"Sec. 22. Penalties and Liabilities.

– Any violations of the preceding actions will warrant the following

penalties and liabilities.

"(a) First Offense: Administrative liability with six (6) months suspension: Provided, however, That in
the case of fixing and/or collusion with fixers under Section 21(h), the penalty and liability under
Section 22(b) of this Act shall apply.

"(b) Second Offense: Administrative liability and criminal liability of dismissal from the service,
perpetual disqualification from holding public office and forfeiture of retirement benefits and
imprisonment of one (1) year to six (6) years with a fine of not less than Five hundred thousand pesos
(P500,000.00), but not more than Two million pesos (P2,000,000.00).

"Criminal liability shall also be incurred through the commission of bribery, extortion, or when the
violation was done deliberately and maliciously to solicit favor in cash or in kind. In such cases, the
pertinent provisions of the Revised Penal Code and other special laws shall apply."

Section 14. Section 13 of the same Act is hereby renumbered as Section 23 to read as follows:

"Section 22. Sanctions and Liability. - Any breach of the preceding act will result in the following
sanctions and obligations.

"(a) First offense: Administrative liability with a suspension of six (6) months: provided, however, that in
the event of restraint and / or consultation with the fixator under Section 21 (h) the sentence and
liability under Section 22 (b) of This law.

"(b) Second offense: Administrative and criminal responsibility for dismissal, permanent exemption from
public office and withdrawal of pension benefits and imprisonment from one (1) year to six (6) years
with a fine of less than five hundred thousand pesos (500,000), 00 pesos), but not more than two million
pesos (P2 000 000.00 pesos).

"Criminal liability can also be assumed through bribery, extortion, or willful and malicious acts of
misconduct seeking cash or in-kind assistance. In such cases, apply the relevant provisions of the revised
Criminal Code and other specific laws."

Section 14. Part 13 of the same Act is renumbered in Section 23 as follows:

"Sec. 23. Civil and Criminal Liability, Not Barred.- The finding of administrative liability under this Act
shall not be a bar to the filing of criminal, civil or other related charges under existing laws arising
from the same act or omission as herein enumerated."

Section 15. Section 14 of the same Act is hereby amended and renumbered as Section 24 to read as
follows:

"Section 23. Non-Prohibited Civil and Criminal Liability. - The establishment of administrative
responsibility under this Law does not exclude criminal, civil, or other related charges under applicable
law arising from the same acts or omissions as set out herein . "

Section 15. Part 14 of the same Act is amended and renumbered in Section 24 as follows:

"Sec. 24. Administrative Jurisdiction. – The administrative jurisdiction on any violation of the
provisions of this Act shall be vested in either the CSC, or the Office of the Ombudsman as determined
by appropriate laws and issuances."

Section 16. Section 15 of the same Act is hereby renumbered as Section 25, and all succeeding sections
of the same Act are hereby deleted.

"Section 24. Administrative Jurisdiction. Administrative jurisdiction for violations of the provisions of this
Act rests with the CSC or the Office of the Ombudsman as provided for in the statute and the relevant
publications."

Section 16. Part 15 of the same Act is renumbered as Section 25 and all subsequent sections of the same
Act are deleted.

"Sec. 25. Immunity, Discharge of Co-Respondent/Accused to be a Witness. – Any public official or

employee or any person having been charged with another offense under this Act and who voluntarily
gives information pertaining to an investigation or who willingly testifies therefore, shall be exempt
from prosecution in the case/s where his/her information and testimony are given. The discharge may
be granted and directed by the investigating body or court upon the application or petition of any of
the respondent/accused-informant and before the termination of the investigation: Provided, That:

"(a) There is absolute necessity for the testimony of the respondent/accused-informant whose
discharge is requested;

"(b) There is no other direct evidence available for the proper prosecution of the offense committed,
except the testimony of said respondent/accused-informant;

"(c) The testimony of said respondent can be substantially corroborated in its material points;
"(d) The respondent/accused-informant has not been previously convicted of a crime involving moral
turpitude; and

"(e) Said respondent/accused-informant does not appear to be the most guilty.

"Evidence adduced in support of the discharge shall automatically form part of the records of the
investigation. Should the investigating body or court deny the motion or request for discharge as a
witness, his/her sworn statement shall be inadmissible as evidence."

Section 17. New sections to be numbered as Sections 26, 27, 28, 29, 30, 31, 32 and 33 are hereby
inserted after Section 15 of the same Act to read as follows:

Section 25. Immunity, Relief from Responsibility of the Defendant / Defendant Testifies. - Civil servants
or employees or persons accused of other crimes under this law who voluntarily provide information in
connection with investigations or voluntarily give testimony are therefore excluded from prosecution in
cases where the information and testimony have been presented. Dismissals can be issued and
administered by the investigative authority or the court at the request or request of one of the
defendants, the informant of the accused and prior to the completion of the investigation: that:

“(A) A defendant / defendant's informant who is requested to be released is very much needed
information.

"(B) There is no direct evidence of proper prosecution of the crimes committed, apart from statements
made by the accused / accused informant.

"(c) The testimony of the accused can be proven at essential moments.

"(d) the accused / defendant whistleblower has never previously been convicted of a violation of moral
bias; and

"(e) It appears that the respondent / defendant's informant is not the one to be blamed the most.

"Evidence of release automatically becomes part of the investigation protocol. If the investigating
authority or the investigating court rejects the request or request for release as a witness, the written
statement cannot be accepted as evidence."
Section 17.The new section, numbered as sections 26, 27, 28, 29, 30, 31, 32 and 33, is inserted after
section 15 of the same Act as follows:

"Sec. 26. Transition from Manual to Software-Enabled Business-Related Transactions. – The DICT, in
coordination with other concerned agencies, shall within three (3) years after the effectivity of this
Act, automate business-related transactions by developing the necessary software and technology-
neutral platforms and secure infrastructure that is web-based and accessible to the public. The DICT
shall ensure that all municipalities and provinces classified as third (3rd), fourth (4th), fifth (5th) and
sixth (6th) class are provided with appropriate equipment and connectivity, information and
communications technology platform, training and capability building to ensure the LGUs compliance
with this Act."

"Section 26. Transition from manual to software-related business operations. - In coordination with
other relevant agencies, DICT will automate business-related transactions through the development of
necessary software and technology - neutral platform and secure infrastructure, in three (3) ) year this
Law comes into effect DICT ensures that all cities and provinces classified as third (3), fourth (4), fifth)
and sixth (6) class are equipped with the appropriate equipment and Connectivity, an information and
communication technology platform , training and capacity building to ensure compliance with LGUs
under this law. "

"Sec. 27. Transitory Provisions. –

"(a) The Director General of the Authority, in consultation with the DTI, shall determine the
organizational structure and personnel complement of the Authority.1âwphi1 To ensure continued
implementation of ease of doing business and anti-red tape reforms, the teams or units involved in
regulatory improvement and/or ease of doing business-related programs of the DTI-Competitiveness
Bureau shall serve as temporary secretariat of the Authority until such time that its organizational
structure and personnel complement have been determined and filled up: Provided, That the staff of
the DTI-Competitiveness Bureau shall have the option to be absorbed or transferred laterally to the
Authority without diminution of their rank, position, salaries and other emoluments once the staffing
pattern and plantilla position of the Authority has been approved.

"(b) All regulatory management programs and anti-red tape initiatives across government agencies
shall be gathered by the Authority. The DTI, CDA, NCC, DOF, Development Academy of the Philippines
(DAP), and National Economic and Development Authority (NEDA) shall submit to the Authority a
report on the status of their respective projects related to regulatory management.

"(c) The Authority, in coordination with CSC and the Council, shall conduct an information
dissemination campaign in all NGAs and LGUs to inform them of this Act amending Republic Act No.
9485, otherwise known as the Anti-Red Tape Act of 2007."

“Section 27. Transitional provisions. -

"(a) The Director General of the Authority, after consultation with DTI, determines the organizational
structure and staff of the Authority. 1awphi1 To ensure the sustainable implementation of simple
business and reforms to the bureaucracy, teams or units involved in improving laws and regulations
and / or simple implementation of the business-related programs of the DTI Competitiveness Bureau
serve as the agency's interim secretariat until its organizational structure and staff are determined and
finalized: provided DTI Competitiveness Bureau staff can be appointed or transferred to that side of the
agency, without reducing rank, position, salary and other benefits after agency and plantation staff are
approved.

(b) All anti-bureaucratic regulatory governance programs and initiatives in government agencies are
compiled by the agency. DTI, CDA, NCC, DOF, Philippine Academy of Development (DAP) and the
National Economic and Development Authority (NEDA)) are subject to the reporting Authority. about
the status of each regulatory management project.

