Page 1 of 2 | RFBT Handouts No.

9A

CREDIT TRANSACTIONS
ATTY. NICKO SORIANO, CPA

AMENDMENTS TO THE ANTI-MONEY

LAUNDERING ACT
ATTY. NICKO SORIANO, CPA

Republic Act No. 11521, amending the Anti-Money Laundering Act, effective Jan. 31, 2021

COVERED PERSONS (or INSTITUTIONS): now include:

1. Real Estate Developers and Brokers
2. Offshore Gaming Operators and their Service Providers

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COVERED TRANSACTIONS: now include transactions of Real Estate Developers and Brokers to report a single
cash transaction involving an amount in excess of P7.5M or its equivalent in any other currency

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UNLAWFUL ACTIVITIES: now include:

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1. Violation of Sec. 19(a)(3) of RA No. 10697 (Strategic Trade Management Act) [To engage in any activity prohibited
by, or in contravention of, any orders or regulations issued by the NSC-STMCom to implement the provisions of this
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Act]
2. Violations of Section 254 of Chapter II of Title X of the NIRC (Tax Evasion), where the basic tax in the final assessment
is in excess of P25M per taxable year for each tax type with finding of probable cause; willful misrepresentation or
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malicious intent; AMLC cannot institute forfeiture proceedings if the same has been recovered by the BIR

ADDITIONAL DEFINITIONS PROVIDED:

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Offshore Gaming Operator: refers to an entity engaged in offering online games of chance or sporting events via the
internet using a network and software program, by themselves or through local service providers.
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Service Providers: refer to duly constituted business corporations who provide components of offshore gaming
operations to offshore gaming operators.
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Real Estate Developer: refers to any natural or juridical person engaged in the business of developing real estate
development project for the account of the developer and offering them for sale or lease.

Real Estate Broker: refers to a duly registered and licensed natural person who, for a professional fee, omission or other
valuable consideration, acts as an agent of a party in a real estate transaction to offer, advertise, solicit, list, promote,
mediate, negotiate, or effect the meeting of the minds on the sale, purchase, exchange, mortgage, lease or joint venture,
or other similar transaction on real estate or any interest therein.

Targeted Financial Sanctions: refer to both asset freezing and prohibition to prevent funds or other assets from being
made available, directly or indirectly, for the benefit of any individual, natural or legal persons or entity designated pursuant
to relevant United Nations Security Council resolution and its designation processes.

Proliferation Financing: Refers when a person:

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 Page 2 of 10 | RFBT Handout No. 04

ATTY. NICKO SORIANO, CPA

CREDIT TRANSACTIONS

• Makes available an asset; or

• Provides a financial service; or
• Conducts a financial transaction; and the person knows that, or is reckless as to whether, the asset, financial service
or financial transaction is intended to, in whole or in part, facilitate proliferation of weapons of mass destruction in
relation to UN Security Council Resolution Number 1718 0f 2006 and 2231 of 2015.

ADDITIONAL POWERS OF THE AMLC:

1. Apply for the issuance of a search and seizure order
2. Apply for the issuance of subpoena ad testificandum and/or duces tecum
3. Implement targeted financial sanctions in relation to proliferation of weapons of mass destruction and its financing,
including ex-parte freeze order without delay all funds and assets
4. To preserve, manage or dispose of assets subject of freeze order
5. Securely protect information received or processed and shall not reveal, in any manner, any information known
to them by reason of their office. This prohibition shall apply even after their separation from the AMLC.

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OTHER AMENDMENTS:
1. For targeted financial sanctions, AMLC may issue, ex-parte, an order to freeze without delay effective for 20 days,

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against funds and property in connection with financing of proliferation of weapons of mass destruction. No court
shall issue a TRO or Writ of Injunction against the Freeze Order, except the Court of Appeals or the Supreme Court.
2. No court shall issue a TRO or Writ of Injunction against Provisional Asset Preservation Order or Asset
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Preservation Order, except the Court of Appeals or the Supreme Court
3. Coordinate with the BIR on investigations in relation to violations of Section 254 of the NIRC, as amended, as a
predicate offense to money laundering.
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REO CPA REVIEW PHILIPPINES Effectiveness. Efficiency. Convenience

www.realexcellenceonline.com.ph REAL EXCELLENCE ONLINE CPA REVIEW
(074) 665 6774 0916 840 0661 admin@reo.com.ph OCTOBER 2021 CPA REVIEW SEASON