drawn
fro$ the national go"ern$ent. Aroriations for the
succeeding years shall be included in the ?eneral
Aroriations Act.
Sec. &1. Se='#'Ai$it) C$'/+e. D If any ro"ision or
section of this Act or the alication thereof to any erson
or circu$stance is held to be in"alid& the other ro"isions
or sections of this Act& and the alication of such
ro"ision or section to other ersons or circu$stances&
shall not be affected thereby.
Sec. &&. Re=e'$i!3 C$'/+e. % All laws& decrees&
e'ecuti"e orders& rules and regulations or arts thereof&
including the rele"ant ro"isions of <eublic Act :o. 1.0/&
as a$ended1 <eublic Act :o. 8.28& as a$ended1
<eublic Act :o. ;9=1& as a$ended and other si$ilar
laws& as are inconsistent with this Act& are hereby
reealed& a$ended or $odified accordingly.
Sec. &*. E((ecti-it). D This Act shall take effect fifteen
*1/+ days after its co$lete ublication in the 4fficial
?a5ette or in at least two *2+ national newsaers of
general circulation.
The ro"isions of this Act shall not aly to deosits and
in"est$ents $ade rior to its effecti"ity.
Aro"ed)
*!gd.+ (<A:7LI: M. ><IL4: *!gd.+ A4!3 >3
C3:3%IA A<.
#resident of the !enate !eaker of the @ouse
of <eresentati"es
This Act which is a consolidation of @ouse 0ill :o. ,0;,
and !enate 0ill :o. 19./ was finally assed by the @ouse
of <eresentati"es and the !enate on !ete$ber 2=&
2001.

*!gd.+ 4!%A< ?. HA03! *!gd.+ <403<T4 #.
:AIA<3:4
!ecretary of the !enate !ecretary-?eneral
@ouse of <eresentati"es
Aro"ed)

