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RA 9160; RA 9194; RA 10167; RA 10365

Anti-Money Laundering Act of 2001 (RA similar monetary instruments or property


9160) supervised or regulated by Securities and
Exchange Commission and Exchange
AN ACT DEFINING THE CRIME OF MONEY Commission
LAUNDERING, PROVIDING PENALTIES
THEREFOR AND FOR OTHER PURPOSES
(a) Covered persons, natural or juridical, refer
to:
Be it enacted by the Senate and House of
Representatives of the Philippines in Congress
(1) banks, non-banks, quasi-banks, trust
assembled:
entities, foreign exchange dealers,
pawnshops, money changers, remittance
SECTION 1. Short Title. This Act shall be and transfer companies and other similar
known as the "Anti-Money Laundering Act of entities and all other persons and their
2001." subsidiaries and affiliates supervised or
regulated by the Bangko Sentral ng Pilipinas
SEC. 2. Declaration of Policy. It is hereby (BSP);
declared the policy of the State to protect and
preserve the integrity and confidentiality of bank (2) insurance companies, pre-need
accounts and to ensure that the Philippines shall companies and all other persons supervised
not be used as a money laundering site for the or regulated by the Insurance Commission
proceeds of any unlawful activity. Consistent with (IC);
its foreign policy, the State shall extend
cooperation in transnational investigations and
(3) (i) securities dealers, brokers, salesmen,
prosecutions of persons involved in money
investment houses and other similar
laundering activities wherever committed.
persons managing securities or rendering
services as investment agent, advisor, or
SEC. 3. Definitions. For purposes of this Act, consultant, (ii) mutual funds, close-end
the following terms are hereby defined as follows: investment companies, common trust
funds, and other similar persons, and (iii)
(a) "Covered institution" refers to: other entities administering or otherwise
dealing in currency, commodities or
(1) banks, non-banks, quasi-banks, trust financial derivatives based thereon,
entities, and all other institutions and valuable objects, cash substitutes and other
their subsidiaries and affiliates similar monetary instruments or property
supervised or regulated by the Bangko supervised or regulated by the Securities
Sentral ng Pilipinas (BSP); and Exchange Commission (SEC);

(2) insurance companies and all other (4) jewelry dealers in precious metals, who,
institutions supervised or regulated by as a business, trade in precious metals, for
the Insurance Commission; and transactions in excess of One million pesos
(P1,000,000.00);
(3) (i) securities dealers, brokers,
salesmen, investment houses and other (5) jewelry dealers in precious stones, who,
similar entities managing securities or as a business, trade in precious stones, for
rendering services as investment agent, transactions in excess of One million pesos
advisor, or consultant, (ii) mutual funds, (P1,000,000.00);
close-end investment companies,
common trust funds, pre-need (6) company service providers which, as a
companies and other similar entities, (iii) business, provide any of the following
foreign exchange corporations, money services to third parties: (i) acting as a
changers, money payment, remittance, formation agent of juridical persons; (ii)
and transfer companies and other similar acting as (or arranging for another person
entities, and (iv) other entities to act as) a director or corporate secretary
administering or otherwise dealing in of a company, a partner of a partnership, or
currency, commodities or financial a similar position in relation to other
derivatives based thereon, valuable juridical persons; (iii) providing a registered
objects, cash substitutes and other office, business address or accommodation,
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correspondence or administrative address and investments having no credible purpose or
for a company, a partnership or any other origin, underlying trade obligation or contract.
legal person or arrangement; and (iv) acting
as (or arranging for another person to act (b) 'Covered transaction' is a transaction in cash
as) a nominee shareholder for another or other equivalent monetary instrument
person; and involving a total amount in excess of Five
hundred thousand pesos (PhP 500,000.00) within
(7) persons who provide any of the following one (1) banking day. (SEC 1 RA 9194)
services:
(b-1) 'Suspicious transaction' are
(i) managing of client money, securities transactions with covered institutions,
or other assets; regardless of the amounts involved, where
any of the following circumstances exist:
(ii) management of bank, savings or
securities accounts; 1. there is no underlying legal or trade
obligation, purpose or economic
(iii) organization of contributions for the justification;
creation, operation or management of
companies; and 2. the client is not properly identified;

(iv) creation, operation or management 3. the amount involved is not


of juridical persons or arrangements, and commensurate with the business or
buying and selling business entities. financial capacity of the client;

Notwithstanding the foregoing, the term covered 4. taking into account all known
persons shall exclude lawyers and accountants circumstances, it may be perceived that
acting as independent legal professionals in the client's transaction is structured in
relation to information concerning their clients or order to avoid being the subject of
where disclosure of information would reporting requirements under the Act;
compromise client confidences or the attorney-
client relationship: Provided, That these lawyers 5. any circumstances relating to the
and accountants are authorized to practice in the transaction which is observed to deviate
Philippines and shall continue to be subject to the from the profile of the client and/or the
provisions of their respective codes of conduct client's past transactions with the
and/or professional responsibility or any of its covered institution;
amendments. (SEC 1 RA NO 10365)
6. the transactions is in a way related to
(b) "Covered transaction" is a single, series, or an unlawful activity or offense under this
combination of transactions involving a total Act that is about to be, is being or has
amount in excess of Four million Philippine pesos been committed; or
(Php4,000,000.00) or an equivalent amount in
foreign currency based on the prevailing 7. any transactions that is similar or
exchange rate within five (5) consecutive banking analogous to any of the foregoing. (SEC
days except those between a covered institution 2 RA 9194)
and a person who, at the time of the transaction
was a properly identified client and the amount is (c) "Monetary instrument" refers to:
commensurate with the business or financial
capacity of the client; or those with an underlying
(1) coins or currency of legal tender of the
legal or trade obligation, purpose, origin or
Philippines, or of any other country;
economic justification.

(2) drafts, checks and notes;


It likewise refers to a single, series or combination
or pattern of unusually large and complex
transactions in excess of Four million Philippine (3) securities or negotiable instruments,
pesos (Php4,000,000.00) especially cash deposits bonds, commercial papers, deposit
certificates, trust certificates, custodial
receipts or deposit substitute instruments,
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trading orders, transaction tickets and (7) Piracy on the high seas under the
confirmations of sale or investments and Revised Penal Code, as amended and
money market instruments; and Presidential Decree No. 532;

(4) other similar instruments where title (8) Qualified theft under Article 310 of the
thereto passes to another by endorsement, Revised Penal Code, as amended;
assignment or delivery.
(9) Swindling under Article 315 of the
(d) "Offender" refers to any person who commits Revised Penal Code, as amended;
a money laundering offense.
(10) Smuggling under Republic Act Nos. 455
(e) "Person" refers to any natural or juridical and 1937;
person.
(11) Violations under Republic Act No. 8792,
(f) "Proceeds" refers to an amount derived or otherwise known as the Electronic
realized from an unlawful activity. Commerce Act of 2000;

