ANTI-MONEY LAUNDERING ACT (RA 9160, AS AMENDED BY RA

9194, 10365 and 11521)

MONEY LAUNDERING: a crime committed by any person knowing that

any monetary instrument or property represents, involves or relates
to, the proceeds of any unlawful activity:
1. Transacts or attempts to transact said monetary instrument or

property
2. Converts, transfers, disposes of, moves, acquires, possesses or

uses said monetary instrument or property;

3. Conceals or disguises the true nature, source, location,
disposition, movement or ownership of or rights with respect to
said monetary instrument or property
4. Attempts or conspires to commit money laundering offenses referred

to above;
5. Aids, abets, assists in or counsels the commission of the money

laundering offenses referred to above (1 to 3)

6. Performs or fails to perform any act as a result of which he

facilitates the offense of money laundering referred to above (1 to 3);

7. Those committed by failure to report to the Anti-Money Laundering

Council (AMLC) by any covered person knowing that a covered or

suspicious transaction is required under the Anti-Money Laundering
Law to be reported thereto.

STAGES OF MONEY LAUNDERING:

1. Placement - The launderer inserts dirty money into a legitimate

financial institution
2. Layering - Involves sending money through various financial
transactions to change its form and make it more difficult to follow.
3. Integration - At this stage the money re-enters mainstream economy

in legitimate-looking form, appearing to have come from legitimate

transaction.

UNLAWFUL ACTIVITIES: Any act or omission or series or combination

thereof involving or having relation to the following:
1. Kidnapping for ransom under Article 267 of RPC

2. Sections 4, 5, 7, 8, 9, 10, 12, 13, 14, 15 and 16 of Comprehensive

Dangerous Drugs Act (RA 9165) a. Importation of prohibited

drugs
b. Sale of prohibited drugs

c. Administration of prohibited drugs

d. Distribution of prohibited drugs

 e. Transportation of prohibited drugs
f. Maintenance of a den, dive, or resort for prohibited users
g. Manufacture of prohibited drugs

h. Possession of prohibited drugs

i. Use of prohibited drugs

j. Cultivation of plants which are sources of prohibited drugs
k. Culture of plants which are sources of prohibited drugs

3. Section 3, paragraphs B, C E, G, H and I of RA 3019, or the Anti-Graft

and Corrupt Practices Act
a. Directly or indirectly requesting or receiving any gift, present, share,

percentage, or benefit for himself or for any other person in

connection with contract or transaction between the Government
and any party, wherein the public officer in his official capacity has
to intervene under the law
b. Directly or indirectly requesting or receiving any gift, present, or

other pecuniary or material benefit, for himself or for another, from

any person for whom the public officer, in any manner or capacity,
has secured or obtained, or will secure or obtain, any government
permit or license, in consideration for the help given or to be given
c. Causing any undue injury to any party, including the government, or

giving any private party any unwarranted benefits, advantage, or

preference in the discharge of his official, administrative, or judicial
functions through manifest partiality, evident bad faith, or gross
inexcusable negligence
d. Entering, on behalf of the government, into any contract or

transaction manifestly and grossly disadvantageous to the same,

whether or not the public officer profited or will profit thereby
e. Directly or indirectly having financial or pecuniary interest in any

business contract or transaction in connection with which he

intervenes or takes part in his official capacity, or in which he is
prohibited by the Constitution or by any law from having any interest
f. Directly or indirectly becoming interested, for personal gain, or
having material interest in any transaction or act requiring the
approval of a board, panel, or group of which he is a member, and
which exercise of discretion in such approval, even if he votes
against the same or he does not participate in the action of the
board, committee, panel, group
4. Plunder under RA 7080
5. Robbery and extortion under Articles 294, 295, 296, 299, 300, 301
and 302 of RPC
a. Robbery with violence or intimidation of persons

b. Robbery with physical injuries, committed in an uninhabited place

and by a band, or with use of firearms on a street, road, or alley

 c. Robbery in an uninhabited house or public building or edifice
devoted to worship

