Anti Money Laundering Banking

6/4/2020
• Anti-Money Laundering and Related Laws – Chapter 23,

p. 645;
• Governing law; RA 9160, as amended by RA 9194 and RA
10167, known as the “Anti-Money Laundering Act of 2001
(AMLA); [check the dates of the amendatory laws];
• Policy of the state; to protect and preserve the integrity

and confidentiality of bank accounts and to ensure that
the Philippines shall not be used as money laundering site
for the proceeds of any unlawful activity;
to extend cooperation in transnational investigations and

prosecutions of persons involved in money laundering
activities wherever committed;
1

p. 645;
• Deterrence function; law is intended to stop the practice
of money laundering in all its stages, and, more
importantly, the crimes that generated the proceeds that
are being laundered;
• Stage of the process of money laundering;

(1) Placement stage – the proceeds of the crime, often cash,
are deposited in a financial institution; money
laundering is not peculiar to banks; other financial
intermediaries may also be the object of an attempt to
engage in money laundering;
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p. 645;
• Stage of the process of money laundering;

(1) Placement stage – the proceeds of the crime, often cash,
are deposited in a financial institution; money
laundering is not peculiar to banks; other financial
intermediaries may also be the object of an attempt to
engage in money laundering;
(2) Layering stage – the proceeds are moved, usually through
a series of transactions, which may involve different
entities, different assets and different jurisdictions, so as
to sever any audit trail to make the tracing of the source
harder;
3

p. 645;
• Stage of the process of money laundering, cont’d;

(3) Integration stage – The criminal resumes control of the
proceeds, free from any link to the criminal source.
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p. 645;
• Purpose of anti-money laundering laws; to facilitate early

detection, especially at the placement stage so that it may
lead to the identification and prosecution not only of the
perpetrators of the crime of money laundering but also
the perpetrators of the predicate offense; locating the
proceeds of the crime leads to the detection of the crime
generating the proceeds and hence to the apprehension
of the perpetrator;

p. 645;
• "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 transacts
said monetary instrument or property.
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p. 645;
• "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: cont’d.
• (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." 7

p. 645;
• Covered persons, p. 648, Sec. 3 of AMLA;
"Covered Institution" refers to:
(1) banks, non-banks, quasi-banks, trust entities, and all
other institutions and their subsidiaries and affiliates
supervised or regulated by the Bangko Sentral ng Pilipinas
(BSP);
(2) Insurance companies and all other institutions supervised
or regulated by the Insurance Commission; and
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p. 645;
• Covered persons, p. 648, Sec. 3 of AMLA; "Covered
Institution" refers to, cont’d:
(3) (i) securities dealers, brokers, salesmen, investment
houses and other similar entities managing securities or
rendering services as investment agent, advisor, or
consultant, (ii) mutual funds, close and investment
companies, common trust funds, pre-need companies and
other similar entities, (iii) foreign exchange corporations,
money changers, money payment, remittance, and transfer
companies and other similar entities, and (iv) 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 Securities and Exchange
Commission. 9

p. 645;
(additional enumeration form Aquino Textbook)
(4) Jewelry dealers in precious metals, who, as a business,
trade in precious metals, for transactions in excess of P1
million;
(5) Jewelry dealers in precious stones, who, as a business,
trade in precious stones, for transactions in excess of P1
million;
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p. 645;
(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
or 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 11

p. 645;
(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 entities.
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p. 645;
• Excluded persons, p. 649; 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;
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p. 645;
• Jurisdiction over money laundering cases, p. 649;
Section 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.
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p. 645;
• Covered and suspicious transactions, p. 650;
• 'Covered transaction' is a transaction in cash or other
equivalent monetary instrument involving a total amount
in excess of Five hundred thousand pesos (PhP
500,000.00) within one (1) banking day (Sec. 3(b) of
AMLA);
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p. 645;
• Covered and suspicious transactions, p. 650, cont’d.;
• 'Suspicious transaction' are transactions with covered
institutions, 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;
2. the client is not properly identified;
3. the amount involved is not commensurate with the
business or financial capacity of the client;
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;
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p. 645;
• Covered and suspicious transactions, p. 650, cont’d.;
• 'Suspicious transaction' are transactions with covered
institutions, regardless of the amounts involved, where
any of the following circumstances exist, cont’d:
• 5. 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;
• 6. the transactions is in a 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 transactions that is similar or analogous to any of
the foregoing (Sec. 3(b-1) of AMLA);
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p. 645;
• Unlawful activity, p. 650; 'Unlawful activity' refers to any
act or omission or series or combination thereof involving
or having direct relation to 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, 12, 13, 14, 15, and 16 of
Republic Act No. 9165, otherwise known as the
Comprehensive Dangerous 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;
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p. 645;
• Unlawful activity, p. 650;
• 'Unlawful activity' refers to any act or omission or series or
combination thereof involving or having direct relation to
following:
"(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 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; he penal laws of other countries."
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p. 645;
following:
"(9) Swindling under Article 315 of the Revised Penal Code,
as amended;
"(10) Smuggling under Republic Act Nos. 455 and 1937;
"(11) Violations under 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, including those
perpetrated by terrorists against non-combatant persons and
similar targets;
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p. 645;
following:
"(13) Fraudulent practices and other violations under
Republic Act No. 8799, otherwise known as the Securities
Regulation Code of 2000;
"(14) Felonies or offenses of a similar nature that are
punishable under the penal laws of other countries.“
[See the list in pp. 650 to 653 of Aquino Textbook]
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p. 645;
• Prevention of money laundering; customer identification
requirements and record keeping (Sec. 9 of AMLA), p. 653;
• (a) Customer Identification, - Covered institutions shall
establish and record the true identity of its clients based
on official documents. They shall maintain a system of
verifying the true identity of their clients and, in case of
corporate clients, require a system of verifying their legal
existence and organizational structure, as well as the
authority and identification of all persons purporting to
act on their behalf.
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p. 645;
• (a) Customer Identification, cont’d.,
The provisions of existing laws to the contrary