(g) "Supervising Authority" refers to the (12) Hijacking and other violations under
appropriate supervisory or regulatory agency, Republic Act No. 6235; destructive arson
department or office supervising or regulating the and murder, as defined under the Revised
covered institutions enumerated in Section 3(a). Penal Code, as amended, including those
perpetrated by terrorists against non-
(h) "Transaction" refers to any act establishing combatant persons and similar targets;
any right or obligation or giving rise to any
contractual or legal relationship between the (13) Fraudulent practices and other
parties thereto. It also includes any movement of violations under Republic Act No. 8799,
funds by any means with a covered institution. otherwise known as the Securities
Regulation Code of 2000;
(i) "Unlawful activity" refers to any act or
omission or series or combination thereof (14) Felonies or offenses of a similar nature
involving or having relation to the following: that are punishable under the penal laws of
other countries.
(1) Kidnapping for ransom under Article 267
of Act No. 3815, otherwise known as the (i) 'Unlawful activity' refers to any act or omission
Revised Penal Code, as amended; or series or combination thereof involving or
having direct relation to following:
(2) Sections 3, 4, 5, 7, 8 and 9 of Article Two
of Republic Act No. 6425, as amended, (1) Kidnapping for ransom under Article 267
otherwise known as the Dangerous Drugs of Act No. 3815, otherwise known as the
Act of 1972; Revised Penal Code, as amended;

(3) Section 3 paragraphs B, C, E, G, H and I (2) Sections 4, 5, 6, 8, 9, 10, 12, 13, 14, 15,
of Republic Act No. 3019, as amended; and 16 of Republic Act No. 9165, otherwise
otherwise known as the Anti-Graft and known as the Comprehensive Dangerous
Corrupt Practices Act; Act of 2002;

(4) Plunder under Republic Act No. 7080, as (3) Section 3 paragraphs B, C, E, G, H and I
amended; of republic Act No. 3019, as amended,
otherwise known as the Anti-Graft and
(5) Robbery and extortion under Articles Corrupt Practices Act;
294, 295, 296, 299, 300, 301 and 302 of the
Revised Penal Code, as amended; (4) Plunder under Republic Act No. 7080, as
amended;
(6) Jueteng and Masiao punished as illegal
gambling under Presidential Decree No.
1602;
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(5) Robbery and extortion under Articles otherwise known as the Comprehensive
294, 295, 296, 299, 300, 301 and 302 of the Dangerous Drugs Act of 2002;
Revised Penal Code, as amended;
(3) Section 3 paragraphs B, C, E, G, H and I
(6) Jueteng and Masiao punished as illegal of Republic Act No. 3019, as amended,
gambling under Presidential Decree No. otherwise known as the Anti-Graft and
1602; Corrupt Practices Act;

(7) Piracy on the high seas under the (4) Plunder under Republic Act No. 7080, as
Revised Penal Code, as amended and amended;
Presidential under the Revised Penal Code,
as amended and Presidential Decree No. (5) Robbery and extortion under Articles
532; 294, 295, 296, 299, 300, 301 and 302 of the
Revised Penal Code, as amended;
(8) Qualified theft under Article 310 of the
Revised penal Code, as amended; (6) Jueteng and Masiao punished as illegal
gambling under Presidential Decree No.
(9) Swindling under Article 315 of the 1602;
Revised Penal Code, as amended;
(7) Piracy on the high seas under the
(10) Smuggling under Republic Act Nos. 455 Revised Penal Code, as amended and
and 1937; Presidential Decree No. 532;

(11) Violations under Republic Act No. 8792, (8) Qualified theft under Article 310 of the
otherwise known as the Electrinic Revised Penal Code, as amended;
Commerce Act of 2000;
(9) Swindling under Article 315 and Other
(12) Hijacking and other violations under Forms of Swindling under Article 316 of the
Republic Act No. 6235; destructive arson Revised Penal Code, as amended;
and murder, as defined under the Revised
Penal Code, as amended, including those (10) Smuggling under Republic Act Nos. 455
perpetrated by terrorists against non- and 1937;
combatant persons and similar targets;
(11) Violations of Republic Act No. 8792,
(13) Fraudulent practices and other otherwise known as the Electronic
violations under Republic Act No. 8799, Commerce Act of 2000;
otherwise known as the Securities
Regulation Code of 2000; (12) Hijacking and other violations under
Republic Act No. 6235; destructive arson
(14) Felonies or offenses of a similar nature and murder, as defined under the Revised
that are punishable under the penal laws of Penal Code, as amended;
other countries. (SEC 3 RA NO 9194)
(13) Terrorism and conspiracy to commit
terrorism as defined and penalized under
Sections 3 and 4 of Republic Act No. 9372;
(i) Unlawful activity refers to any act or omission
or series or combination thereof involving or (14) Financing of terrorism under Section 4
having direct relation to the following: and offenses punishable under Sections 5,
6, 7 and 8 of Republic Act No. 10168,
(1) Kidnapping for ransom under Article 267 otherwise known as the Terrorism Financing
of Act No. 3815, otherwise known as the Prevention and Suppression Act of 2012:
Revised Penal Code, as amended;

(2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14,


15 and 16 of Republic Act No. 9165,
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(15) Bribery under Articles 210, 211 and Disposition of Firearms, Ammunition or
211-A of the Revised Penal Code, as Explosives;
amended, and Corruption of Public Officers
under Article 212 of the Revised Penal Code, (27) Violation of Presidential Decree No.
as amended; 1612, otherwise known as the Anti-Fencing
Law;
(16) Frauds and Illegal Exactions and
Transactions under Articles 213, 214, 215 (28) Violation of Section 6 of Republic Act
and 216 of the Revised Penal Code, as No. 8042, otherwise known as the Migrant
amended; Workers and Overseas Filipinos Act of 1995,
as amended by Republic Act No. 10022;
(17) Malversation of Public Funds and
Property under Articles 217 and 222 of the (29) Violation of Republic Act No. 8293,
Revised Penal Code, as amended; otherwise known as the Intellectual Property
Code of the Philippines;
(18) Forgeries and Counterfeiting under
Articles 163, 166, 167, 168, 169 and 176 of (30) Violation of Section 4 of Republic Act
the Revised Penal Code, as amended; No. 9995, otherwise known as the Anti-
Photo and Video Voyeurism Act of 2009;
(19) Violations of Sections 4 to 6 of Republic
Act No. 9208, otherwise known as the Anti- (31) Violation of Section 4 of Republic Act
Trafficking in Persons Act of 2003; No. 9775, otherwise known as the Anti-Child
Pornography Act of 2009;
(20) Violations of Sections 78 to 79 of
Chapter IV, of Presidential Decree No. 705, (32) Violations of Sections 5, 7, 8, 9, 10(c),
otherwise known as the Revised Forestry (d) and (e), 11, 12 and 14 of Republic Act
Code of the Philippines, as amended; No. 7610, otherwise known as the Special
Protection of Children Against Abuse,
(21) Violations of Sections 86 to 106 of Exploitation and Discrimination;
Chapter VI, of Republic Act No. 8550,
otherwise known as the Philippine Fisheries (33) Fraudulent practices and other
Code of 1998; violations under Republic Act No. 8799,
otherwise known as the Securities
(22) Violations of Sections 101 to 107, and Regulation Code of 2000; and
110 of Republic Act No. 7942, otherwise
known as the Philippine Mining Act of 1995; (34) Felonies or offenses of a similar nature
that are punishable under the penal laws of
(23) Violations of Section 27(c), (e), (f), (g) other countries. (SEC 2 RA NO 10365)
and (i), of Republic Act No. 9147, otherwise
known as the Wildlife Resources (j) Precious metals shall mean gold, silver,
Conservation and Protection Act; platinum, palladium, rhodium, ruthenium, iridium
and osmium. These include alloys of precious
(24) Violation of Section 7(b) of Republic Act metals, solders and plating chemicals such as
No. 9072, otherwise known as the National rhodium and palladium plating solutions and
Caves and Cave Resources Management potassium gold cyanide and potassium silver
Protection Act; cyanide and silver cyanide in salt solution.

