Name: Labaniego, Kyla Mae

Course & Year: BS Management IV

Schedule & Room: MTh (3:00-4:30)
Date of Deadline: September 15, 2023
Date of Submission: September 15, 2023
Academic Year and Semester: 2023-2024 First Semester

Review Questions BSP & RA 9160 Anti-Money Laundering Act of 2001

1. Explain the purpose/function of the Bangko Sentral ng Pilipinas directly to you as a

citizen/student.

The Bangko Sentral ng Pilipinas (BSP) is resolutely committed to advancing a resilient

economy and elevating the overall quality of life for every Filipino, as articulated in its vision and
mission. To achieve this mission, the BSP is unwaveringly dedicated to the pursuit of several core
objectives, including the preservation of price stability, the reinforcement of the financial system, and
the assurance of security and efficiency in payment and settlement systems (Bangko Sentral ng
Pilipinas, 2023). However, it is vital to delve deeper into the BSP's pivotal role in preserving price
stability and how this directly impacts our daily finances.

Price stability is a cornerstone of a thriving and functional economy, with its significance to
citizens being immeasurable. When prices remain stable, the value of a nation's currency remains
relatively consistent. This ensures that the purchasing power of a unit of currency remains steady
over time. In simpler terms, if someone possesses 100 pesos today, those 100 pesos will maintain
their capacity to purchase goods and services at a similar level a year from now. This stability is
paramount as it safeguards the real value of citizens' hard-earned money.

For individuals who engage in saving and investment, stable prices confer substantial
benefits. In an environment of price stability, individuals can plan for their financial future with
enhanced confidence. They can deposit funds in a bank account or invest in assets like stocks or
bonds, knowing that the actual value of their savings and investments will not diminish due to
unpredictable inflation or deflation. This encourages responsible financial management and

As a student of the University of the Philippines [CU], I hold myself to a high standard of integrity, and by signing/accepting the statement below I reaffirm my pledge to act ethically by honoring the UP Student Code of
Conduct. I acknowledge that the work I submit is my individual effort. I did not consult with or receive any help from any person or other source. I also did not provide help to others. I may work with others only if the
instructor gave specific instructions, and only to the extent allowed by the instructor. I understand that suspected misconduct on given assignments/examinations will be reported to the appropriate office and if established,
will result in disciplinary action in accordance with University rules, policies, and procedures.
empowers individuals to work toward their long-term financial objectives, such as homeownership,
funding their children's education, or retiring comfortably.

Furthermore, stable prices streamline household budgeting. In situations where prices fluctuate
erratically, estimating future expenses becomes a formidable challenge. For instance, if food prices
surge unpredictably, families may struggle to budget for their grocery bills. In contrast, with price
stability, individuals and families can create more precise financial plans, alleviating stress and
promoting overall financial well-being. Consequently, when citizens possess trust in the stability of
prices, they are more inclined to spend and invest in the economy. This, in turn, can invigorate
economic growth and foster job creation, with overarching benefits for the collective well-being of
the population.

2. What interests you the most from among the presentations? Why? What is the implication of
BSP and RA 9160 to your role as a future financial decision-maker of an organization?

Money laundering is a severe problem in the Philippines (Sanction Scanner, 2022). With this,
it’s totally understandable to see myself drawn toward such a huge financial issue. I may not have
been a fan of these sorts of things several years back as I deemed it to be a colossal and complicated
burden. But as you become older and more aware of where all the pesos your parents gave you
when you asked before come from, you get to realize that protecting money is just as important as
earning it.

Due to its expanding economy and strategic location along prominent trafficking routes, the
Philippines faces heightened susceptibility to money laundering and the financing of terrorism. This
augmented risk is further compounded by recent advancements in the online gaming sector.
Criminals commonly exploit corruption and engage in sex trafficking to generate illicit proceeds,
while terrorist organizations operating in the Philippines derive income from activities such as
kidnapping for ransom, cocaine trafficking, and arms trafficking. Additionally, the substantial volume
of remittances from Filipinos residing abroad places a substantial tracking responsibility on
anti-money laundering authorities (Sanction Scanner, 2022).

Money laundering scandals have resulted in the collapse of banks and have sent shockwaves
through entire nations (Bardin et al., 2023). In the end, it is society that bears the burden, as trust in
the soundness of the financial system erodes. This erosion of trust frequently compels taxpayers to
bail out failing banks, and it can also restrict customer access to credit, impacting the broader
economy (Bardin et al., 2023).