(c) The Agency, in coordination with CSC and the Council, conducts an information dissemination
campaign to all NGAs and LGUs to notify them of this law amending Law of the Republic No. 9485, which
is also known as the Red Ribbon Compensation Act. 2007 is known. "

"Sec. 28. Congressional Oversight Committee. – To monitor the implementation of this Act, there shall
be created a Congressional Oversight Committee on Ease of Doing Business (COC-EODB), to be
composed of five (5) members from the Senate, which shall include the Chairpersons of the Senate
Committees on Trade and Commerce and Entrepreneurship, Civil Service, Government Reorganization
and Professional Regulation, and Economic Affairs; and five (5) members from the House of
Representatives which shall include the Chairpersons of the House Committees on Trade and Industry,
Civil Service and Professional Regulation, Government Reorganization, and Economic Affairs. The COC-
EODB shall be jointly chaired by the Chairpersons of the Senate Committee on Trade and Commerce
and Entrepreneurship and the House of Representatives Committee on Trade and Industry: Provided,
That the oversight committee shall cease to exist after five (5) years upon the effectivity of this Act.

"The Secretariat of the COC-EODB shall be drawn from the existing personnel of the Senate and House
of Representatives committees comprising the COC-EODB."

Section 28. Congressional Oversight Committee - To oversee the implementation of this Act, a
Congressional Oversight Committee (COC-EODB) will be formed consisting of five (5) members of the
Senate, including the President. Senate Committees covering trade and commerce and
entrepreneurship, public service, government restructuring and regulatory professionals and business;
and 5 (five) members of the DPR, which includes the Chairman of the Committee on Trade and Industry,
public services and professional regulations, the EODB reorganization is jointly regulated by the
Chairperson of the DPR Senate Committee on Trade and Entrepreneurship and the Trade and Industry
Committee of the House of Representatives That the Supervisory Committee no longer exists five (5)
years after the incorporation of these laws.
"The COC-EODB Secretariat is composed of existing staff from the Senate Committee and the House of
Representatives, including the COC-EODB."

"Sec. 29. Appropriations. – The amount necessary to carry out the provisions of this Act shall be
charged against the current year’s appropriations of the concerned agencies. In addition, the amount
of Three hundred million pesos (P300,000,000.00) as initial funding for the Authority to be charged
against the unexpended Contingency Fund of the Office of the President is hereby appropriated.
Thereafter, the amount needed for the implementation of this Act shall be included in the annual
General Appropriations Act."

"Section 29. Funds - The amount required to implement the provisions of this Law will be borne by the
funds of the relevant agencies for the current year. In addition, the initial amount will be three hundred
million pesos (300,000,000.00 peseta). Funding for this Agency which will be entrusted with an unused
emergency fund from the Office of the President hereby approved. The amount required for the
implementation of this law will then be included in the annual law on public funds. "

"Sec. 30. Implementing Rules and Regulations. – The Authority with the CSC and DTI, and in
coordination with the DICT, DOF, DILG, NEDA, PSA, CDA, SEC, the Office of the Ombudsman, Housing
and Land Use Regulatory Board (HLURB) and the Union of Local Authorities of the Philippines (ULAP),
shall promulgate the necessary rules and regulations within ninety (90) working days from the
effectivity of this Act."

"Section 30. Implementing Rules. - Authority with CSC and DTI and coordinate with DICT, DOF, DILG,
NEDA, PSA, CDA, SEC, Office of the Ombudsman, Housing and Land Use Regulatory Authority (HLURB)
and the Union of Local Authorities of the Philippines (ULAP) will issue the necessary rules and
regulations within ninety (90) working days from the enactment of this Law. "

"Sec. 31. Separability Clause. – If any provision of this Act shall be declared invalid or unconstitutional,
such declaration shall not affect the validity of the remaining provisions of this Act."

"Section 31. The Clause of Separation. - If any provision in this Law is declared invalid or
unconstitutional, that statement will not affect the validity of other provisions of this Law."

"Sec. 32. Repealing Clause. – All provisions of laws, presidential decrees, letters of instruction and
other presidential issuances which are incompatible or inconsistent with the provisions of this Act are
hereby deemed amended or repealed accordingly."

"Section 32. Waiver Clause. - All statutory provisions, presidential decrees, instructions, and other
presidential expenditures which do not comply with or do not comply with the provisions of this Law will
be deemed as amended or revoked accordingly."
"Sec. 33. Effectivity. – This Act shall take effect within fifteen (15) days following its publication in the
Official Gazette or in two (2) national newspapers of general circulation."

"Section 33. Effectiveness. - This law shall come into force within fifteen (15) days of its publication in
the Official Gazette or in two (2) national newspapers of public circulation."

Republic of the Philippines

Congress of the Philippines
Metro Manila
Twelfth Congress
First Regular Session
Begun and held in Metro Manila, on Monday, the twenty third day of July, two thousand
one.
[REPUBLIC ACT NO. 9160]
AN ACT DEFINING THE CRIME OF MONEY LAUNDERING, PROVIDING PENALTIES
THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled.
SECTION 1. Short Title. — This Act shall be known as the “Anti-Money Laundering Act of
2001.”
SECTION 1. Short title. - This Act will be known as the Anti-Money Laundering Act 2001.
SEC. 2. Declaration of Policy. — It is hereby declared the policy of the State to protect
and preserve the integrity and confidentiality of bank accounts and to ensure that the
Philippines shall not be used as a money laundering site for the proceeds of any
unlawful activity. Consistent with its foreign policy, the State shall extend cooperation in
transnational investigations and prosecutions of persons involved in money laundering
activities wherever committed.
SECTION. 2. Policy statement. - Hereby states the state policy to protect and maintain the
integrity and confidentiality of bank accounts and to ensure that the Philippines is not used as a
place for money laundering for the proceeds of illegal activities. In line with its foreign policy, the
state will expand cooperation in cross-border investigations and prosecutions of those involved
in money laundering activities wherever they are carried out.
SEC. 3. Definitions. — For purposes of this Act, the following terms are hereby defined
as follows:
(a) “Covered institution” refers to:
(1) banks, non-banks, quasi-banks, trust entities, and all other institutions and their
subsidiaries and affiliates supervised or regulated by the Bangko Sentral ng Pilipinas
(BSP);
(2) insurance companies and all other institutions supervised or regulated by the
Insurance Commission; and
(3) (i) securities dealers, brokers, salesmen, investment houses and other similar entities
managing securities or rendering services as investment agent, advisor, or consultant,
(ii) mutual funds, closed-end investment companies, common trust funds, pre-need
companies and other similar entities, (iii) foreign exchange corporations, money
changers, money payment, remittance, and transfer companies and other similar entities,
and (iv) other entities administering or otherwise dealing in currency, commodities or
financial derivatives based thereon, valuable objects, cash substitutes and other similar
monetary instruments or property supervised or regulated by Securities and Exchange
Commission.
(b) “Covered transaction” is a single, series, or combination of transactions involving a
total amount in excess of Four million Philippine pesos (Php4,000,000.00) or an
equivalent amount in foreign currency based on the prevailing exchange rate within five
(5) consecutive banking days except those between a covered institution and a person
who, at the time of the transaction was a properly identified client and the amount is
commensurate with the business or financial capacity of the client; or those with an
underlying legal or trade obligation, purpose, origin or economic justification.
It likewise refers to a single, series or combination or pattern of unusually large and
complex transactions in excess of Four million Philippine pesos (Php4,000,000.00)
especially cash deposits and investments having no credible purpose or origin,
underlying trade obligation or contract.
(c) “Monetary instrument” refers to:
(1) coins or currency of legal tender of the Philippines, or of any other country;
(2) drafts, checks and notes;
(3) securities or negotiable instruments, bonds, commercial papers, deposit certificates,
trust certificates, custodial receipts or deposit substitute instruments, trading orders,
transaction tickets and confirmations of sale or investments and money market
instruments; and
(4) other similar instruments where title thereto passes to another by endorsement,
assignment or delivery.
(d) “Offender” refers to any person who commits a money laundering offense.
(e) “Person” refers to any natural or juridical person.
(f) “Proceeds” refers to an amount derived or realized from an unlawful activity.
(g) “Supervising Authority” refers to the appropriate supervisory or regulatory agency,
department or office supervising or regulating the covered institutions enumerated in
Section 3(a).
(h) “Transaction” refers to any act establishing any right or obligation or giving rise to
any contractual or legal relationship between the parties thereto. It also includes any
movement of funds by any means with a covered institution.
(i) “Unlawful activity” refers to any act or omission or series or combination thereof
involving or having relation to the following:
(1) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise known as the
Revised Penal Code, as amended;