*!gd.+ ?L4<IA MA%A#A?AL-A<<4H4
#resident of the #hiliines
0egun and held in Metro Manila& on Monday& the twenty-
second day of Auly& two thousand two.
<eublic Act :o. =1=. March 9& 200,
A: A%T AM3:>I:? <3#60LI% A%T :4. =180&
4T@3<EI!3 7:4E: A! T@3 "A:TI-M4:3H
LA6:>3<I:? A%T 4( 2001"
0e it enacted by the !enate and @ouse of <eresentati"e
of the #hiliines in %ongress asse$bled)
!3%TI4: 1. !ection ,& aragrah *b+ of <eublic Act :o.
=180 is hereby a$ended as follows)
"*b+ BC-e#e. t#'!+'cti!B is
a transaction
a. in cash or
b. other e-ui"alent $onetary instru$ent
in"ol"ing a total a$ount in e'cess of (i"e
hundred thousand esos *#h# /00&000.00+
within one *1+ banking day.
!3%TI4: 2. !ection , of the sa$e Act is further a$ended
by inserting between aragrahs *b+ and *c+ a new
aragrah designated as *b-1+ to read as follows)
"*b-1+ BS/+=ici/+ t#'!+'cti!B are transactions with
co"ered institutions& regardless of the a$ounts in"ol"ed&
where any of the following circu$stances e'ist)
1. there is no underlying legal or trade obligation& urose
or econo$ic 2ustification1
2. the client is not roerly identified1
,. the a$ount in"ol"ed is not co$$ensurate with the
business or financial caacity of the client1
.. taking into account all known circu$stances& it $ay be
ercei"ed that the clientJs transaction is structured in order
to a"oid being the sub2ect of reorting re-uire$ents under
the Act1
/. any circu$stances relating to the transaction which is
obser"ed to de"iate fro$ the rofile of the client andGor the
clientJs ast transactions with the co"ered institution1
8. the transactions is in a way related to an unlawful
acti"ity or offense under this Act that is about to be& is
being or has been co$$itted1 or
9. any transactions that is si$ilar or analogous to any of
the foregoing."
!3%TI4: ,. !ection ,*i+ of the sa$e Act is further
a$ended to read as follows)
"*i+ J6nlawful acti"ityJ refers to any act or o$ission or
series or co$bination thereof in"ol"ing or ha"ing direct
relation to following)
"*1+ 7idnaing for ranso$ under Article 289 of Act :o.
,;1/& otherwise known as the <e"ised #enal %ode& as
a$ended1
"*2+ !ections .& /& 8& ;& =& 10& 12& 1,& 1.& 1/& and 18 of
<eublic Act :o. =18/& otherwise known as the
%o$rehensi"e >angerous Act of 20021
"*,+ !ection , aragrahs 0& %& 3& ?& @ and I of reublic
Act :o. ,01=& as a$ended& otherwise known as the Anti-
?raft and %orrut #ractices Act1
"*.+ #lunder under <eublic Act :o. 90;0& as a$ended1
"*/+ <obbery and e'tortion under Articles 2=.& 2=/& 2=8&
2==& ,00& ,01 and ,02 of the <e"ised #enal %ode& as
a$ended1
"*8+ Aueteng and Masiao unished as illegal ga$bling
under #residential >ecree :o. 18021
"*9+ #iracy on the high seas under the <e"ised #enal
%ode& as a$ended and #residential under the <e"ised
#enal %ode& as a$ended and #residential >ecree :o.
/,21
"*;+ Bualified theft under Article ,10 of the <e"ised enal
%ode& as a$ended1
"*=+ !windling under Article ,1/ of the <e"ised #enal
%ode& as a$ended1
"*10+ !$uggling under <eublic Act :os. .// and 1=,91
"*11+ Ciolations under <eublic Act :o. ;9=2& otherwise
known as the 3lectrinic %o$$erce Act of 20001
"*12+ @i2acking and other "iolations under <eublic Act :o.
82,/1 destructi"e arson and $urder& as defined under the
<e"ised #enal %ode& as a$ended& including those
eretrated by terrorists against non-co$batant ersons
and si$ilar targets1
"*1,+ (raudulent ractices and other "iolations under
<eublic Act :o. ;9==& otherwise known as the !ecurities
<egulation %ode of 20001
"*1.+ (elonies or offenses of a si$ilar nature that are
unishable under the enal laws of other countries."
!3%TI4: .. !ection . of the sa$e Act is hereby
a$ended to read as follows)
"!3%. .. Money Laundering 4ffense. -- Money laundering
is a cri$e whereby the roceeds of an unlawful acti"ity as
herein defined are transacted& theeby $aking the$ aear
to ha"e originated fro$ legiti$ate sources. It is co$$itted
by the following)
*a+ Any erson knowing that any $onetary instru$ent or
roerty reresents& in"ol"es& or relates to& the roceeds
of any unlawful acti"ity& transacts or atte$ts to transacts
said $onetary instru$ent or roerty.
*b+ Any erson knowing that any $onetary instru$ent or
roerty in"ol"es the roceeds of any unlawful acti"ity&
erfor$s or fails to erfor$ any act as a result of which he
falicitates the offense of $oney laundering referred to in
aragrah *a+ abo"e.
*c+ Any erson knowing that any $onetary instru$ent or
roerty is re-uired under this Act to be disclosed and
filed with the Anti-Money Laundering %ouncil *AML%+& fails
to do so."
!3%TI4: /. !ection 9 of the sa$e Act is hereby
a$ended as follows)
"!3%.9. %reation of Anti-Money Laundering %ouncil
*AML%+. -- The Anti-Money Laundering %ouncil is hereby
created and shall be co$osed of the ?o"ernor of the
0angko !entral ng #iliinas as chair$an& the
%o$$issioner of the Insurance %o$$ission and the
%hair$an of the !ecurities and 3'change %o$$ission as
$e$ber. The AML% shall shall act unani$ously in the
discharge of its functions as defined hereunder)
"*1+ to re-uire and recei"e co"ered or susicious
transaction reorts fro$ co"ered institutions1
"*2+ to issue orders addressed to the aroriate
!uer"ising Authority or the co"ered institutions to
deter$ine the true identity of the owner of any $onetary
instru$ent or reerty sub2ect of a co"ered transaction or
susicious transaction reort or re-uest for assistance
fro$ a foreign !tate& or belie"ed by the %ouncil& on the
basis fo substantial e"idence& to be& in whole or in art&
where"er located& reresenting& in"ol"ing& or related to
directly or indirectly& in any $anner or by any $eans& the
roceeds of an unlawful acti"itity.
"*,+ to institute ci"il forfeiture roceedings and all other
re$edial roceedings through the 4ffice of th !olicitor
?eneral1
"*.+ to cause the filing of co$laints with the >eart$ent
of Austice or the 4$buds$an for the rosecution of
$oney laundering offenses1
"*/+ to in"estigate susicious transactions and co"ered
transactions dee$ed susicious after an in"estigation by
AML%& $oney laundering acti"ities and other "iolations of
this Act1
"*8+ to aly before the %ourt of Aeals& e' arte& for the
free5ing of any $onetary instru$ent or roerty alleged to
be the roceeds of any unlawful acti"ity as defined in
!ection ,*i+ hereof1
"*9+ to i$le$ent such $easures as $ay be necessary
and 2ustified under this Act to counteract $oney
laundering1
"*;+ to recei"e and take action in resect of& any re-uest
fro$ foreign states for assistance in their own anti-$oney
laundering oerations ro"ided in this Act1
"*=+ to de"elo educational rogra$s on the ernicious
effects of $oney laundering& the $ethods and techni-ues
used in the $oney laundering& the "iable $eans of
re"enting $oney laundering and the effecti"e ways of
rosecuting and unishing offenders1
"*10+ to enlist the assistance of any branch& deart$ent&
bureau& office& agency& or instru$entality of the
go"ern$ent& including go"ern$ent-owned and -controlled
cororations& in undertaking any and all anti-$oney
laundering oerations& which $ay include the use of its
ersonnel& facilities and resources for the $ore resolute
re"ention& detection& and in"estigation of $oney
laundering offenses and rosecution of offenders1 and
"*11+ to i$ose ad$inistrati"e sanctions for the "iolation of
laws& rules& regulations& and orders and resolutions issued
ursuant thereto."
!3%TI4: 8. !ection =*c+ of the sa$e Act is hereby
a$ended to read as follows)
"*c+ <eorting of %o"ered and !usicious Transactions. --
%o"ered institutions shall reort to the AML% all co"ered
transactions and susicious transactions within fi"e*/+
working days fro$ occurrences thereof& unless the
!uer"ising Authority rescribes a longer eriod not
e'ceeding ten *10+ working days.
"!hould a transaction be deter$ined to be both a co"ered
transaction and a susicious transaction& the co"ered
institution shall be re-uired to reort the sa$e as a
susicious transaction.
"Ehen reorting co"ered or susicious transactions to the
AML%& co"ered institutions and their officers and
e$loyees shall not be dee$ed to ha"e "iolated <eublic
Act :o. 1.0/& as a$ended& <eublic Act :o. 8.28& as
a$ended& <eublic Act :o. ;9=1 and other si$ilar laws&
but are rohibited fro$ co$$unicating& directly or
indirectly& in any $anner or by an $eans& to any erson&
the fact that a co"ered or susicious transaction reort
was $ade& the contents thereof& or any other infor$ation
in relation thereto. In case of "iolation thereof& the
concerned officer and e$loyee of the co"ered institution
shall be cri$inally liable. @owe"er& no ad$inistrati"e&
cri$inal or ci"il roceedings& shall lie against any erson
for ha"ing $ade a co"ered or susicious transaction
reort in the regular erfor$ance of his duties in good
faith& whether or not such reorting results in any cri$inal
rosecution under this Act of any other law.
"Ehen reorting co"ered or susicious transactions to the
AML%& co"ered instituting and their officers and
e$loyees are rohibited fro$ co$$unicating directly or
indirectly& in any $anner or by any $eans& to any erson
or entity& the $edia& the fact that a co"ered or susicious
transaction reort was $ade& the contents thereof& or any
other infor$ation in relation thereto. :either $ay such
reorting be ublished or aired in any $anner or for$ by
the $ass $edia& electronic $ail& or other si$ilar de"ices.
In case of "iolation thereof& the concerned officer and
e$loyee of the co"ered institution and $edia shall be
held cri$inally liable.
!3%TI4: 9. !ection 10 of the sa$e Act is hereby
a$ended to read as follows)
"!ec 10. (ree5ing of Monetary Instru$ent or #roerty. --
The %ourt of Aeals& uon alication e' arte by the
AML% and after deter$ination that robable cause e'ists
that any $onetary instru$ent or roerty is in any way
related to an unlawful acti"ity as defined in !ection ,*i+
hereof& $ay issue a free5e order which shall be effecti"e
i$$ediately. The free5e order shall be for a eriod of
twenty *20+ days unless e'tended by the court.
!3%TI4: ;. !ection 11 of the sa$e Act is hereby
a$ended to read as follows)
"!ec. 11. Authority to In-uire into 0ank >eosits. --
:otwithstanding the ro"isions of <eublic Act :o. 1.0/&
as a$ended& <eublic Act :o. 8.28& as a$ended&
<eublic Act :o. ;9=1& and other laws& the AML% $ay
in-uire into or e'a$ine any articular deosit or
in"est$ent with any banking institution or non-bank
financial institution uon order of any co$etent court in
cases of "iolation of this Act& when it has been established
that there is robable cause that the deosits or
