ANTI-MONEY LAUNDERING ACT OF 2001

(R.A. 9160, as amended by R.A. 9194, R.A. 10167, R.A. 10365 and 11521)

Introduction: RA 9160 or the anti-money laundering act was passed into law in 2001, and
according to the Anti Money Laundering Council, As of April 2018, the AMLC has secured
convictions for no less than ninety-two (92) counts of money laundering. Those convicted include
drug dealers, illegal job recruiters, fraudsters, kidnappers, bankers and corrupt officials, to name
a few. Through the efforts of the AMLC, millions of pesos and US dollars, and countless properties
have also been forfeited and frozen in favor of the government.

So can you just imagine in a span of 17 years, AMLC only had 92 convictions for violation of RA
9160 as amended. And this only at the trial court level. There is still the possibility that if the case
is elevated to the CA or SC there is a chance that the conviction might be overturned. This is not
to say that AMLC has been slacking. It has something to do with the difficulty prosecuting money
laundering. If AMLC is having difficulty prosecuting money laundering cases, it has become even
more difficult due to the passage of 11521 on January 29, 2021 after it was signed by the president
ever.

POLICY OF THE LAW

1. Protect and preserve the integrity and confidentiality of bank accounts, to ensure that the
Philippines shall not be used as site for unlawful money laundering activities; and

-due to the scope of the power of the AMC, there is a need for the said institution to observe
utmost confidentiality. But with the passage of RA 11521 nasobraan ra pod ang emphasis on
confidentiality to the detriment of AMLC itself as you will learn later on if you have not read
the notes I have given you earlier

-another important policy of the law is to ensure that the Philippines shall not be used as a
site for unlawful money laundering activities.

2. Pursue the state’s foreign policy to extend cooperation in transnational investigations and
prosecutions on money laundering activities.

Question: What is money laundering?

- Money laundering is a crime whereby the proceeds of an unlawful activity are transacted,
thereby making them appear to have originated from legitimate sources.

- You are making dirty money clean. So you launder, you wash it, you cleanse it. You make
money coming from illegal sources appear as coming from legitimate sources.

- If you are a visual learner and having trouble visualizing money laundering, you can watch
The Laundromat starring merryl streep and Antonio banderas, so you will get a better
understanding of the concept of money laundering

COVERED INSTITUTIONS
(See Section 3)

Covered institution refers to:

SEC. 3. Definitions. — For purposes of this Act, the following terms are hereby defined as follows:

1
“(a) ‘Covered persons’, natural or juridical, refer to:

“(1) 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);

“(2) insurance companies, pre-need companies and all other persons supervised or regulated by
the Insurance Commission (IC);

“(3) (i) 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);

“(4) jewelry dealers in precious metals, who, as a business, trade in precious metals, for
transactions in excess of One million pesos (P1,000,000.00);

“(5) jewelry dealers in precious stones, who, as a business, trade in precious stones, for
transactions in excess of One million pesos (P1,000,000.00);

“(6) company service providers which, as a business, provide any of the following services to third
parties: (i) acting as a formation agent of juridical persons; (ii) 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; (iii) 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 (iv) acting as (or arranging for another
person to act as) a nominee shareholder for another person; and

“(7) persons who provide any of the following services:

(i) managing of client money, securities or other assets;

(ii) management of bank, savings or securities accounts;

(iii) organization of contributions for the creation, operation or management of companies; and

(iv) creation, operation or management of juridical persons or arrangements, and buying and
selling business entities.

“Notwithstanding the foregoing, the term ‘covered persons’ shall exclude lawyers and accountants
acting as independent legal professionals in relation to information concerning their clients or
where disclosure of information would compromise client confidences or the attorney-client
relationship: Provided, That these lawyers and accountants are authorized to practice in the
Philippines and shall continue to be subject to the provisions of their respective codes of conduct
and/or professional responsibility or any of its amendments.” [Section 3 (a) as amended by R.A.
103650]

(8) casinos, including internet and ship-based casinos, with respect to their casino cash
transactions related to their gaming operations (RA. 109271)

(9) Real estate developers and brokers; [New addition pursuant to REPUBLIC ACT NO. 11521,
January 29, 2021 ]

(10) Offshore gaming operation, as well as their service providers, supervised, accredited or
regulated by the Philippine Amusement and Gaming Corporation (PAGCOR) or any government
agency. [ New addition pursuant to REPUBLIC ACT NO. 11521, January 29, 2021 ]

2
Discussion
- Traditionally launderers used to go to banks but since banks are now highly
regulated, they have now adopted to existing regulations and make
investments either in the form of securities or stocks or insurance. That is
why aside from banks, the list includes not only insurance companies but
also persons or entities under the SEC supervision, such as security
dealers, brokers, investment houses, mutual funds, foreign exchange
corporations, money changers, pawnshops, remittance and transfer
companies etc. Prior to the amendment introduced in R.A. 10365, the
covered institution covers only items 1 to 3. With the passage of R.A. 10365
items 4 to 7 were added into the list of covered institutions.