(2) Sections 3, 4, 5, 7, 8 and 9 of Article Two of Republic Act No. 6425, as amended,
otherwise known as the Dangerous Drugs Act of 1972;
(3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No. 3019, as amended;
otherwise known as the Anti-Graft and Corrupt Practices Act;
(4) Plunder under Republic Act No. 7080, as amended;
(5) Robbery and extortion under Articles 294, 295, 296, 299, 300, 301 and 302 of the
Revised Penal Code, as amended;
(6) Jueteng and Masiao punished as illegal gambling under Presidential Decree No. 1602;
(7) Piracy on the high seas under the Revised Penal Code, as amended and Presidential
Decree No. 532;
(8) Qualified theft under Article 310 of the Revised Penal Code, as amended;
(9) Swindling under Article 315 of the Revised Penal Code, as amended;
(10) Smuggling under Republic Act Nos. 455 and 1937;
(11) Violations under Republic Act No. 8792, otherwise known as the Electronic
Commerce Act of 2000;
(12) Hijacking and other violations under Republic Act No. 6235; destructive arson and
murder, as defined under the Revised Penal Code, as amended, including those
perpetrated by terrorists against non-combatant persons and similar targets;
(13) Fraudulent practices and other violations under Republic Act No. 8799, otherwise
known as the Securities Regulation Code of 2000;
(14) Felonies or offenses of a similar nature that are punishable under the penal laws of
other countries. 
SECTION. 3. Definitions. - For the purposes of this law, the following terms are defined as
follows:
(a) "Covered Facility" refers to:
(1) Banks, non-banks, quasi-banks, trust companies and all other institutions as well as their
subsidiaries and affiliates that are controlled or regulated by Bangko Sentral ng Pilipinas (BSP);
(2) Insurance companies and all other institutions controlled or regulated by the Insurance
Commission; and
(3) (i) securities dealers, brokers, sellers, investment houses and other similar companies that
manage securities or provide services as investment agents, advisors or advisors, (ii) mutual
funds, private investment companies, mutual funds, pre-companies and other similar
companies, (iii) foreign exchange companies, money changers, cash, wire transfer and transfer
companies and other similar companies; and (iv) other companies which on the basis of
managing or trading foreign currencies, commodities or financial derivatives, valuables, cash
substitutes and monetary instruments or other similar assets, are controlled or regulated by the
Securities and Exchange Commission.
(b) "Covered Transaction" means a single, series, or combination of transactions totaling more
than four million Philippine Pesos (Php 4,000,000.00) or foreign currency equivalent based on
the prevailing exchange rates within five (5) transaction days. successive bank operations, with
the exception of the covered institution and a person who is a customer who is correctly
identified at the time of the transaction and an amount that is in accordance with the customer's
business or financial capacity; or those who have a fundamental legal or commercial obligation,
objective, source, or economic justification.
This also applies to any single transaction, series, or combination or extraordinarily large and
complex model that exceeds four million Philippine Pesos (PHP 4,000,000.00), especially cash
deposits and investments without a destination or reliable origin, liability. or the main trading
contract.
(c) "Currency Instrument" means:
(1) Coins or currency, legal tender in the Philippines or any other country;
(2) drafts, checks and notes;
(3) transferable securities or instruments, bonds, commercial papers, certificates of deposit,
certificates of trust, receipts or substitute instruments for deposits, trade orders, tickets for
transactions and confirmations of sales or investments, and money market instruments; and
(4) other similar instruments in which title is transferred to another by approval, assignment or
delivery.
(d) "Criminal" means any person who is involved in the crime of money laundering.
(e) "Person" means any natural person or body corporate.
(f) "Revenue" refers to any amount received or realized from any illegal activity.
(g) "Supervisory Authority" means the competent supervisory or regulatory authority,
department or service that oversees or regulates the institutions covered by Part 3 (a).
(h) "Transaction" means any action that gives rise to rights or obligations, or creates a
contractual or legal relationship between the parties. It also covers any movement of funds in
any way with closed institutions.
(i) "Illegal Activity" means any act or omission, series or combination thereof, including or
relating to any of the following:
(1) kidnapping for ransom under Article 267 of Law Закон 3815, also known as the revision of
the Criminal Code, as amended;