(25) Violation of Republic Act No. 6539, (k) Precious stones shall mean diamond, ruby,
otherwise known as the Anti-Carnapping Act emerald, sapphire, opal, amethyst, beryl, topaz,
of 2002, as amended; and garnet that are used in jewelry making,
including those formerly classified as semi-
(26) Violations of Sections 1, 3 and 5 of precious stones. (SEC 3 RA NO 10365)
Presidential Decree No. 1866, as amended,
otherwise known as the decree Codifying SEC. 4. Money Laundering Offense. Money
the Laws on Illegal/Unlawful Possession, laundering is a crime whereby the proceeds of an
Manufacture, Dealing In, Acquisition or unlawful activity are transacted, thereby making
RA 9160; RA 9194; RA 10167; RA 10365
them appear to have originated from legitimate (b) converts, transfers, disposes of, moves,
sources. It is committed by the following: acquires, possesses or uses said monetary
instrument or property;
(a) Any person knowing that any monetary
instrument or property represents, involves, or (c) conceals or disguises the true nature,
relates to, the proceeds of any unlawful activity, source, location, disposition, movement or
transacts or attempts to transact said monetary ownership of or rights with respect to said
instrument or property. monetary instrument or property;

(b) Any person knowing that any monetary (d) attempts or conspires to commit money
instrument or property involves the proceeds of laundering offenses referred to in
any unlawful activity, performs or fails to perform paragraphs (a), (b) or (c);
any act as a result of which he facilitates the
offense of money laundering referred to in (e) aids, abets, assists in or counsels the
paragraph (a) above. commission of the money laundering
offenses referred to in paragraphs (a), (b) or
(c) Any person knowing that any monetary (c) above; and
instrument or property is required under this Act
to be disclosed and filed with the Anti-Money (f) performs or fails to perform any act as a
Laundering Council (AMLC), fails to do so. result of which he facilitates the offense of
money laundering referred to in paragraphs
SEC. 4. Money Laundering Offense. -- Money (a), (b) or (c) above.
laundering is a crime whereby the proceeds of an
unlawful activity as herein defined are transacted, Money laundering is also committed by any
theeby making them appear to have originated covered person who, knowing that a covered or
from legitimate sources. It is committed by the suspicious transaction is required under this Act
following: to be reported to the Anti-Money Laundering
Council (AMLC), fails to do so. (SEC 4 RA NO
(a) Any person knowing that any monetary 10365)
instrument or property represents, involves,
or relates to, the proceeds of any unlawful SEC. 5. Jurisdiction of Money Laundering
activity, transacts or attempts to transacts Cases. The regional trial courts shall have
said monetary instrument or property. jurisdiction to try all cases on money laundering.
Those committed by public officers and private
(b) Any person knowing that any monetary persons who are in conspiracy with such public
instrument or property involves the officers shall be under the jurisdiction of the
proceeds of any unlawful activity, performs Sandiganbayan.
or fails to perform any act as a result of
which he falicitates the offense of money SEC. 6. Prosecution of Money Laundering.
laundering referred to in paragraph (a)
above. (a) Any person may be charged with and
convicted of both the offense of money
(c) Any person knowing that any monetary laundering and the unlawful activity as herein
instrument or property is required under defined.
this Act to be disclosed and filed with the
Anti-Money Laundering Council (AMLC), fails (b) Any proceeding relating to the unlawful
to do so. (SEC 4 RA NO 9194) activity shall be given precedence over the
prosecution of any offense or violation under this
SEC. 4. Money Laundering Offense. Money Act without prejudice to the freezing and other
laundering is committed by any person who, remedies provided.
knowing that any monetary instrument or
property represents, involves, or relates to the SEC. 6. Prosecution of Money Laundering.
proceeds of any unlawful activity:

(a) transacts said monetary instrument or


property;
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(a) Any person may be charged with and (7) to implement such measures as may be
convicted of both the offense of money necessary and justified under this Act to
laundering and the unlawful activity as herein counteract money laundering;
defined.
(8) to receive and take action in respect of,
(b) The prosecution of any offense or violation any request from foreign states for
under this Act shall proceed independently of any assistance in their own anti-money
proceeding relating to the unlawful activity. (SEC laundering operations provided in this Act;
5 RA NO 10365)
(9) to develop educational programs on the
SEC. 7. Creation of Anti-Money Laundering pernicious effects of money laundering, the
Council (AMLC). The Anti-Money Laundering methods and techniques used in money
Council is hereby created and shall be composed laundering, the viable means of preventing
of the Governor of the Bangko Sentral ng Pilipinas money laundering and the effective ways of
as chairman, the Commissioner of the Insurance prosecuting and punishing offenders; and
Commission and the Chairman of the Securities
and Exchange Commission as members. The (10) to enlist the assistance of any branch,
AMLC shall act unanimously in the discharge of its department, bureau, office, agency or
functions as defined hereunder: instrumentality of the government,
including government-owned and
(1) to require and receive covered -controlled corporations, in undertaking any
transaction reports from covered and all anti-money laundering operations,
institutions; which may include the use of its personnel,
facilities and resources for the more
(2) to issue orders addressed to the resolute prevention, detection and
appropriate Supervising Authority or the investigation of money laundering offenses
covered institution to determine the true and prosecution of offenders.
identity of the owner of any monetary
instrument or property subject of a covered SEC.7. Creation of Anti-Money Laundering
transaction report or request for assistance Council (AMLC). -- The Anti-Money Laundering
from a foreign State, or believed by the Council is hereby created and shall be composed
Council, on the basis of substantial of the Governor of the Bangko Sentral ng Pilipinas
evidence, to be, in whole or in part, as chairman, the Commissioner of the Insurance
wherever located, representing, involving, Commission and the Chairman of the Securities
or related to, directly or indirectly, in any and Exchange Commission as member. The AMLC
manner or by any means, the proceeds of shall shall act unanimously in the discharge of its
an unlawful activity; functions as defined hereunder:

(3) to institute civil forfeiture proceedings (1) to require and receive covered or
and all other remedial proceedings through suspicious transaction reports from covered
the Office of the Solicitor General; institutions;