Note: Theft, or the taking of personal property with intent to gain but
without violence or intimidation of persons or force upon things, is not
an unlawful activity under the AMLA. Unless what was stolen are
coconuts in a coconut farm, fish in a fish pond, mail matter, vehicle or
cattle, or the crime was committed with abuse of confidence – in which
cases, it will be Qualified Theft, which is covered as an unlawful act; or
if the thing stolen was sold, in which case a violation of the Anti-
Fencing Law is committed, which is likewise covered as an unlawful
activity.
6. Jueteng and masiao under PD 1602
7. Piracy on the high seas under RPC and PD 532

a. Piracy on the high seas

b. Piracy in inland Philippine waters

c. Aiding and abetting pirates and brigands

8. Qualified theft under Article 310 of RPC

9. Swindling (or Estafa) under Article 315 of RPC

10. Smuggling under RA 455 and RA 1937

11. Violations of Electronic Commerce Act (RA 8792)

12. Hijacking and other violations under RA 6235

13. Destructive arson and murder as defined under RPC

14. Terrorism and conspiracy to commit terrorism as defined and

penalized under Sections 3 and 4 of Republic Act No. 9372

15. Financing of terrorism under Section 4 and offenses punishable

under Sections 5, 6, 7 and 8 of Republic Act No. 10168, otherwise

known as the Terrorism Financing Prevention and Suppression Act of
2012
16. Bribery under Articles 210, 211 and 211-A of the Revised Penal Code,

as amended, and Corruption of Public Officers under Article 212 of

the Revised Penal Code, as amended
17. Frauds and Illegal Exactions and Transactions under Articles 213,

214, 215 and 216 of the Revised Penal Code, as amended

18. Malversation of Public Funds and Property under Articles 217 and

222 of the Revised Penal Code, as amended

19. Forgeries and Counterfeiting under Articles 163, 166, 167, 168, 169

and 176 of the Revised Penal Code, as amended

20. Violations of Sections 4 to 6 of Republic Act No. 9208, otherwise known

as the Anti-Trafficking in Persons Act of 2003

21. Violations of Sections 78 to 79 of Chapter IV, of Presidential Decree

No. 705, otherwise known as the Revised Forestry Code of the

Philippines, as amended
22. Violations of Sections 86 to 106 of Chapter VI, of Republic Act No.
8550, otherwise known as the Philippine Fisheries Code of 1998
23. Violations of Sections 101 to 107, and 110 of Republic Act No. 7942,

otherwise known as the Philippine Mining Act of 1995

24. Violations of Section 27(c), (e), (f), (g) and (i), of Republic Act No. 9147,

otherwise known as the Wildlife Resources Conservation and

Protection Act
25. Violation of Section 7(b) of Republic Act No. 9072, otherwise known as

the National Caves and Cave Resources Management Protection

Act
26. Violation of Republic Act No. 6539, otherwise known as the Anti-

Carnapping Act of 2002, as amended

27. Violations of Sections 1, 3 and 5 of Presidential Decree No. 1866, as

amended, otherwise known as the decree Codifying the Laws on

Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition
or Disposition of Firearms, Ammunition or Explosives 28.
Violation of Presidential Decree No. 1612, otherwise known as the
Anti-Fencing Law
29. Violation of Section 6 of Republic Act No. 8042, otherwise known as

the Migrant Workers and Overseas Filipinos Act of 1995, as

amended by Republic Act No. 10022
30. Violation of Republic Act No. 8293, otherwise known as the
Intellectual Property Code of the Philippines
31. Violation of Section 4 of Republic Act No. 9995, otherwise known as

the Anti-Photo and Video Voyeurism Act of 2009

32. Violation of Section 4 of Republic Act No. 9775, otherwise known as

the Anti-Child Pornography Act of 2009

33. Violations of Sections 5, 7, 8, 9, 10(c), (d) and (e), 11, 12 and 14 of

Republic Act No. 7610, otherwise known as the Special Protection of

Children Against Abuse, Exploitation and Discrimination
34. Fraudulent practices and other violations under Republic Act No. 8799,

otherwise known as the Securities Regulation Code of 2000;