Article 2 Sections 3, 4, 5, 7, 8 and 9 of Law of the Republic No. 6425, as amended, is also
known as the Dangerous Drugs Act 1972;
(3) Part 3, paragraphs B, C, E, G, H and I of the Republic Act No. 3019, as amended; otherwise
known as the Anti-Transplant and Corruption Act;
(4) robbery under Republic Law закон 7080, amended;
(5) Robbery and extortion in accordance with Articles 294, 295, 296, 299, 300, 301 and 302 of
the revised Criminal Code as amended from time to time;
(6) Jueteng and Masiao were convicted of illegal gambling under Presidential Decree No. 1602.
(7) Piracy on the high seas in accordance with the revised Criminal Code as amended by
Presidential Decree Number 532;
(8) Theft that meets the requirements in accordance with Article 310 of the revised Criminal
Code, as amended;
(9) Fraud based on Article 315 of the revision of the Criminal Code as amended from time to
time;
(10) smuggling under Republican law № 455 and 1937;
(11) Violations of Republic Law, 8792, also known as Electronic Commerce Act 2000;
(12) kidnapping and other offenses under Republic Law № 6235; arson and destructive killings
within the meaning of the revised Criminal Code, as amended, including those committed by
terrorists against non-combatants and similar purposes;
Fraudulent practices and other offenses under Republic Law закон 8799, also known as
Securities Regulation Code 2000;
(14) Crimes or similar crimes which are punishable under the criminal laws of other countries.
SEC. 4. Money Laundering Offense. — Money laundering is a crime whereby the
proceeds of an unlawful activity are transacted, thereby making them appear to have
originated from legitimate sources. It is committed by the following:
(a) Any person knowing that any monetary instrument or property represents, involves,
or relates to, the proceeds of any unlawful activity, transacts or attempts to transact said
monetary instrument or property.
(b) Any person knowing that any monetary instrument or property involves the proceeds
of any unlawful activity, performs or fails to perform any act as a result of which he
facilitates the offense of money laundering referred to in paragraph (a) above.
(c) Any person knowing that any monetary instrument or property is required under this
Act to be disclosed and filed with the Anti-Money Laundering Council (AMLC), fails to do
so.
SECTION. 4. Money laundering offenses. - Money laundering is a crime in which proceeds are
obtained from illegal activities and appear to come from a legitimate source. It is done as
follows:
(a) Anyone who knows that a monetary instrument or asset represents, implies or is related to
the result of any illegal activity, enters or attempts to enter into transactions in that monetary
instrument or asset.
(b) Anyone who knows that the monetary instrument or property contains the result of any illegal
activity, whether he or she has committed an act that facilitates the crime of money laundering
referred to in paragraph (a) or not.
(c) Persons who are aware that this Act requires monetary instruments or goods to be disclosed
and submitted to the Anti-Money Laundering Council (AMLC) may not do so.
SEC. 5. Jurisdiction of Money Laundering Cases. — The regional trial courts shall have
jurisdiction to try all cases on money laundering. Those committed by public officers and
private persons who are in conspiracy with such public officers shall be under the
jurisdiction of the Sandiganbayan.
SECTION. 5. Place of jurisdiction in money laundering cases. - Regional courts are responsible
for all money laundering cases. The performance of government officials and anyone else in
cahoots with these government officials is subject to the jurisdiction of Sandiganbayan.
SEC. 6. Prosecution of Money Laundering.
(a) Any person may be charged with and convicted of both the offense of money
laundering and the unlawful activity as herein defined.
(b) Any proceeding relating to the unlawful activity shall be given precedence over the
prosecution of any offense or violation under this Act without prejudice to the freezing
and other remedies provided.
SECTION. 6. Track money laundering.
(a) Anyone may be prosecuted and punished for money laundering and illegal activities as
defined in this definition.
(b) Any trial involving illegal activities shall take precedence over the prosecution of a criminal
offense or offense under this Law, without prejudice to suspension and other remedies.
SEC. 7. Creation of Anti-Money Laundering Council (AMLC). — The Anti-Money
Laundering Council is hereby created and shall be composed of the Governor of the
Bangko Sentral ng Pilipinas as chairman, the Commissioner of the Insurance
Commission and the Chairman of the Securities and Exchange Commission as members.
The AMLC shall act unanimously in the discharge of its functions as defined hereunder:
(1) to require and receive covered transaction reports from covered institutions;
(2) to issue orders addressed to the appropriate Supervising Authority or the covered
institution to determine the true identity of the owner of any monetary instrument or
property subject of a covered transaction report or request for assistance from a foreign
State, or believed by the Council, on the basis of substantial evidence, to be, in whole or
in part, wherever located, representing, involving, or related to, directly or indirectly, in
any manner or by any means, the proceeds of an unlawful activity;
(3) to institute civil forfeiture proceedings and all other remedial proceedings through the
Office of the Solicitor General;
(4) to cause the filing of complaints with the Department of Justice or the Ombudsman
for the prosecution of money laundering offenses;
(5) to initiate investigations of covered transactions, money laundering activities and
other violations of this Act;
(6) to freeze any monetary instrument or property alleged to be proceeds of any unlawful
activity;
(7) to implement such measures as may be necessary and justified under this Act to
counteract money laundering;
(8) to receive and take action in respect of, any request from foreign states for assistance
in their own anti-money laundering operations provided in this Act;
(9) to develop educational programs on the pernicious effects of money laundering, the
methods and techniques used in money laundering, the viable means of preventing
money laundering and the effective ways of prosecuting and punishing offenders; and
(10) to enlist the assistance of any branch, department, bureau, office, agency or
instrumentality of the government, including government-owned and -controlled
corporations, in undertaking any and all anti-money laundering operations, which may
include the use of its personnel, facilities and resources for the more resolute
prevention, detection and investigation of money laundering offenses and prosecution of
offenders.
SECTION. 7. Establish an Anti-Money Laundering Council (AMLC). - An anti money laundering
board will be formed, consisting of the Governor of Bangko Sentral ng Pilipinas as chairman,
commissioner of the Insurance Committee and Chairman of the Securities and Exchange
Commission as members. AMLC unanimously performs its functions listed below:
(1) Request and receive reports on closed transactions from protected institutions;
(2) Issue orders to the competent supervisory authority or related institutions to determine the
true identity of owners of monetary instruments or assets which are the subject of closed
transaction reports or requests for assistance from foreign countries or the Council must be
based on substantial evidence, in whole or in part, where nor may it be found, directly or
indirectly in any way or in any way representing, including, or relating to, the results of any
illegal activity.
(3) Initiating the civil confiscation process and all other deportation proceedings by the
Prosecutor's Office;
(4) submitting a complaint to the Ministry of Justice or the Ombudsman for prosecution of the
crime of money laundering;
(5) initiating investigations into closed transactions, money laundering and other violations of
this Law;
(6) freeze any monetary instrument or property that is alleged to result from any illegal activity;
(7) To take necessary and justified actions under this Anti-Money Laundering Law;
(8) To receive requests from foreign countries for assistance in their own money laundering
activities, which are regulated in this Law, and to take action;
(9) Develop educational programs on the harmful effects of money laundering, money
laundering methods and techniques, appropriate means of preventing money laundering, and
effective methods of prosecuting and punishing criminals; and
(10) Obtain assistance from any government branch, department, bureau, agency or instrument,
including government and controlled entities, in carrying out anti-money laundering activities
that may involve human resources; Facilities and resources for more certain money laundering
and crime prevention, detection, and investigation.
SEC. 8. Creation of a Secretariat. — The AMLC is hereby authorized to establish a
secretariat to be headed by an Executive Director who shall be appointed by the Council
for a term of five (5) years. He must be a member of the Philippine Bar, at least thirty-five
(35) years of age and of good moral character, unquestionable integrity and known
probity. All members of the Secretariat must have served for at least five (5) years either
in the Insurance Commission, the Securities and Exchange Commission or the Bangko
Sentral ng Pilipinas (BSP) and shall hold full-time permanent positions within the BSP.
SECTION. 8. Establishment of a secretariat. - AMLC has the power to establish a secretariat
under the direction of an Executive Director appointed by the Council for a period of five (5)
years. He must be a member of the Bar Association of the Philippines, at least thirty-five (35)
years of age and possess good moral character, undeniable integrity and a certain degree of
honesty. All Secretariat members must have served on the Insurance Commission, Securities
and Exchange Commission, or Bangko Sentral ng Pilipinas (BSP) for at least five (5) years and
held a full-time position with BSP.
SEC. 9. Prevention of Money Laundering; Customer Identification Requirements and
Record Keeping. — (a) Customer Identification. — Covered institutions shall establish
and record the true identity of its clients based on official documents. They shall
maintain a system of verifying the true identity of their clients and, in case of corporate
clients, require a system of verifying their legal existence and organizational structure,
as well as the authority and identification of all persons purporting to act on their behalf.
The provisions of existing laws to the contrary notwithstanding, anonymous accounts,
accounts under fictitious names, and all other similar accounts shall be absolutely
prohibited. Peso and foreign currency non-checking numbered accounts shall be
allowed. The BSP may conduct annual testing solely limited to the determination of the
existence and true identity of the owners of such accounts.
(b) Record Keeping. — All records of all transactions of covered institutions shall be
maintained and safely stored for five (5) years from the dates of transactions. With
respect to closed accounts, the records on customer identification, account files and
business correspondence, shall be preserved and safely stored for at least five (5) years
from the dates when they were closed.
(c) Reporting of Covered Transactions. — Covered institutions shall report to the AMLC
all covered transactions within five (5) working days from occurrence thereof, unless the
Supervising Authority concerned prescribes a longer period not exceeding ten (10)
working days.
When reporting covered transactions to the AMLC, covered institutions and their
officers, employees, representatives, agents, advisors, consultants or associates shall
not be deemed to have violated Republic Act No. 1405, as amended; Republic Act No.
6426, as amended; Republic Act No. 8791 and other similar laws, but are prohibited from
communicating, directly or indirectly, in any manner or by any means, to any person the
fact that a covered transaction report was made, the contents thereof, or any other
information in relation thereto. In case of violation thereof, the concerned officer,
employee, representative, agent, advisor, consultant or associate of the covered
institution, shall be criminally liable. However, no administrative, criminal or civil
proceedings, shall lie against any person for having made a covered transaction report in
the regular performance of his duties and in good faith, whether or not such reporting
results in any criminal prosecution under this Act or any other Philippine law.
When reporting covered transactions to the AMLC, covered institutions and their
officers, employees, representatives, agents, advisors, consultants or associates are
prohibited from communicating, directly or indirectly, in any manner or by any means, to
any person, entity, the media, the fact that a covered transaction report was made, the
contents thereof, or any other information in relation thereto. Neither may such reporting
be published or aired in any manner or form by the mass media, electronic mail, or other
similar devices. In case of violation thereof, the concerned officer, employee,
representative, agent, advisor, consultant or associate of the covered institution, or
media shall be held criminally liable.
SECTION 9. Money laundering prevention; Requirements for customer identification and record
keeping. - (a) Customer identification. - Registered institutions determine and record the true
identity of their customers based on official documents. They maintain systems to verify the true
identity of their customers and, in the case of corporate customers, need systems to verify the
legal existence and structure of their organization, as well as the authority and identification of
anyone claiming to be acting on their behalf.
Notwithstanding the existing legal provisions, anonymous accounts, accounts under fictional
names, and all other similar accounts are strictly prohibited. Failure to verify peso accounts and
numbered currencies is allowed. BSP can perform a limited annual test to confirm the existence
and true identity of the account holder.
(b) Records. - All records of all Covered Institution transactions are kept securely for five (5)
years from the transaction date. With respect to closed accounts, customer identification
records, account files and business correspondence must be securely stored and retained for a
minimum of five (5) years from the date of closure.
(c) Covered Transaction Reporting. - Covered Institution reports all Covered Transactions to
AMLC within five (5) working days of occurrence, unless the relevant regulator requires a longer
period of not more than ten (10) working days.
In reporting a Covered Transaction to AMLC, the Covered Institution and their employees,
employees, agents, agents, consultants, advisors or employees are not deemed to have
violated Law of the Republic No. 1405, as amended. Republic Law No. 6426, amended;
Republic Act № 8791 and other similar laws, but it is prohibited to inform, directly or indirectly, in
any way or in any way to anyone that there is a complete report of the transaction, its content or
other related information. In the event of a violation, the employee, clerk, agent, agent,
consultant, consultant or employee of the related institution will be held responsible for the
crime. However, no administrative, criminal or civil proceedings can be challenged by anyone
who, in the performance of his duties and in good faith, has prepared a closed transaction
report, regardless of whether the report is based on this or other Philippine law. to criminal
prosecution.
When reporting a Covered Transaction to AMLC, the Insured Institution and its employees,
employees, agents, agents, advisors, advisors or employees are prohibited from
communicating, directly or indirectly, in any way or by any means, at any time. Person,
organization, media, the fact that a report has been made about a closed transaction, its content
or other relevant information. Such reporting may not be published or sent in any way or form by
media, email or similar devices. In the event of a violation, the employees, employees, agents,
agents, consultants, consultants, or employees of the media agencies or companies that are
covered will be held criminally liable.
SEC. 10. Authority to Freeze. — Upon determination that probable cause exists that any
deposit or similar account is in any way related to an unlawful activity, the AMLC may
issue a freeze order, which shall be effective immediately, on the account for a period not
exceeding fifteen (15) days. Notice to the depositor that his account has been frozen
shall be issued simultaneously with the issuance of the freeze order. The depositor shall
have seventy-two (72) hours upon receipt of the notice to explain why the freeze order
should be lifted. The AMLC has seventy-two (72) hours to dispose of the depositor’s
explanation. If it fails to act within seventy-two (72) hours from receipt of the depositor’s
explanation, the freeze order shall automatically be dissolved. The fifteen (15)-day freeze
order of the AMLC may be extended upon order of the court, provided that the fifteen
(15)-day period shall be tolled pending the court’s decision to extend the period.
No court shall issue a temporary restraining order or writ of injunction against any freeze
order issued by the AMLC except the Court of Appeals or the Supreme Court.
SECTION 10. Right to Freeze. - Once determined that there is a possible reason that a deposit
or similar account is in any way linked to illegal activity, AMLC may place a hold order on the
account for a period of not more than fifteen years, which will take effect immediately (15 days
Notification to depositors that The frozen account will be issued at the same time the freeze
order is issued Applicant has seventy-two (72) hours from receipt of notification to explain why
the suspension order should be withdrawn AMLC has Seventy-two (72) hours to accept the
applicant's statement. seventy-two (72) hours after receiving the depositor's declaration will
automatically resolve the suspension order. The decision to AMLC is not later than fifteen (15)
days The suspension may be extended by court order with a time limit of five ten (15) days until
the court decides to extend the suspension. deadline.
No court can issue orders or orders against security orders issued by AMLC other than the
Court of Appeal or the Supreme Court.
SEC. 11. Authority to Inquire into Bank Deposits. — Notwithstanding the provisions of
Republic Act No. 1405, as amended; Republic Act No. 6426, as amended; Republic Act
No. 8791, and other laws, the AMLC may inquire into or examine any particular deposit or
investment with any banking institution or non-bank financial institution upon order of
any competent court in cases of violation of this Act when it has been established that
there is probable cause that the deposits or investments involved are in any way related
to a money laundering offense: Provided, That this provision shall not apply to deposits
and investments made prior to the effectivity of this Act.
SECTION. 11. Authority to Check Bank Deposits. - Without prejudice to the provisions of Law of
the Republic no. 1405, as amended; Republic Law No. 6426, amended; Based on the Law of
the Republic no. 8791 and other statutes, the AMLC may, by order of a competent court for
violation of the law, investigate or review certain deposits or investments in a banking or non-
bank financial institution if it determines that there is a possible reason for the deposit or
investment in question. related to the crime of money laundering: provided this provision does
not apply to deposits and investments made before this Law comes into effect.
SEC. 12. Forfeiture Provisions.
(a) Civil Forfeiture. — When there is a covered transaction report made, and the court
has, in a petition filed for the purpose ordered seizure of any monetary instrument or
property, in whole or in part, directly or indirectly, related to said report, the Revised
Rules of Court on civil forfeiture shall apply.
(b) Claim on Forfeiture Assets. — Where the court has issued an order of forfeiture of the
monetary instrument or property in a criminal prosecution for any money laundering
offense defined under Section 4 of this Act, the offender or any other person claiming an
interest therein may apply, by verified petition, for a declaration that the same
legitimately belongs to him and for segregation or exclusion of the monetary instrument
or property corresponding thereto. The verified petition shall be filed with the court
which rendered the judgment of conviction and order of forfeiture, within fifteen (15)
days from the date of the order of forfeiture, in default of which the said order shall
become final and executory. This provision shall apply in both civil and criminal
forfeiture.
(c) Payment in Lieu of Forfeiture. — Where the court has issued an order of forfeiture of
the monetary instrument or property subject of a money laundering offense defined
under Section 4, and said order cannot be enforced because any particular monetary
instrument or property cannot, with due diligence, be located, or it has been substantially
altered, destroyed, diminished in value or otherwise rendered worthless by any act or
omission, directly or indirectly, attributable to the offender, or it has been concealed,
removed, converted or otherwise transferred to prevent the same from being found or to
avoid forfeiture thereof, or it is located outside the Philippines or has been placed or
brought outside the jurisdiction of the court, or it has been commingled with other
monetary instruments or property belonging to either the offender himself or a third
person or entity, thereby rendering the same difficult to identify or be segregated for
purposes of forfeiture, the court may, instead of enforcing the order of forfeiture of the
monetary instrument or property or part thereof or interest therein, accordingly order the
convicted offender to pay an amount equal to the value of said monetary instrument or
property. This provision shall apply in both civil and criminal forfeiture.
SECTION. 12. Foreclosure Rules.
a) Civil withdrawal. - If a transaction report has been prepared and a court, in motion filed for
this purpose, orders the confiscation of monetary instruments or goods in whole or in part
directly or indirectly in connection with this report, the revised civil enforcement court rules will
apply.
(b) Rights to Confiscated Assets. - If a court has issued an order to confiscate a monetary
instrument or property in the context of a criminal prosecution for an offense related to money
laundering within the meaning of Article 4 of this law, the perpetrator or other person claiming an
interest can do so through a verified application requesting a statement that it is his legal
property and the separation or exclusion of the relevant monetary instrument or property. An
application that is examined must be filed within fifteen (15) days from the date of the decision
to withdraw to the court that issues the decision and decision of revocation. If non-compliance
occurs, the decision is final and enforceable. This provision applies to both civil and criminal
confiscation.
(c) Non-collection payments. - If the court has issued an order to confiscate a monetary
instrument or property subject to the crime of money laundering within the meaning of Section 4
and this order cannot be fulfilled because no certain monetary instrument or property can or has
been placed with due date. concern by any act or omission that is directly or indirectly attributed
to the offender, is substantially altered, destroyed, denigrated or rendered insignificant or has
been hidden, deleted, altered or transmitted to prevent its same detection or seizure or is
located outside the Philippines or outside the jurisdiction of the courts or carried or mixed with
monetary instruments or other property owned either by the perpetrator himself or by a third
party person or organization so that it is difficult to identify or separate they can be confiscated
instead of enforcing an order for the seizure of monetary instruments or property, or parts
thereof, or interest on it, the convicted offender must pay an amount equal to the declared value
of the monetary instrument or property. This provision applies to both civil and criminal
confiscation.
SEC. 13. Mutual Assistance among States.
(a) Request for Assistance from a Foreign State. — Where a foreign State makes a
request for assistance in the investigation or prosecution of a money laundering offense,
the AMLC may execute the request or refuse to execute the same and inform the foreign
State of any valid reason for not executing the request or for delaying the execution
thereof. The principles of mutuality and reciprocity shall, for this purpose, be at all times
recognized.
(b) Powers of the AMLC to Act on a Request for Assistance from a Foreign State. — The
AMLC may execute a request for assistance from a foreign State by: (1) tracking down,
freezing, restraining and seizing assets alleged to be proceeds of any unlawful activity
under the procedures laid down in this Act; (2) giving information needed by the foreign
State within the procedures laid down in this Act; and (3) applying for an order of
forfeiture of any monetary instrument or property in the court: Provided, That the court
shall not issue such an order unless the application is accompanied by an authenticated
copy of the order of a court in the requesting State ordering the forfeiture of said
monetary instrument or property of a person who has been convicted of a money
laundering offense in the requesting State, and a certification or an affidavit of a
competent officer of the requesting State stating that the conviction and the order of
forfeiture are final and that no further appeal lies in respect of either.