(4) to cause the filing of complaints with the (2) to issue orders addressed to the
Department of Justice or the Ombudsman appropriate Supervising Authority or the
for the prosecution of money laundering covered institutions to determine the true
offenses; identity of the owner of any monetary
instrument or preperty subject of a covered
(5) to initiate investigations of covered transaction or suspicious transaction report
transactions, money laundering activities or request for assistance from a foreign
and other violations of this Act; State, or believed by the Council, on the
basis fo substantial evidence, to be, in
(6) to freeze any monetary instrument or whole or in part, wherever located,
property alleged to be proceeds of any representing, involving, or related to directly
unlawful activity; or indirectly, in any manner or by any
means, the proceeds of an unlawful
activitity.
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(3) to institute civil forfeiture proceedings (11) to impose administrative sanctions for
and all other remedial proceedings through the violation of laws, rules, regulations, and
the Office of th Solicitor General; orders and resolutions issued pursuant
thereto. (SEC 5. RA 9194)
(4) to cause the filing of complaints with the
Department of Justice or the Ombudsman (12) to require the Land Registration
for the prosecution of money laundering Authority and all its Registries of Deeds to
offenses; submit to the AMLC, reports on all real
estate transactions involving an amount in
(5) to investigate suspicious transactions excess of Five hundred thousand pesos
and covered transactions deemed (P500,000.00) within fifteen (15) days from
suspicious after an investigation by AMLC, the date of registration of the transaction, in
money laundering activities and other a form to be prescribed by the AMLC. The
violations of this Act; AMLC may also require the Land
Registration Authority and all its Registries
(6) to apply before the Court of Appeals, ex of Deeds to submit copies of relevant
parte, for the freezing of any monetary documents of all real estate transactions.
instrument or property alleged to be the (SEC 6 RA NO 10365)
proceeds of any unlawful activity as defined
in Section 3(i) hereof; SEC. 8. Creation of a Secretariat. The AMLC
is hereby authorized to establish a secretariat to
(6) to apply before the Court of Appeals, ex be headed by an Executive Director who shall be
parte, for the freezing of any monetary appointed by the Council for a term of five (5)
instrument or property alleged to be years. He must be a member of the Philippine
laundered, proceeds from, or Bar, at least thirty-five (35) years of age and of
instrumentalities used in or intended for use good moral character, unquestionable integrity
in any unlawful activity as defined in and known probity. All members of the Secretariat
Section 3(i) hereof; must have served for at least five (5) years either
in the Insurance Commission, the Securities and
(7) to implement such measures as may be Exchange Commission or the Bangko Sentral ng
necessary and justified under this Act to Pilipinas (BSP) and shall hold full-time permanent
counteract money laundering; positions within the BSP.