notwithstanding, anonymous accounts, accounts under
fictitious names, and all other similar accounts shall be
absolutely prohibited. Peso and foreign currency non-
checking numbered accounts shall be allowed. The BSP may
conduct annual testing solely limited to the determination of
the existence and true identity of the owners of such
accounts.
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p. 645;
requirements and record keeping (Sec. 9 of AMLA), p. 653
(b) Record Keeping – All records of all transactions of
covered institutions shall be maintained and safely stored for
five (5) years from the date of transactions. With respect to
closed accounts, the records on customer identification,
account files and business correspondence, shall be
preserved and safety stored for at least five (5) years from
the dates when they were closed.
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p. 645;
(c) Reporting of Covered and Suspicious Transactions. –
“Covered institutions shall report to the AMLC all covered
transactions and suspicious transactions within five (5)
working days from occurrences thereof, unless the
Supervising Authority prescribes a longer period not
exceeding ten (10) working days.
"Should a transaction be determined to be both a covered

transaction and a suspicious transaction, the covered
institution shall be required to report the same as a
suspicious transaction.
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p. 645;
• "(c) Reporting of Covered and Suspicious Transactions,
cont’d. –
"When reporting covered or suspicious transactions to the
AMLC, covered institutions and their officers and employees
shall not be deemed to have violated Republic Act No. 1405,
as amended, Republic Act No. 6426, as amended, Republic
Act No. 8791 and other similar laws, but are prohibited from
communicating, directly or indirectly, in any manner or by an
means, to any person, the fact that a covered or suspicious
transaction report was made, the contents thereof, or any
other information in relation thereto.
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p. 645;
• "(c) Reporting of Covered and Suspicious Transactions. --
In case of violation thereof, the concerned officer and
employee of the covered institution shall be criminally
liable. However, no administrative, criminal or civil
proceedings, shall lie against any person for having made a
covered or suspicious transaction report in the regular
performance of his duties in good faith, whether or not
such reporting results in any criminal prosecution under
this Act of any other law.
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p. 645;
• "(c) Reporting of Covered and Suspicious Transactions,
cont’d. –
"When reporting covered or suspicious transactions to the
AMLC, covered instituting and their officers and employees
are prohibited from communicating directly or indirectly, in
any manner or by any means, to any person or entity, the
media, the fact that a covered or suspicious transaction
report was made, the contents thereof, or any other
information relation thereto. 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 violation
thereof, the concerned employee of the covered institution
and media shall be held criminally liable. 28
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p. 645;
• Anti-Money Laundering Council (AMLC), p. 656;
• "SEC.7. Creation of Anti-Money Laundering Council
(AMLC). -- The Anti-Money Laundering Council is hereby
created and shall be composed of the Governor of the
Bangko Sentral ng Pilipinas as chairman, the
Commissioner of the Insurance Commission and the
Chairman of the Securities and Exchange Commission as
member. The AMLC shall shall act unanimously in the
discharge of its functions as defined hereunder:
• "(1) to require and receive covered or suspicious
transaction reports from covered institutions;
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p. 645;
(AMLC), cont’d.
"(2) to issue orders addressed to the appropriate Supervising
Authority or the covered institutions to determine the true
identity of the owner of any monetary instrument or
preperty subject of a covered transaction or suspicious
transaction report or request for assistance from a foreign
State, or believed by the Council, on the basis fo 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
activitity.
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p. 645;
(AMLC), cont’d.
"(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 investigate suspicious transactions and covered
transactions deemed suspicious after an investigation by
AMLC, money laundering activities and other violations of
this Act;
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p. 645;
(AMLC), cont’d.
"(6) to apply before the Court of Appeals, ex parte, for the
freezing of any monetary instrument or property alleged to
be the proceeds of any unlawful activity as defined in Section
3(i) hereof;
"(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;
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p. 645;
(AMLC), cont’d.
"(9) to develop educational programs on the pernicious
effects of money laundering, the methods and techniques
used in the money laundering, the viable means of
preventing money laundering and the effective ways of
prosecuting and punishing offenders;
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p. 645;
(AMLC), cont’d.
"(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; and
"(11) to impose administrative sanctions for the violation of
laws, rules, regulations, and orders and resolutions issued
pursuant thereto."
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p. 645;
Section 8. Creation of a Secretariat. – The AMLC is hereby
authorized to establish a secretariat to be headed by an
Executive Director who shall be appointed by the Council for
a term of five (5) years. He must be a member of the
Philippine Bar, at least thirty-five (35) years of age and of
good moral character, unquestionable integrity and known
probity. All members of the Secretariat must have served for
at least five (5) years either in the Insurance Commission, the
Securities and Exchange Commission or the Bangko Sentral
ng Pilipinas (BSP) and shall hold full-time permanent
positions within the BSP.
35

p. 645;
• Secrecy of Bank Deposits, p. 658;
• "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
36
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p. 645;
"SEC. 11. Authority to Inquire into Bank Deposits, cont’d. –
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;
37

p. 645;
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."
38
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p. 645;
"The Court of Appeals shall act
on the application to inquire into or examine any deposit 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
39
rules and regulations."

p. 645;
"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."
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p. 645;
"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."
41

p. 645;
Rule 9.c.3 of the IRR implementing AMLA and Sec. 807.5 of
the MORB also expressly provide for exemption from the
Bank Secrecy Law when a covered institution reports covered
or suspicious transactions, p. 660;
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p. 645;
• Procedure for examination without court order; provided
for in the Revised IRR, p. 660;
Rule 11.b.1 – Procedure for examination without court order;
involve unlawful activities under Rule 11.b; there is probable
cause that deposits/investments related to any of the
unlawful activities; AMLC shall issue resolution authorizing
inquiry/examination with the covered institution;
Rule 11.b.2 – Duty of the covered institution upon receipt of

the AMLC resolution; immediately upon receipt of AMLC
resolution, allow AMLC/authorized representatives full
access to all records pertaining to the deposit or investment
account;
43

p. 645;
• Procedure for examination without court order; provided
for in the Revised IRR, p. 660;
Rule 11.b.2 – xxx
Any officer, employee, stockholder, owner, representative,
agent, manager, director or officer-in-charge of covered
institution who purposely fails or wilfully refuses to permit
the conduct of inquiry/examination shall be punished (fine of
not less than P100,000 nor more than P500,000
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p. 645;
• Examination of BSP, p. 661;
Sec. X810 (MORB); annual testing of numbered accounts as
additional exception to the Bank Secrecy Act; BSP
examination in the course of its periodic or special
examination; BSP may also conduct annual testing solely
limited to the determination of the existence and true
identity of the owners of numbered and similar accounts;
Disclosures of deposits to BSP as provided above are