35. 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 Act] (as amended by
RA No. 11521, effective January 31, 2021)
36. 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 malicious intent; AMLC
cannot institute forfeiture proceedings if the same has been
recovered by the BIR (as amended by RA No. 11521, effective
January 31, 2021)
37. Felonies or offenses of a similar nature that are punishable under the
penal laws of other countries. (as amended by RA No. 10365)
COVERED ENTITIES:
1. Banks, offshore banking units, quasi-banks, trust entities, non-stock
savings and loan associations, pawnshops, and all other institutions
and their subsidiaries and affiliates supervised and/or regulated by
the BSP
2. 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 and/or regulated by the SEC
3. Insurance companies, insurance agents, insurance brokers,
professional reinsurers, reinsurance brokers, holding companies,
holding company systems, and all other persons and entities
supervised and/or regulation by the Insurance Commission
4. Securities dealers, brokers, salesmen, associated persons of brokers
or dealers, investment houses, investment agents and consultants,
trading advisors, and other entities managing securities or rendering
similar services
5. Mutual funds or open-end investment companies or issuers and other
similar entities
6. Jewelry dealers in precious metals/stones, who as, a business, trade
in precious metals/stones, for transactions in excess of P1M
7. Foreign exchange corporations, money changers, money payment,
remittance, and transfer companies and other similar entities
8. Casinos, including internet and ship-based casinos with respect to
their casino cash transactions related to their gaming operations. (as
amended by RA No. 10927)
9. Company service providers to 3rd parties including CPAs and
Lawyers
a. acting as a formation agent of juridical persons;

b. acting as (or arranging for another person to act as) a director or

corporate secretary of a company, a partner of a partnership, or a

similar position in relation to other juridical persons;
c. providing a registered office; business address or accommodation,

correspondence or administrative address for a company, a

partnership or any other legal person or arrangement; and
d. acting as (or arranging for another person to act as) a nominee

shareholder for another person.

10. Person providing the following services including CPAs and
lawyers
a. managing of client money, securities or other assets;

b. management of bank, savings or securities accounts;

 c. organization of contributions for the creation, operation or
management of companies; and
d. creation, operation or management of juridical persons or
arrangements, and buying and selling business entities.
11. Real Estate Developers and Brokers
12. Offshore Gaming Operators and their Service Providers (as
amended by RA No. 11521, effective January 31, 2021)

Lawyers and accountants: acting as independent legal professionals

are NOT covered with respect to privileged information covered by
confidentiality and attorney-client relationship.

Obligations of covered institutions:

1. Customer identification: Covered institutions shall establish and

record the true identity of its clients based on official documents.

2. Record keeping: All records of all transactions of covered institutions

shall be maintained and safely stored for 5 years from the date of
transactions.
3. Safe Harbor: No administrative, criminal, or civil proceedings, shall lie

against any person for having made a transaction report in the regular
performance of his duties and in good faith, whether or not such results
in any criminal prosecution under Philippine laws.
4. REPORTORIAL REQUIREMENTS:

a. Covered Transactions - covered institutions shall report to the

AMLC all covered transactions within 5 working days from

occurrence thereof, unless the AMLC prescribes a longer period
not exceeding 15 working days. Conviction of the unlawful activity is
not necessary before a report is made.

COVERED TRANSACTION: a transaction in cash or other

equivalent monetary instrument involving a total amount in excess
of P500,000 within one banking day.

For casinos, a single casino cash transaction in excess of

P5,000,000 or its equivalent in any other currency. (as amended by
RA No.
10927)

For real estate developers/brokers, a single cash transaction

involving an amount in excess of P7,500,000 or its equivalent in any
other currency. (as amended by RA No. 11521, effective January
31, 2021)
 b. Suspicious Transactions - covered persons to promptly file
suspicious transaction reports within the next working day from
occurrence thereof, which for purposes of the Rule, shall be the
date of establishment of suspicion or determination of the suspicious
nature of the transaction. (as amended by Sec. 9 of 2020 IRR
amending Sec. 2.2 of 2018 IRR, which originally provided: 5 working
days from occurrence as well, “Occurrence” meaning the time the
covered entity has determined that the transaction is suspicious,
which should not exceed 10 days from the date of the transaction).