in"est$ents are related to an unlawful acti"ities as defined
in !ection ,*I+ hereof or a $oney laundering offense under
!ection . hereof& e'cet that no court order shall be
re-uired in cases in"ol"ing unlawful acti"ities defined in
!ections ,*I+1& *2+ and *12+.
"To ensure co$liance with this Act& the 0angko !entral
ng #iliinas *0!#+ $ay in-uire into or e'a$ine any
deosit of in"est$ent with any banking institution or non-
bank financial institution when the e'a$ination is $ade in
the course of a eriodic or secial e'a$ination& in
accordance with the rules of e'a$ination of the 0!#.
!3%TI4: =. !ection 1.& aragrahs *c+ and *d+ of the
sa$e Act is hereby a$ended to read as follows)
"*c+ Malicious <eorting. Any erson who& with $alice& or
in bad faith& reorts or files a co$letely unwarranted or
false infor$ation relati"e to $oney laundering transaction
against any erson shall be sub2ect to a enalty to si' *8+
$onths to four *.+ years i$rison$ent and a fine of not
less than 4ne hundred thousand #hiliine esos
*#h100&000.00+ but not $ore than (i"e hundred
thousand #hiliine esos *#h/00&000.00+& at the
discretion of the court) #ro"ided& That the offender is not
entitled to a"ail the benefits of the #robation Law.
"If the offender is a cororation& association& artnershi or
any 2uridical erson& the enalty shall be i$osed uon
the resonsible officers& as the case $ay be& who
articiated in& or allowed by their gross negligence& the
co$$ission of the cri$e. If the offender is a 2uridical
erson& the court $ay susend or re"oke its license. If the
offer is an alien& he shall& in addition to the enalties
herein rescribed& be deorted without further roceedings
after ser"ing the enalties herein rescribed. If the
offender is a ublic official or e$loyee& he shall& in
addition to the enalties rescribed herein& suffer
eretual or te$orary absolute dis-ualification fro$
office& as the case $ay be.
"Any ublic official or e$loyee who is called uon to
testify and refuses to do the sa$e or urosely fails to
testify shall suffer the sa$e enalties rescribed herein.
"*d+ 0reach of %onfidentiality. The unish$ent of
i$rison$ent ranging fro$ three *,+ to eight *;+ years and
a fine of not less than (i"e hundred thousand #hiliine
esos *#h/00&000.00+ but not $ore than 4ne $illion
#hiliine esos *#h1&000&000.00+ shall be i$osed on a
erson con"icted for a "iolation under !ection =*c+. In the
case of a breach of confidentiality that is ublished or
reorted by $edia& the resonsible reorter& writer&
resident& ublisher& $anager and editor-in-chief shall be
liable under this Act.
!3%TI4: 10. !ection 1/ of <eublic Act :o. =180 is
hereby deleted.
!3%TI4: 11. !ection 2, of the sa$e Act is hereby
a$ended to read as follows)
"!3%. 2,. 3ffecti"ity. -- This Act shall take effect fifteen
*1/+ days after its co$lete ublication in the 4fficial
?a5ette or in at least two *2+ national newsaers of
general circulation.
!3%TI4: 12. Transitory #ro"ision. -- 3'isting free5e
orders issued by the AML% shall re$ain in force for a
eriod of thirty *,0+ days after the effecti"ity of this Act&
unless e'tended by the %ourt of Aeals.
!3%TI4: 1,. 3ffecti"ity. -- This Act shall take effect
fifteen *1/+ days after its co$lete ublication in the
4fficial ?a5ette or in at least two *2+ national newsaers
of general circulation.
Aro"ed&
(<A:7LI: ><IL4:
#resident of the !enate
A4!3 >3 C3:3%IA A<.
!eaker of the @ouse of <eresentati"es
This Act which is a consolidation of @ouse 0ill :o. /8//
and !enate 0ill :o. 2.1= was finally assed by the @ouse
of <eresentati"es and the !enate on March /& 200,.
4!%A< ?. HA03!
!ecretary of !enate
<403<T4 #. :AIA<3:4
!ecretary ?eneral
@ouse of <eresenati"es
Aro"ed) March 9& 200,
?L4<IA MA%A#A?AL-A<<4H4
#resident of the #hiliines
K<3#60LI% A%T :4. 10,8/L
A: A%T (6<T@3< !T<3:?T@3:I:? T@3 A:TI-
M4:3H LA6:>3<I:? LAE& AM3:>I:? (4< T@3
#6<#4!3 <3#60LI% A%T :4. =180& 4T@3<EI!3
7:4E: A! T@3 MA:TI-M4:3H LA6:>3<I:? A%T 4(
2001& A! AM3:>3>
0e it enacted by the !enate and @ouse of
<eresentati"es of the #hiliines in %ongress
asse$bled)
SECTION 1. Secti! *8'0 of <eublic Act :o. =180& as
a$ended& is hereby a$ended to read as follows)
C8'0 DC-e#e. =e#+!+E, natural or 2uridical& refer to)
M*1+
1+ banks&
2+ non-banks&
,+ -uasi-banks&
.+ trust entities&
/+ foreign e'change dealers&
8+ awnshos&
9+ $oney changers&
;+ re$ittance and transfer co$anies and
=+ other si$ilar entities and all other ersons and
their subsidiaries and affiliates suer"ised or
regulated by the 0angko !entral ng #iliinas
*0!#+1
M*2+
1+ insurance co$anies&
2+ re-need co$anies and
,+ all other ersons suer"ised or regulated by the
Insurance %o$$ission *I%+1
M*,+
*i+ securities dealers& brokers& sales$en& in"est$ent
houses and other si$ilar ersons $anaging securities
or rendering ser"ices as in"est$ent agent& ad"isor& or
consultant&
*ii+ $utual funds& close-end in"est$ent co$anies&
co$$on trust funds& and other si$ilar ersons& and
*iii+ other entities ad$inistering or otherwise dealing in
currency& co$$odities or financial deri"ati"es based
thereon& "aluable ob2ects& cash substitutes and other
si$ilar $onetary instru$ents or roerty suer"ised or
regulated by the !ecurities and 3'change %o$$ission
*!3%+1
M*.+ 2ewelry dealers in recious $etals&
who& as a business& trade in recious $etals&
for transactions in e'cess of 4ne $illion esos
*#1&000&000.00+1
M*/+ 2ewelry dealers in recious stones&
who& as a business& trade in recious stones&
for transactions in e'cess of 4ne $illion esos
*#1&000&000.00+1
M*8+ co$any ser"ice ro"iders
which&
as a business&
ro"ide any of the following ser"ices to third
arties)
*i+ acting as
a for$ation agent of 2uridical ersons1
*ii+ acting as *or arranging for another erson to act
as+
a director or cororate secretary of a
co$any&
a artner of a artnershi& or
a si$ilar osition in relation to other
2uridical ersons1
*iii+ ro"iding a
registered office&
business address or acco$$odation&
corresondence or ad$inistrati"e address
for a co$any&
a artnershi or
any other legal erson or arrange$ent1 and
*i"+ acting as *or arranging for another erson to act
as+
a no$inee shareholder for another erson1
and
M*9+ ersons who ro"ide any of the following ser"ices)
*i+ $anaging of client $oney& securities or other
assets1
*ii+ $anage$ent of bank& sa"ings or securities
accounts1
*iii+ organi5ation of contributions for the creation&
oeration or $anage$ent of co$anies1 and
*i"+ creation& oeration or $anage$ent of 2uridical
ersons or arrange$ents& and buying and selling
business entities.
M:otwithstanding the foregoing& the ter$ Nco"ered ersonsF
shall e'clude
lawyers and accountants acting as indeendent legal
rofessionals
in relation to infor$ation concerning their clients or
where disclosure of infor$ation would co$ro$ise
client confidences or the attorney-client
relationshi)
P#-i.e., T"'t these lawyers and
accountants
1. are authori5ed to ractice in the
#hiliines and
2. shall continue to be sub2ect to the
ro"isions of their resecti"e codes of
conduct andGor rofessional resonsibility
or any of its a$end$ents.O
SEC. &. Secti! *8i0 ( t"e +'1e Act i+ "e#eA)
'1e!.e. t #e'. '+ ($$@+F
M*i+ DU!$'@(/$ 'cti-it)E refers to any act or o$ission or
series or co$bination thereof in"ol"ing or ha"ing direct
relation to the following)
M*1+ 7idnaing for ranso$ under Article 289 of Act :o.
,;1/& otherwise known as the <e"ised #enal %ode& as
a$ended1
M*2+ !ections .& /& 8& ;& =& 10& 11& 12& 1,& 1.& 1/ and 18 of
<eublic Act :o. =18/& otherwise known as the
%o$rehensi"e >angerous >rugs Act of 20021
M*,+ !ection , aragrahs 0& %& 3& ?& @ and I of <eublic
Act :o. ,01=& as a$ended& otherwise known as the Anti-
?raft and %orrut #ractices Act1
M*.+ #lunder under <eublic Act :o. 90;0& as a$ended1
M*/+ <obbery and e'tortion under Articles 2=.& 2=/& 2=8&
2==& ,00& ,01 and ,02 of the <e"ised #enal %ode& as
a$ended1
M*8+ Aueteng and Masiao unished as illegal ga$bling
under #residential >ecree :o. 18021
M*9+ #iracy on the high seas under the <e"ised #enal
%ode& as a$ended and #residential >ecree :o. /,21
M*;+ Bualified theft under Article ,10 of the <e"ised #enal
%ode& as a$ended1
M*=+ !windling under Article ,1/ and 4ther (or$s of
!windling under Article ,18 of the <e"ised #enal %ode& as
a$ended1
M*10+ !$uggling under <eublic Act :os. .// and 1=,91
M*11+ Ciolations of <eublic Act :o. ;9=2& otherwise
known as the 3lectronic %o$$erce Act of 20001
M*12+ @i2acking and other "iolations under <eublic Act :o.
82,/1 destructi"e arson and $urder& as defined under the
<e"ised #enal %ode& as a$ended1
M*1,+ Terroris$ and consiracy to co$$it terroris$ as
defined and enali5ed under !ections , and . of <eublic
Act :o. =,921
M*1.+ (inancing of terroris$ under !ection . and offenses
unishable under !ections /& 8& 9 and ; of <eublic Act
:o. 1018;& otherwise known as the Terroris$ (inancing
#re"ention and !uression Act of 2012)
M*1/+ 0ribery under Articles 210& 211 and 211-A of the
<e"ised #enal %ode& as a$ended& and %orrution of
#ublic 4fficers under Article 212 of the <e"ised #enal
%ode& as a$ended1
M*18+ (rauds and Illegal 3'actions and Transactions under
Articles 21,& 21.& 21/ and 218 of the <e"ised #enal
%ode& as a$ended1
M*19+ Mal"ersation of #ublic (unds and #roerty under
Articles 219 and 222 of the <e"ised #enal %ode& as
a$ended1
M*1;+ (orgeries and %ounterfeiting under Articles 18,& 188&
189& 18;& 18= and 198 of the <e"ised #enal %ode& as
a$ended1
M*1=+ Ciolations of !ections . to 8 of <eublic Act :o.
=20;& otherwise known as the Anti-Trafficking in #ersons
Act of 200,1
M*20+ Ciolations of !ections 9; to 9= of %hater IC& of
#residential >ecree :o. 90/& otherwise known as the
<e"ised (orestry %ode of the #hiliines& as a$ended1
M*21+ Ciolations of !ections ;8 to 108 of %hater CI& of
<eublic Act :o. ;//0& otherwise known as the #hiliine
(isheries %ode of 1==;1
M*22+ Ciolations of !ections 101 to 109& and 110 of
<eublic Act :o. 9=.2& otherwise known as the #hiliine
Mining Act of 1==/1
M*2,+ Ciolations of !ection 29*c+& *e+& *f+& *g+ and *i+& of
<eublic Act :o. =1.9& otherwise known as the Eildlife
<esources %onser"ation and #rotection Act1
M*2.+ Ciolation of !ection 9*b+ of <eublic Act :o. =092&
otherwise known as the :ational %a"es and %a"e
<esources Manage$ent #rotection Act1
M*2/+ Ciolation of <eublic Act :o. 8/,=& otherwise known
as the Anti-%arnaing Act of 2002& as a$ended1
M*28+ Ciolations of !ections 1& , and / of #residential
>ecree :o. 1;88& as a$ended& otherwise known as the
decree %odifying the Laws on IllegalG6nlawful #ossession&
Manufacture& >ealing In& Ac-uisition or >isosition of
(irear$s& A$$unition or 3'losi"es1