exceptions to the Bank Secrecy Laws;
45

p. 645;
Rule 11.c – BSP authority to check compliance with the
AMLA; BSP, in the course of a periodic or special
examination, may check the compliance of a covered
institution through generally accepted techniques which may
include account transaction sampling and use of electronic
audit software in accordance with BSP Examination
Procedures for AML/CFT Activities; for this purpose, BSP may
undertake the following activities:
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p. 645;
AMLA, cont’d;
xxx
1. Review any customer identification and account opening
documents and records of existing accounts, including
but not limited to deposits, investments, loans, treasury,
custodianship, trust and fiduciary accounts to determine
compliance with the requisite:
47

p. 645;
AMLA, cont’d;
xxx
a) conduct of face-to-face contact except as provided under
Rules 9.a.10, 9.a.11 and 9.1.13 of the Rules;
b) completeness and accuracy of the minimum information
and documents required to be obtained under the Rules;
and
c) c) records-retention period as well as compliance with all
other regulations issued by AMLC and the BSP to assess
that the covered institution has properly established and
verified the true and full identity of its customers.
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p. 645;
AMLA, cont’d;
2. Require a covered institution to provide BSP examiners
access to electronic copies of all covered and suspicious
transaction reports filed by the covered institution with the
AMLC in order to determine accurate and complete reporting
of said transactions to the AMLC pursuant to the AMLA, as
amended, these Rules and BSP issuance;
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p. 645;
AMLA, cont’d;
3. Review supporting transaction records and documents,
including the electronic or manual AML/CFT system, for
purposes of ascertaining that all covered and suspicious
transactions were captured and reported to the AMLC,
within the period allowed by the AMLA, as amended, and
these Rules, and to determine proper maintenance and
retention of transaction documents and records;
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p. 645;
AMLA, cont’d;
4. Review all documents and records related to closed
accounts, peso and foreign currency non-checking numbered
accounts, high-risk accounts, suspicious transactions
reported to the AMLC and accounts which are the subject of
a money laundering case, to ensure that a covered institution
is properly monitoring these types of accounts/transactions
and is complying with records-retention requirements under
the AMLA, as amended, these Rule and/or BSP AML/CFT
regulations.
51

p. 645;
• Freezing of monetary instrument or property, p. 663;
"SEC. 10. Freezing of Monetary Instrument or Property. –
Upon 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.
The freeze order shall be for a period of twenty (20) days
unless extended by the court.
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p. 645;
• Freezing of monetary instrument or property, p. 663;
"SEC. 10. Freezing of Monetary Instrument or Property. – …
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."
"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 twenty (20)-day original freeze
53
order."

p. 645;
• Forfeiture and Penalty Provisions, p. 664;
• Section 12. Forfeiture Provisions. –
• (a) Civil Forfeiture. – When there is a covered transaction
report made, and the court has, in a petition filed for the
purpose ordered seizure of any monetary instrument or
property, in whole or in part, directly or indirectly, related
to said report, the Revised Rules of Court on civil
forfeiture shall apply.
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p. 645; Secrecy of Bank Deposits, p. 658;
• Section 12 (AMLA). Forfeiture Provisions. – xxx
• (b) Claim on Forfeited Assets. – Where the court has
issued an order of forfeiture of the monetary instrument
or property in a criminal prosecution for any money
laundering offense defined under Section 4 of this Act, the
offender or any other person claiming an interest therein
may apply, by verified petition, for a declaration that the
same legitimately belongs to him and for segregation or
exclusion of the monetary instrument or property
corresponding thereto. The verified petition shall be filed
with the court which rendered the judgment of conviction
and order of forfeiture, within fifteen (15) days from the
date of the order or forfeiture, in default of which the said
order shall become final and executory. This provision
55
shall apply in both civil and criminal forfeiture.

p. 645;
• Section 12. Forfeiture Provisions. – xxx
• (c) Payment in Lieu of Forfeiture. – Where the court has
issued an order of forfeiture of the monetary instrument
or property subject of a money laundering offense defined
under Section 4, and said order cannot be enforced
because any particular monetary instrument or property
cannot, with due diligence, be located, or it has been
substantially altered, destroyed, diminished in value or
otherwise rendered worthless by any act or omission,
directly or indirectly, attributable to the offender, or it has
been concealed, removed, converted or otherwise
transferred to prevent the same from being found or to
avoid forfeiture thereof, 56
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• Section 12. Forfeiture Provisions. – xxx
• (c) Payment in Lieu of Forfeiture. –xxx or it is located
outside the Philippines or has been placed or brought
outside the jurisdiction of the court, or it has been
commingled with other monetary instruments or property
belonging to either the offender himself or a third person
or entity, thereby rendering the same difficult to identify
or be segregated for purposes of forfeiture, the court may,
instead of enforcing the order of forfeiture of the
monetary instrument or property or part thereof or
interest therein, accordingly order the convicted offender
to pay an amount equal to the value of said monetary
instrument or property. This provision shall apply in both
civil and criminal forfeiture.
57

p. 645;
• Section 14. Penal Provisions. –
• (a) Penalties for the Crime of Money Laundering. The
penalty of imprisonment ranging from seven (7) to
fourteen (14) years and a fine of not less than Three
million Philippine pesos (Php 3,000,000.00) but not more
than twice the value of the monetary instrument or
property involved in the offense, shall be imposed upon a
person convicted under Section 4(a) of this Act.
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p. 645;
• (a) Penalties for the Crime of Money Laundering. xxx
The penalty of imprisonment from four (4) to seven (7) years
and a fine of not less than One million five hundred thousand
Philippine pesos (Php 1,500,000.00) but not more than Three
million Philippine pesos (Php 3,000,000.00), shall be imposed
upon a person convicted under Section 4(b) of this Act.
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p. 645;
The penalty of imprisonment from six (6) months to four (4)
years or a fine of not less than One hundred thousand
Philippine pesos (Php 100,000.00) but not more than Five
hundred thousand Philippine pesos (Php 500,000.00), or
both, shall be imposed on a person convicted under Section
4(c) of this Act.
60
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p. 645;
(b) Penalties for Failure to Keep Records. The penalty of
imprisonment from six (6) months to one (1) year or a fine of
not less than One hundred thousand Philippine pesos (Php
100,000.00) but not more than Five hundred thousand
Philippine pesos (Php 500,000.00), or both, shall be imposed
on a person convicted under Section 9(b) of this Act.
61