- The additions introduced in items 4 and 5 refers to those who are engaged
in jewelry dealership for transactions in excess of one million pesos
whether it be a single transaction or multiple transactions amounting to one
millions.

- Item no. 6 refers to company service providers. These entities are usually
present in situations where there are foreign companies who want to do
business in the Philippines but do not want to physically transfer some of
their employees and equipment from their country of origin to the
Philippines. What they do is enter into an arrangement or contract with a
domestic counterpart so that the foreign company can do business in the
Philippines through their domestic counterpart. The domestic performs
several functions on behalf of the foreign company like securing the
necessary permits and other regulatory requirements for and in behalf of
the foreign company. Setting up a physical office in the country as well as
paying the taxes and such other functions which are necessary for the
foreign company to conduct business in the country.

- Item no. 7 refers to institutions involved in investment portfolios such as

your stock brokers, hedge fund managers and the like.

- Another significant amendment introduced by R.A. 10365 is the exclusion

clause provided in the last paragraph of Section 1. So if you are the lawyer
or CPA of any of the covered persons, you will be glad to know that the
term covered persons exclude lawyers and accountants acting as
independent legal professionals in relation to information concerning their
clients or where disclosure of information would compromise client
confidences or the attorney-client relationship provided that they are
authorized to practice their profession in accordance to their respective
codes of conduct.

- Item 8 relating to real estate developers and brokers is a new addition to AMLA brought
by the passage of R.A. 11521

- Item 8, relating to POGOs is also a new addition to AMLA brought by the passage of R.A.
11521.

COVERED TRANSACTIONS
- (see SEC 3. (b) as amended by R.A. 9194 and RA 11521)

3
"(b) 'Covered transactions' is a transaction in cash or other equivalent monetary instrument
involving a total amount in excess of Five hundred thousand pesos (P500,000.00) within one (1)
banking day; for covered persons under Section 3(a)(8), a single casino cash transaction involving
an amount in excess of Five million pesos (P5,000,000.00) or its equivalent in any other currency.

"For covered persons under Section 3(a)(9) herein, a single cash transaction involving an amount
in excess of Seven million five hundred thousand pesos (P7,500,000.00) or its equivalent in any
other currency.

Discussion

-(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 instrument

-Prior to its amendment by R.A. 9194, the covered transactions refers

to 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. With the amendment,
the threshold is now lowered to those exceeding P500, 000 per day and
the banks are no longer given any discretion to determine the amount
deposited is commensurate to the business or financial capacity of the
client.

-With the passage of the latest amendatory law to your AMLA, R.A
11521, the threshold amount would now vary depending on the covered
person as shown below:
Covered Person Threshold
Section 3(a)(1) to 3(a)(7) Excess of Php500, 000
cash or other equivalent
monetary instrument
Section 3(a)(8) (casinos) Excess of Php5, 000, 000
or its equivalent in any
other currency
Section 3(a)(9) Excess Php7, 500, 000 or
its equivalent in any other
currency

-Take note it says within a single banking day, not a single transaction.

-Example: For example for covered persons under Section 3 ( a) (1) to

3 (a) (7), assuming Mr. A made the following deposits in one day to his
bank acounts: P200,000 in savings account, P350,000 in time deposit and
P100,000 in current account. The bank is required to report these

4
 transactions to AMLC because the total deposits exceed P500,000 in 1
banking day.

Savings Account 200K

Time Deposit 350K
Current Account 100K
TOTAL (one banking day) 650K

 HOWEVER, if within a period of 5 days Mr. A deposited P150,000 per

day (a total of P750,000 in 5 days) the bank is not required to report
this transaction because in a single day it did not exceed P500,000,
UNLESS it falls under “suspicious transactions”.
 So regardless of the purpose, source or destination of the money, so
long as it exceeds P500,000 it is already a covered transaction.
 When we say report, it does not mean that a case will automatically be
filed against you for violation of AMLA. It’s just an administrative matter,
so for purposes of reporting. It is for AMLC now to determine which of
these transactions are considered money laundering activities.


SUSPICIOUS TRANSACTIONS
[Section 3 (b.1)]

- This is a new provision introduced by R.A. 9194.