M*29+ Ciolation of #residential >ecree :o. 1812& otherwise
known as the Anti-(encing Law1
M*2;+ Ciolation of !ection 8 of <eublic Act :o. ;0.2&
otherwise known as the Migrant Eorkers and 4"erseas
(iliinos Act of 1==/& as a$ended by <eublic Act :o.
100221
M*2=+ Ciolation of <eublic Act :o. ;2=,& otherwise known
as the Intellectual #roerty %ode of the #hiliines1
M*,0+ Ciolation of !ection . of <eublic Act :o. ===/&
otherwise known as the Anti-#hoto and Cideo Coyeuris$
Act of 200=1
M*,1+ Ciolation of !ection . of <eublic Act :o. =99/&
otherwise known as the Anti-%hild #ornograhy Act of
200=1
M*,2+ Ciolations of !ections /& 9& ;& =& 10*c+& *d+ and *e+&
11& 12 and 1. of <eublic Act :o. 9810& otherwise known
as the !ecial #rotection of %hildren Against Abuse&
3'loitation and >iscri$ination1
M*,,+ (raudulent ractices and other "iolations under
<eublic Act :o. ;9==& otherwise known as the !ecurities
<egulation %ode of 20001 and
M*,.+ (elonies or offenses of a si$ilar nature that are
unishable under the enal laws of other countries.O
!3%. ,. !ection , of the sa$e Act shall ha"e new
aragrahs *2+ and *k+.
M*2+ #recious $etalsF shall $ean gold& sil"er& latinu$&
alladiu$& rhodiu$& rutheniu$& iridiu$ and os$iu$.
These include alloys of recious $etals& solders and
lating che$icals such as rhodiu$ and alladiu$ lating
solutions and otassiu$ gold cyanide and otassiu$
sil"er cyanide and sil"er cyanide in salt solution.
M*k+ N#recious stonesF shall $ean dia$ond& ruby& e$erald&
sahire& oal& a$ethyst& beryl& toa5& and garnet that are
used in 2ewelry $aking& including those for$erly classified
as se$i-recious stones.O
!3%. .. !ection . of the sa$e Act is hereby a$ended to
read as follows)
CSEC. 2. M!e) L'/!.e#i!3 O((e!+e. D
Money laundering is co$$itted by
1. any erson who&
2. knowing that any $onetary instru$ent or roerty
,. reresents& in"ol"es& or relates to the roceeds of
any unlawful acti"ity)
M*a+ transacts said $onetary instru$ent or roerty1
M*b+
con"erts&
transfers&
disoses of&
$o"es&
ac-uires&
ossesses or
uses
- said $onetary instru$ent or roerty1
M*c+
conceals or disguises
the true
nature&
source&
location&
disosition&
$o"e$ent or
ownershi of or
rights with resect to
-said $onetary instru$ent or roerty1
M*d+
atte$ts or
consires
to co$$it $oney laundering offenses
referred to in aragrahs *a+& *b+ or *c+1
M*e+
aids&
abets&
assists in or
counsels
the co$$ission of the $oney laundering
offenses referred to in aragrahs *a+& *b+ or
*c+ abo"e1 and
M*f+
erfor$s or
fails to erfor$
any act as a result of which he facilitates the
offense of $oney laundering referred to in
aragrahs *a+& *b+ or *c+ abo"e.
CM!e) $'/!.e#i!3 is also co$$itted by
1. any co"ered erson who&
2. knowing that a co"ered or susicious transaction is
re-uired under this Act to be reorted to the Anti-
Money Laundering %ouncil *AML%+&
,. fails to do so.O
!3%. /. !ection 8*a+ of the sa$e Act is hereby a$ended
to read as follows)
CSEC. 6. P#+ec/ti! ( M!e) L'/!.e#i!3. %
M*a+ Any erson $ay be charged with and con"icted of
both the offense of $oney laundering and the unlawful
acti"ity as herein defined.
M*b+ The rosecution of any offense or "iolation under this
Act shall roceed indeendently of any roceeding relating
to the unlawful acti"ity.O
!3%. 8. !ection 9 of the sa$e Act is hereby a$ended to
read as follows)
M!3%. 9. %reation of Anti-Money Laundering %ouncil
*AML%+. D The Anti-Money Laundering %ouncil is hereby
created and shall be co$osed of the ?o"ernor of the
0angko !entral ng #iliinas as %hair$an& the
%o$$issioner of the Insurance %o$$ission and the
%hair$an of the !ecurities and 3'change %o$$ission& as
$e$bers. The AML% shall act unani$ously in the
discharge of its functions as defined hereunder)
M' ' '
M*8+ to aly before the %ourt of Aeals& e' arte& for the
free5ing of any $onetary instru$ent or roerty alleged to
be laundered& roceeds fro$& or instru$entalities used in
or intended for use in any unlawful acti"ity as defined in
!ection ,*i+ hereof1
M' ' '
M*12+ to re-uire the Land <egistration Authority and all its
<egistries of >eeds to sub$it to the AML%& reorts on all
real estate transactions in"ol"ing an a$ount in e'cess of
(i"e hundred thousand esos *#/00&000.00+ within fifteen
*1/+ days fro$ the date of registration of the transaction& in
a for$ to be rescribed by the AML%. The AML% $ay also
re-uire the Land <egistration Authority and all its
<egistries of >eeds to sub$it coies of rele"ant
docu$ents of all real estate transactions.O
!3%. 9. !ection =*c+& aragrahs 1 and . of the sa$e Act
are hereby a$ended to read as follows)
M!3%. =. #re"ention of Money Laundering1 %usto$er
Identification <e-uire$ents and <ecord 7eeing. D
M*a+ ' ' '
M*b+ ' ' '
C8c0 Re=#ti!3 ( C-e#e. '!. S/+=ici/+
T#'!+'cti!+. % %o"ered ersons shall reort to the
AML% all co"ered transactions and susicious
transactions within fi"e */+ working days fro$ occurrence
thereof& unless the AML% rescribes a different eriod not
e'ceeding fifteen *1/+ working days.
MLawyers and accountants acting as indeendent legal
rofessionals are not re-uired to reort co"ered and
susicious transactions if the rele"ant infor$ation was
obtained in circu$stances where they are sub2ect to
rofessional secrecy or legal rofessional ri"ilege.
M' ' '
M' ' '
MEhen reorting co"ered or susicious transactions to the
AML%& co"ered ersons and their officers and e$loyees
are rohibited fro$ co$$unicating& directly or indirectly& in
any $anner or by any $eans& to any erson or entity& the
$edia& the fact that a co"ered or susicious transaction
has been reorted or is about to be reorted& the contents
of the reort& or any other infor$ation in relation thereto.
:either $ay such reorting be ublished or aired in any
$anner or for$ by the $ass $ediaO& electronic $ail& or
other si$ilar de"ices. In case of "iolation thereof& the
concerned officer and e$loyee of the co"ered erson
and $edia shall be held cri$inally liable.O
!3%. ;. !ection 10 of the sa$e Act& as a$ended by
<eublic Act :o. 10189& is hereby a$ended to read as
follows)
M!3%. 10. (ree5ing of Monetary Instru$ent or #roerty. D
6on a "erified e' arte etition by the AML% and after
deter$ination that robable cause e'ists that any
$onetary instru$ent or roerty is in any way related to
an unlawful acti"ity as defined in !ection ,*i+ hereof& the
%ourt of Aeals $ay issue a free5e order which shall be
effecti"e i$$ediately& and which shall not e'ceed si' *8+
$onths deending uon the circu$stances of the case)
#ro"ided& That if there is no case filed against a erson
whose account has been fro5en within the eriod
deter$ined by the court& the free5e order shall be dee$ed
iso facto lifted) #ro"ided& further& That this new rule shall
not aly to ending cases in the courts. In any case& the
court should act on the etition to free5e within twenty-four
*2.+ hours fro$ filing of the etition. If the alication is
filed a day before a nonworking day& the co$utation of
the twenty-four *2.+-hour eriod shall e'clude the
nonworking days.
MA erson whose account has been fro5en $ay file a
$otion to lift the free5e order and the court $ust resol"e
this $otion before the e'iration of the free5e order.
M:o court shall issue a te$orary restraining order or a
writ of in2unction against any free5e order& e'cet the
!ure$e %ourt.O
!3%. =. !ection 12 of the sa$e Act is hereby a$ended to
read as follows)
M*a+ %i"il (orfeiture. D 6on deter$ination by the AML%
that robable cause e'ists that any $onetary instru$ent
or roerty is in any way related to an unlawful acti"ity as
defined in !ection ,*i+ or a $oney laundering offense
under !ection . hereof& the AML% shall file with the
aroriate court through the 4ffice of the !olicitor
?eneral& a "erified e' arte etition for forfeiture& and the
<ules of %ourt on %i"il (orfeiture shall aly.
MThe forfeiture shall include those other $onetary
instru$ent or roerty ha"ing an e-ui"alent "alue to that
of the $onetary instru$ent or roerty found to be related
in any way to an unlawful acti"ity or a $oney laundering
offense& when with due diligence& the for$er cannot be
located& or it has been substantially altered& destroyed&
di$inished in "alue or otherwise rendered worthless by
any act or o$ission& or it has been concealed& re$o"ed&
con"erted& or otherwise transferred& or it is located outside
the #hiliines or has been laced or brought outside the
2urisdiction of the court& or it has been co$$ingled with
other $onetary instru$ent or roerty belonging to either
the offender hi$self or a third erson or entity& thereby
rendering the sa$e difficult to identify or be segregated for
uroses of forfeiture.
M*b+ %lai$ on (orfeited Assets. D Ehere the court has
issued an order of forfeiture of the $onetary instru$ent or
roerty in a cri$inal rosecution for any $oney
laundering offense defined under !ection . of this Act& the
offender or any other erson clai$ing an interest therein
$ay aly& by "erified etition& for a declaration that the
sa$e legiti$ately belongs to hi$ and for segregation or
e'clusion of the $onetary instru$ent or roerty
corresonding thereto. The "erified etition shall be filed
with the court which rendered the 2udg$ent of forfeiture&
within fifteen *1/+ days fro$ the date of the finality of the
order of forfeiture& in default of which the said order shall
beco$e final and e'ecutor. This ro"ision shall aly in
both ci"il and cri$inal forfeiture.
M*c+ #ay$ent in Lieu of (orfeiture. D Ehere the court has
issued an order of forfeiture of the $onetary instru$ent or
roerty sub2ect of a $oney laundering offense defined
under !ection .& and said order cannot be enforced
because any articular $onetary instru$ent or roerty
cannot& with due diligence& be located& or it has been
substantially altered& destroyed& di$inished in "alue or
otherwise rendered worthless by any act or o$ission&
directly or indirectly& attributable to the offender& or it has
been concealed& re$o"ed& con"erted& or otherwise
transferred to re"ent the sa$e fro$ being found or to
a"oid forfeiture thereof& or it is located outside the
#hiliines or has been laced or brought outside the
2urisdiction of the court& or it has been co$$ingled with
other $onetary instru$ents or roerty belonging to either
the offender hi$self or a third erson or entity& thereby
rendering the sa$e difficult to identify or be segregated for
uroses of forfeiture& the court $ay& instead of enforcing
the order of forfeiture of the $onetary instru$ent or
roerty or art thereof or interest therein& accordingly
order the con"icted offender to ay an a$ount e-ual to the
"alue of said $onetary instru$ent or roerty. This