p. 645;
• "(c) Malicious Reporting. Any person who, with malice, or
in bad faith, reports or files a completely unwarranted or
false information relative to money laundering transaction
against any person shall be subject to a penalty to six (6)
months to four (4) years imprisonment and a fine of not
less than One hundred thousand Philippine pesos
(Php100,000.00) but not more than Five hundred
thousand Philippine pesos (Php500,000.00), at the
discretion of the court: Provided, That the offender is not
entitled to avail the benefits of the Probation Law.
62
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p. 645;
• "If the offender is a corporation, association, partnership
or any juridical person, the penalty shall be imposed upon
the responsible officers, as the case may be, who
participated in, or allowed by their gross negligence, the
commission of the crime. If the offender is a juridical
person, the court may suspend or revoke its license. If the
offer is an alien, he shall, in addition to the penalties
herein prescribed, be deported without further
proceedings after serving the penalties herein prescribed.
63

p. 645;
If the offender is a public official or employee, he shall, in
addition to the penalties prescribed herein, suffer perpetual
or temporary absolute disqualification from office, as the
case may be.
"Any public official or employee who is called upon to testify
and refuses to do the same or purposely fails to testify shall
suffer the same penalties prescribed herein.
64
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p. 645;
• "(d) Breach of Confidentiality. The punishment of
imprisonment ranging from three (3) to eight (8) years and
a fine of not less than Five hundred thousand Philippine
pesos (Php500,000.00) but not more than One million
Philippine pesos (Php1,000,000.00) shall be imposed on a
person convicted for a violation under Section 9(c). In the
case of a breach of confidentiality that is published or
reported by media, the responsible reporter, writer,
president, publisher, manager and editor-in-chief shall be
liable under this Act.
65

p. 645;
• Prohibition against political harassment, p. 667;
Section 16. Prohibitions Against Political Harassment. – This
Act shall not be used for political prosecution or harassment
or as an instrument to hamper competition in trade and
commerce.
No case for money laundering may be filed against and no
assets shall be frozen, attached or forfeited to the prejudice
of a candidate for an electoral office during an election
period.
66
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p. 645;
• Restitution, p. 667;
Section 17. Restitution. – Restitution for any aggrieved party
shall be governed by the provisions of the New Civil Code.
67

p. 645;
RA 9372 (“An Act to Secure the State and Protect our People
from Terrorism” otherwise known as the “Human Security
Act of 2007”), passed on March 6, 2007, allows the
examination and sequestration of deposits based on certain
conditions;
Definition of Terrorism – Sec. 1 of RA 9372;
SEC. 3. Terrorism.- Any person who commits an act
punishable under any of the following provisions of the
Revised Penal Code:
a. Article 122 (Piracy in General and Mutiny in the High Seas
or in the Philippine Waters);
b. Article 134 (Rebellion or Insurrection);
c. Article 134-a (Coup d' Etat), including acts committed by
private persons; 68
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Revised Penal Code: xxx
d. Article 248 (Murder);
e. Article 267 (Kidnapping and Serious Illegal Detention);
f. Article 324 (Crimes Involving Destruction), or under
• 1. Presidential Decree No. 1613 (The Law on Arson);
• 2. Republic Act No. 6969 (Toxic Substances and Hazardous
and Nuclear Waste Control Act of 1990);
• 3. Republic Act No. 5207, (Atomic Energy Regulatory and
Liability Act of 1968);
69

4. Republic Act No. 6235 (Anti-Hijacking Law);
5. Presidential Decree No. 532 (Anti-Piracy and Anti-Highway
Robbery Law of 1974); and,
6. Presidential Decree No. 1866, as amended (Decree
Codifying the Laws on Illegal and Unlawful Possession,
Manufacture, Dealing in, Acquisition or Disposition of
Firearms, Ammunitions or Explosives)
70
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thereby sowing and creating a condition of widespread and
extraordinary fear and panic among the populace, in order to
coerce the government to give in to an unlawful demand
shall be guilty of the crime of terrorism and shall suffer the
penalty of forty (40) years of imprisonment, without the
benefit of parole as provided for under Act No. 4103,
otherwise known as the Indeterminate Sentence Law, as
amended.
71

thereby sowing and creating a condition of widespread and
extraordinary fear and panic among the populace, in order to
coerce the government to give in to an unlawful demand
shall be guilty of the crime of terrorism and shall suffer the
penalty of forty (40) years of imprisonment, without the
benefit of parole as provided for under Act No. 4103,
otherwise known as the Indeterminate Sentence Law, as
amended.
72
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• Examination of Bank Deposits, p. 668;
SEC. 27. Judicial Authorization Required to Examine Bank
Deposits, Accounts, and Records. - The provisions of
Republic Act No. 1405 as amended, to the contrary
notwithstanding, the justices of the Court of Appeals
designated as a special court to handle anti-terrorism cases
after satisfying themselves of the existence of probable
cause in a hearing called for that purpose that: (1) a person
charged with or suspected of the crime of terrorism or,
conspiracy to commit terrorism, (2) of a judicially declared
and outlawed terrorist organization, association, or group of
persons; and (3) of a member of such judicially declared and
outlawed organization, association, or group of persons,
73

• Examination of Bank Deposits, p. 668;
SEC. 27. Judicial Authorization Required to Examine Bank
Deposits, Accounts, and Records. - xxx
may authorize in writing any police or law enforcement
officer and the members of his/her team duly authorized in
writing by the anti-terrorism council to: (a) examine, or cause
the examination of, the deposits, placements, trust accounts,
assets and records in a bank or financial institution; and (b)
gather or cause the gathering of any relevant information
about such deposits, placements, trust accounts, assets, and
records from a bank or financial institution. The bank or
financial institution concerned, shall not refuse to allow such
examination or to provide the desired information, when so,
ordered by and served with the written order of the Court of
Appeals.
74
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p. 645; Secrecy of Bank Deposits, p. 658; Examination of
Bank Deposits, p. 668;
SEC. 28. Application to Examine Bank Deposits, Accounts,
and Records. - The written order of the Court of Appeals
authorizing the examination of bank deposits, placements,
trust accounts, assets, and records: (1) of a person charged
with or suspected of the crime of terrorism or conspiracy to
commit terrorism; (2) of any judicially declared and outlawed
terrorist organization, association, or group of persons, or (3)
of any member of such organization, association, or group of
persons in a bank or financial institution, and the gathering
of any relevant information about the same from said bank
or financial institution, shall only be granted by the
authorizing division of the Court of Appeals upon an ex parte
application to that effect of a police or of a law enforcement
official who has been duly authorized in writing to file such
ex parte application by the Anti-Terrorism Council created in 75
Section 53 of this Act to file such ex parte application,

