You are on page 1of 2

A Bangko Sentral ng Pilipinas briefer on the Anti-Money the laundering process. Ex.

wire transfers, use of shell of the Bangko Sentral ng Pilipinas (BSP) as Chairman & the or regulated by the Securities and Exchange
Laundering Act of 2001 corporations, etc. Commissioner of the Insurance Commission (IC) and the Commission (SEC)
Chairman of the Securities and Exchange Commission (SEC) as
1. What is money laundering? Integration – the money is once again made available to the members. The AMLC is authorized to: 9. What are the Customer Identification Requirements – KYC
criminal with the occupational and geographic origin obscured or  Require and receive covered or suspicious (Know Your Customer Rule)?
Money laundering is an act or series or combination of acts concealed. The laundered funds are now integrated back into the
whereby proceeds of an unlawful activity, whether in cash, transaction reports from covered institutions. Covered institutions shall:
legitimate economy through the purchase of properties,
property or other assets, are converted, concealed or disguised  Issue orders to determine the true identity of the  Establish and record the true identity of their clients
businesses and other investments.
to make them appear to have originated from legitimate sources. owner of any monetary instrument or property that is based on official documents.
One way of laundering money is through the financial system. 5. Why is Money Laundering a problem? the subject of a covered or suspicious transaction  In case of individual clients, maintain a system of
Republic Act No. 9160, otherwise known as the Anti-Money report, and to request the assistance of a foreign verifying the true identity of their clients.
Laundering Act of 2001 (AMLA), as amended, defined money Money laundering allows criminals to preserve and enjoy the country if the Council believes it is necessary.
proceeds of their crimes, thus providing them with the incentives  In case of corporate clients, require a system
laundering as a scheme whereby proceeds of an unlawful  Institute civil forfeiture and all other remedial verifying their legal existence and organizational
activity are transacted or attempted to be transacted, thereby and the means to continue their illegal activities. At the same
proceedings through the Office of the Solicitor structure, as well as the authority and identification
making them appear to have originated from legitimate sources. time, it provides them the opportunity to appear in public like
General. of all persons purporting to act in their behalf.
legitimate entrepreneurs. Organized crime, through money
 Cause the filing of complaints with the Department  Establish appropriate systems and methods based
2. What has the Philippine government done to curb money laundering, is known to have the capacity to destabilize
laundering? governments and undermine their financial systems. It is thus a of Justice or the Ombudsman for the prosecution of on internationally compliant standards and adequate
threat to national security. money laundering offenses. internal controls for verifying and recording the true
The government enacted Republic Act (R.A.) No. 9160 (The Anti-  Investigate suspicious transactions, covered and full identify of their customers.
Money Laundering Act of 2001), which took effect on 17 October 6. What are the salient features of the law? transactions deemed suspicious, money laundering
2001. Certain provisions of AMLA were amended by R.A. No.  It criminalizes money laundering, meaning it makes activities and other violations of the AMLA. 10. What are the Record-Keeping Requirements?
9194(An Act Amending R.A. 9160) effective 23 March 2003. It money laundering a crime, and provides penalties  Secure the order of the Court of Appeals to freeze All covered institutions shall:
has also issued the Revised Implementing Rules and for its commission, including hefty fines and any monetary instrument or property alleged to be
Regulations (RIRR) implementing R.A. No. 9160, as amended.  Maintain and safely store all records of all their
imprisonment. the proceeds of unlawful activity.