(b-1) “Suspicious transaction” are transactions with covered persons, regardless of the amounts
involved, where any of the following circumstances exist:

1. There is no underlying legal or trade obligation, purpose or economic justification;

-this refers to transactions where there is no apparent underlying business transaction involved.
Say for example daily deposits of say 100k to a recently opened bank account and the depositor
appears to have no known source of income.

2. The client is not properly identified;

-Client not properly identified. Is that possible or is that allowed? Say if you are a bank depositor
is it possible that the account name is fictitious or an alias? Prior to the passage of RA 9160 there
was no specific banking law up prohibiting banks from opening deposit accounts using an alias
or a number. That is why we have issues in the past involving presidents or their spouses such
as former president Estrada who allegedly had millions of bank deposits under the pseudonym
Jose Velarde. Or in the case of former first gentleman Mike Arroyo who allegedly owns a bank
account under the pseudonym Jose Pidal.

The Second paragraph of Section 9 of RA 9160 expressly states that: The provisions of existing
laws to the contrary notwithstanding, anonymous accounts, accounts under fictitious names, and
all other similar accounts shall be absolutely prohibited.

3. The amount involved is not commensurate with the business or financial capacity of the
client;
-There was a news article a few years ago wherein a security guard employed with the Bureau of
Customs was investigating. Because it was discovered that despite his monthly salary of 14, 000,
the security guard had nearly 2 million in different bank accounts. If you noticed, when you open
up an account with the bank, you are required to fill up a form and one of the questions that is
asked in the form is your source of income, whether or not you are an employee or a
businessman. You are likewise required by the bank to provide in the form your annual income.
There is a possibility that if you have an absurd amount of deposit in the a bank and it appears

5
from their record that the said amount is not commensurate to your declared annual income or
source of income, the bank is obliged to report the matter to the AMLA.

4. 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;

- Example: Series of deposits below 500k, like 100k a day for several
days. It may not fall under covered transactions, but it could be a
suspicious transaction. It may be said that it was structured in such a
way as to avoid reporting.

5. Any circumstance 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;

- Example: If your bank account is always at the maintaining balance or

even below, and then suddenly you make a deposit of P50,000 every
month. So that deviates from the normal pattern or normal client
transaction.

6. 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; or

7. Any transaction that is similar or analogous to any of the foregoing.

-To fall under suspicious transaction, it is not necessary that you made the
transaction within 1 day, because there is no threshold amount. Regardless
of the amount for as long as these circumstances exist.

-It is said that because of these suspicious transactions, the covered

institutions must act as if they were detectives. They are expected to know
the lifestyle, spending habits and financial capacity of their client. They are
supposed to have a comprehensive profile of their clients. So that if a client
makes this deposit and they sense that something is amiss based on the
information that they have, then they report it to AMLC, under suspicious
transaction.

-No problem with covered transactions because they only require an

objective identification. But if you look at suspicious transactions, they are
subjective, they are based on the evaluation of the covered institution. So
whether or not a transaction is a suspicious transaction, it is up to the
covered institution to decide.

-The client also cannot sue the bank for reporting his transaction under
suspicious transaction. Because as discussed earlier, the fact that you
were reported does not necessarily mean that you are into money
laundering. These are just bases for the AMLC to make further
investigation. In fact it is also under the law that the covered institution shall
not be held administratively liable. But there is also a provision under
malicious reporting which will be discussed later.

Question: When will the obligation to make a report arise?

1. Under covered transactions, if the amount exceeds the following threshold, within ONE
BANKING DAY:

Covered Person Threshold

Section 3(a)(1) to 3(a)(7) Excess of Php500, 000
Section 3(a)(8) Excess of Php5, 000, 000
Section 3(a)(9) Excess Php7, 500, 000

6
 2. Under suspicious transactions, regardless of the amount

-So take note of this: when is it a covered transaction and when is it a suspicious
transaction.

There are 3 stages in the money-laundering.

1. Placement.
2. Layering.
3. Final stage is integration. You integrate the money to legitimate activities.

OBLIGATIONS OF COVERED INSTITUTIONS

(See Section 9)

1. Customer identification

- The covered institution must establish and maintain a record of the true
identity of its clients based on official documents.
- One way of laundering money is through false identities. So before they
would accept any transaction from any individual or entity for that matter,
they must establish the true identity of that person.
- If you open an account with a bank, the bank is very strict. They would
require you to submit 2 IDs, and not just any ID but government-issued ID.
Also in case of corporations or juridical entities, they require you to submit
your AOI or SEC registration papers. In addition to that, the bank would
require you to submit a resolution from the board designating the
authorized person or representative of the corporation. The purpose of all
these is to establish the true identity of the client.

- Question: What are the prohibitions?