SEC. 28. Application to Examine Bank Deposits, Accounts,
and Records. - xxx
and upon examination under oath or affirmation of the
applicant and, the witnesses he may produce to establish the
facts that will justify the need and urgency of examining and
freezing the bank deposits, placements, trust accounts,
assets, and records:
(1) of the person charged with or suspected of the crime of
terrorism or conspiracy to commit terrorism;
(2) of a judicially declared and outlawed terrorist
organization, association or group of persons; or
(3) of any member of such organization, association, or
group of persons.
76
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SEC. 29. Classification and Contents of the Court Order
Authorizing the Examination of Bank Deposits, Accounts,
and Records. - The written order granted by the authorizing
division of the Court of Appeals as well as its order, if any, to
extend or renew the same, the original ex parte application
of the applicant, including his ex parte application to extend
or renew, if any, and the written authorizations of the Anti-
Terrorism Council, shall be deemed and are hereby declared
as classified information:
77

and Records. - xxx
Provided, That the person whose bank deposits, placements,
trust accounts, assets, and records have been examined,
frozen, sequestered and seized by law enforcement
authorities has the right to be informed of the acts done by
the law enforcement authorities in the premises or to
challenge, if he or she intends to do so, the legality of the
interference.
78
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and Records. - xxx
The written order of the authorizing division of the Court of
Appeals designated to handle cases involving terrorism shall
specify:
(a) the identify of the said: (1) person charged with or
suspected of the crime of terrorism or conspiracy to commit
terrorism; (2) judicially declared and outlawed terrorist
organization, association, or group of persons; and (3)
member of such judicially declared and outlawed
organization, association, or group of persons, as the case
may be. whose deposits, placements, trust accounts, assets,
and records are to be examined or the information to be
79
gathered;

and Records. - xxx
(b) the identity of the bank or financial Institution where
such deposits, placements, trust accounts, assets, and
records are held and maintained;
(c) the identity of the persons who will conduct the said
examination and the gathering of the desired information;
and,
(d) the length of time the authorization shall be carried out.
80
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SEC. 30. Effective Period of Court Authorization to Examine
and Obtain Information on Bank Deposits, Accounts, and
Records. - The authorization issued or granted by the
authorizing division of the Court of Appeals to examine or
cause the examination of and to freeze bank deposits,
placements, trust accounts, assets, and records, or to gather
information about the same, shall be effective for the length
of time specified in the written order of the authorizing
division of the Court of Appeals, which shall not exceed a
period of thirty (30) days from the date of receipt of the
written order of the authorizing division of the Court of
Appeals by the applicant police or law enforcement official.
81

SEC. 30. Effective Period of Court Authorization to Examine
and Obtain Information on Bank Deposits, Accounts, and
Records. - xxx
The authorizing division of the Court of Appeals may extend
or renew the said authorization for another period, which
shall not exceed thirty (30) days renewable to another thirty
(30) days from the expiration of the original period: Provided,
That the authorizing division of the Court of Appeals is
satisfied that such extension or renewal is in the public
interest: and, Provided, further, That the application for
extension or renewal, which must be filed by the original
applicant, has been duly authorized in writing by the Anti-
Terrorism Council.
82
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Bank Deposits, p. 668; SEC. 30. Effective Period of Court
Authorization to Examine and Obtain Information on
Bank Deposits, Accounts, and Records. - xxx
In case of death of the original applicant or in case he is
physically disabled to file the application for extension or
renewal, the one next in rank to the original applicant among
the members of the ream named in the original written
order of the authorizing division of the Court of Appeals shall
file the application for extension or renewal: Provided, That,
without prejudice to the liability of the police or law
enforcement personnel under Section 19 hereof, the
applicant police or law enforcement official shall have thirty
(30) days after the termination of the period granted by the
Court of Appeals as provided in the preceding paragraphs
within which to file the appropriate case before the Public
Prosecutor's Office for any violation of this Act. 83

If no case is filed within the thirty (30)-day period, the
applicant police or law enforcement official shall immediately
notify in writing the person subject of the bank examination
and freezing of bank deposits, placements, trust accounts,
assets and records. The penalty of ten (10) years and one day
to twelve (12) years of imprisonment shall be imposed upon
the applicant police or law enforcement official who fails to
notify in writing the person subject of the bank examination
and freezing of bank deposits, placements, trust accounts,
assets and records.
84
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Any person, law enforcement official or judicial authority
who violates his duty to notify in writing as defined above
shall suffer the penalty of six years and one day to eight years
of imprisonment.
85

SEC. 31. Custody of Bank Data and Information Obtained
after Examination of Deposits, Placements, Trust Accounts,
Assets and Records. - All information, data, excerpts,
summaries, notes, memoranda, working sheets, reports, and
other documents obtained from the examination of the bank
deposits, placements, trust accounts, assets and records of:
(1) a person charged with or suspected of the crime of
terrorism or the crime of conspiracy to commit terrorism; (2)
a judicially declared and outlawed terrorist organization,
association, or group of persons; or (3) a member of any such
organization, association, or group of persons
86
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SEC. 31. Custody of Bank Data and Information Obtained
after Examination of Deposits, Placements, Trust Accounts,
Assets and Records. - xxx
shall, within forty-eight (48) hours after the expiration of the
period fixed in the written order of the authorizing division
of the Court of Appeals or within forty-eight (48) hours after
the expiration of the extension or renewal granted by the
authorizing division of the Court of Appeals, be deposited
with the authorizing division of the Court of Appeals in a
sealed envelope or sealed package, as the case may be, and
shall be accompanied by a joint affidavit of the applicant
police or law enforcement official and the persons who
actually conducted the examination of said bank deposits,
placements, trust accounts, assets and records.
87