(c) Obtaining Assistance from Foreign States. — The AMLC may make a request to any
foreign State for assistance in (1) tracking down, freezing, restraining and seizing assets
alleged to be proceeds of any unlawful activity; (2) obtaining information that it needs
relating to any covered transaction, money laundering offense or any other matter
directly or indirectly related thereto; (3) to the extent allowed by the law of the foreign
State, applying with the proper court therein for an order to enter any premises
belonging to or in the possession or control of, any or all of the persons named in said
request, and/or search any or all such persons named therein and/or remove any
document, material or object named in said request: Provided, That the documents
accompanying the request in support of the application have been duly authenticated in
accordance with the applicable law or regulation of the foreign State; and (4) applying for
an order of forfeiture of any monetary instrument or property in the proper court in the
foreign State: Provided, That the request is accompanied by an authenticated copy of the
order of the regional trial court ordering the forfeiture of said monetary instrument or
property of a convicted offender and an affidavit of the clerk of court stating that the
conviction and the order of forfeiture are final and that no further appeal lies in respect of
either.
(d) Limitations on Request for Mutual Assistance. — The AMLC may refuse to comply
with any request for assistance where the action sought by the request contravenes any
provision of the Constitution or the execution of a request is likely to prejudice the
national interest of the Philippines unless there is a treaty between the Philippines and
the requesting State relating to the provision of assistance in relation to money
laundering offenses.
(e) Requirements for Requests for Mutual Assistance from Foreign States. — A request
for mutual assistance from a foreign State must (1) confirm that an investigation or
prosecution is being conducted in respect of a money launderer named therein or that he
has been convicted of any money laundering offense; (2) state the grounds on which any
person is being investigated or prosecuted for money laundering or the details of his
conviction; (3) give sufficient particulars as to the identity of said person; (4) give
particulars sufficient to identify any covered institution believed to have any information,
document, material or object which may be of assistance to the investigation or
prosecution; (5) ask from the covered institution concerned any information, document,
material or object which may be of assistance to the investigation or prosecution; (6)
specify the manner in which and to whom said information, document, material or object
obtained pursuant to said request, is to be produced; (7) give all the particulars
necessary for the issuance by the court in the requested State of the writs, orders or
processes needed by the requesting State; and (8) contain such other information as
may assist in the execution of the request.
(f) Authentication of Documents. — For purposes of this Section, a document is
authenticated if the same is signed or certified by a judge, magistrate or equivalent
officer in or of, the requesting State, and authenticated by the oath or affirmation of a
witness or sealed with an official or public seal of a minister, secretary of State, or officer
in or of, the government of the requesting State, or of the person administering the
government or a department of the requesting territory, protectorate or colony. The
certificate of authentication may also be made by a secretary of the embassy or legation,
consul general, consul, vice consul, consular agent or any officer in the foreign service
of the Philippines stationed in the foreign State in which the record is kept, and
authenticated by the seal of his office.
(g) Extradition. — The Philippines shall negotiate for the inclusion of money laundering
offenses as herein defined among extraditable offenses in all future treaties.
SECTION. 13. Help between countries.
a) Requesting support from abroad. - If a foreign country requests assistance in investigating or
prosecuting a criminal act of money laundering, AMLC can comply or refuse and notify the
foreign country of the valid reasons for non-compliance or delay in compliance. For that, the
principle of reciprocity and reciprocity must always be recognized.
(b) The authority of the AMLC to respond to requests for assistance from abroad. - AMLC can
fulfill requests for assistance from other countries by: (1) prosecuting, freezing, limiting and
confiscating assets suspected of originating from illegal activities in accordance with the
procedures regulated in this Law; (2) Providing necessary information for a foreign country
within the framework of the procedures regulated in this Law; and (3) Filing for seizure of
monetary instruments or property in court: Provided that the court issues the order only if the
application is accompanied by an official copy of the court order in the state order requesting the
seizure. from a monetary instrument that property of a person convicted of money laundering in
the requesting country and a certificate or written statement from the competent authority of the
requesting country stating that the sentence and the confiscation order are final and neither can
appeal.