SUSPICIOUS TRANSACTION: a transaction with covered

institutions, regardless of the amount involved, where any of the
following circumstances exist:
i. There is no underlying legal or trade
obligation, purpose or economic justification
ii. The client is not properly identified
iii. The amount involved is not commensurate with the
business or financial capacity of the client iv. Taking into
account all known circumstances, it may be perceived that the
client’s transaction is structured in order to avoid being the
subject of reporting requirements under the Act
v. Any circumstances relating to the transaction which is observed
to deviate from the profile of the client and/or the client’s past
transactions with the covered institution
vi. The transaction is in any way related to an unlawful activity or

offense under this Act that is about to be, is being or has been
committed
vii. Any transaction that is similar or analogous to any of the

foregoing
• Should a transaction be determined to be both a covered and a
suspicious transaction, it shall be reported as a suspicious
transaction.
• When reporting, it shall not be considered a violation of bank
secrecy laws and similar laws. It shall be prohibited from
communicating, directly or indirectly, in any manner or by any
means, to any person the fact that a covered or suspicious
transaction report was made, the content thereof, or any other
information in relation thereto.

ANTI-MONEY
LAUNDERING COUNCIL:
composed of: 1.
 Chairman: BSP
Governor 2. Members:
a. Commissioner of Insurance Commission

b. Chairman of SEC

Functions of AMLC:
1. to investigate suspicious transactions and covered transactions

deemed suspicious after determination by AMLC, money

laundering activities and other violations of this Act. (as included
by RA No. 11521, effective January 31, 2021)
2. To require and receive covered transaction reports from covered

institutions
3. To issue orders addressed to the appropriate Supervising Authority or

the covered institution to determine the true identity 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, whenever
located, representing, involving or related to, directly or indirectly, in
any manner or by any means, the proceeds of an unlawful activity
4. To institute civil forfeiture proceedings and all other remedial
proceedings through the OSG
5. To cause the filing of complaints with the DOJ or Ombudsman for the

prosecution of money laundering offenses

6. To initiate investigations of covered transactions, money laundering

activities and other violations of RA 9160

7. To freeze any monetary instrument or property alleged to be proceeds

of any unlawful activity

8. To implement such measures as may be necessary and justified under
RA 9160 to counteract money laundering
9. To receive and take action in respect of, any request from foreign
states for assistance in their own anti-money laundering operations
provided in RA 9160
10. 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
11. To enlist the assistance of any branch, department, bureau, office,
agency or instrumentality of the government, including GOCCs, 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.
12. To impose administrative sanctions for the violation of laws, rules,
regulations, orders, and resolutions issued pursuant to law
13. "in the conduct of its investigation, the AMLC shall apply for the
issuance of a search and seizure order with any competent court;
(as included by RA No. 11521, effective January 31, 2021)
14. "in the conduct of its investigation, the AMLC shall apply for the
issuance of subpoena ad testificandum and/or subpoena duces
tecum with any competent court; (as included by RA No. 11521,
effective January 31, 2021)
15. "to implement targeted financial sanctions in relation to
proliferation of weapons of mass destruction and its financing,
including ex parte freeze, without delay, against all funds and
other assets that are owned and controlled, directly or indirectly,
including funds and assets derived or generated therefrom, by
individuals or entities designated and listed under United Nations
Security Council Resolution Numbers 1718 of 2006 and 2231 of
2015 and their successor resolutions as well as any binding
resolution of the Security Council; and (as included by RA No.
11521, effective January 31, 2021)
16. "to preserve, manage or dispose assets pursuant to a freeze
order, asset preservation order, or judgment of forfeiture:
Provided, however, That pending their turnover to the national
government, all expenses incurred in relation to the duties herein
mentioned shall be deducted from the amount to be turned over
to the national government." (as included by RA No. 11521, effective
January 31, 2021)

Freezing of Monetary Instrument or Property: The Court of Appeals,

upon application ex parte by AMLC and after determination that probable
cause exists that any monetary instrument or property is in any way
related to an unlawful activity, may issue a freeze order which shall be
effective immediately (for a period of 20 days unless extended by the
court upon application by the AMLC).