Opening anonymous accounts, accounts under fictitious names, and all
other similar accounts

As an EXCEPTION under the Anti-Alias Law, if you are a movie star, you
can use your screen name. You can open an account under your screen
name. What is important is that as far as the bank is concerned, the identity
of the person behind that screen name is established.

Some banks also open an account under a numbered account. Why

numbered account? Maybe for confidentiality reasons. Numbered
accounts are allowed but only for savings or non-checking accounts,
because it is difficult for checking accounts. Even if it is a numbered
account, the bank still knows who owns that numbered account. The bank
must still establish the identity behind that numbered account.

2. Record keeping
- All records of all transactions shall be maintained and safely stored for
5 years from the date of transactions.
- For closed accounts, 5 years from the dates when they were closed.

3. Reporting of covered and suspicious transactions

- This is the more important obligation of covered persons

- They shall report to the AMLA Council (AMLC) within 5 working days from
the occurrence of the covered and/or suspicious transaction, unless the
AMLC prescribes a longer period not exceeding 15 working days. Prior to
its amendment by R.A. 10365, the longer period is to be prescribed not by
AMLC but by the supervising authority of banks, insurance companies etc.
which is of course the Bangko Sentral, the Insurance commission and the
securities and exchange commission. Now it is the AMLC who shall
prescribe the longer period. Also prior to the amendment the period shall

7
 not exceed ten (10) working days. With the amendment it was increased to
not more than fifteen (15) working days. The law says working days, not
calendar days because there is a big difference between calendar and
working days.

- A very significant provision introduced by R.A. 10365 is that if you are a

lawyer and an accountant acting as independent legal professionals you
are not required to report covered and suspicious transactions if the
relevant information was obtained in circumstances where they are subject
to professional secrecy or legal professional privilege. This new provision
makes sense and was not merely added so you would be inspired to
become a lawyer or accountant. It is just that by the very nature of their
profession, lawyers and accountants would come across some secrets of
their client. Precisely the reason why clients seek the help of lawyers
because they are either wronged or committed wrongdoing themselves.

- If a transaction is determined to be both a covered and suspicious

transaction, it shall be reported as a suspicious transaction.

- If a bank would report to the AMLC, it is not considered to have violated the
Law on Secrecy of Bank Deposits. We have discussed that, it is one of the
exceptions. But what is exempt is the disclosure or reporting to the AMLC.
If the bank would disclose that a report was made to the AMLC, that is no
longer covered under the exception. In fact if the bank would disclose this
to an unauthorized person, that is criminally punishable. Also, you should
not disclose such reporting to the media.

WHEN IS MONEY LAUNDERING COMMITTED

(See SEC. 4 as amended by R.A. 9194)

“SEC. 4. Money Laundering Offense. — Money laundering is a crime

whereby the proceeds of an unlawful activity as herein defined 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.”

-The amendment introduced by R.A. 9194 is insignificant. The

substance of the said provision of the law is still the same and has not
been changed. Paragraphs (a) to (c) is still the same. Except that on the
opening paragraph a few words were added to make it clearer.

-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:

8
 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.

- Letter A refers to a person transacting or attempting to transact.

- Example: I am the money launderer, I know that this money comes from
gambling or illegal source, I attempt to make a placement in the bank, or I
already made a placement with the bank. So I am therefore liable for money
laundering.

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.

- Even if you are not the one who transacted or attempted to

transact, but you performed or you failed to perform any act, as a result of
which you facilitated the offense.

- Example: X is the money launderer. Y has an account with the

bank and he has already established a record with the bank. X then asks
Y if he could deposit the money in the latter’s account, and Y acceded to
his request, knowing that the proceeds come from an unlawful activity.

- The offense could also be committed by the agents of a covered

person, say the manager knows that a certain deposit is a proceed of some
unlawful activity. Like the case of the RCBC manager who was involved in
the Bangaladeshi Central Bank heist. If you’ve seen it in the news before,
North Korean hackers managed to hack into the computer system of the
Central Bank of Bangladesh and managed to steal 81 million dollars. The
money was sent to accounts at Manila-based RCBC and then vanished
into the casino industry in the Philippines. The RCBC branch manager
involved was charged and was found guilty on eight counts of money
laundering in connection with the heist and sentenced her to a jail term
ranging from 32 to 56 years.

-
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.

- There was no money laundering but there was a failure on the part of
the covered institution to report to the AMLA Council a covered or
suspicious transaction.

Question: What are the elements of money laundering?

1. There was a transaction or an attempted transaction

2. The proceeds comes from an unlawful activity or a predicate crime
3. Knowledge that the proceeds comes from an unlawful activity or a predicate crime

Question: Is it necessary in money laundering to prove that there was intent to make it
appear that the proceeds have originated from legitimate sources?

