MONEY LAUNDERING AND

TERRORIST FINANCING
PREVENTION PROGRAM

Manila Bankers Life Insurance Corp.

ANTI-MONEY LAUNDERING ACT
(AMLA, As Amended or Republic Act No. 9160)

It was signed into law on September 29,

2001 and took effect on October 17, 2001.
The Revised Implementing Rules and
Regulations took effect on September 7,
2003.
 AMLA, As Amended

Salient Features:

 Criminalizes Money Laundering (ML).

 Imposes requirements on Customer
Identification, Record Keeping and
Reporting of Suspicious Transaction
Reports (STRs) and Covered Transaction
Reports (CTRs).
Rationale for Enacting the Law

• To protect the integrity and

confidentiality of bank accounts; and

• To ensure that the Philippines shall

not be used as a money laundering
site for the proceeds of any unlawful
activity.
 ANTI-MONEY LAUNDERING
COUNCIL (AMLC)

• The Philippines’ Financial Intelligence

Unit, tasked to implement both the
“AMLA, as amended” and “The Terrorism
Financing Prevention and Suppression
Act of 2012” (Republic Act No. 10168).
 AMLC COMPOSITION

CHAIRMAN: Governor of BSP

MEMBERS:
• Commissioner of Insurance Commission
• Chairperson of the SEC

SECRETARIAT:
The Secretariat shall be headed by an
Executive Director who shall be appointed
by the AMLC.
 DUTIES OF AMLC

• Receive STRs and CTRs from covered

institutions regarding ML activities.

• Extend cooperation in transnational

investigations and prosecutions of
persons involved in ML activities
wherever committed.
 What is Money Laundering?

It is a crime whereby
the proceeds of
unlawful activity are
transacted thereby
making them appear
to have originated
from a legitimate
source.
It is committed through the following acts or
series of acts:

1. Any person who, knowing that any

monetary instrument or property
represents, involves, or relates to the
proceeds of any unlawful activity:

a. Transacts said monetary instrument

or property;
b. Converts, transfers, disposes
of, moves, acquires, possesses
or uses said monetary
instrument or property;

c. Conceals or disguises the true

nature, source, location,
disposition, movement or
ownership of, or rights with
respect to said monetary
instrument or property;
d. Attempts or conspires to commit
money laundering offenses referred to
in (a), (b), or (c) above;

e. Aids, abets, assists in, or counsels the

commission of the money laundering
offenses referred to in (a), (b), or (c)
above; and
f. Performs or fails to perform any act as a
result of which he facilitates the offense of
money laundering referred to in (a), (b), or
(c) above.

2. Any covered person who, knowing that

a covered or suspicious transaction is
required under the AMLA to be reported
to the AMLC, fails to do so.
Unlawful Activities under the AMLA
 THREE (3) STAGES OF
MONEY LAUNDERING

PLACEMENT
• It is the physical disposal of cash
proceeds derived from illegal activity.
This may be done through depositing
cash into different accounts or
international fund transfer.
LAYERING
• It is the process of disguising the source
of the funds through layers of financial
transactions.

INTEGRATION
• It involves the placing of the laundered
proceeds backed into the economy in
such a way that re-enter the financial
system appearing to be normal
business funds.
 COVERED TRANSACTIONS (CT)

• A transaction in cash or other equivalent

monetary instrument exceeding Five Hundred
Thousand pesos (Php 500,000.00) or its
equivalent in any other currency; or

• A transaction, regardless of frequency of

payment, where the total premiums/fees paid
for a policy, plan or agreement for the entire
year exceeds Five Hundred Thousand Pesos
(Php 500,000.00) or its equivalent in any other
currency.
 SUSPICIOUS TRANSACTIONS

It refers to a transaction, regardless of

amount, where any of the following
circumstances exists:
• There is no underlying legal or trade
obligation, purpose or economic
justification;
• The customer is not properly identified;
• The amount involved is not commensurate
with the business or financial capacity of
the customer;
• Taking into account all known
circumstances, it may be perceived that
the customer’s transaction is structured
in order to avoid being the subject of
reporting requirements under the AMLA;

• Any circumstance relating to the

transaction which is observed to deviate
from the profile of the customer and/or
the customer's past transactions with the
covered person;
• The transaction is in any way related to
an unlawful activity or any ML activity or
offense that is about to be committed, is
being or has been committed; or
• Any transaction that is similar, analogous
or identical to any of the foregoing.