Considering the intricate and diverse web of related and interlocking

accounts pertaining to the monetary instruments or properties that any
person may create in the different covered institutions, their branches
and/or other units, AMLC may apply to freeze monetary instruments or
properties in the names of the reported owners/holders, and monetary
instruments or properties named in the application of the AMLC, including
all other related web of accounts.
Related Web of Accounts are those accounts, the funds and sources of
which originated from and/or are materially linked to the monetary
instruments or properties subject of the freeze orders.

AMENDMENTS UNDER RA No. 11521 (effective January 31, 2021)

1. Within the twenty (20) day period, the Court of Appeals shall conduct

a summary hearing, with notice to the parties, to determine whether

or not to modify or lift the freeze order, or extend its effectivity.
2. The total period of the freeze order issued by the Court of Appeals

under this provision shall not exceed six (6) months.

3. This is without prejudice to an asset preservation order that the

Regional Trial Court having jurisdiction over the appropriate anti-

money laundering case or civil forfeiture case may issue on the same
account depending on the circumstances of the case, where the Court
of Appeals will remand the case and its records.
4. If there is no case filed against a person whose account has been

frozen within the period determined by the Court of Appeals, not

exceeding six (6) months, the freeze order shall be deemed ipso
facto lifted.
5. This new rule shall not apply to pending cases in the courts. In any

case, the court should act on the petition to freeze within twenty-four
(24) hours from filing of the petition. If the application is filed a day
before a nonworking day, the computation of the twenty-four (24) hour
period shall exclude the nonworking days.
6. The freeze order or asset preservation order issued under this Act

shall be limited only to the amount of cash or monetary instrument

or value of property that court finds there is probable cause to be
considered as proceeds of a predicate offense, and the freeze order
or asset preservation order shall not apply to amounts in the same
account in excess of the amount or value of the proceeds of the
predicate offense.
7. A person whose account has been frozen may file a motion to lift the

freeze order and the court must resolve this motion before the
expiration of the freeze order.
8. No court shall issue a temporary restraining order or a writ of

injunction against any freeze order, except the Supreme Court.

9. For purposes of implementing targeted financial sanctions in relation

to proliferation of weapons of mass destruction and its financing, the

AMLC shall have the power to issue, ex parte, an order to freeze
without delay.
10. The freeze order shall be effective until the basis for its issuance

shall have been lifted. During the effectivity of the freeze order, the
aggrieved party may, within twenty (20) days from issuance, file with
 the Court of Appeals a petition to determine the basis of the freeze
order according to the principle of effective judicial protection:
11. The person whose property or funds have been frozen may withdraw

such sums as the AMLC determines to be reasonably needed for

monthly family needs and sustenance including the services of
counsel and the family medical needs of such person.
12. The AMLC, if circumstance warrant, may initiate civil forfeiture

proceedings to preserve the assets and to protect it from dissipation.

13. No court shall issue a temporary restraining order or a writ of

injunction (or even an asset preservation order as per Sec. 12(d),

as amended) against the freeze order (referred to in 9 and 12), except
the Court of Appeals or the Supreme Court.

Authority to inquire into bank deposits: The AMLC may inquire into
deposits upon order of the court when there is probable cause that the
deposits are related to the crime or unlawful activities.

However, a court order is not necessary when the offense or unlawful

activity involved is any of the following:
1. Kidnapping for ransom

2. Sections 4, 5, 7, 8, 9, 10, 12, 13, 14, 15 and 16 of Comprehensive

Dangerous Drugs Act (RA 9165)

3. Hijacking and other violations under RA 6235, destructive arson and

murder, including those perpetrated by terrorists against
noncombatant persons and similar targets
4. Terrorism and conspiracy to commit terrorism as defined under the
Human Security Act.
Inquiry into deposits may be availed of even in the absence of a pre-
existing criminal case under the same law. However, the order
authorizing bank inquiry cannot be issued ex parte.