SEC. 32. Contents of Joint Affidavit. - The joint affidavit shall
state: (a) the identifying marks, numbers, or symbols of the
deposits, placements, trust accounts, assets, and records
examined; (b) the identity and address of the bank or
financial institution where such deposits, placements, trust
accounts, assets, and records are held and maintained; (c)
the number of bank deposits, placements, trust accounts,
assets, and records discovered, examined, and frozen; (d) the
outstanding balances of each of such deposits, placements,
trust accounts, assets; (e) all information, data, excerpts,
summaries, notes, memoranda, working sheets, reports,
documents, records examined and placed in the sealed
envelope or sealed package deposited with the authorizing
division of the Court of Appeals;
88
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SEC. 32. Contents of Joint Affidavit. - xxx
(f) the date of the original written authorization granted by
the Anti-Terrorism Council to the applicant to file the ex
parte Application to conduct the examination of the said
bank deposits, placements, trust accounts, assets and
records, as well as the date of any extension or renewal of
the original written authorization granted by the authorizing
division of the Court of Appeals; and (g) that the items
Enumerated were all that were found in the bank or financial
institution examined at the time of the completion of the
examination.
89

The joint affidavit shall also certify under oath that no
duplicates or copies of the information, data, excerpts,
summaries, notes, memoranda, working sheets, reports, and
documents acquired from the examination of the bank
deposits, placements, trust accounts, assets and records
have been made, or, if made, that all such duplicates and
copies are placed in the sealed envelope or sealed package
deposited with the authorizing division of the Court of
Appeals.
90
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It shall be unlawful for any person, police officer or custodian
of the bank data and information obtained after examination
of deposits, placements, trust accounts, assets and records
to copy, to remove, delete, expunge, incinerate, shred or
destroy in any manner the items enumerated above in whole
or in part under any pretext whatsoever,
Any person who copies, removes, deletes, expunges,
incinerates, shreds or destroys the items enumerated above
shall suffer a penalty of not less than six years and one day to
twelve (12) years of imprisonment.
91

Bank Deposits, p. 668; SEC. 33. Disposition of Bank
Materials. - The sealed envelope or sealed package and
the contents thereof, which are deposited with the
authorizing division of the Court of Appeals, shall be
deemed and are hereby declared classified information
and the sealed envelope or sealed package shall not be
opened and its contents shall not be divulged, revealed,
read, or used as evidence unless authorized in a written
order of the authorizing division of the Court of Appeals,
which written order shall be granted only upon a written
application of the Department of Justice filed before the
authorizing division of the Court of Appeals and only upon
a showing that the Department of Justice has been duly
authorized in writing by the Anti-Terrorism Council to file
the application, with notice in writing to the party
concerned not later than three days before the scheduled 92
opening,
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Bank Deposits, p. 668; SEC. 33. Disposition of Bank
Materials. - xxx
to open, reveal, divulge, and use the contents of the sealed
envelope or sealed package as evidence.
Any person, law enforcement official or judicial authority
who violates his duty to notify in writing as defined above
shall suffer the penalty of six years and one day to eight years
of imprisonment.
93

SEC. 34. Application to Open Deposited Bank Materials. -
The written application, with notice in writing to the party
concerned not later than three days of the scheduled
opening, to open the sealed envelope or sealed package shall
clearly state the purpose and reason: (a) for opening the
sealed envelope or sealed package; (b) for revealing and
disclosing its classified contents; and, (c) for using the
classified information, data, excerpts, summaries, notes,
memoranda, working sheets, reports, and documents as
evidence.
94
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SEC. 35. Evidentiary Value of Deposited Bank Materials. -
Any information, data, excerpts, summaries, notes,
memoranda, work sheets, reports, or documents acquired
from the examination of the bank deposits, placements, trust
accounts, assets and records of: (1) a person charged or
suspected of the crime of terrorism or the crime of
conspiracy to commit terrorism; (2) a judicially declared and
outlawed terrorist organization, association, or group of
persons; or (3) a member of such organization, association,
or group of persons, which have been secured in violation of
the provisions of this Act, shall absolutely not be admissible
and usable as evidence against anybody in any judicial, quasi-
judicial, legislative, or administrative investigation, inquiry,
proceeding, or hearing.
95

SEC. 36. Penalty for Unauthorized or Malicious Examination
of a Bank or a Financial Institution. - Any person, police or
law enforcement personnel who examines the deposits,
placements, trust accounts, assets, or records in a bank or
financial institution of: (1) a person charged with or
suspected of the crime of terrorism or the crime of
conspiracy to commit terrorism; (2) a judicially declared and
outlawed terrorist organization, association, or group of
or group of persons, without being authorized to do so by
the Court of Appeals, shall be guilty of an offense and shall
suffer the penalty of ten (10) years and one day to twelve
(12) years of imprisonment.
96
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of a Bank or a Financial Institution. -xxx
In addition to the liability attaching to the offender for the
commission of any other offense, the penalty of ten (10)
years and one day to twelve (12) years of imprisonment shall
be imposed upon any police or law enforcement personnel,
who maliciously obtained an authority from the Court of
Appeals to examine the deposits, placements, trust accounts,
assets, or records in a bank or financial institution of: (1) a
person charged with or suspected of the crime of terrorism
or conspiracy to commit terrorism; (2) a judicially declared
and outlawed terrorist organization, association, or group of
or group of persons:
97

of a Bank or a Financial Institution. -xxx
Provided, That notwithstanding Section 33 of this Act, the
party aggrieved by such authorization shall upon motion duly
filed be allowed access to the sealed envelope or sealed
package and the contents thereof as evidence for the
prosecution of any police or law enforcement personnel who
maliciously procured said authorization.
98
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SEC. 37. Penalty of Bank Officials and Employees Defying a
Court Authorization. - An employee, official, or a member of
the board of directors of a bank or financial institution, who
refuses to allow the examination of the deposits,
placements, trust accounts, assets, and records of: (1) a
person charged with or suspected of the crime of terrorism
or the crime of conspiracy to commit terrorism; (2) a
judicially declared and outlawed organization, association, or
group of persons; or (3) a member of such judicially declared
and outlawed organization, association, or group of persons
in said bank or financial institution, when duly served with
the written order of the authorizing division of the Court of
Appeals, shall be guilty of an offense and shall suffer the
penalty of ten (10) years and one day to twelve (12) years of
imprisonment. 99

