ANTI MONEY
Accountant) Uses Swiss
LAUNDERING LAW
RA 9160 (Anti-Money
Laundering Act of 2001
[AMLA])
RA 9160 (ANTI- MONEY
LAUNDERING ACT OF 2001
(AMLA)
Sec. 4: Money laundering is a
CRIME whereby the proceeds of
an Unlawful activities are
deposited or channeled to a
bank and make them appear to
have originated from legitimate
sources.
HISTORY
originated from Mafia
ownership of Laundromats
in the US
extortion, prostitution,
gambling and bootleg liquor.
mixed with illicit business.
1931 Al Capone was convicted
for tax evasion
Meyer Lansky (Mob’s
facilities (Loan-back concept
1980’s - International level
Money laundering was to
combat the “war on drugs”
1990’s –includes all serious
crimes involve including the
abuse of power so it has
become a tool in the return of
assets
The Basel Institute on
Governance Singapore,
Switzerland, USA, UK
(important financial centers in
cross border banking)
HISTORY
1990 - FATF issued 40
Recommendations  June
2000 – Includes
Philippines in its list of
Non-Cooperative
Countries and Territories
(NCCT) October 2001 – RA
No. 9160 “AMLA of 2001”
enacted
March 2003 – RA No. 9194 Taken together form the
Act amending RA No. 9160 entire cycle of money
laundering Two goals:
2001 - 2008 Incorporated Hiding where the money
subsequent amendments came from and where it is
which requires countries going
to have measures in place
to fight financing of
terrorism
Stage 1 – Placement
- Recommendation No. 8 -
Involves the initial
(Calls for the review of
adequacy of laws and placement or introduction
regulations on NPOs) of the illegal funds into
the financial system. Ex. a.
Recommendation No. 9 - Smurfing or structuring b.
(Cash Couriers) Purchase of insurance
contract
February 11, 2005 – FATF
removed the Philippines in Stage 2 - Layering
the list of NonCooperative
Countries and Territories involves a series of
financial transactions
(NCCTs)
during which the dirty
THREE STAGES OF money is passed through a
MONEY LAUNDERING
series of procedures,
putting layer upon layer of
- Placement persons and financial
- Layering activities into the
- Integration laundering process. Ex. a.
electronic transfer of
funds HOW DOES MONEY
LAUNDERING LINK TO
B. disguised transfer of OTHER CRIMES

funds as payment for

goods or services
Directly connected to a
Stage 3 - Integration criminal act or illegal
activity
the money is once again
made available to the Predicate crimes would
criminal with the have already taken place
occupational and 14 PREDICTED
geographic origin CRIMINALS
obscured or concealed. -
The laundered funds are - Kidnapping for
now integrated back into ransom
the legitimate economy - Drug Offenses
through the purchase of - Graft and
properties, businesses and corruption
other investments. practices
- Plunder
- Robbery and
extortion
- Jueteng and
masiao
- Piracy on the high
seas
- Qualified Theft
- Swindling 
Smuggling
 - Electronic Laundering Act (AMLA) of
Commerce Crimes 2001. It was later
- Hijacking, amended in 2003 by
destructive arson Republic Act No 9194
and murder,
including those -AMLA is the legal basis
perpetrated for making money
against non- laundering a criminal
combatant offense in the Philippines,
persons (terrorist and the money launderer
acts) a criminal upon which
- Securities Fraud criminal penalties can be
- Felonies or imposed under the AMLA
offenses of a -Philippines governments
similar nature response to the concerns
punishable under of FATF, to hunting down
penal laws of and stopping money
other countries laundering whenever it
WHAT IS ANTI- MONEY may transpire
LAUNDERNG ACT
WHY IS MONEY
LAUNDERING OUTLAWED