Any unsuccessful attempt to transact with an

Insurance Commission-Regulated Entities (ICREs),
the denial of which is based on any of the
foregoing circumstances shall likewise be
considered as suspicious transaction.
 FINANCING OF TERRORISM

• refers to a crime committed by a

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 unlawful and willful intention that they
should be used, in full or in part:

• to carry out or facilitate the commission

of any terrorist act;
• by a terrorist organizations, association
or group; or
• by an individual terrorist.
PENALTIES (Financing of Terrorism)

Imprisonment: Reclusion temporal to Reclusion

Perpetua (from 12 years and 1 day to 40
years) and
Fine: 500,000 to 1 Million pesos
 PRINCIPLES TO COMBAT
MONEY LAUNDERING

 CUSTOMER DUE DILIGENCE (CDD)

MBLIC shall have a Customer Identity

Management System (CIM System) to:

 identify of the customer’s background, his

nature of business and source of fund(s); and
 classify the customer risk present in such
customer.
CDD REQUIREMENTS
 CDD must be conducted when:

 Establishing business relationship with

customers;

 There is any suspicion of money laundering

or terrorist financing; or

 There are doubts of the correctness of

previously obtained customer information.
  SIMPLIFIED / REDUCED CDD

 applied in case of low-risk customers:

 Financial institutions subject to ML/TF
requirements
 Public companies subject to regulatory
disclosure requirements; and
 Government institutions and their
instrumentalities.
 ENHANCED DUE DILIGENCE (EDD)

 High-risk customers
 Politically Exposed Persons (PEPs)
 Shell companies
 Non-face-to-face accounts
 Business relationships and transactions
with persons and entities from other
countries which insufficiently apply FATF
Recommendations
 CUSTOMER IDENTIFICATION

 To establish new
relationship with
high-profile
customers.

 To identify any
suspicious and
unusual activities.
 KNOW YOUR CUSTOMER

MBLIC shall conduct face-to-face

contact at the commencement of
the relationship.

This may be done through the use of

information and communication
technology, third party reliance or
outsourcing.
 APPLICATION POLICIES

• MBLIC should only deal with reputable

customers who are engaged in legitimate
personal or business activities.

• New customers that do not appear to be

genuine must be declined, particularly
those applicants who do not supply proof
of identity and address or meet the
customer acceptance requirements.
DUTY TO REPORT AND INVESTIGATE
SUSPICIOUS TRANSACTIONS

All covered transactions shall be reported to

the AMLC within five (5) working days from
occurrence thereof, unless the Supervising
Authority concerned prescribes a longer
period not exceeding ten (10) working days.
DUTY TO REPORT AND INVESTIGATE
SUSPICIOUS TRANSACTIONS

When reporting covered transactions to

the AMLC, MBLIC’s officers and employees
are prohibited from communicating,
directly or indirectly, in any manner or by
any means, to any person, entity, or the
media, the fact that a covered transaction
report was made, the contents thereof, or
any other information in relation thereto.
DUTY TO REPORT AND INVESTIGATE
SUSPICIOUS TRANSACTIONS

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 officer or employee or the media
shall be held criminally liable.
 AMLA PENALTIES

 Transacts or attempts to transact

monetary instrument or property
which proceeds from unlawful
activity.

Imprisonment: from 7 to 14 years and

Fine: not less than 3 Million but not more
than twice the value of said monetary
instrument.
 AMLA PENALTIES

 Facilitates the offense of ML.

Imprisonment: from 4 to 7 years and
Fine: 1.5 Million to 3 Million pesos.

 Failure to disclose to the AMLC,

knowledge of said monetary
instrument/property.
Imprisonment: from 6 months to 4 years or
Fine: 100,000 to 500,000 pesos or BOTH
 AMLA PENALTIES
 Failure to Keep Records.
Imprisonment: from 6 months to 1 year or
Fine: 100,000 to 500,000 pesos

 Failure to Report Covered Transaction

within 5 or 10 working days from
occurrence thereof.
Imprisonment: from 3 to 8 years and
Fine: 500, 000 to 1 Million pesos
 REPORTING OF
SUSPICIOUS TRANSACTION

COMPLIANCE
EMPLOYEE AMLC
OFFICER