REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS

ANTI-MONEY LAUNDERING ACT

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AMLALA.03 – COVERED INSTITUTIONS, PERSONS,

and TRANSACTIONS
ANTI-MONEY LAUNDERING ACT
(Republic Act No. 9160, as amended)

Define “covered institutions.”

The term “covered institutions” refers to the following:
(a) Banks, non-banks, quasi-banks, trust entities, and all other institutions and their
subsidiaries and affiliates supervised and regulated by the Bangko Sentral ng
Pilipinas;
(b) Insurance companies and all other institutions supervised and regulated by the
Insurance Commissioner; and
(c) Securities, dealers, brokers, salesmen, investment houses and other similar entities
managing securities or rendering services as investment agent, advisor, or
consultant; mutual funds, close-end investment companies and other similar entities;
foreign exchange corporations, money changers, money payment, remittance, and
transfer companies and other similar entities; and entities administering 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. 3,
A.M.L.A.).

What is a “covered transaction?”

A “covered transaction” is a transaction in cash or other equivalent monetary instrument
involving a total amount in excess of P500,000 within one banking day (Sec. 3, A.M.L.A.).

What is the obligation of the covered institutions with respect to covered transactions and
suspicious transactions?
The covered institutions are required to report to the AMLC all covered transactions and
suspicious transactions within five (5) working days from occurrence thereof, unless the
Supervising Authority prescribes a longer period not exceeding ten (10) working days.
The reporting shall not be deemed a violation of R.A. No. 1405 as amended (Bank Secrecy
Law), R.A. No. 6426 as amended, R.A. No. 8791 and other similar laws; provided, that they
are prohibited from communicating to any person any information relative to the report
(sec. 9, A.M.L.A.).

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