(8) to receive and take action in respect of, SEC. 9. Prevention of Money Laundering;
any request from foreign states for Customer Identification Requirements and
assistance in their own anti-money Record Keeping.
laundering operations provided in this Act;
(a) Customer Identification. - Covered institutions
(9) to develop educational programs on the shall establish and record the true identity of its
pernicious effects of money laundering, the clients based on official documents. They shall
methods and techniques used in the money maintain a system of verifying the true identity of
laundering, the viable means of preventing their clients and, in case of corporate clients,
money laundering and the effective ways of require a system of verifying their legal existence
prosecuting and punishing offenders; and organizational structure, as well as the
authority and identification of all persons
purporting to act on their behalf.The provisions of
(10) to enlist the assistance of any branch,
existing laws to the contrary notwithstanding,
department, bureau, office, agency, or
anonymous accounts, accounts under fictitious
instrumentality of the government,
names, and all other similar accounts shall be
including government-owned and
absolutely prohibited. Peso and foreign currency
-controlled corporations, in undertaking any
non-checking numbered accounts shall be
and all anti-money laundering operations,
allowed. The BSP may conduct annual testing
which may include the use of its personnel,
solely limited to the determination of the
facilities and resources for the more
existence and true identity of the owners of such
resolute prevention, detection, and
accounts.
investigation of money laundering offenses
and prosecution of offenders; and
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(b) Record Keeping. - All records of all (c) Reporting of Covered and Suspicious
transactions of covered institutions shall be Transactions. -- Covered institutions shall report
maintained and safely stored for five (5) years to the AMLC all covered transactions and
from the dates of transactions. With respect to suspicious transactions within five(5) working
closed accounts, the records on customer days from occurrences thereof, unless the
identification, account files and business Supervising Authority prescribes a longer period
correspondence, shall be preserved and safely not exceeding ten (10) working days.
stored for at least five (5) years from the dates
when they were closed. "Should a transaction be determined to be both a
covered transaction and a suspicious transaction,
(c) Reporting of Covered Transactions. - Covered the covered institution shall be required to report
institutions shall report to the AMLC all covered the same as a suspicious transaction.
transactions within five (5) working days from
occurrence thereof, unless the Supervising "When reporting covered or suspicious
Authority concerned prescribes a longer period transactions to the AMLC, covered institutions
not exceeding ten (10) working days. and their officers and employees shall not be
deemed to have violated Republic Act No. 1405,
When reporting covered transactions to the as amended, Republic Act No. 6426, as amended,
AMLC, covered institutions and their officers, Republic Act No. 8791 and other similar laws, but
employees, representatives, agents, advisors, are prohibited from communicating, directly or
consultants or associates shall not be deemed to indirectly, in any manner or by an means, to any
have violated Republic Act No. 1405, as person, the fact that a covered or suspicious
amended; Republic Act No. 6426, as amended; transaction report was made, the contents
Republic Act No. 8791 and other similar laws, but thereof, or any other information in relation
are prohibited from communicating, directly or thereto. In case of violation thereof, the
indirectly, in any manner or by any means, to any concerned officer and employee of the covered
person the fact that a covered transaction report institution shall be criminally liable. However, no
was made, the contents thereof, or any other administrative, criminal or civil proceedings, shall
information in relation thereto. In case of violation lie against any person for having made a covered
thereof, the concerned officer, employee, or suspicious transaction report in the regular
representative, agent, advisor, consultant or performance of his duties in good faith, whether
associate of the covered institution, shall be or not such reporting results in any criminal
criminally liable. However, no administrative, prosecution under this Act of any other law.
criminal or civil proceedings, shall lie against any
person for having made a covered transaction "When reporting covered or suspicious
report in the regular performance of his duties transactions to the AMLC, covered instituting and
and in good faith, whether or not such reporting their officers and employees are prohibited from
results in any criminal prosecution under this Act communicating directly or indirectly, in any
or any other Philippine law. manner or by any means, to any person or entity,
the media, the fact that a covered or suspicious
When reporting covered transactions to the transaction report was made, the contents
AMLC, covered institutions and their officers, thereof, or any other information in relation
employees, representatives, agents, advisors, thereto. Neither may such reporting be published
consultants or associates are prohibited from or aired in any manner or form by the mass
communicating, directly or indirectly, in any media, electronic mail, or other similar devices. In
manner or by any means, to any person, entity, case of violation thereof, the concerned officer
the media, the fact that a covered transaction and employee of the covered institution and
report was made, the contents thereof, or any media shall be held criminally liable. (SEC 6 RA
other information in relation thereto. Neither may 9194)
such reporting be published or aired in any
manner or form by the mass media, electronic (c) Reporting of Covered and Suspicious
mail, or other similar devices. In case of violation Transactions. Covered persons shall report to
thereof, the concerned officer, employee, the AMLC all covered transactions and suspicious
representative, agent, advisor, consultant or transactions within five (5) working days from
associate of the covered institution, or media occurrence thereof, unless the AMLC prescribes a
shall be held criminally liable. different period not exceeding fifteen (15)
working days.
RA 9160; RA 9194; RA 10167; RA 10365
Lawyers and accountants acting as independent application ex parte by the AMLC and after
legal professionals are not required to report determination that probable cause exists that any
covered and suspicious transactions if the monetary instrument or property is in any way
relevant information was obtained in related to an unlawful activity as defined in
circumstances where they are subject to Section 3(i) hereof, may issue a freeze order
professional secrecy or legal professional which shall be effective immediately. The freeze
privilege. order shall be for a period of twenty (20) days
unless extended by the court. (SEC 7 RA 9194)
x x x
SEC. 10. Freezing of Monetary Instrument or
x x x Property. Upon verified ex parte petition by the
AMLC and after determination that probable
When reporting covered or suspicious cause exists that any monetary instrument or
transactions to the AMLC, covered persons and property is in any way related to an unlawful
their officers and employees are prohibited from activity as defined in Section 3(i) hereof, the
communicating, directly or indirectly, in any Court of Appeals may issue a freeze order, which
manner or by any means, to any person or entity, shall be effective immediately. The freeze order
the media, the fact that a covered or suspicious shall be for a period of twenty (20) days unless
transaction has been reported or is about to be extended by the court. In any case, the court
reported, the contents of the report, or any other should act on the petition to freeze within twenty-
information in relation thereto. Neither may such four (24) hours from filing of the petition. If the
reporting be published or aired in any manner or application is filed a day before a nonworking
form by the mass media, electronic mail, or day, the computation of the twenty-four (24)-hour
other similar devices. In case of violation thereof, period shall exclude the nonworking days."
the concerned officer and employee of the
covered person and media shall be held A person whose account has been frozen may file
criminally liable. (SEC 7 RA NO 10365) a motion to lift the freeze order and the court
must resolve this motion before the expiration of
SEC. 10. Authority to Freeze. Upon the twenty (20)-day original freeze order.
determination that probable cause exists that any
deposit or similar account is in any way related to No court shall issue a temporary restraining order
an unlawful activity, the AMLC may issue a freeze or a writ of injunction against any freeze order,
order, which shall be effective immediately, on except the Supreme Court. (SEC 1 RA NO.
the account for a period not exceeding fifteen 10167)
(15) days. Notice to the depositor that his
account has been frozen shall be issued SEC. 10. Freezing of Monetary Instrument or
simultaneously with the issuance of the freeze Property. Upon a verified ex parte petition by
order. The depositor shall have seventy-two (72) the AMLC and after determination that probable
hours upon receipt of the notice to explain why cause exists that any monetary instrument or
the freeze order should be lifted. The AMLC has property is in any way related to an unlawful
seventy-two (72) hours to dispose of the activity as defined in Section 3(i) hereof, the
depositors explanation. If it fails to act within Court of Appeals may issue a freeze order which
seventy-two (72) hours from receipt of the shall be effective immediately, and which shall
depositors explanation, the freeze order shall not exceed six (6) months depending upon the
automatically be dissolved. The fifteen (15)-day circumstances of the case: Provided, That if there
freeze order of the AMLC may be extended upon is no case filed against a person whose account
order of the court, provided that the fifteen (15)- has been frozen within the period determined by
day period shall be tolled pending the courts the court, the freeze order shall be deemed ipso
decision to extend the period. facto lifted: Provided, further, That this new rule
shall not apply to pending cases in the courts. In
No court shall issue a temporary restraining order any case, the court should act on the petition to
or writ of injunction against any freeze order freeze within twenty-four (24) hours from filing of
issued by the AMLC except the Court of Appeals the petition. If the application is filed a day before
or the Supreme Court. a nonworking day, the computation of the twenty-
four (24)-hour period shall exclude the
Sec 10. Freezing of Monetary Instrument or nonworking days.
Property. -- The Court of Appeals, upon
RA 9160; RA 9194; RA 10167; RA 10365
A person whose account has been frozen may file examine any particular deposit or investment,
a motion to lift the freeze order and the court including related accounts, with any banking
must resolve this motion before the expiration of institution or non-bank financial institution upon
the freeze order. order of any competent court based on an ex
parte application in cases of violations of this Act,
No court shall issue a temporary restraining order when it has been established that there is
or a writ of injunction against any freeze order, probable cause that the deposits or investments,
except the Supreme Court. (SEC 8 RA NO. including related accounts involved, are related to
10365) an unlawful activity as defined in Section 3(i)
hereof or a money laundering offense under
SEC. 11. Authority to Inquire into Bank Section 4 hereof; except that no court order shall
Deposits. Notwithstanding the provisions of be required in cases involving activities defined in
Republic Act No. 1405, as amended; Republic Act Section 3(i)(1), (2), and (12) hereof, and felonies
No. 6426, as amended; Republic Act No. 8791, or offenses of a nature similar to those mentioned
and other laws, the AMLC may inquire into or in Section 3(i)(1), (2), and (12), which are
examine any particular deposit or investment Punishable under the penal laws of other
with any banking institution or non-bank financial countries, and terrorism and conspiracy to
institution upon order of any competent court in commit terrorism as defined and penalized under
cases of violation of this Act when it has been Republic Act No. 9372.
established that there is probable cause that the
deposits or investments involved are in any way The Court of Appeals shall act on the application
related to a money laundering offense: Provided, to inquire into or examine any deposit or
That this provision shall not apply to deposits and investment with any banking institution or non-
investments made prior to the effectivity of this bank financial institution within twenty-four (24)
Act. hours from filing of the application.