ro"ision shall aly in both ci"il and cri$inal forfeiture.O
!3%. 10. !ection 1. of the sa$e Act& as a$ended& is
hereby further a$ended to read as follows)
M!3%. 1.. #enal #ro"isions. D *a+ #enalties for the %ri$e
of Money Laundering. The enalty of i$rison$ent
ranging fro$ se"en *9+ to fourteen *1.+ years and a fine of
not less than Three $illion #hiliine esos
*#h,&000&000.00+ but not $ore than twice the "alue of
the $onetary instru$ent or roerty in"ol"ed in the
offense& shall be i$osed uon a erson con"icted under
!ection .*a+& *b+& *c+ and *d+ of this Act.
MThe enalty of i$rison$ent fro$ four *.+ to se"en *9+
years and a fine of not less than 4ne $illion fi"e hundred
thousand #hiliine esos *#h1&/00&000.00+ but not
$ore than Three $illion #hiliine esos
*#h,&000&000.00+& shall be i$osed uon a erson
con"icted under !ection .*e+ and *f+ of this Act.
MThe enalty of i$rison$ent fro$ si' *8+ $onths to four
*.+ years or a fine of not less than 4ne hundred thousand
#hiliine esos *#h100&000.00+ but not $ore than (i"e
hundred thousand #hiliine esos *#h/00&000.00+& or
both& shall be i$osed on a erson con"icted under the
last aragrah of !ection . of this Act.
M*b+ ' ' '
M*c+ ' ' '
M*d+ ' ' '
M*e+ The enalty of i$rison$ent ranging fro$ four *.+ to
se"en *9+ years and a fine corresonding to not $ore than
two hundred ercent *200P+ of the "alue of the $onetary
instru$ent or roerty laundered shall be i$osed uon
the co"ered erson& its directors& officers or esonnel who
knowingly articiated in the co$$ission of the cri$e of
$oney laundering.
M*f+ I$osition of Ad$inistrati"e !anctions. The i$osition
of the ad$inistrati"e sanctions shall be without re2udice
to the filing of cri$inal charges against the ersons
resonsible for the "iolation.
MAfter due notice and hearing& the AML% shall& at its
discretion& i$ose sanctions& including $onetary
enalties& warning or reri$and& uon any co"ered
erson& its directors& officers& e$loyees or any other
erson for the "iolation of this Act& its i$le$enting rules
and regulations& or for failure or refusal to co$ly with
AML% orders& resolutions and other issuances. !uch
$onetary enalties shall be in a$ounts as $ay be
deter$ined by the AML% to be aroriate& which shall
not be $ore than (i"e hundred thousand #hiliine esos
*#/00&000.00+ er "iolation.
MThe AML% $ay ro$ulgate rules on fines and enalties
taking into consideration the attendant circu$stances&
such as the nature and gra"ity of the "iolation or
irregularity.
M*g+ The ro"ision of this law shall not be construed or
i$le$ented in a $anner that will discri$inate against
certain custo$er tyes& such as olitically-e'osed
ersons& as well as their relati"es& or against a certain
religion& race or ethnic origin& or such other attributes or
rofiles when used as the only basis to deny these
ersons access to the ser"ices ro"ided by the co"ered
ersons. Ehene"er a bank& or -uasi-bank& financial
institution or whene"er any erson or entity co$$its said
discri$inatory act& the erson or ersons resonsible for
such "iolation shall be sub2ect to sanctions as $ay be
dee$ed aroriate by their resecti"e regulators.O
!3%. 11. :ew sections are hereby inserted after !ection
1= of the sa$e Act& as a$ended& to read as follows)
M!3%. 20. :on-inter"ention in the 0ureau of Internal
<e"enue *0I<+ 4erations. D :othing contained in this Act
nor in related antecedent laws or e'isting agree$ents
shall be construed to allow the AML% to articiate in any
$anner in the oerations of the 0I<.O
M!3%. 21. The authority to in-uire into or e'a$ine the
$ain account and the related accounts shall co$ly with
the re-uire$ents of Article III& !ections 2 and , of the
1=;9 %onstitution& which are hereby incororated by
reference. Likewise& the constitutional in2unction against
e' ost facto laws and bills of attainder shall be resected
in the i$le$entation of this Act.O
!3%. 12. The succeeding sections are hereby
renu$bered accordingly.
!3%. 1,. !earability %lause. D If any ro"ision of this Act
is declared unconstitutional& the sa$e shall not affect the
"alidity and effecti"ity of the other ro"isions hereof.
!3%. 1.. <eealing %lause. D All laws& decrees& orders&
and issuances or ortions thereof& which are inconsistent
with the ro"isions of this Act& are hereby reealed&
a$ended or $odified accordingly.
!3%. 1/. 3ffecti"ity. D This Act shall take effect fifteen *1/+
days following its ublication in at least two *2+ national
newsaers of general circulation.
Aro"ed&
*!gd.+ A6A: #4:%3 3:<IL3
#resident of the !enate
*!gd.+ (3LI%IA:4 03LM4:T3 A<.
!eaker of the @ouse
of <eresentati"es
This Act which is a consolidation of @ouse 0ill :o. 8/8/
and !enate 0ill :o. ,12, was finally assed by the @ouse
of <eresentati"es and the !eriate on (ebruary 8& 201,.
*!gd.+ 3MMA LI<I4-<3H3!
!ecretary of the !enate
*!gd.+ MA<ILH: 0. 0A<6A-HA#
!ecretary ?eneral
@ouse of <eresentati"es
Aro"ed) (30 1/ 201,
*!gd.+ 03:I?:4 !. AB6I:4 III
#resident of the #hiliines
REPUBLIC ACT N. *664
AN ACT TO REGUIRE THE DISCLOSURE
OF FINANCE CHARGES IN
CONNECTION HITH EITENSIONS OF
CREDIT.
!ection 1. This Act shall be known as the "Truth in
Lending Act."
!ection 2. >eclaration of #olicy. It is hereby declared to be
the olicy of the !tate to rotect its citi5ens fro$ a lack of
awareness of the true cost of credit to the user by assuring
a full disclosure of such cost with a "iew of re"enting the
uninfor$ed use of credit to the detri$ent of the national
econo$y.
!ection ,. As used in this Act& the ter$
*1+ "0oard" $eans the Monetary 0oard of the %entral
0ank of the #hiliines.
*2+ "%redit" $eans any loan& $ortgage& deed of trust&
ad"ance& or discount1 any conditional sales contract1 any
contract to sell& or sale or contract of sale of roerty or
ser"ices& either for resent or future deli"ery& under which
art or all of the rice is ayable subse-uent to the $aking
of such sale or contract1 any rental-urchase contract1 any
contract or arrange$ent for the hire& bail$ent& or leasing
of roerty1 any otion& de$and& lien& ledge& or other
clai$ against& or for the deli"ery of& roerty or $oney1
any urchase& or other ac-uisition of& or any credit uon
the security of& any obligation of clai$ arising out of any of
the foregoing1 and any transaction or series of
transactions ha"ing a si$ilar urose or effect.
*,+ "(inance charge" includes interest& fees& ser"ice
charges& discounts& and such other charges incident to the
e'tension of credit as the 0oard $ay be regulation
rescribe.
*.+ "%reditor" $eans any erson engaged in the business
of e'tending credit *including any erson who as a regular
business ractice $ake loans or sells or rents roerty or
ser"ices on a ti$e& credit& or install$ent basis& either as
rincial or as agent+ who re-uires as an incident to the
e'tension of credit& the ay$ent of a finance charge.
*/+ "#erson" $eans any indi"idual& cororation&
artnershi& association& or other organi5ed grou of
ersons& or the legal successor or reresentati"e of the
foregoing& and includes the #hiliine ?o"ern$ent or any
agency thereof& or any other go"ern$ent& or of any of its
olitical subdi"isions& or any agency of the foregoing.
!ection .. Any creditor shall furnish to each erson to
who$ credit is e'tended& rior to the consu$$ation of the
transaction& a clear state$ent in writing setting forth& to the
e'tent alicable and in accordance with rules and
regulations rescribed by the 0oard& the following
infor$ation)
*1+ the cash rice or deli"ered rice of the roerty or
ser"ice to be ac-uired1
*2+ the a$ounts& if any& to be credited as down ay$ent
andGor trade-in1
*,+ the difference between the a$ounts set forth under
clauses *1+ and *2+1
*.+ the charges& indi"idually ite$i5ed& which are aid or to
be aid by such erson in connection with the transaction
but which are not incident to the e'tension of credit1
*/+ the total a$ount to be financed1
*8+ the finance charge e'ressed in ter$s of esos and
centa"os1 and
*9+ the ercentage that the finance bears to the total
a$ount to be financed e'ressed as a si$le annual rate
on the outstanding unaid balance of the obligation.
!ection /. The 0oard shall rescribe such rules and
regulations as $ay be necessary or roer in carrying out
the ro"isions of this Act. Any rule or regulation rescribed
hereunder $ay contain such classifications and
differentiations as in the 2udg$ent of the 0oard are
necessary or roer to effectuate the uroses of this Act
or to re"ent circu$"ention or e"asion& or to facilitate the
enforce$ent of this Act& or any rule or regulation issued
thereunder.
!ection 8. *a+ Any creditor who in connection with any
credit transaction fails to disclose to any erson any
infor$ation in "iolation of this Act or any regulation issued
thereunder shall be liable to such erson in the a$ount of
#100 or in an a$ount e-ual to twice the finance charged
re-uired by such creditor in connection with such
transaction& whiche"er is the greater& e'cet that such
liability shall not e'ceed #2&000 on any credit transaction.
Action to reco"er such enalty $ay be brought by such
erson within one year fro$ the date of the occurrence of
the "iolation& in any court of co$etent 2urisdiction. In any
action under this subsection in which any erson is
entitled to a reco"ery& the creditor shall be liable for
reasonable attorneyJs fees and court costs as deter$ined
by the court.
*b+ 3'cet as secified in subsection *a+ of this section&
nothing contained in this Act or any regulation contained in
this Act or any regulation thereunder shall affect the
"alidity or enforceability of any contract or transactions.
*c+ Any erson who willfully "iolates any ro"ision of this
Act or any regulation issued thereunder shall be fined by
not less than #1&00 or $ore than #/&000 or i$rison$ent
for not less than 8 $onths& nor $ore than one year or
both.
*d+ :o unish$ent or enalty ro"ided by this Act shall
aly to the #hiliine ?o"ern$ent or any agency or any
olitical subdi"ision thereof.
*e+ A final 2udg$ent hereafter rendered in any cri$inal
roceeding under this Act to the effect that a defendant
has willfully "iolated this Act shall be ri$a facie e"idence
against such defendant in an action or roceeding brought
by any other arty against such defendant under this Act
as to all $atters resecting which said 2udg$ent would be
an estoel as between the arties thereto.
!ection 9. This Act shall beco$e effecti"e uon aro"al.
Aro"ed) Aune 22& 1=8,
*n+ "%onsu$er" $eans a natural erson who is a
urchaser& lessee& reciient or rosecti"e urchaser&
lessor or reciient of consu$er roducts& ser"ices or
credit. chanrobles law