transactions for five years from the transaction
 It states clearly the determination of the government  Implement such measures as may be necessary
3. What are considered unlawful activities under the AMLA, dates;
as amended? to prevent the Philippines from becoming a haven and justified to counteract money laundering.  Ensure that said records/files contain the full and
for money laundering, while ensuring to preserve the  Receive and take action on any request from foreign true identity of the owners or holders of the accounts
There are 14 unlawful activities or predicate crimes covered by integrity and confidentiality of good bank accounts. countries for assistance in their own anti-money involved in the covered transactions and all other
the AMLA. These are, in the order enumerated in the law:  It creates an Anti-Money Laundering Council laundering operations. identification documents;
 Kidnapping for ransom (AMLC) that is tasked to oversee the implementation  Develop educational programs to make the public  Undertake the necessary adequate measures to
 Drug offenses of the law and to act as a financial intelligence unit to aware of the pernicious effects of money laundering ensure the confidentiality of such files;
 Graft and corrupt practices receive and analyze covered and suspicious and how they can participate in bringing the
transaction reports.  Prepare and maintain documentation, in accordance
 Plunder offenders to the fold of the law.
 It establishes the rules and the administration with client identification requirements, on their
 Robbery and extortion  Enlist the assistance of any branch of government customer accounts, relationships and transactions
process for the prevention, detection and for the prevention, detection and investigation of
 Jueteng and masiao such that any account, relationship or transaction
prosecution of money laundering activities. money laundering offenses and the prosecution of
 Piracy on the high seas can be so reconstructed as to enable the AMLC
 It relaxes the bank deposit secrecy laws authorizing offenders. In this connection, the AMLC can require
 Qualified theft and/or the courts to establish an audit trail for money
the AMLC and the Bangko Sentral ng Pilipinas intelligence agencies of the government to divulge laundering;
 Swindling access to deposit and investment accounts in any information that will facilitate the work of the  Maintain and safely store all records of existing and
 Smuggling specific circumstances. Council in going after money launderers.
new accounts and of new transactions for 5 years
 Electronic Commerce crimes  It requires covered institutions to report covered and  Impose administrative sanctions on those who from October 17, 2001 or from the dates of the
 Hijacking, destructive arson and murder, including suspicious transactions and to cooperate with the violate the law, and the rules, regulations, orders accounts or transactions, whichever is later;
those perpetrated against non-combatant persons government in prosecuting offenders. It also requires and resolutions issued in connection with the  Anent closed accounts, preserve and safely store
(terrorist acts) them to know their customers and to safely keep all enforcement of the law.
the records on customer identification, account files
 Securities fraud records of their transactions.
8. What are the covered institutions? and business correspondence for at least 5 years
 Felonies or offenses of a similar nature punishable  It carries provisions to protect innocent parties by
 Banks, offshore banking units, quasi-banks, trust from the dates they were closed;
under penal laws of other countries providing penalties for causing the disclosure to the
entities, non-stock savings and loan associations,  If a money laundering case based on any record
public of confidential information contained in the
4. How is money laundered through the financial system? pawnshops, and all other institutions, including their kept by the covered institution has been filed in
covered and suspicious transactions.
subsidiaries and affiliates supervised and/or court, retain said files until it is confirmed that the
 It establishes procedures for international
Placement – involves initial placement or introduction of the regulated by the Bangko Sentral ng Pilipinas (BSP) case has been finally resolved or terminated by the
illegal funds into the financial system. Financial institutions are cooperation and assistance in the apprehension and court; and
prosecution of money laundering suspects.  Insurance companies, holding companies and all
usually used at this point. other institutions supervised or regulated by the  Retain records as originals in such forms as are
7. What is the Anti-Money Laundering Council (AMLC)? Insurance Commission (IC) admissible in court
Layering – involves a series of financial transactions during
which the dirty money is passed through a series of procedures, What are its powers?  Securities dealers, brokers, pre-need companies, 11. What are covered transactions?