- No need to prove intent otherwise it would be easy for that person to deny intent. In intent,
we could not fathom the sanctuaries of a person as it is very personal to him.
- There are only 3 elements. Intent is not one of them.
- Intent is not a valid defense. Money laundering is malum prohibitum, intent is not
necessary.

9
Question: What if I am a money launderer. I have money from gambling, then I made a
placement or investment in shares of stock. I have no intention to launder the money, but
I have an intention to make an investment, to make my money grow, or to place it in an
insurance. Will I still be liable for money laundering even if I only wanted to make an
investment?

- Yes, it is still money laundering. You don’t have to prove that the person had the intention
to make it appear clean. What is important is that you make a transaction, and the
transaction proceeds from an unlawful activity and you have knowledge that the proceeds
come from an unlawful activity (the 3 elements of the crime).

Question: Do you need to prove actual knowledge?

- No, because otherwise it would just be easy to say that I have no knowledge. You need
not prove actual knowledge. There is a presumption of knowledge on the part of the person
laundering the money. You take into account the attendant circumstances. But you don’t
need to prove actual knowledge.

 Examples of money laundering:

- Mere opening of an account with a bank – the person opening an account has knowledge
that the proceeds came from kidnapping. That person is already liable for money
laundering.
- A teller who assists in the opening of an account and that teller has knowledge that the
proceeds came from unlawful activities would also be liable for money laundering.
-

UNLAWFUL ACTIVITIES OR PREDICATE CRIMES

Prior to the amendment introduced by RA. 11521, "Unlawful activity" refers to any act or
omission or series or combination thereof involving or having relation to the following:

"(i) 'Unlawful activity' refers to any act or omission or series or

combination thereof involving or having direct 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 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Republic Act
No. 9165, otherwise known as the Comprehensive Dangerous
Drugs Act of 2002;
"(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 and Other Forms of Swindling under
Article 316 of the Revised Penal Code, as amended;
"(10) Smuggling under Republic Act Nos. 455 and 1937;

10
"(11) Violations of 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;
"(13) Terrorism and conspiracy to commit terrorism as defined and
penalized under Sections 3 and 4 of Republic Act No. 9372;
"(14) 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;
"(15) 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;
"(16) Frauds and Illegal Exactions and Transactions under Articles 213,
214, 215 and 216 of the Revised Penal Code, as
amended; DCScaT
"(17) Malversation of Public Funds and Property under Articles 217 and
222 of the Revised Penal Code, as amended;
"(18) Forgeries and Counterfeiting under Articles 163, 166, l67, 168, 169
and 176 of the Revised Penal Code, as amended;
"(19) Violations of Sections 4 to 6 of Republic Act No. 9208, otherwise
known as the Anti-Trafficking in Persons Act of 2003;
"(20) 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;
"(21) Violations of Sections 86 to 106 of Chapter VI, of Republic Act No.
8550, otherwise known as the Philippine Fisheries Code of 1998;
"(22) Violations of Sections 101 to 107, and 110 of Republic Act No.
7942, otherwise known as the Philippine Mining Act of 1995;
"(23) 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;
"(24) Violation of Section 7(b) of Republic Act No. 9072, otherwise known
as the National Caves and Cave Resources Management
Protection Act;
"(25) Violation of Republic Act No. 6539, otherwise known as the Anti-
Carnapping Act of 2002, as amended;
"(26) 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;
"(27) Violation of Presidential Decree No. 1612, otherwise known as
the Anti-Fencing Law;
"(28) 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;
"(29) Violation of Republic Act No. 8293, otherwise known as
the Intellectual Property Code of the Philippines;
"(30) Violation of Section 4 of Republic Act No. 9995, otherwise known
as the Anti-Photo and Video Voyeurism Act of 2009;

11
 "(31) Violation of Section 4 of Republic Act No. 9775, otherwise known
as the Anti-Child Pornography Act of 2009;
"(32) 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;
"(33) Fraudulent practices and other violations under Republic Act No.
8799, otherwise known as the Securities Regulation Code of
2000; and
"(34)Felonies or offenses of a similar nature that are punishable under
the penal laws of other countries."