*o+ "%onsu$er credit" $eans any credit e'tended by a
creditor to a consu$er for the sale or lease of any
consu$er roduct or ser"ice under which art or all of the
rice or ay$ent therefor is ayable at so$e future ti$e&
whether in full or in install$ents.

*+ "%onsu$er loan" $eans a loan $ade by the lender to
a erson which is ayable in install$ents for which a
finance charge is or $ay be i$osed. This ter$ includes
credit transactions ursuant to an oen-end-credit lan
other than a seller credit card.
TITL3 IC
%4:!6M3< %<3>IT T<A:!A%TI4:

Art. 1,1. >eclaration of #olicy. - The !tate shall si$lify&
clarify and $oderni5e the laws go"erning credit
transactions and encourage the de"elo$ent of fair and
econo$ically sound consu$er credit ractices. To rotect
the consu$er fro$ lack of awareness of the true cost of
credit to the user& the !tate shall assure the full disclosure
of the true cost of credit.

Art. 1,2. >eter$ination of (inance %harges. - 3'cet as
otherwise ro"ided& the a$ount of the finance charges in
connection with any consu$er credit transaction shall be
deter$ined as the su$ of all charges& ayable directly or
indirectly by the erson to who$ the credit is e'tended
and i$osed directly or indirectly by the creditor as an
accident to the e'tension of credit& including any of the
following tye of charges which are alicable)
*a+ interest or ti$e rice differential and any a$ount
ayable under oint or other syste$ of additional charges1