putting layer upon layer of persons and financial activities into foreign exchange corporations, investment houses,
The AMLC is the Philippines’ financial intelligence unit, which is
trading advisers, as well as other entities supervised
tasked to implement the AMLA. It is composed of the Governor

00. covered institutions and their officers and c. regardless of the amount involved. any circumstance relating to the transaction which is observed Complex. b. dates the transactions were made or when the accounts were . required to report covered and suspicious 12. Administrative offenses. 14. Malicious reporting is committed by any person who. it shall be reported as suspicious transaction. Neither may such reporting be published or avoid being the subject of reporting requirements under the Act. either via diskettes. In case the prohibited information is business days from occurrence of the transactions in a secured the media. the fact that a covered or suspicious transaction reported by media. the responsible reporter.000. Implementing Rules and Regulations. where the Commission. or false information regarding a money laundering transaction following circumstances exist: period not exceeding ten working days. the can impose fines from P100. Bangko Sentral ng Pilipinas or other similar devices. How is reporting done? to the AMLC.000. and orders and resolutions 18. Should a transaction be against any person. report was made. to any person. the amount involved is not commensurate with the business or The reports on covered and/or suspicious transactions shall be employees. there is no underlying legal or trade obligation.00. as amended. issued pursuant thereto. more than P500.00 but not more than P500. as amended. d. the Securities and Exchange months to 4 years imprisonment or a fine of not less than malice or in bad faith. The AMLC. manager.00 on officers e. What are suspicious transactions? from occurrence thereof. the 5th Floor EDPC Building. 523-4421. reports or files a completely unwarranted Transactions. electronic mail. or through internet facilities. d. directly or 8 years imprisonment and a fine of not less than P500.000.000.A.000. Covered institutions shall report to the AMLC all covered both. any transaction that is similar or analogous to the foregoing.00. or any other information publisher. the transaction is in any way related to an unlawful activity or 15. procedures and deadlines. What are the reporting requirements? 16. reporting requirements. in any manner or by any means.000.00 but not a. hard copy for suspicious transactions shall be sent to AMLC at aired in any manner or form by the mass media. accomplished in the prescribed formats and submitted within five indirectly. writer. purpose or covered transaction and/or suspicious transaction? economic justification. or the Insurance Commission) prescribes a longer P100. and editor-in-chief are held criminally liable. The offender is not entitled to the When reporting covered transactions or suspicious transactions benefits of the Probation Law. is being or has been suspicious transactions and non-compliance with R.Transaction in cash or other equivalent monetary instruments 13. the transactions with the covered institution. In case of violation thereof. What are the other offenses punishable under the AMLA. The penalty is 6 months to 1 year imprisonment or a fine involving a total amount in excess of P500. perceived that the client’s transaction is structured in order to leased lines. are prohibited from communicating. For this offense. or as amended? a. All pawnshops should coordinate concerned officer. Philippines.00 financial capacity of the client. Are there sanctions for failure to report covered or as amended? offense under this Act that is about to be.000. after due investigation. 9160.000. the penalty is 3 to c. The corresponding in relation thereto. or business day. taking into account all known circumstances. the contents thereof. What are the sanctions for failure to report covered or closed. committed.000. and employee. nos. Breach of Confidentiality. it may be manner to the AMLC in electronic form. The penalty is 6 months to 4 years determined to be both a covered transaction and a suspicious 17. with Bangko Sentral ng Pilipinas. Are there confidentiality restrictions on the reporting of imprisonment and a fine of not less than P100.00 to P500. of the covered institution.000. Failure to keep records is committed by any responsible official or employee of a covered institution who fails to maintain g.the client is not properly identified. violates the provisions of the AMLA. Manila. entity. or both. 521-5662 or 302-3979 on media shall be held criminally liable. president.00 within one suspicious transactions? of not less than P100. transaction. unless the Supervision Authority (the transactions failed to do so will be subjected to penalty of 6 b.00 but not more than P500. 9160. transactions and suspicious transactions within five working days Any person. Sanctions/penalties shall be imposed on pawnshops that will fail and safely store all records of transactions for 5 years from the to comply with the provisions of R. f. or and employees of covered institutions or any person who to deviate from the profile of the client and/or the client’s past with the AMLC thru tel.A. but not more than P1 million.