(c) Receiving support from abroad. - AMLC can ask foreign agencies to assist in (1) tracing,
freezing, restricting and confiscating assets suspected of originating from illegal activities. (2)
Obtain the necessary information in connection with guaranteed transactions, money laundering
or other matters directly or indirectly related to it; (3) To the extent permitted by the laws of a
foreign country, to submit to a competent court for an order to enter the premises owned or
controlled by any of the persons named in this application, or to locate and / or delete one or all
of the persons mentioned in the application. therein. Documents, materials or objects referred to
in the above-mentioned request: Provided that the documents attached to the request to justify
the request are duly certified in accordance with applicable laws or regulations in the foreign
country; and (4) Application for confiscation of monetary instruments or property at an
authorized court abroad: provided that the application is accompanied by an official copy of the
regional court decision ordering the confiscation of this instrument or property from the
convicted person and a written statement from the Registrar stating that the verdict and the
revocation order is final and no further appeals are made with respect to any of them.
(d) Limits on Requests for Mutual Assistance. - AMLC may refuse to comply with a request for
assistance if the action requested by the request violates the provisions of the Constitution or
the execution of the request would be detrimental to the national interests of the Philippines,
except between the Philippines and the requesting country. in connection with the provision of
assistance in connection with the crime of money laundering.
e) Requirements for mutual assistance requests from abroad. - Requests for mutual assistance
from abroad must (1) ensure that an investigation or prosecution is being carried out in
connection with the money laundering mentioned therein or has been convicted of the crime of
money laundering; (2) state the reasons a person has been investigated or prosecuted for
money laundering or details of the sentence; (3) to provide sufficient information about the
identity of this person; (4) Provide sufficient information to identify any institution of record
believed to contain information, documents, materials or items that could aid an investigation or
prosecution; (5) requesting information, documents, materials or goods from related agencies
that can assist in the investigation or prosecution; (6) shows how and to whom information,
documents, materials or items obtained under this application will be made available; (7)
provide all the information necessary for a court in the State requested to issue a court order,
order or trial process required by the requesting State; and (8) contains other information that
may be useful in completing the request.
(f) Document authentication. - For the purposes of this section, a document is certified if it has
been signed or certified by a judge, judge or equivalent official in or in the state requesting it and
is certified by oath or support from a witness or sealed by an official or a public seal of a
minister, secretary of state or official in or in the government of the requesting country or person
administering the government or department of the requesting area, protectorate or colony.
Certificates can also be issued by the embassy or embassy secretary, consul general, consuls,
deputy consuls, consular agents, or members of the overseas service of the Philippines abroad,
where the records are kept and stamped by the cabinet.
(g) extradition. - The Philippines will negotiate the inclusion of the money laundering crime
defined here in the extraditable offense into all future contracts.
SEC. 14. Penal Provisions. — (a) Penalties for the Crime of Money Laundering. The
penalty of imprisonment ranging from seven (7) to fourteen (14) years and a fine of not
less than Three million Philippine pesos (Php3,000,000.00) but not more than twice the
value of the monetary instrument or property involved in the offense, shall be imposed
upon a person convicted under Section 4(a) of this Act.
The penalty of imprisonment from four (4) to seven (7) years and a fine of not less than
One million five hundred thousand Philippine pesos (Php1,500,000.00) but not more than
Three million Philippine pesos (Php3,000,000.00), shall be imposed upon a person
convicted under Section 4(b) of this Act.
The penalty of imprisonment from six (6) months to four (4) years or a fine of not less
than One hundred thousand Philippine pesos (Php100,000.00) but not more than Five
hundred thousand Philippine pesos (Php500,000.00), or both, shall be imposed on a
person convicted under Section 4(c) of this Act.
(b) Penalties for Failure to Keep Records. The penalty of imprisonment from six (6)
months to one (1) year or a fine of not less than One hundred thousand Philippine pesos
(Php100,000.00) but not more than Five hundred thousand Philippine pesos
(Php500,000.00), or both, shall be imposed on a person convicted under Section 9(b) of
this Act.
(c) Malicious Reporting. Any person who, with malice, or in bad faith, report or files a
completely unwarranted or false information relative to money laundering transaction
against any person shall be subject to a penalty of six (6) months to four (4) years
imprisonment and a fine of not less than One hundred thousand Philippine pesos
(Php100,000.00) but not more than Five hundred thousand Philippine pesos
(Php500,000.00), at the discretion of the court: Provided, That the offender is not entitled
to avail the benefits of the Probation Law.
If the offender is a corporation, association, partnership or any juridical person, the
penalty shall be imposed upon the responsible officers, as the case may be, who
participated in the commission of the crime or who shall have knowingly permitted or
failed to prevent its commission. If the offender is a juridical person, the court may
suspend or revoke its license. If the offender is an alien, he shall, in addition to the
penalties herein prescribed, be deported without further proceedings after serving the
penalties herein prescribed. If the offender is a public official or employee, he shall, in
addition to the penalties prescribed herein, suffer perpetual or temporary absolute
disqualification from office, as the case may be.
Any public official or employee who is called upon to testify and refuses to do the same
or purposely fails to testify shall suffer the same penalties prescribed herein.
(d) Breach of Confidentiality. The punishment of imprisonment ranging from three (3) to
eight (8) years and a fine of not less than Five hundred thousand Philippine pesos
(Php500,000.00) but not more than One million Philippine pesos (Php1,000,000.00), shall
be imposed on a person convicted for a violation under Section 9(c).
SECTION. 14. Penalty provisions. - (a) Sanctions for money laundering crimes. A prison
sentence of seven (7) to fourteen (14) years and a fine of at least three million Philippine pesos
(Php3,000,000.00), but not more than twice the value of the monetary instrument or property
involved in the offense. Section 4 (a) of this Act.
Penalties will range from four (4) to seven (7) years and a fine of at least one million five
hundred thousand Philippine pesos (Php 1,500,000.00) but not more than three million
Philippine pesos (Php 3,000,000.00) imposed on the person being convicted. pursuant to Part 4
(b) of this Law.
Penalties of six (6) months to four (4) years in prison or a fine of not less than one hundred
thousand Philippine pesos (PHP 100,000.00) but not more than five hundred thousand
Philippine pesos (PHP 500,000.00), or both, will be one under Part 4 (c) of this Law is imposed
on convicts.
(b) Penalties for failure to comply with documentation. Penalties of six (6) months to one (1)
year or a fine of not less than one hundred thousand Philippine pesos (Php 100,000.00) but not
more than five hundred thousand Philippine pesos (PHP 500,000.00) or both are one after
Article 9 ( b) This law is imposed on convicts.
(c) malicious reporting. Anyone with malicious intent or with absolutely malicious intentions or
false information in connection with a money laundering transaction against anyone's report or
submission will be punished with a prison sentence of six (6) months to four (4) years and a fine
of at least one hundred. thousand Philippine pesos (PHP 100,000.00) but not more than five
hundred thousand Philippine pesos (Php 500,000.00) at court's discretion: provided the
perpetrator does not meet the requirements for the probation period.
If the perpetrator is a corporation, association, association or legal entity, the penalty will be
imposed on the responsible employee who is involved in the crime or who deliberately allows or
does not prevent it. If the offender is a legal entity, the court can terminate or revoke the license.
If the perpetrator is a foreigner, other than the prescribed sentence, he will be deported without
further processing after serving the prescribed sentence. If the perpetrator is a civil servant, he
will be subject to permanent or temporary total disqualification from office in addition to the
penalties provided here.
Any officer or officer who is asked to testify and refuses to do the same or is intentionally absent
will be subject to the penalty specified here.
(d) Breach of Confidentiality. A sentence of three (3) to eight (8) years in prison and a fine of at
least five hundred thousand Philippine pesos (Php 500,000.00) but not more than one million
Philippine pesos (Php 1,000.00) will be imposed on anyone who has an offense. under Section
9 (c).
SEC. 15. System of Incentives and Rewards. — A system of special incentives and
rewards is hereby established to be given to the appropriate government agency and its
personnel that led and initiated an investigation, prosecution and conviction of persons
involved in the offense penalized in Section 4 of this Act.
SECTION. 15. Incentive and reward systems. - A special incentive and reward system will be
established to make it available to the competent state authorities and their staff who have
directed and initiated the investigation, prosecution and punishment of persons involved in
offenses sanctioned under Part 4 of this Act who are involved.
SEC. 16. Prohibitions Against Political Harassment. — This Act shall not be used for
political persecution or harassment or as an instrument to hamper competition in trade
and commerce.
No case for money laundering may be filed against and no assets shall be frozen,
attached or forfeited to the prejudice of a candidate for an electoral office during an
election period.
SECTION. 16. Prohibition Against Political Harassment. - These laws may not be used for
political persecution or harassment or as a means of preventing competition in trade and
industry.
During the election period, at the candidate's discretion, no money laundering procedure can be
initiated and no assets can be frozen, confiscated or confiscated.
SEC. 17. Restitution. — Restitution for any aggrieved party shall be governed by the
provisions of the New Civil Code.
SECTION. 17. Refunds. - Reimbursement for each injured party is subject to the provisions of
the new Civil Code.
SEC. 18. Implementing Rules and Regulations. — Within thirty (30) days from the
effectivity of this Act, the Bangko Sentral ng Pilipinas, the Insurance Commission and
the Securities and Exchange Commission shall promulgate the rules and regulations to
implement effectively the provisions of this Act. Said rules and regulations shall be
submitted to the Congressional Oversight Committee for approval.
Covered institutions shall formulate their respective money laundering prevention
programs in accordance with this Act including, but not limited to, information
dissemination on money laundering activities and its prevention, detection and
reporting, and the training of responsible officers and personnel of covered institutions.
SECTION. 18. Implement the rules. - Within thirty (30) days of the enactment of this Law, the
Bangko Sentral ng Pilipinas, the Insurance Commission and the Securities and Exchange
Commission will issue laws and regulations so that the provisions of this Law will be effective.
These rules and regulations must be submitted to a Congressional Oversight Committee for
approval.
The relevant institutions will formulate their respective anti-money laundering programs in
accordance with this Law, including, but not limited to, dissemination of information on money
laundering and prevention activities, disclosure and reporting, and training of responsible
officials and staff. covered institutions.
SEC. 19. Congressional Oversight Committee. — There is hereby created a
Congressional Oversight Committee composed of seven (7) members from the Senate
and seven (7) members from the House of Representatives. The members from the
Senate shall be appointed by the Senate President based on the proportional
representation of the parties or coalitions therein with at least two (2) Senators
representing the minority. The members from the House of Representatives shall be
appointed by the Speaker also based on proportional representation of the parties or
coalitions therein with at least two (2) members representing the minority.
The Oversight Committee shall have the power to promulgate its own rules, to oversee
the implementation of this Act, and to review or revise the implementing rules issued by
the Anti-Money Laundering Council within thirty (30) days from the promulgation of the
said rules.