*b+ collection fees which include finderJs fees or si$ilar
charges1

*c+ credit in"estigation fees1

*d+ notarial fees& if any1

*e+ re$iu$ or other charges for any guarantee or
insurance rotecting the creditor against the obligorJs
default or other credit loss. The i$le$enting agency shall
deter$ine what ite$s shall be e'e$ted fro$ the
co$utation of the finance charges.
Art. 1,,. >eter$ination of !i$le Annual <ate. - The
si$le annual rate alicable to any e'tension of
consu$er credit shall be deter$ined in accordance with
the rules and regulations ro$ulgated by the
i$le$enting agency.

Art. 1,.. >elin-uency %harges. - Eith resect to a
consu$er credit transaction other than one ursuant to an
oen-end credit lan& the arties $ay agree to a
delin-uency charge on any install$ent not aid in full on
or before the tenth day after its scheduled or deferred due
date.

Art. 1,/. >eferral %harges. - The arties in a consu$er
credit transaction $ay at any ti$e agree in writing to a
deferral of all or art of one or $ore unaid install$ents
and the creditor $ay $ake and collect a charge which
shall not e'ceed the rate re"iously disclosed ursuant to
the ro"isions on disclosure. A deferral charge $ay be
collected at the ti$e it is assessed.

Art. 1,8. (inance %harge on <efinancing. - The arties
$ay agree on a finance charge in an oen-end credit lan
based on the a$ount financed resulting fro$ the
refinancing or consolidation at a rate not e'ceeding that
er$itted by the rules ro$ulgated by the i$le$enting
agency.

Art. 1,9. <ight to #reay. - The erson to who$ credit is
e'tended $ay reay in full or in art& at any ti$e without
enalty& the unaid balance of any consu$er credit
transaction.

Art. 1,;. <ebate on #reay$ent. - 6on reay$ent in
full of the unaid balance of a reco$uted consu$er
credit transaction& refinancing or consolidation& an a$ount
not less than the unearned ortion of the finance charge
calculated according to this Article shall be rebated to the
erson to who$ credit is e'tended.

The unearned ortion of the reco$uted finance charge
on consu$er transactions reayable in substantially e-ual
successi"e install$ents shall be e-ual to at least that
ortion of finance charge which the su$s of the
install$ent balances of the obligation scheduled to be
outstanding after the install$ent date nearest the date of
reay$ent bears to the su$ of all install$ent balances
originally scheduled to be outstanding under the
obligation.

