Republic Act No.

9160
RA 9194, 10167, 10365, 10927, and 11521
Anti-Money Laundering Act
What is Money Laundering?
According to R.A. 9160 Section 4
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:

Any person knowing that any monetary instrument or property:

a) represents, involves, or relates to, the proceeds of any unlawful activity, transacts or attempts to transact said
monetary instrument or property.

b) 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) is required under this Act to be disclosed and filed with the Anti-Money Laundering Council (AMLC), fails to do so.
What are considered unlawful activities under the AMLA?
These are the 14 unlawful activities or predicate crimes covered by the AMLA
according to R.A 9160 Section 3:
Kidnapping for ransom Qualified theft
Drug offenses Swindling
Graft and corrupt Smuggling
practices Electronic Commerce Crimes
Plunder Hijacking, destructive arson, and murder, including
Robbery and extortion those perpetrated against noncombatant persons
Jueteng and Masiao (terrorist acts)
Piracy on the high seas Securities fraud
Felonies or offenses of a similar nature punishable
under penal laws of other countries
How is money laundered through the financial system?

Placement – involves the initial placement or introduction of illegal funds into the
financial system. Financial institutions are usually used at this point.

Layering – involves a series of financial transactions during which the dirty

money is passed through a series of procedures, putting layer upon layer of
persons and financial activities into the laundering process.

Integration – the money is once again made available to the criminal with the
occupational and geographic origin obscured or concealed. The laundered funds
are now integrated into the legitimate economy by purchasing properties,
businesses, and other investments.
 Preventive Measures

1. Customer Identification
2. Record Keeping
3. Transaction Reporting
 Anti-Money Laundering Council (AMLC)
The Anti-Money Laundering Council (AMLC) was created pursuant to Republic Act
No. 9160, otherwise known as the “Anti-Money Laundering Act of 2001” (AMLA), to
protect 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.

The AMLC is composed of the Governor of the Bangko Sentral ng Pilipinas as

Chairman, and the Commissioner of the Insurance Commission and the Chairman
of the Securities and Exchange Commission as members. It acts unanimously in
the discharge of its functions.
Covered Persons
Financial Insitutions

Land Registration Authority/Registry of Deeds (RA 11521)

Designated Non-Financial Businesses and Professions

What are the covered instituions?
banks, non-banks, quasi-banks, trust entities, foreign exchange dealers, pawnshops, money
changers, remittance and transfer companies and other similar entities and all other persons
and their subsidiaries and affiliates supervised or regulated by the Bangko Sentral ng
Pilipinas (BSP);
insurance companies, pre-need companies and all other persons supervised or regulated
by the Insurance Commission (IC);
securities dealers, brokers, salesmen, investment houses and other similar persons managing
securities or rendering services as investment agent, advisor, or consultant, (ii) mutual funds,
close-end investment companies, common trust funds, and other similar persons, and (iii)
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 the Securities and Exchange
Commission (SEC);
Transaction Reporting
GENERAL RULE:
Transactions in cash or other equivalents that are in
excess of Php 500,000 are REPORTABLE.
EXCEPT:
Jewelers and dealers of precious metals or stones
(reportable if the amount is in excess of Php 1,000,000).

Casinos (reportable if the amount is in excess of

Php 5,000,000).
Transaction Reporting
Covered Transactions
Transaction in cash or other equivalent monetary instruments involving
a total amount in excess of Php 500,000.00 within one (1) business day.

Realty Transactions
RA 11521 defines it as a single cash transactions in excess of Php 7,500,000,
or its equivalent in any other currency.

Suspicious Transactions
A transaction with a covered institution, regardless of the amount involved.
Suspicious Transactions:
The following circumstances exists:
1. No Underlying legal or trade obligation, purpose, or economic justification.
2. Client is not properly Identified.
3. Amount involved not Commensurate with client's business or financial capacity.
4. Transaction Structured in order to avoid being subject of reportorial requirements.
5. Transaction which Deviates from client's profile and/or client's past transactions with
covered institutions.
6. Transaction related to an Unlawful activity, including those committed or about to be
committed.
7. Similar or analogous transactions.
Money Laundering Offenses and Penalties:

Imprisonment Fine

Knowingly transacting or [AND] not less

attempting to transact any than P3Mbut not
monetary instrument/property 7 to 14 years more than twice
which represents, involves or imprisonment thevalue of the
relates to the proceeds of an monetary
unlawful activity instrument/property
Money Laundering Offenses and Penalties:

Imprisonment Fine

Knowingly performing or failing

to perform an act in relation to
any monetary instrument/ [AND] not less than
4 to 7 years
property involving the proceeds P1.5M but not more
imprisonment
of any unlawful activity as than P3M
a result of which he facilitated
the offense of money laundering
Money Laundering Offenses and Penalties:

Imprisonment Fine

Knowingly failing to disclose

[OR] not less
and file with the AMLC any 6 months to 4 years
thanP100,000 but
monetary instrument/property imprisonment
not morethan
required to be disclosed and
P500,000, or both
filed
Money Laundering Offenses and Penalties:
Imprisonment Fine

Failure to keep records is

committed by any responsible
official or employee of a
covered institution who fails to [OR] not less
maintain and safely store all 6 months to 1 thanP100,000 but
records of all transactions of year imprisonment not morethan
said institution ,including closed P500,000, or both.
accounts, for five (5) years from
the date of the transaction/
closure of the account
Money Laundering Offenses and Penalties:

Imprisonment Fine

Malicious reporting is
committed by any person who, [AND] not less
with malice or in bad faith, thanP100,000 but
reports/files a completely 6 months to 4 not morethan
unwarranted or false years imprisonment P500,000, at
information relative to money thediscretion of the
laundering transaction against court
any person.
Money Laundering Offenses and Penalties:

Imprisonment Fine

Breach of confidentiality. When

reporting covered or suspicious
transactions to the AMLC, covered
institutions and their officers/ [AND] not less
employees are prohibited from
3 to 8 years than P500,000 but
communicating directly or indirectly,
in any manner or by any means, to any
imprisonment not more than
person/entity/media, the fact that such P1M
report was made, the contents
thereof, or any other information in
relation thereto.
Money Laundering Offenses and Penalties:
Imprisonment Fine

(Cont..) In case of violation thereof, the

concerned official and employee of the
covered institution shall be
criminally liable. 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 a breach of
confidentiality published or reported by
media, the responsible reporter,
writer, president, publisher, manager
and editor-in-chief shall also be held
criminally liable.