At present, item (33) and (34) were amended and what is deemed unlawful activity
has been increased to include the following unlawful activities, to wit:

33) Fraudulent practice and other violations under Republic Actr

No. 8799, otherwise known as "The Securities Regulation Code of 2000;

"(34) Violation of Section 9 (a)(3) of Republic Act No. 10697,

otherwise known as the "Strategic Trade Management Act", in relation to
the proliferation of weapons of mass destruction and its financing
pursuant to United Nations Security Council Resolution Numbers 1718
of 2006 and 2231 of 2015";

"(35) Violation of Section 254 of Chapter II, Title X of the National

Internal Revenue Code of 1997, as amended, where the deficiency basic
tax due in the final assessment is in excess of Twenty-five million pesos
(P25,000,000.00) per taxable year, for each tax type covered and there
has been a finding of probable cause by the competent
authority: Provided,further, That there must be a finding of fraud, willful
misrepresenting or malicious intent on the part of the
taxpayer: Provided, finally, That in no case shall the AMLC institute
forfeiture proceedings to recover monetary instruments, property or
proceeds representing, involving, or relating to a tax crime, if the same
has already been recovered or collected by the Bureau of Internal
Revenue (BIR) in a separate proceeding and

"(36) Felonies and offenses of a similar nature that are punishable

under the penal laws of other countries.

NOTE:

 This is an exclusive enumeration. To constitute money laundering, the

proceeds must come from any of the above-listed activities. Otherwise, it
would not be money laundering.

 Take note, the law enumerates 35 unlawful activities or predicate crimes.

Actually these are just the general categorization.

 Now if you look at these crimes, these are crimes wherein huge amounts
of money are involved.
- That’s probably why rape and homicide are not included. (Murder is
included, under number 12)

Question: What’s the reason why the law specifies that only those activities would
constitute money laundering? Why not just any crime?

12
 - These are serious crimes. If you include petty crimes, that would most likely
be used by the enforcement agencies as probing commissions to arrest
just anybody for money laundering. So the law limits the predicate crimes
so that they could focus on these crimes.

 Examples of crimes which do not give rise to money laundering:


- Swertres, the kind that is very prevalent in our locality.

ANTI-MONEY LAUNDERING COUNCIL

The Anti-Money Laundering Council (AMLA Council) is the agency is tasked for the enforcement
of the anti-money laundering act.

COMPOSITION OF THE AMLA COUNCIL:

1. Governor of the BSP (chairman)

2. Commissioner of the Insurance Commission (member)
3. Commissioner of the SEC (member)

FUNCTIONS OF THE AMLC:

(SEC. 7 as amended by R.A. 9194 and R.A. 10365 and R.A. 11521)

1. To investigate suspicious transactions and covered transactions deemed suspicious after

determination by AMLC, money laundering activities and other violations of this Act.
(Significantly amended under R.A. 11521)

NOTE: This is probably the most significant amendment introduced under R.A. 11521,
prior to this provision of the AMLA being amended., the most powerful tool AMLA has in
its arsenal the power to require and receive covered transaction reports from covered
institutions. At present, the AMLA no longer has that power. And even if it has the power
to investigate suspicious transactions and covered transactions deemed suspicious by
AMLC, it still no longer has the power to require and receive covered transaction reports.
In other words banks can simply invoke the bank secrecy law.

NOTE: Although R.A. 11521 did not repeal the obligation of covered persons under
Section 9 para. C to report to AMLC suspicious transactions still this significantly reduces
the ability of AMLC to act on money laundering cases. If a bank altogether refuses to
report certain suspicious transactions, then there is little that AMLC can do.

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 apply before the Court of Appeals, ex parte, for the freezing of any monetary instrument
or property alleged to be laundered, proceeds from, or instrumentalities used in or
intended for use in any unlawful activity as defined in Section 3(i) hereof; to implement

13
 such measures as may be necessary and justified under this Act to counteract money
laundering;

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;

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;
(Additional item introduced in R.A. 9194)

11. to impose administrative sanctions for the violation of laws, rules, regulations and
orders and resolutions issued pursuant thereto;

12. to require the Land Registration Authority and all its Registries of Deeds to submit to
the AMLC, reports on all real estate transactions involving an amount in excess of Five
hundred thousand pesos (P500,000.00) within fifteen (15) days from the date of
registration of the transaction, in a form to be prescribed by the AMLC. The AMLC may
also require the Land Registration Authority and all its Registries of Deeds to submit copies
of relevant documents of all real estate transactions. (Additional item introduced in R.A.
10365)

13. in the conduct of its investigation, the AMLC shall apply for the issuance of a search and
seizure order with any competent court; (Additional item introduced in R.A. 11521)

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; Additional item
introduced in R.A. 11521)

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 Additional item introduced in R.A. 11521)

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." Additional
item introduced in R.A. 11521)

-Prior to its amendment by R.A. 10365, the AMLC has the power to freeze any monetary
instrument or property alleged to be proceeds of any unlawful activity. Under R.A. 10365,
paragraph no. 6 has been substantially altered to the point that the AMLC can no longer freeze
any monetary instrument or property. Istead, AMLC has to apply before the Court of Appeals
an ex parte applciation for the freezing of any monetary instrument or property alleged to be

14
 laundered, proceeds from, or instrumentalities used in or intended for use in any unlawful
activity as defined under the AMLA.

