Regulatory Framework and Legal Issues in Business

MODULE 3: LESSON 3
For March 20, 2020
For BSA 2 and BSMA 2

Prepared by: Atty. Angelo Andro M. Suan, CPA

LESSON/TOPIC : Anti Money Laundering Act of 2001

Learning Target(s) : To point out the coverage of the law protecting money laundering
Reference : http://www.bsp.gov.ph/regulations/laws_aml.asp

Concept:

Money laundering is the process of making large amounts of money generated by a criminal

activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate
source. The money from the criminal activity is considered dirty, and the process "launders" it
to make it look clean.

Money laundering is essential for criminal organizations that wish to use illegally obtained
money effectively. Dealing in large amounts of illegal cash is inefficient and dangerous.
Criminals need a way to deposit the money in legitimate financial institutions, yet they can only
do so if it appears to come from legitimate sources.

Questions:

Answer the following, in a yellow sheet of paper. It must be handwritten. Further, do not
write anything at the back of the sheet.

1. What do you mean by freezing of account. And how is it related to the power of AMLC.
2. Can the AMLC inquire into the deposit of a person, without violating the Bank Secrecy
Law. Explain.
3. What is the penalty imposed in violating R.A 9160