SEC. 38. Penalty for False or Untruthful Statement or
Misrepresentation of Material Fact in Joint Affidavits. - Any
false or untruthful statement or misrepresentation of
material fact in the joint affidavits required respectively in
Section 12 and Section 32 of this Act shall constitute a
criminal offense and the affiants shall suffer individually the
imprisonment.
100
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• Sequestration, p. 676; sequestration takes place when an
attachment or seizure of property in litigation is ordered
(Art. 2005 NCC); sequestration is allowed under the
Human Security Act of 2007;
SEC. 39. Seizure and Sequestration. - The deposits and their
outstanding balances, placements, trust accounts, assets,
and records in any bank or financial institution, moneys,
businesses, transportation and communication equipment,
supplies and other implements, and property of whatever
kind and nature belonging: (1) to any person suspected of or
charged before a competent Regional Trial Court for the
crime of terrorism or the crime of conspiracy to commit
terrorism; (2) to a judicially declared and outlawed
organization, association, or group of persons; or (3) to a
member of such organization, association, or group of
persons 101

• Sequestration, p. 676; SEC. 39. Seizure and
Sequestration. - xxx
shall be seized, sequestered, and frozen in order to prevent
their use, transfer, or conveyance for purposes that are
inimical to the safety and security of the people or injurious
to the interest of the State.
The accused or a person suspected of may withdraw such
sums as may be reasonably needed by the monthly needs of
his family including the services of his or her counsel and his
or her family's medical needs upon approval of the court. He
or she may also use any of his property that is under seizure
or sequestration or frozen because of his/her indictment as a
terrorist upon permission of the court for any legitimate
reason.
102
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• Sequestration, p. 676; SEC. 39. Seizure and
Sequestration. - xxx
Any person who unjustifiably refuses to follow the order of
the proper division of the Court of Appeals to allow the
person accused of the crime of terrorism or of the crime of
conspiracy to commit terrorism to withdraw such sums from
sequestered or frozen deposits, placements, trust accounts,
assets and records as may be necessary for the regular
sustenance of his/her family or to use any of his/her property
that has been seized, sequestered or frozen for legitimate
purposes while his/her case is pending shall suffer the
imprisonment.
103

• Sequestration, p. 676;
SEC. 40. Nature of Seized. Sequestered and Frozen Bank
Deposits, Placements, Trust Accounts, Assets and Records. -
The seized, sequestered and frozen bank deposits,
placements, trust accounts, assets and records belonging to a
person suspected of or charged with the crime of terrorism
or conspiracy to commit terrorism shall be deemed as
property held in trust by the bank or financial institution for
such person and the government during the pendency of the
investigation of the person suspected of or during the
pendency of the trial of the person charged with any of the
said crimes, as the case may be and their use or disposition
while the case is pending shall be subject to the approval of
the court before which the case or cases are pending.
104
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• SEC. 41. Disposition of the Seized, Sequestered and
Frozen Bank Deposits, Placements, Trust Accounts, Assets
and Record. - If the person suspected of or charged with
the crime of terrorism or conspiracy to commit terrorism
is found, after his investigation, to be innocent by the
investigating body, or is acquitted, after his arraignment or
his case is dismissed before his arraignment by a
competent court, the seizure, sequestration and freezing
of his bank deposits, placements, trust accounts, assets
and records shall forthwith be deemed lifted by the
investigating body or by the competent court, as the case
may be, and his bank deposits, placements, trust
accounts, assets and records shall be deemed released
from such seizure, sequestration and freezing,
105

and Record. - xxx
and shall be restored to him without any delay by the bank
or financial institution concerned without any further action
on his part. The filing of any appeal on motion for
reconsideration shall not state [stay?] the release of said
funds from seizure, sequestration and freezing.
If the person charged with the crime of terrorism or
conspiracy to commit terrorism is convicted by a final
judgment of a competent trial court, his seized, sequestered
and frozen bank deposits, placements, trust accounts, assets
and records shall be automatically forfeited in favor of the
government. 106
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and Record. - xxx
Upon his or her acquittal or the dismissal of the charges
against him or her, the amount of Five hundred thousand
pesos (P500.000.00) a day for the period in which his
properties, assets or funds were seized shall be paid to him
on the concept of liquidated damages. The amount shall be
taken from the appropriations of the police or law
enforcement agency that caused the filing of the
enumerated charges against him/her.
107

SEC. 42. Penalty for Unjustified Refusal to Restore or Delay
in Restoring Seized, Sequestered and Frozen Bank Deposits,
Placements, Trust Accounts, Assets and Records. - Any
person who unjustifiably refuses to restore or delays the
restoration of seized, sequestered and frozen bank deposits,
placements, trust accounts, assets and records of a person
suspected of or charged with the crime of terrorism or
conspiracy to commit terrorism after such suspected person
has been found innocent by the investigating body or after
the case against such charged person has been dismissed or
after he is acquitted by a competent court shall suffer the
imprisonment.
108
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SEC. 43. Penalty for the Loss, Misuse, Diversion or
Dissipation of Seized, Sequestered and Frozen Bank
Deposits, Placements, Trust Accounts, Assets and Records. -
Any person who is responsible for the loss, misuse, diversion,
or dissipation of the whole or any part of the seized,
sequestered and frozen bank deposits, placements, trust
accounts, assets and records of a person suspected of or
charged with the crime of terrorism or conspiracy to commit
terrorism shall suffer the penalty of ten (10) years and one
day to twelve (12) years of imprisonment.
109

SEC. 44. Infidelity in the Custody of Detained Persons. - Any
public officer who has direct custody of a detained person or
under the provisions of this Act and who by his deliberate
act, misconduct, or inexcusable negligence causes or allows
the escape of such detained person shall be guilty of an
offense and shall suffer the penalty of: (a) twelve (12) years
and one day to twenty (20) years of imprisonment, if the
detained person has already been convicted and sentenced
in a final judgment of a competent court; and (b) six years
and one day to twelve (12) years of imprisonment, if the
detained person has not been convicted and sentenced in a
final judgment of a competent court.
110
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p. 645;
• Terrorism Financing Prevention and Suspension Act of
2012, p. 680;
• Section 4. Financing of Terrorism. – Any person who,
directly or indirectly, willfully and without lawful excuse,
possesses, provides, collects or uses property or funds or
makes available property, funds or financial service or
other related services, by any means, with the unlawful
and willful intention that they should be used or with the
knowledge that they are to be used, in full or in part: (a) to
carry out or facilitate the commission of any terrorist act;
(b) by a terrorist organization, association or group; or (c)
by an individual terrorist, shall be guilty of the crime of
financing of terrorism and shall suffer the penalty of
reclusion temporal in its maximum period to reclusion
perpetua and a fine of not less than Php500,000.00) nor
more than Php1,000,000.00. 111