Sec. 11. Authority to Inquire into Bank To ensure compliance with this Act, the Bangko
Deposits. -- Notwithstanding the provisions of Sentral ng Pilipinas may, in the course of a
Republic Act No. 1405, as amended, Republic Act periodic or special examination, check the
No. 6426, as amended, Republic Act No. 8791, compliance of a Covered institution with the
and other laws, the AMLC may inquire into or requirements of the AMLA and its implementing
examine any particular deposit or investment rules and regulations.
with any banking institution or non-bank financial
institution upon order of any competent court in For purposes of this section, related accounts
cases of violation of this Act, when it has been shall refer to accounts, the funds and sources of
established that there is probable cause that the which originated from and/or are materially linked
deposits or investments are related to an to the monetary instrument(s) or property(ies)
unlawful activities as defined in Section 3(I) subject of the freeze order(s).
hereof or a money laundering offense under
Section 4 hereof, except that no court order shall A court order ex parte must first be obtained
be required in cases involving unlawful activities before the AMLC can inquire into these related
defined in Sections 3(I)1, (2) and (12). Accounts: Provided, That the procedure for the ex
parte application of the ex parte court order for
To ensure compliance with this Act, the Bangko the principal account shall be the same with that
Sentral ng Pilipinas (BSP) may inquire into or of the related accounts.
examine any deposit of investment with any
banking institution or non-bank financial The authority to inquire into or examine the main
institution when the examination is made in the account and the related accounts shall comply
course of a periodic or special examination, in with the requirements of Article III, Sections 2 and
accordance with the rules of examination of the 3 of the 1987 Constitution, which are hereby
BSP. (SEC 8 RA 9194) incorporated by reference. (SEC 2 RA NO.
10167)
SEC. 11. Authority to Inquire into Bank
Deposits. Notwithstanding the provisions of SEC. 12. Forfeiture Provisions.
Republic Act No. 1405, as amended; Republic Act
No. 6426, as amended; Republic Act No. 8791; (a) Civil Forfeiture. - When there is a covered
and other laws, the AMLC may inquire into or transaction report made, and the court has, in a
RA 9160; RA 9194; RA 10167; RA 10365
petition filed for the purpose ordered seizure of appropriate court through the Office of the
any monetary instrument or property, in whole or Solicitor General, a verified ex parte petition for
in part, directly or indirectly, related to said forfeiture, and the Rules of Court on Civil
report, the Revised Rules of Court on civil Forfeiture shall apply.
forfeiture shall apply.
The forfeiture shall include those other monetary
(b) Claim on Forfeited Assets. - Where the court instrument or property having an equivalent
has issued an order of forfeiture of the monetary value to that of the monetary instrument or
instrument or property in a criminal prosecution property found to be related in any way to an
for any money laundering offense defined under unlawful activity or a money laundering offense,
Section 4 of this Act, the offender or any other when with due diligence, the former cannot be
person claiming an interest therein may apply, by located, or it has been substantially altered,
verified petition, for a declaration that the same destroyed, diminished in value or otherwise
legitimately belongs to him and for segregation or rendered worthless by any act or omission, or it
exclusion of the monetary instrument or property has been concealed, removed, converted, or
corresponding thereto. The verified petition shall otherwise transferred, or it is located outside the
be filed with the court which rendered the Philippines or has been placed or brought outside
judgment of conviction and order of forfeiture, the jurisdiction of the court, or it has been
within fifteen (15) days from the date of the order commingled with other monetary instrument or
of forfeiture, in default of which the said order property belonging to either the offender himself
shall become final and executory. This provision or a third person or entity, thereby rendering the
shall apply in both civil and criminal forfeiture. same difficult to identify or be segregated for
purposes of forfeiture.
(c) Payment in Lieu of Forfeiture. - Where the
court has issued an order of forfeiture of the (b) Claim on Forfeited Assets. Where the court
monetary instrument or property subject of a has issued an order of forfeiture of the monetary
money laundering offense defined under Section instrument or property in a criminal prosecution
4, and said order cannot be enforced because any for any money laundering offense defined under
particular monetary instrument or property Section 4 of this Act, the offender or any other
cannot, with due diligence, be located, or it has person claiming an interest therein may apply, by
been substantially altered, destroyed, diminished verified petition, for a declaration that the same
in value or otherwise rendered worthless by any legitimately belongs to him and for segregation or
act or omission, directly or indirectly, attributable exclusion of the monetary instrument or property
to the offender, or it has been concealed, corresponding thereto. The verified petition shall
removed, converted or otherwise transferred to be filed with the court which rendered the
prevent the same from being found or to avoid judgment of forfeiture, within fifteen (15) days
forfeiture thereof, or it is located outside the from the date of the finality of the order of
Philippines or has been placed or brought outside forfeiture, in default of which the said order shall
the jurisdiction of the court, or it has been become final and executor. This provision shall
commingled with other monetary instruments or apply in both civil and criminal forfeiture.
property belonging to either the offender himself
or a third person or entity, thereby rendering the (c) Payment in Lieu of Forfeiture. Where the
same difficult to identify or be segregated for court has issued an order of forfeiture of the
purposes of forfeiture, the court may, instead of monetary instrument or property subject of a
enforcing the order of forfeiture of the monetary money laundering offense defined under Section
instrument or property or part thereof or interest 4, and said order cannot be enforced because any
therein, accordingly order the convicted offender particular monetary instrument or property
to pay an amount equal to the value of said cannot, with due diligence, be located, or it has
monetary instrument or property. This provision been substantially altered, destroyed, diminished
shall apply in both civil and criminal forfeiture. in value or otherwise rendered worthless by any
act or omission, directly or indirectly, attributable
(a) Civil Forfeiture. Upon determination by the to the offender, or it has been concealed,
AMLC that probable cause exists that any removed, converted, or otherwise transferred to
monetary instrument or property is in any way prevent the same from being found or to avoid
related to an unlawful activity as defined in forfeiture thereof, or it is located outside the
Section 3(i) or a money laundering offense under Philippines or has been placed or brought outside
Section 4 hereof, the AMLC shall file with the the jurisdiction of the court, or it has been
RA 9160; RA 9194; RA 10167; RA 10365
commingled with other monetary instruments or thereto; (3) to the extent allowed by the law of
property belonging to either the offender himself the foreign State, applying with the proper court
or a third person or entity, thereby rendering the therein for an order to enter any premises
same difficult to identify or be segregated for belonging to or in the possession or control of,
purposes of forfeiture, the court may, instead of any or all of the persons named in said request,
enforcing the order of forfeiture of the monetary and/or search any or all such persons named
instrument or property or part thereof or interest therein and/or remove any document, material or
therein, accordingly order the convicted offender object named in said request: Provided, That the
to pay an amount equal to the value of said documents accompanying the request in support
monetary instrument or property. This provision of the application have been duly authenticated
shall apply in both civil and criminal forfeiture. in accordance with the applicable law or
(SEC 9 RA NOP 10365) regulation of the foreign State; and (4) applying
for an order of forfeiture of any monetary
SEC. 13. Mutual Assistance among States. instrument or property in the proper court in the
foreign State: Provided, That the request is
(a) Request for Assistance from a Foreign State. - accompanied by an authenticated copy of the
Where a foreign State makes a request for order of the regional trial court ordering the
assistance in the investigation or prosecution of a forfeiture of said monetary instrument or property
money laundering offense, the AMLC may of a convicted offender and an affidavit of the
execute the request or refuse to execute the clerk of court stating that the conviction and the
same and inform the foreign State of any valid order of forfeiture are final and that no further
reason for not executing the request or for appeal lies in respect of either.
delaying the execution thereof. The principles of
mutuality and reciprocity shall, for this purpose, (d) Limitations on Requests for Mutual Assistance.
be at all times recognized. - The AMLC may refuse to comply with any
request for assistance where the action sought by
(b) Powers of the AMLC to Act on a Request for the request contravenes any provision of the
Assistance from a Foreign State. - The AMLC may Constitution or the execution of a request is likely
execute a request for assistance from a foreign to prejudice the national interest of the
State by: (1) tracking down, freezing, restraining Philippines unless there is a treaty between the
and seizing assets alleged to be proceeds of any Philippines and the requesting State relating to
unlawful activity under the procedures laid down the provision of assistance in relation to money
in this Act; (2) giving information needed by the laundering offenses.
foreign State within the procedures laid down in
this Act; and (3) applying for an order of forfeiture (e) Requirements for Requests for Mutual
of any monetary instrument or property in the Assistance from Foreign States. - A request for
court: Provided, That the court shall not issue mutual assistance from a foreign State must (1)
such an order unless the application is confirm that an investigation or prosecution is
accompanied by an authenticated copy of the being conducted in respect of a money launderer
order of a court in the requesting State ordering named therein or that he has been convicted of
the forfeiture of said monetary instrument or any money laundering offense; (2) state the
property of a person who has been convicted of a grounds on which any person is being
money laundering offense in the requesting investigated or prosecuted for money laundering
State, and a certification or an affidavit of a or the details of his conviction; (3) give sufficient
competent officer of the requesting State stating particulars as to the identity of said person; (4)
that the conviction and the order of forfeiture are give particulars sufficient to identify any covered
final and that no further appeal lies in respect of institution believed to have any information,
either. document, material or object which may be of
assistance to the investigation or prosecution; (5)
(c) Obtaining Assistance from Foreign States. - ask from the covered institution concerned any
The AMLC may make a request to any foreign information, document, material or object which
State for assistance in (1) tracking down, may be of assistance to the investigation or
freezing, restraining and seizing assets alleged to prosecution; (6) specify the manner in which and
be proceeds of any unlawful activity; (2) to whom said information, document, material or
obtaining information that it needs relating to any object obtained pursuant to said request, is to be
covered transaction, money laundering offense or produced; (7) give all the particulars necessary
any other matter directly or indirectly related for the issuance by the court in the requested
RA 9160; RA 9194; RA 10167; RA 10365
State of the writs, orders or processes needed by imprisonment ranging from seven (7) to fourteen
the requesting State; and (8) contain such other (14) years and a fine of not less than Three
information as may assist in the execution of the million Philippine pesos (Php3,000,000.00) but
request. not more than twice the value of the monetary
instrument or property involved in the offense,
(f) Authentication of Documents. - For purposes of shall be imposed upon a person convicted under
this Section, a document is authenticated if the Section 4(a), (b), (c) and (d) of this Act.
same is signed or certified by a judge, magistrate
or equivalent officer in or of, the requesting State, The penalty of imprisonment from four (4) to
and authenticated by the oath or affirmation of a seven (7) years and a fine of not less than One
witness or sealed with an official or public seal of million five hundred thousand Philippine pesos
a minister, secretary of State, or officer in or of, (Php1,500,000.00) but not more than Three
the government of the requesting State, or of the million Philippine pesos (Php3,000,000.00), shall
person administering the government or a be imposed upon a person convicted under
department of the requesting territory, Section 4(e) and (f) of this Act.
protectorate or colony. The certificate of
authentication may also be made by a secretary The penalty of imprisonment from six (6) months
of the embassy or legation, consul general, to four (4) years or a fine of not less than One
consul, vice consul, consular agent or any officer hundred thousand Philippine pesos
in the foreign service of the Philippines stationed (Php100,000.00) but not more than Five hundred
in the foreign State in which the record is kept, thousand Philippine pesos (Php500,000.00), or
and authenticated by the seal of his office. both, shall be imposed on a person convicted
under the last paragraph of Section 4 of this Act.
(g) Extradition. - The Philippines shall negotiate
for the inclusion of money laundering offenses as (b) Penalties for Failure to Keep Records. The
herein defined among extraditable offenses in all penalty of imprisonment from six (6) months to
future treaties. one (1) year or a fine of not less than One
hundred thousand Philippine pesos
SEC. 14. Penal Provisions. (Php100,000.00) but not more than Five hundred
thousand Philippine pesos (Php500,000.00), or
(a) Penalties for the Crime of Money Laundering. both, shall be imposed on a person convicted
The penalty of imprisonment ranging from seven under Section 9(b) of this Act.
(7) to fourteen (14) years and a fine of not less
than Three million Philippine pesos (Php (c) Malicious Reporting. Any person who, with
3,000,000.00) but not more than twice the value malice, or in bad faith, reports or files a
of the monetary instrument or property involved completely unwarranted or false information
in the offense, shall be imposed upon a person relative to money laundering transaction against
convicted under Section 4(a) of this Act. any person shall be subject to a penalty of six (6)
months to four (4) years imprisonment and a fine
The penalty of imprisonment from four (4) to of not less than One hundred thousand Philippine
seven (7) years and a fine of not less than One pesos (Php100, 000.00) but not more than Five
million five hundred thousand Philippine pesos hundred thousand Philippine pesos (Php500,
(Php1,500,000.00) but not more than Three 000.00), at the discretion of the court: Provided,
million Philippine pesos (Php3,000,000.00), shall That the offender is not entitled to avail the
be imposed upon a person convicted under benefits of the Probation Law.
Section 4(b) of this Act.
If the offender is a corporation, association,
The penalty of imprisonment from six (6) months partnership or any juridical person, the penalty
to four (4) years or a fine of not less than One shall be imposed upon the responsible officers, as
hundred thousand Philippine pesos the case may be, who participated in the
(Php100,000.00) but not more than Five hundred commission of the crime or who shall have
thousand Philippine pesos (Php500,000.00), or knowingly permitted or failed to prevent its
both, shall be imposed on a person convicted commission. If the offender is a juridical person,
under Section 4(c) of this Act. the court may suspend or revoke its license. If the
offender is an alien, he shall, in addition to the
SEC. 14. Penal Provisions. (a) Penalties for penalties herein prescribed, be deported without
the Crime of Money Laundering. The penalty of further proceedings after serving the penalties
RA 9160; RA 9194; RA 10167; RA 10365
herein prescribed. If the offender is a public thousand Philippine pesos (Php500,000.00) but
official or employee, he shall, in addition to the not more than One million Philippine pesos
penalties prescribed herein, suffer perpetual or (Php1,000,000.00) shall be imposed on a person
temporary absolute disqualification from office, convicted for a violation under Section 9(c). In the
as the case may be. case of a breach of confidentiality that is
published or reported by media, the responsible
Any public official or employee who is called upon reporter, writer, president, publisher, manager
to testify and refuses to do the same or purposely and editor-in-chief shall be liable under this Act.
fails to testify shall suffer the same penalties (SEC 9 RA NO 9194)
prescribed herein.
(e) The penalty of imprisonment ranging from
(c) Malicious Reporting. Any person who, with four (4) to seven (7) years and a fine
malice, or in bad faith, reports or files a corresponding to not more than two hundred
completely unwarranted or false information percent (200%) of the value of the monetary
relative to money laundering transaction against instrument or property laundered shall be
any person shall be subject to a penalty to six (6) imposed upon the covered person, its directors,
months to four (4) years imprisonment and a fine officers or pesonnel who knowingly participated in
of not less than One hundred thousand Philippine the commission of the crime of money
pesos (Php100,000.00) but not more than Five laundering.
hundred thousand Philippine pesos
(Php500,000.00), at the discretion of the court: (f) Imposition of Administrative Sanctions. The
Provided, That the offender is not entitled to avail imposition of the administrative sanctions shall
the benefits of the Probation Law. be without prejudice to the filing of criminal
charges against the persons responsible for the
"If the offender is a corporation, association, violation.
partnership or any juridical person, the penalty
shall be imposed upon the responsible officers, as After due notice and hearing, the AMLC shall, at
the case may be, who participated in, or allowed its discretion, impose sanctions, including
by their gross negligence, the commission of the monetary penalties, warning or reprimand, upon
crime. If the offender is a juridical person, the any covered person, its directors, officers,
court may suspend or revoke its license. If the employees or any other person for the violation of
offer is an alien, he shall, in addition to the this Act, its implementing rules and regulations,
penalties herein prescribed, be deported without or for failure or refusal to comply with AMLC
further proceedings after serving the penalties orders, resolutions and other issuances. Such
herein prescribed. If the offender is a public monetary penalties shall be in amounts as may
official or employee, he shall, in addition to the be determined by the AMLC to be appropriate,
penalties prescribed herein, suffer perpetual or which shall not be more than Five hundred
temporary absolute disqualification from office, thousand Philippine pesos (P500,000.00) per
as the case may be. violation.