FREEZING OF MONETARY INSTRUMENT OR PROPERTY

(as amended by R.A. 10365)

Section 10. Freezing Monetary Instrument or Property. -

"(a) Upon a verified ex parte petition by the AMLC and after determination that probable cause
exists that any monetary instrument or property is in any way related to an unlawful activity as
defined in Section 3(i) hereof, the Court of Appeals may issue a freeze order which shall be
effective immediately, for a period of twenty (20) days. 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. The total period of the
freeze order issued by the Court of Appeals under this provision shall not exceed six (6) months.
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: Provided, That 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: Provided,further, That 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.

"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 tyo amounts in the same account in excess of the amount or
value of the proceeds of the predicate offense.

"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.

"No court shall issue a temporary restraining order or a writ of injunction against any freeze
order, except the Supreme Court.

"(b) For purposes of implementing targeted financial sanctions in relation to proliferation of

weapons of mass destruction and its financing, as provided under Section 3(15), the AMLC
shall have the power to issue, ex porte, an order to freeze without delay.

"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: Provided, That 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.

"The AMLC, if circumstance warrant, may initiate civil forfeiture proceedings to preserve the
assets and to protect it from dissipation.ℒαwρhi৷ No court shall issue a temporary restraining
order or a writ of injunction against the freeze order, except the Court of Appeals or the Supreme
Court."

Section 6. Section 12 of the same Act is hereby amended by inserting a new paragraph to read
as follows:

15
"(d) No court shall issue a temporary restraining order (TRO) or a writ of injunction against any
provisional asset preservation order or asset preservation, except the Court of Appeals or the
Supreme Court."

- The AMLA council upon EX PARTE APPLICATION can file with

the COURT OF APPEALS after determination of PROBABLE CAUSE for
a freeze order.
-
- Freeze order – The provision of on Freeze Order has been
amended several times.. Prior to 10365 the period is only twenty (20) days
unless extended by the court. With the passage of R.A. 10365. The freeze
order is effective immediately and it shall be for a period not exceeding six
(6) months. At present or pursuant to the amendment under R.A. 11521,
the freeze she be effective immediately for a period of twenty (20) days.
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. The total period of
the freeze order issued by the Court of Appeals under this provision shall
not exceed six (6) months.

- Effect – money cannot be withdrawn during the effectivity of the

freeze order.

- It is a provisional remedy because it does not require that there

be a case filed for violation of the anti-money laundering law. Even if it is
still in the process of investigation, for as long as the AMLC can establish
probable cause, then it can apply for a freeze order with the COURT OF
APPEALS.

- Only the Supreme Court can issue a temporary restraining order

or a writ of injunction against any freeze order.

AUTHORITY TO INQUIRE INTO BANK DEPOSITS

"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, including related accounts, with any banking institution or non-bank financial
institution upon order of any competent court based on an ex parte application in cases of
violations of this Act, when it has been established that there is probable cause that the deposits
or investments, including related accounts involved, are related to an unlawful activity as
defined in Section 3(i) hereof or a money laundering offense under Section 4 hereof; except
that no court order shall be required in cases involving activities defined in Section 3(i)(1), (2),
and (12) hereof, and felonies or offenses of a nature similar to those mentioned in Section
3(i)(1), (2), and (12), which are Punishable under the penal laws of other countries, and
terrorism and conspiracy to commit terrorism as defined and penalized under Republic Act No.
9372."

"The Court of Appeals shall act on the application to inquire into or examine any depositor or
investment with any banking institution or non-bank financial institution within twenty-four (24)
hours from filing of the application."

"To ensure compliance with this Act, the Bangko Sentral ng Pilipinas may, in the course of a
periodic or special examination, check the compliance of a Covered institution with the
requirements of the AMLA and its implementing rules and regulations."

16
"For purposes of this section, 'related accounts' shall refer to accounts, the funds and sources
of which originated from and/or are materially linked to the monetary instrument(s) or
property(ies) subject of the freeze order(s)."

"A court order ex parte must first be obtained before the AMLC can inquire into these related
Accounts: Provided, That the procedure for the ex parte application of the ex parte court order
for the principal account shall be the same with that of the related accounts."

"The authority to inquire into or examine the main account and the related accounts shall comply
with the requirements of Article III, Sections 2 and 3 of the 1987 Constitution, which are hereby
incorporated by reference."

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.

 The AMLA council may inquire into any bank or banking institution as to
the bank deposits when there is a probable cause that the bank deposits is
related or are related to unlawful activities.
 This is an exception to the law on secrecy of bank deposits.