As a student of the University of the Philippines [CU], I hold myself to a high standard of integrity, and by signing/accepting the statement below I reaffirm my pledge to act ethically by honoring the UP Student Code of
Conduct. I acknowledge that the work I submit is my individual effort. I did not consult with or receive any help from any person or other source. I also did not provide help to others. I may work with others only if the
instructor gave specific instructions, and only to the extent allowed by the instructor. I understand that suspected misconduct on given assignments/examinations will be reported to the appropriate office and if established,
will result in disciplinary action in accordance with University rules, policies, and procedures.
 RA 9160 places a strong emphasis on anti-money laundering (AML) and counter-terrorism
financing (CTF) compliance. As a financial decision maker in the near future, it’s a must to ensure that
my organization adheres to all AML and CTF regulations and guidelines set forth by the BSP. This
involves implementing rigorous due diligence procedures when onboarding customers, conducting
transactions, and managing relationships with high-risk entities. RA 9160 also obliges financial
institutions to report suspicious transactions to the AMLC (Anti-Money Laundering Council) and to
cooperate with investigations (Republic Act No. 9160, 2015). My role may then involve overseeing
and facilitating the reporting process within the organization, ensuring that it promptly and
accurately submits reports as required. I may also need to establish comprehensive training
programs to heighten staff awareness of AML and CTF obligations and integrate these considerations
into strategic decision-making processes, all while remaining attuned to potential legal repercussions
and penalties for noncompliance. All these are for the aim of upholding the financial system’s
integrity and shielding my future organization from regulatory and reputational risks.

3. Comment on this news in the context of RA 9160 Anti-Money Laundering Act of 2001:
https://newsinfo.inquirer.net/1759190/ca-affirms-conviction-of-ex-rcbc-exec-in-81-m-bangladesh-
bank-heist

Frequently, we tend to associate criminals with those who directly commit unlawful acts. Yet,
we often overlook the role of instruments that facilitate these crimes. In the case of Deguito, while
she may not have initiated or directly engaged in the illegal activities, she effectively acted as a
conduit enabling their success.

In the context of Republic Act No. 9160, as stated in Section 4, money laundering is
committed by 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, 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, and 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 (Republic Act No. 9160, 2015).

Let's entertain the possibility that Deguito was genuinely unaware of the illicit activities at
the outset. However, considering the numerous transactions she conducted with the Jupiter
accounts, it becomes increasingly implausible that she remained oblivious to any wrongdoing. One
would expect that, over time, she might have detected irregularities that raised suspicions.
Regrettably, there is no evidence of such inquiries or concerns on her part. Instead, she continued to

As a student of the University of the Philippines [CU], I hold myself to a high standard of integrity, and by signing/accepting the statement below I reaffirm my pledge to act ethically by honoring the UP Student Code of
Conduct. I acknowledge that the work I submit is my individual effort. I did not consult with or receive any help from any person or other source. I also did not provide help to others. I may work with others only if the
instructor gave specific instructions, and only to the extent allowed by the instructor. I understand that suspected misconduct on given assignments/examinations will be reported to the appropriate office and if established,
will result in disciplinary action in accordance with University rules, policies, and procedures.
facilitate these activities, appearing to feign ignorance, which, given the circumstances, makes her
liable for a prison sentence of 7-14 years.

Reference:

Bangko Sentral ng Pilipinas. (2023). Bangko Sentral ng Pilipinas:Citizen’s Charter. Bangko

Sentral Ng Pilipinas. Retrieved September 14, 2023, from

https://www.bsp.gov.ph/SitePages/CitizensCharter/CitizensCharter.aspx#:~:text=The

%20primary%20objective%20of%20the,the%20convertibility%20of%20the%20peso.

Bardin, P., Bouveret, A., Jackson, G., & Markevych, M. (2023, September 4). Money

laundering poses a risk to financial sector stability. IMF. Retrieved September 15,

2023, from

https://www.imf.org/en/Blogs/Articles/2023/09/04/money-laundering-poses-a-risk-t

o-financial-sector-stability

Bernanke, C. B. (2006, February 24). The benefits of price stability. Board of Governors of the

Federal Reserve System. Retrieved September 14, 2023, from

https://www.federalreserve.gov/newsevents/speech/bernanke20060224a.htm

Republic Act No. 9160. (2015, October 16).

http://www.amlc.gov.ph/laws/money-laundering/2015-10-16-02-50-56/republic-act-

9160

Sanction Scanner. (2022, March 22). Anti-Money laundering (AML) in the Philippines.

Retrieved September 15, 2023, from

https://sanctionscanner.com/Aml-Guide/anti-money-laundering-aml-in-the-philippin

es-407

As a student of the University of the Philippines [CU], I hold myself to a high standard of integrity, and by signing/accepting the statement below I reaffirm my pledge to act ethically by honoring the UP Student Code of
Conduct. I acknowledge that the work I submit is my individual effort. I did not consult with or receive any help from any person or other source. I also did not provide help to others. I may work with others only if the
instructor gave specific instructions, and only to the extent allowed by the instructor. I understand that suspected misconduct on given assignments/examinations will be reported to the appropriate office and if established,
will result in disciplinary action in accordance with University rules, policies, and procedures.