p. 645;
2012, p. 680;
• Section 4. Financing of Terrorism. – xxx.
Any person who organizes or directs others to commit
financing of terrorism under the immediately preceding
paragraph shall likewise be guilty of an offense and shall
suffer the same penalty as herein prescribed.
For purposes of this Act, knowledge or intent may be
established by direct evidence or inferred from the attendant
circumstances.
For an act to constitute a crime under this Act, it shall not be
necessary that the funds were actually used to carry out a
crime referred to in Section 3(j).
112
56
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p. 645;
2012, p. 680;
• Effect on Secrecy of Bank Deposits, p. 680;
• Section 10. Authority to Investigate Financing of
Terrorism. – The AMLC, either upon its own initiative or at
the request of the ATC, is hereby authorized to investigate:
(a) any property or funds that are in any way related to
financing of terrorism or acts of terrorism; (b) property or
funds of any person or persons in relation to whom there
is probable cause to believe that such person or persons
are committing or attempting or conspiring to commit, or
participating in or facilitating the financing of terrorism or
acts of terrorism as defined herein.
113

p. 645;
2012, p. 680;
Terrorism. –xxx
The AMLC may also enlist the assistance of any branch,
department, bureau, office, agency or instrumentality of the
government, including government-owned and -controlled
corporations in undertaking measures to counter the
financing of terrorism, which may include the use of its
personnel, facilities and resources.
114
57
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p. 645;
2012, p. 680;
Terrorism. –xxx
For purposes of this section and notwithstanding the
provisions of Republic Act No. 1405, otherwise known as the
"Law on Secrecy of Bank Deposits", as amended; Republic
Act No. 6426, otherwise known as the "Foreign Currency
Deposit Act of the Philippines", as amended; Republic Act
No. 8791, otherwise known as "The General Banking Law of
2000? and other laws, the AMLC is hereby authorized to
inquire into or examine deposits and investments with any
banking institution or non-bank financial institution and their
subsidiaries and affiliates without a court order. 115

p. 645;
2012, p. 680;
• Freezing of Deposits, p. 681;
Section 11. Authority to Freeze. – The AMLC, either upon its
own initiative or at the request of the ATC, is hereby
authorized to issue an ex parte order to freeze without delay:
(a) property or funds that are in any way related to financing
of terrorism or acts of terrorism; or (b) property or funds of
any person, group of persons, terrorist organization, or
association, in relation to whom there is probable cause to
believe that they are committing or attempting or conspiring
to commit, or participating in or facilitating the commission
of financing of terrorism or acts of terrorism as defined
herein.
116
58
6/4/2020

p. 645;
2012, p. 680;
Section 11. Authority to Freeze. – xxx
The freeze order shall be effective for a period not exceeding
twenty (20) days. Upon a petition filed by the AMLC before
the expiration of the period, the effectivity of the freeze
order may be extended up to a period not exceeding six (6)
months upon order of the Court of Appeals: Provided, That
the twenty-day period shall be tolled upon filing of a petition
to extend the effectivity of the freeze order.
117

p. 645;
2012, p. 680;
Notwithstanding the preceding paragraphs, the AMLC,
consistent with the Philippines ’ international obligations,
shall be authorized to issue a freeze order with respect to
property or funds of a designated organization, association,
group or any individual to comply with binding terrorism-
related Resolutions, including Resolution No. 1373, of the UN
Security Council pursuant to Article 41 of the Charter of the
UN. Said freeze order shall be effective until the basis for the
issuance thereof shall have been lifted.
118
59
6/4/2020

p. 645;
2012, p. 680;
During the effectivity of the freeze order, an 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.
However, if the property or funds subject of the freeze order
under the immediately preceding paragraph are found to be
in any way related to financing of terrorism or acts of
terrorism committed within the jurisdiction of the Philippines
, said property or funds shall be the subject of civil forfeiture
proceedings as hereinafter provided. 119

p. 645;
2012, p. 680;
Section 12. Exceptions for Investigative Requirements. –
Notwithstanding the immediately preceding provision, the
AMLC may decide to defer the issuance of a freeze order for
as long as necessary for any specific
investigative/prosecutorial purposes.
120
60
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p. 645;
2012, p. 680;
Section 13. Humanitarian Exemptions. – The person whose
property or funds have been frozen under the first paragraph
of Section 11 may withdraw such sums as the court
determines to be reasonably needed for monthly family
needs and sustenance including the services of counsel and
the family medical needs of such person.1âwphi1
The person whose property or funds have been frozen under
the third paragraph of Section 11 may withdraw such sums
as the AMLC determines to be reasonably needed for
monthly family needs including the services of counsel and
the family medical needs of such person.
121

p. 645;
2012, p. 680;
Section 13. Humanitarian Exemptions. – The person whose
property or funds have been frozen under the first paragraph
of Section 11 may withdraw such sums as the court
determines to be reasonably needed for monthly family
needs and sustenance including the services of counsel and
the family medical needs of such person.1âwphi1
The person whose property or funds have been frozen under
the third paragraph of Section 11 may withdraw such sums
as the AMLC determines to be reasonably needed for
monthly family needs including the services of counsel and
the family medical needs of such person.
122
61

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6/4/2020

• Anti-Money Laundering and Related Laws – Chapter 23,

• Policy of the state; to protect and preserve the integrity

to extend cooperation in transnational investigations and

• Anti-Money Laundering and Related Laws – Chapter 23,

• Stage of the process of money laundering;

• Anti-Money Laundering and Related Laws – Chapter 23,

• Stage of the process of money laundering;

• Anti-Money Laundering and Related Laws – Chapter 23,

• Stage of the process of money laundering, cont’d;

• Anti-Money Laundering and Related Laws – Chapter 23,

• Purpose of anti-money laundering laws; to facilitate early

• Anti-Money Laundering and Related Laws – Chapter 23,

• (a) Any person knowing that any monetary instrument or

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

[See the list in pp. 650 to 653 of Aquino Textbook]

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

The provisions of existing laws to the contrary

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

"Should a transaction be determined to be both a covered

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

"To ensure compliance with this Act,

• Anti-Money Laundering and Related Laws – Chapter 23,

"A court order ex parte must first be obtained

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

Rule 11.b.2 – Duty of the covered institution upon receipt of

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

Disclosures of deposits to BSP as provided above are

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,

• Anti-Money Laundering and Related Laws – Chapter 23,