Money Laundering was

made a criminal offense in -The Money enters the
the Philippines when the financial system without
Philippine Congress being taxed
approved Republic Act No.
9160, otherwise known as -The money is the fruit of
the Anti-Money illegal activity, therefore
an extension of that same
crime
-Forces legitimate
business to deal with
inflated, undercut
transactions
-Criminal elements
become more comfortable
conducting their activities
-Financial system is
manipulated – just
management of national
economies is put in
danger
- IC
WHAT ARE THE COVERED
INSTITUTION
BSP
- Banks, off shore banking
unit, quasi-bank, trust
entities, non-stock
-savings and loan
associations, including
their subsidiaries and
affiliates, as well as
pawnshops, foreign
exchangers and
remittance agents
SEC
Securities dealers,
brokers, pre-need
companies, foreign
exchange corporations,
investment houses,
trading advisors and all
other entities dealing in
currency, commodities or
other monetary properties
Insurance companies,
insurance agents,
insurance brokers,
professional reinsurers,
reinsurance brokers and
holding companies
WHAT ARE THE COVERED
TRANSACTION
- A single transaction
involving a total amount in
excess of PHP500,000.00 the expected
within 1 banking day with business or
a covered institution financial capacity
(cash) of the individual
making the
- This must be reported to transaction
the AMLC in a covered 5. The transaction is
transaction report (CTR) done in a way to
For the AMLC To check avoid being
these are legitimate reported as a
transactions covered
transaction to the
WHAT IS THE SUSPICIOUS AMLC – big
TRANSACTION
transaction
1. No underlying
broken into
legal or trade
smaller ones in
2. reason or purpose
the same day
for the transaction
What is a
– large transaction
suspicious
for no apparent
transaction?
reasons
6. The transaction is
3. The individual
a major shift from
making the
the usual
transaction has no
transaction history
proper
of the individual
identification
7. The transaction is
4. The amount
in any way related
involved does not
to an unlawfully
correspond with
activity or a
 money laundering - For the law to
offense – must be prevail here and
reported abroad must work
immediately hand in hand
8. Any transaction
HOW TO FIGHT
that is similar or
- Know Your
analogous to the
Customer (KYC)
foregoing
- Maintain strict
A suspicious transaction identification
report (STR) should be standards
made if any of these - Keep clear and
conditions are met. accurate records
- Report all covered
IMPORTANCE BEHIND and suspicious
FIGHTING MONEY
LAUNDERING transactions
- Serious problem
International agency
- Criminals will
that fights money
multiply if even
laundering:
small businesses
does not comply - Financial Action
- Small businesses Task Force (FATF)
may be held - The Egmont
responsible under Group
AMLA - The Asia Pacific
- Global scale and is Group on Money
not limited to Laundering
local context
LEGAL CONSEQUENCES
PENALTIES AND ITS
RELATED OFFENCES - Failure to keep
records –
6months to 1
The AMLA penalizes
yr or a fine
the following acts or
not 500K or
omissions:
both
- Money laundering - Malicious
property – 7-14 reporting - 6
years of months to 4
imprisonment and years and a
fine not < 3M but fine not 500K
not more than or both
twice the value of - Breach of
money instrument confidentiality
or property – 3 to 8 yrs
- Facilitating money and a fine not
laundering – 4 to 1M
7 years and fine - Administrative
not < 1.5M but violations –
not >3M fine 100K to
- Facilitating to 500K
report CTR and
ANTI MONEY LAUNDERING
STR – 6 months to COUNCIL
4 years or a fine -2001 ALMC was formed
not 500K or both upon the enactment of RA
9160
Other violations
punishable under the -with a mandate to
AMLA: prevent the entry of
illegally acquired funds
into our financial system
-AMLC Secretariat
implementing arm of
AMLC
FUNCTION OF AMLC
1.to require and receive
covered or suspicious
transaction reports from
covered institutions.
2.issue orders to
determine the true
identity of the owner of
any monetary instrument
or property that is the
subject of a report, and to
request the assistance to
the approve a foreign
country if
3.institute civil forfeiture
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 the Act;
FUNCTIONS OF AMLC
6.Secure the order of the
Court of Appeals to freeze
any monetary instrument
or property alleged to be
the proceeds of unlawful
activity
7.Implement necessary
and justified measures to
counteract money
laundering;
8.Receive and act on any
requests from foreign
countries for assistance in
their own anti-money
laundering operations
9.Develop education
programs to make the
public aware of the
pernicious effects of
money laundering and
how they can participate
in bringing offenders to
justice
10.Enlist the assistance of
any branch of
government, including
intelligence agencies, for
the prevention, detection
and investigation of
money laundering
offenses and prosecution
of offenders
11.to impose
administrative sanctions
for the violation of laws,
rules, regulations and
orders and resolutions
issued pursuant thereto.
LAWS AND RULES
COVERING THE AMLC
-Republic Act No. 9160 -
Anti-Money Laundering
Act (AMLA) of 2001
-Republic Act No. 9194 -
Amending the AMLA
-Republic Act No. 10167 -
Strengthening the AMLA
-Republic Act No. 10365 -
Further Strengthening the
AMLA
-Republic Act No. 10927 -
Designating Casinos as
Covered Persons under
the AMLA
-2016 Revised
Implementing Rules and
Regulations of Republic
Act No. 9160, As Amended
(2016 RIRR)
-Casino Implementing
Rules and Regulations of
Republic Act No. 10927
(CIRR)
Prevention and
Suppression Act of 2012
-Implementing Rules and
Regulations of Republic
Act No. 10168

-Rules on the Imposition

of Administrative Sanction
under Republic Act No.
9160, as Amended

-A.M. No. 05-11-04-SC -

Rule of Procedure in Cases
of Civil Forfeiture, Asset
Preservation, and Freezing
of Monetary Instrument,
Property, or Proceeds
Representing, Involving, or
Relating to an Unlawful
Activity or Money
Laundering Offense under
Republic Act No. 9160, as
Amended.

-Republic Act No. 10168 -

Terrorism Financing