"Any public official or employee who is called The AMLC may promulgate rules on fines and
upon to testify and refuses to do the same or penalties taking into consideration the attendant
purposely fails to testify shall suffer the same circumstances, such as the nature and gravity of
penalties prescribed herein. (SEC 9 RA NO the violation or irregularity.
9194)
(g) The provision of this law shall not be
(d) Breach of Confidentiality. The punishment of construed or implemented in a manner that will
imprisonment ranging from three (3) to eight (8) discriminate against certain customer types, such
years and a fine of not less than Five hundred as politically-exposed persons, as well as their
thousand Philippine pesos (Php500,000.00) but relatives, or against a certain religion, race or
not more than One million Philippine pesos ethnic origin, or such other attributes or profiles
(Php1,000,000.00), shall be imposed on a person when used as the only basis to deny these
convicted for a violation under Section 9(c). persons access to the services provided by the
covered persons. Whenever a bank, or quasi-
(d) Breach of Confidentiality. The punishment of bank, financial institution or whenever any person
imprisonment ranging from three (3) to eight (8) or entity commits said discriminatory act, the
years and a fine of not less than Five hundred person or persons responsible for such violation
RA 9160; RA 9194; RA 10167; RA 10365
shall be subject to sanctions as may be deemed House of Representatives shall be appointed by
appropriate by their respective regulators. (SEC the Speaker also based on proportional
10 RA NO 10365) representation of the parties or coalitions therein
with at least two (2) members representing the
SEC. 15. System of Incentives and Rewards. minority.
A system of special incentives and rewards is
hereby established to be given to the appropriate The Oversight Committee shall have the power to
government agency and its personnel that led promulgate its own rules, to oversee the
and initiated an investigation, prosecution and implementation of this Act, and to review or
conviction of persons involved in the offense revise the implementing rules issued by the Anti-
penalized in Section 4 of this Act. Money Laundering Council within thirty (30) days
from the promulgation of the said rules.
SEC. 16. Prohibitions Against Political
Harassment. This Act shall not be used for SEC. 20. Appropriations Clause. The AMLC
political persecution or harassment or as an shall be provided with an initial appropriation of
instrument to hamper competition in trade and Twenty-five million Philippine pesos
commerce. (Php25,000,000.00) to be drawn from the
national government. Appropriations for the
No case for money laundering may be filed succeeding years shall be included in the General
against and no assets shall be frozen, attached or Appropriations Act.
forfeited to the prejudice of a candidate for an
electoral office during an election period. SEC. 20. Non-intervention in the Bureau of
Internal Revenue (BIR) Operations. Nothing
SEC. 17. Restitution. Restitution for any contained in this Act nor in related antecedent
aggrieved party shall be governed by the laws or existing agreements shall be construed to
provisions of the New Civil Code. allow the AMLC to participate in any manner in
the operations of the BIR.
SEC. 18. Implementing Rules and
Regulations. Within thirty (30) days from the SEC. 21. The authority to inquire into or examine
effectivity of this Act, the Bangko Sentral ng the main account and the related accounts shall
Pilipinas, the Insurance Commission and the comply with the requirements of Article III,
Securities and Exchange Commission shall Sections 2 and 3 of the 1987 Constitution, which
promulgate the rules and regulations to are hereby incorporated by reference. Likewise,
implement effectively the provisions of this Act. the constitutional injunction against ex post facto
Said rules and regulations shall be submitted to laws and bills of attainder shall be respected in
the Congressional Oversight Committee for the implementation of this Act. (SEC 11 RA NO
approval. 10365)