 Requirements:
1. AMLC must establish that there is PROBABLE CAUSE that the deposits
arose from the unlawful activity
2. There must be a COURT ORDER.
- EXCEPTION: AMLC by virtue of a resolution can immediately inquire into
bank deposits without need of court order, if they can establish that the
proceeds arose from certain predicate crimes such as:
a. KIDNAPPING,
b. VIOLATION of the COMPREHENSIVE DANGEROUS DRUGS ACT,
c. HIJACKING,
d. DESTRUCTIVE ARSON,
e. MURDER.
f. TERRORISM and conspiracy to commit terrorism as defined and penalized
under Republic Act No. 9372|||

- In these instances, no need for a court order. Just a resolution from the
AMLC.

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.

JURISDICTION OVER MONEY LAUNDERING CASES

- GENERAL RULE: The RTC has jurisdiction to try all cases on money laundering.
- EXCEPT: the SANDIGANBAYAN has jurisdiction of those committed by public officers
and private persons who are in conspiracy with such public officers.
- Note that the CA has the power to issue freeze orders and not the RTC.

17
 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) The prosecution of any offense or violation under this Act shall proceed independently of
any proceeding relating to the unlawful activity.

-Prior to its amendment paragraph (b) states that the 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. Now that entire
provision is deleted and instead a new one is a new one is introduced in R.A. 10365.

 So you can be both charged and convicted of:

1. money laundering and
2. at the same time for the unlawful activity (predicate crime)

- These are 2 separate offenses. Money laundering is NOT a continuing

offense of the unlawful activity. They have separate elements.

Question: Is it necessary that there must be a prior conviction of the unlawful activity
or the predicate crime before you can be charged for money laundering?
-
- No! because paragraph (b) is very explicit and besides the elements of
money laundering are different from the elements of the unlawful activity.
- Prior conviction of unlawful act is not also necessary. Prosecution for
money laundering activities can proceed independently of the predicate
crime because the reason is that they have different elements.
- The case for the predicate crime shall not be a prejudicial question to
the case for money laundering. But take note Section 6(b).

PENAL PROVISIONS
(See Section 14 as amended)

IMPRISONMENT FINE
SEC. 14 (a) Penalties for the Crime 7 – 14 years Not less than 3M but
of Money Laundering not more than twice
falling under Section 4 the value of the
(a), (b), (c) and (d) monetary instrument
(imprisonment AND fine) or property involved
in the offense
SEC. 14 (a) Penalties for the Crime 4 – 7 years 1.5M – 3M
of Money Laundering
falling under Section 4 (e)
and (f) (imprisonment AND fine)
SEC. 14 (a) Penalties for the Crime of 6 months – 4 years 100k – 500k
Money Laundering falling
under the last paragraph (imprisonment AND/OR
of Section 4 fine)
SEC. 14 (b) Failure to Keep Records 6 months to 1 year 100k – 500k
(imprisonment AND/OR
fine)
SEC. 14 (c) Malicious Reporting 6 months – 4 years 100k – 500k
- may include the covered
institution, especially in
suspicious transactions
(wherein it is subjective).
But the covered institution

18
 would not be liable if it was
in good faith
- includes any public official
or employee who is called (imprisonment AND fine)
upon to testify and refuses
to do the same or purposely
fails to testify
SEC. 14 (d) Breach of Confidentiality. 3 – 8 years 500k – 1M

- under Section 9(c) (imprisonment AND fine)

SEC. 14 (e) Covered person, 6 months – 1 year not more than two
directors, officers, or hundred percent
personnel who knowingly (imprisonment AND fine) (200%) of the value
participated in the of the monetary
commission of the crime instrument or
of money laundering property laundered

MUTUAL ASSISTANCE AMONG STATES

(See Section. 13)

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 Requests 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

19
 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.
- Money laundering is not yet an extraditable offense

 IMPORTANT TOPICS IN AMLA:

1. Covered transactions
2. Suspicious transactions
3. Predicate crimes
4. Manner by which you commit money laundering (3)
5. Just recently or on October 16, 2020 the president has certified as urgent a bill in Congress
further strengthening the AMLA so there might be changes soon to the present law so be
on the lookout for that.

New Penal Provision

Section 4. A new Section 8-A is hereby inserted after Section 8 (Creation of a Secretariat) of
Republic Act No. 9160, as amended to read as follows:

"SEC. 8-A. Information Security and Confidentiality. - The AMLC and its Secretariat shall
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.

"The AMLC shall formulate rules governing information exchange and dissemination, the
security and confidentiality of such information, including procedures for handling,
storage, and protection of, as well as access to such information."

----------------END----------------

20