SECTION. 19. Congressional Oversight Committee. - A Congressional Oversight Committee

will be formed consisting of seven (7) members of the Senate and seven (7) members of the
House of Representatives. Senate members are appointed by the President of the Senate
based on proportional representation of the party or coalition within it with at least two (2)
senators representing the minority. DPR members are also appointed by the President based
on proportional representation of the parties or coalitions within them, with at least two (2)
members representing the minority.
The Supervisory Committee has the power to establish its own rules, to monitor the application
of this Law and to review or revise the implementing rules adopted by the Anti-Money
Laundering Council within thirty (30) days of the notification of this rule.

SEC. 20. Appropriations Clause. — The AMLC shall be provided with an initial
appropriation of Twenty-five million Philippine pesos (Php25,000,000.00) to be drawn
from the national government. Appropriations for the succeeding years shall be included
in the General Appropriations Act.

SECTION. 20. Middle clause. - AMLC must receive an initial allocation of 25 million
Philippine pesos (PHP 25,000,000.00) for use by the national government. Funds for the
following years are included in the law on general funds.
SEC. 21. Separability Clause. — If any provision or section of this Act or the application
thereof to any person or circumstance is held to be invalid, the other provisions or
sections of this Act, and the application of such provision or section to other persons or
circumstances, shall not be affected thereby.

SECTION. 21. Separation Clause. - If any provision or part of this Law or its application to
any person or situation is deemed invalid, the provisions or other parts of this Law and the
application of this provision or this part to other people or circumstances will not be affected.
SEC. 22. Repealing Clause. — All laws, decrees, executive orders, rules and regulations
or parts thereof, including the relevant provisions of Republic Act No. 1405, as amended;
Republic Act No. 6426, as amended; Republic Act No. 8791, as amended and other
similar laws, as are inconsistent with this Act, are hereby repealed, amended or modified
accordingly.

SECTION. 22. Cancellation Clause. - All laws, decrees, executive orders, rules and
regulations or parts thereof, including the relevant provisions of the Republic Act No. 1405,
as amended; Republic Law No. 6426, amended; The Law of the Republic 91 8791, as
amended, and other similar laws which are contrary to this law will be revoked, amended or
amended accordingly.
SEC. 23. 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.
The provisions of this Act shall not apply to deposits and investments made prior to its
effectivity.

SECTION. 23. Efficiency. - This law shall come into effect fifteen (15) days after being
published in full in the Official Gazette or at least in two (2) national newspapers with public
circulation.
The provisions of this law do not apply to deposits and investments made before they
become effective.

[ Act No. 3936, November 29, 1932 ]

AN ACT REQUIRING BANKS, TRUST COMPANIES, SAVINGS

AND MORTGAGE BANKS, MUTUAL BUILDING AND LOAN
ASSOCIATIONS AND BANKING INSTITUTIONS OF EVERY
KIND TO TRANSFER UNCLAIMED BALANCES HELD BY THEM
TO THE INSULAR TREASURY AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House of Representatives of the
Philippines in Legislature assembled and by the authority of
the same:

SECTION 1. "Unclaimed balances" within the meaning of this Act

shall include credits or deposits of money, bullion security
or other evidence of indebtedness of any kind and
interest thereon with banks, as hereinafter defined, in favor of
any person unheard from for a period of ten years or more. Such
unclaimed balances, together with the increase and proceeds
thereof, shall be deposited with the Insular Treasurer to the
credit of the Government of the Philippine Islands to be used as
the Philippine Legislature may direct.