Covered institutions shall formulate their SEC. 21. Separability Clause. If any provision
respective money laundering prevention or section of this Act or the application thereof to
programs in accordance with this Act including, any person or circumstance is held to be invalid,
but not limited to, information dissemination on the other provisions or sections of this Act, and
money laundering activities and its prevention, the application of such provision or section to
detection and reporting, and the training of other persons or circumstances, shall not be
responsible officers and personnel of covered affected thereby.
institutions.
SEC. 22. Repealing Clause. All laws, decrees,
SEC. 19. Congressional Oversight executive orders, rules and regulations or parts
Committee. There is hereby created a thereof, including the relevant provisions of
Congressional Oversight Committee composed of Republic Act No. 1405, as amended; Republic Act
seven (7) members from the Senate and seven No. 6426, as amended; Republic Act No. 8791, as
(7) members from the House of Representatives. amended and other similar laws, as are
The members from the Senate shall be appointed inconsistent with this Act, are hereby repealed,
by the Senate President based on the amended or modified accordingly.
proportional representation of the parties or
coalitions therein with at least two (2) Senators SEC. 23. Effectivity. This Act shall take effect
representing the minority. The members from the fifteen (15) days after its complete publication in
RA 9160; RA 9194; RA 10167; RA 10365
the Official Gazette or in at least two (2) national Section 4. Repealing Clause. All laws, decrees,
newspapers of general circulation. executive orders, rules and regulations or parts
thereof as are inconsistent with this Act are
SEC. 23. Effectivity. -- This Act shall take effect hereby repealed, amended or modified
fifteen (15) days after its complete publication in accordingly: Provided, That the penal provisions
the Official Gazette or in at least two (2) national shall not apply to acts done prior to the effectivity
newspapers of general circulation. (SEC 11 RA of the AMLA on October 17, 2001 .
NO 9194)
Section 5. Effectivity. This Act shall take effect
fifteen (15) days after its complete publication in
the Official Gazette or in at least two (2) national
newspapers of general circulation.
RA NO 9194

SECTION 12. Transitory Provision. -- Existing


freeze orders issued by the AMLC shall remain in
force for a period of thirty (30) days after the RA NO 10365
effectivity of this Act, unless extended by the
Court of Appeals. SEC. 13. Separability Clause. If any provision
of this Act is declared unconstitutional, the same
SECTION 13. Effectivity. -- This Act shall take shall not affect the validity and effectivity of the
effect fifteen (15) days after its complete other provisions hereof.
publication in the Official Gazette or in at least
two (2) national newspapers of general SEC. 14. Repealing Clause. All laws, decrees,
circulation. orders, and issuances or portions thereof, which
are inconsistent with the provisions of this Act,
are hereby repealed, amended or modified
accordingly.

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SEC. 15. Effectivity. This Act shall take effect
fifteen (15) days following its publication in at
Section 3. Separability Clause. If any provision least two (2) national newspapers of general
of this Act or the application thereof to any circulation.
person or circumstance is held to be void, or
unconstitutional, any other provision not affected
thereby shall remain in full force and effect.