(or the urose of deter$ining the install$ent date
nearest the date of reay$ent when ay$ents are
$onthly& any ay$ent $ade on or before the fifteenth day
following an install$ent due date shall be dee$ed to ha"e
been $ade as of the install$ent due date& and if
reay$ent occurs after the fifteenth day& it shall be
dee$ed to ha"e been $ade on the succeeding install$ent
due date. This $ethod of calculating rebates $ay be
referred to as the "rule of 9;" or "su$ of the digits"
$ethod.

The i$le$enting agency $ay ro$ulgate and adot
rules and regulations with resect to other reco$uted
consu$er credit transactions.

Art. 1,=. ?eneral <e-uire$ents on %redit %ost
>isclosure. - 3ach creditor shall disclose& in accordance
with the regulations of the i$le$enting agency& to each
erson to who$ consu$er credit is e'tended& the
disclosures re-uired by this Act.
If there is $ore than one obligor& a creditor need not
furnish a state$ent of infor$ation re-uired under this Act
to $ore than one of the$.

Art. 1.0. %redit !ale& <e-uired >isclosures. - Any creditor
e'tending a consu$er credit sale other than one ursuant
to an oen-end credit lan shall disclose in a state$ent to
the e'tent alicable& the following infor$ation)
*a+ the cash rice or deli"ered rice of the roerty or
ser"ice to be ac-uired1

*b+ the a$ounts& if any& to be credited as downay$ent
andGor trade in1

*c+ the total a$ount to be financed or the difference
between the a$ounts set forth under aragrahs *1+ and
*2+1

*d+ the charges& indi"idually ite$i5ed& which are aid or to
be aid by such erson in connection with the transaction
but which are not incident to the e'tension of credit1

*e+ the finance charge e'ressed in ter$s of esos and
centa"os1

*f+ the ercentage that the finance charge bears to the
total a$ount to be financed e'ressed as a si$le annual
rate on the outstanding balance of the obligation1

*g+ the effecti"e interest rate1

*h+ the nu$ber& a$ount and due dates or eriods of
ay$ents scheduled to reay the indebtedness1 and

*i+ the default& delin-uency or si$ilar charges ayable in
the e"ent of late ay$ents.
Art. 1.1. <e-uired >isclosure on 4en-end %redit #lan. -
0efore oening any account under an oen-end consu$er
credit lan& the creditor shall disclose& to the e'tent
alicable& the following infor$ation)
*a+ the conditions under which a finance charge $ay be
i$osed& including the ti$e eriod& if any& within which any
credit e'tended $ay be reaid without incurring a finance
charge1

*b+ the $ethod of deter$ining the balance uon which a
finance charge $ay be i$osed1

*c+ the $ethod of deter$ining the a$ount of the finance
charges& including any $ini$u$ or fi'ed a$ount i$osed
as a finance charge1

*d+ where one or $ore eriodic rates $ay be used to
co$ute a finance charge& each such rate& the range of
balances to which it is alicable& and the corresonding
si$le annual rate1

*e+ the conditions under which the creditor $ay i$ose a
security lien and a descrition of the goods to which such
lien $ay attach.
The i$le$enting agency shall rescribe regulations
consistent with co$$only acceted accounting standards
to carry out the re-uire$ents of this Article.

Art. 1.2. <e-uired >isclosures on %onsu$er Loans :ot
6nder 4en-3nd %redit #lan. - Any creditor e'tending a
consu$er loan or in a transaction which is neither a
consu$er credit sale nor under an oen-end consu$er
credit lan shall disclose& to the e'tent alicable& the
following infor$ation)
*a+ the a$ount of credit of which the debtor will ha"e the
actual use& or which is or will be aid to hi$ or for his
account or to another erson on his behalf1

*b+ all charges& indi"idually ite$i5ed& which are included in
the a$ount of credit e'tended but which are not art of the
finance charge1

*c+ the total a$ount to be financed or the su$ of the
a$ounts referred to in aragrahs *a+ and *b+1

*d+ the finance charge e'ressed in ter$s or esos and
centa"os1

*e+ the effecti"e interest rate1

*f+ the ercentage that the finance charge bears to the
total a$ount to be financed e'ressed as a si$le annual
rate on the outstanding unaid balance of the obligation1

*g+ the default& delin-uency or si$ilar charges ayable in
the e"ent of late ay$ents1

*h+ a descrition of any security interest held or to be held
or to be retained or ac-uired by the creditor in connection
with the e'tension of credit and a clear identification of the
roerty to which the security interest relates.
Art. 1.,. (or$ and Ti$ing of >isclosure. - All disclosures
re-uired under this Act shall be $ade clearly and
consicuously in writing before the transaction is
consu$$ated.

Art. 1... #eriodic !tate$ent of %harges. - The eriodic
state$ent trans$itted by the creditor in connection with
any e'tension of consu$er credit other than under an
oen-end consu$er credit lan& shall set forth the
following infor$ation)
*a+ the si$le annual rate1

*b+ the effecti"e interest rate1

*c+ the date by which& or the eriod *if any+ within which
ay$ent $ust be $ade in order to a"oid additional finance
charges1

*d+ $ethod of deter$ining the balance uon which the
finance charge $ay be i$osed.
Art. 1./. 3'e$ted Transaction. - The foregoing
re-uire$ents on consu$er credit transactions shall not
aly to the following credit transactions)
*a+ those in"ol"ing e'tension of credits for business or
co$$ercial uroses& or to the ?o"ern$ent and
go"ern$ental agencies and instru$entalities& 2uridical
entities or to organi5ations1

*b+ those in which the debtor is the one secifying the
definite set of credit ter$s such as bank deosits&
insurance contracts& sale of bonds or analogous
transactions.
Art. 1.8. !ale of %onsu$er #roducts 4n Install$ent
#ay$ent. - In a consu$er credit sale other than one
ursuant to an oen-end credit lan& the obligation of the
consu$er to who$ credit is being e'tended shall be
e"idenced by a single instru$ent which shall include& in
addition to the disclosures re-uired by this act& the
signature of the seller and the erson to who$ credit is
e'tended& the date it was signed& a descrition of the
roerty sold and a descrition of any roerty transferred
as a trade-in. The instru$ent e"idencing the credit shall
contain a clear and consicuous tyewritten notice to the
erson to who$ credit is being e'tended that)
*a+ he should not sign the instru$ent if it contains any
blank sace1

*b+ he is entitled to a reasonable return of the
reco$uted finance charge if the balance is reaid1 and

*c+ he is entitled to an e'act& true coy of the agree$ent.
In cases where the instru$ent will be sold at a discount to
a bank& financing co$any or other lender& the said
transferee shall be sub2ect to all clai$s and defenses
which the debtor could assert against the seller of
consu$er roducts obtained hereto or with the roceeds
thereof.

Art. 1.9. #enalties. - Any creditor who in connection with
any credit transaction fails to disclose to any erson any
infor$ation in "iolation of this %hater or the I$le$enting
rules and regulations issued thereunder shall be liable to
such erson in the a$ount of 4ne thousand esos
*#1&000.00+ or in a$ount e-ual to twice the finance charge
re-uired by such creditor in connection with such
transaction& whiche"er is greater& e'cet that such liability
shall not e'ceed Three thousand esos *#,&000.00+ for
any credit transaction and actual da$ages with the non-
disclosure of the re-uired infor$ation. Action to reco"er
such enalty $ay be brought by such erson within one
*1+ year fro$ the date of the occurrence of the "iolation in
any court of co$etent 2urisdiction.