"Banks" within the meaning of this Act shall refer to institutions

defined under section sixteen hundred and twenty-eight of Act
Numbered Twenty-seven hundred and eleven, known as the
Revised Administrative Code, as amended, whether organized
under special charters or not, and pawn broking establishments.
SECTION 1. For the purposes of this Act, "unsolicited funds" include cash
loans or deposits, collateral in bars or other evidence of debt of any kind
and interest with the bank, as defined below, on behalf of the person who
owes the debt. for ten years or it hasn't been heard of for a long time. The
unclaimed balance along with the increase and the proceeds from the sale
will be deposited with the island cashier with a credit to the Philippine
government for use in accordance with instructions from the Philippine
legislature.
"Bank" in the meaning of this Law refers to the institution defined in Article
16, 28 of Law No. 2711, known as the "Revised Administrative Code", as
amended, regardless of whether or not they are governed by a special
instrument. and commitment. Intermediary.

SEC. 2. Immediately after the taking effect of this Act and within
the month of January of every odd year, all banks shall forward
to the insular Treasurer a statement, under oath of their
respective managing officers, of all credits and deposits held by
them in favor of persons known to be dead, or who have nut
made further deposits or withdrawals during the preceding ten
years or more, arranged in alphabetical order according to the
names of depositors, and showing:

1. The names and last known place of residence or post-office

addresses of the persons in whose favor such credit or
deposits stand;

2. The amount and date of the outstanding credit or deposit

and whether the same is in money or in security, and if the
latter, the nature of the same;

3. The date when the person in whose favor the credit or

deposit stands died, if known, or the date when he made his
last deposit or withdrawal; and

4. The interest due on such credit or deposit, if any, and the

amount thereof.
Immediately upon receipt of the above statement the Insular
Treasurer shall publish the same once a week for three
consecutive weeks in at least two newspapers of general
circulation in the locality where the bank or banks are situated,
if there be any, and if there is none, in the City of Manila, one in
English and one in Spanish. The cost of such publication shall be
paid by the Treasury Bureau and the latter shall be reimbursed
out of the escheated fund.
It shall be the duty of the Insular Treasurer to inform the
Attorney-General from time to time of the existence of
unclaimed balances held by banks.

SECTION 2. As soon as this law comes into effect and in each odd year in
January, all banks will send written statements to the Island Finance
Department to their respective managers of all loans and deposits which
they believe benefit persons known to have died or who have made
additional deposits or withdrawals within the last ten years or more, in
alphabetical order according to the name of the depositor and with the
following information:

1. Name and domicile or last postal address of the people who support the
credit extension or deposit;

2. The amount and date of the loan or deposit owed and whether it is cash
or collateral and, if the latter, are of the same nature;

3. the date on which the person on whose behalf the credit or deposit was
made dies, if known, or the date on which they made their last deposit or
withdrawal; and

4. The interest on the loan or deposit, if any, and the amount.

Once the above statement has been received, the cashier will publish it once
a week for three consecutive weeks in at least two newspapers with total
circulation at the bank or bank premises, if any, and if not, in the city of
Manila, will publish one in English and another. in Spanish. The Ministry
of Finance bears the cost of the publication, which is reimbursed from the
funds spent.

It is the duty of the island treasurer to notify the Attorney General

periodically of any unclaimed bank balances.

SEC. 3. Whenever the Attorney-General shall be informed of

such unclaimed balances, he shall commence an action or
actions in the name of the People of the Philippine Islands in the
Court of First Instance of the province the bank is located, in
which shall be joined, as bank; and all such creditors or
depositors. All of any member of such creditors or depositors or
banks may be include in one action. Service of process in such
action or actions shall be made by, delivery of a copy of the plaint
and summons to the president, cashier or managing officer of
each defendant bank and by publication of a copy of such
summons once a week for three consecutive weeks in at least two
newspapers of general circulation, one in English and one in
Spanish, published in the locality where the bank or banks are
situated, if there be any, and in case there is none, in the City of
Manila. Upon the trial the court must hear all parties who have
appeared therein, and if it be determined that such credit or
deposits in any defendant bank are unclaimed as hereinabove
stated, then the court, shall render judgment in favor of the
Government of the Philippine Islands declaring that said credit
or deposits have escheated to the Government of the Philippine
Islands, and commanding said bank or banks to forthwith
deposit the same with the Insular Treasurer to the credit of the
Government of the Philippine Islands to be used as the
Philippine Legislature may direct.

At the time of issuing the summons in the action above provided

for, the clerk of court shall also issue a notice signed by giving
the title and number of said action, and referring to the
complaint therein, and directed to all persons, other than those
named as defendants therein, claiming any interest in any
deposit mentioned in said complaint, and requiring them to
appear within sixty days after the first publication of such
summons, and show cause, if any they have, why the credit or
deposits involved in said action should not be deposited with the
Insular Treasurer as in this Act provided and notifying them that
if they do not appear and show cause, the Government of the
Philippine Islands will apply to the court for the relief demanded
in the complaint. A copy of said notice shall be attached to and
published with the copy of, said summons required to be
published as above, and at the end of the copy of such notice so
published there shall be a statement of the date of the first
publication of said summons and notice. Any person interested
may appear in said action and become a party thereto. Upon the
completion of the publication of the summons and notice, and
the service of the summons on the defendant bank or banks, the
court shall have full and complete jurisdiction in the Philippine
Islands, over the said credit or deposits and over the persons
having or claiming any interest in the said credit and deposits, or
any of them, and shall have full and complete jurisdiction to hear
and determine the issues therein, and vender the appropriate
judgment thereon.

SECTION 3. If the Attorney General is notified of the unclaimed funds, he

will act or act on behalf of the people of the Philippines at the Court of First
Instance in the province where the bank will be located; and creditors or
depositors. All members of the creditors or depositors or the bank can
engage in an action. The process of service in action or action is carried out
by submitting a copy of the complaint and subpoena to the president,
treasurer or governor of each bank surveyed and by issuing a copy of this
subpoena once a week for at least three consecutive weeks of two
newspapers with total circulation, one in English and one in Spanish,
issued at the place of a bank or bank, if any, and if not, in the city of Manila.
During the process, the court must listen to all parties that appear in it and
if it is found that the loan or deposit was not claimed by one of the
defendant banks, as mentioned above, the court will win the decision in
favor of the Philippine Islands Government. , which states that the loan or
deposit has passed the Philippine Islands government and asks the bank or
bank to immediately deposit it to the island cashier in a Philippine
government loan for use by the Philippine legislature.

During the filing of a subpoena in the above action, the Registrar will also
issue a signed notification stating the title and number of the action and
make a reference to the complaint contained therein, which will be sent to
anyone other than the so-called defendant in. is entitled to the deposit
interest stated in the complaint and request to appear within sixty days of
the first publication of the subpoena and, if applicable, to state the reasons
why loans or deposits involved in this act may not be deposited with the
island treasurer as provided for in the law -this law, and advise them that if
they are absent and do not show reasons, the Philippine government will
provide the assistance requested in an appeal to the court. A copy of this
notice must be attached and published together with a copy of the
subpoena, which will be issued as specified above, and at the end of this
copy of the notification, the date of first publication of the notification must
be indicated on the subpoena and notification. Anyone who is interested
can join the campaign and be a party. After completing the publication of
the summons and notifications and sending of summons to the bank or
bank of the defendant, the courts in the Philippines have full jurisdiction
over loans or deposits and persons owning or claiming interest and deposits
or whoever. of them, and will have full and complete responsibility for
examining and resolving the problems contained therein and making
appropriate decisions about them.

SEC. 4. If the president, cashier or managing officer of any bank

neglects or refuses to make the publication and sworn statement
required by this Act, such bank shall forfeit he Government of
the Philippine Islands the sum of one hundred pesos a month for
each month or fraction, thereof during which such default shall
continue.

SECTION. 4. If the president, treasurer or bank manager ignores or refuses

the publications and oaths required by this law, the bank will lose to the
Philippine government the amount of one hundred pesos per month for
each month or its share, while the default setting continues to be.

SEC. 5. Any bank which shall make any deposit with the Insular
Treasurer in conformity with the provisions of this Act shall not
thereafter be liable to any person for the same and any action
which may be brought by any person against any bank for
moneys so deposited with the Insular Treasurer shall be
defended by the Attorney-General without cost to such bank.

SECTION. 5. Banks that make deposits to island cashiers in accordance

with the provisions of this law are not responsible for anyone and for
actions that a person can take against the bank against the money
deposited at the island cashier will be protected by a Public Attorney for
this bank for free.

SEC. 6. This Act shall take effect on January first, nineteen

hundred and thirty-three.

SECTION. 6. This law shall come into force on January 1, nine hundred and
thirty three.