ANTI-MONEY LAUNDERING

ACT (R.A. 9160)

 EFFECTIVE OCTOBER 17, 2001

 (asamended by R.A. 9194, R.A. 10167, R.A. 10365

[2013], & R.A. 10927 [2017])
WHAT IS MONEY LAUNDERING?
- Activities intended to disguise the origins of the proceeds of the crime
through processes that transform illegal inputs into apparently
legitimate sources.
PURPOSE OF AMLA

 Toprotect and preserve 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.
MONEY LAUDERING DEFINED

 Committed by any person who, knowing that any monetary instrument or

property represents, involves, or related to the proceed or any unlawful activity:
(PUTA-CA)

(a) Transacts said monetary instrument or property;

(b) Converts, transfers, disposes of, moves, acquires, possesses or Uses (UP-MD-
CAT) said monetary instrument or property;

(c) Conceals of 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

paragraphs (a), (b) or (c);
(e) Aids, abets, assists in or cousels the commission of the money laudering offenses
referred to in paragraphs (a), (b) or (c) above; and

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

Money laundering is also committed by any covered person who, knowing that a
covered or suspicious transaction is required under this Act to be reported to the
Anti-Moey Laundering Council (AMLC), fails to do so.
MONETARY INSTRUMENTS

1. Coins or currency of legal tender of the Philippines or any other country;

2. Drafts, checks and notes;
3. Securities or negotiable instruments, bonds, commercial papers, deposit,
certificates, trust certificates, custodial receipts or deposit substitute instruments,
trading orders, transactions tickets and confirmations of sale or investments and
money market instruments;
4. Contracts or policies of insurance, life or non-life, and contracts of suretyship;
5. Other similar instruments where title thereto passes to another by endorsement,
assignment or delivery.
 WHAT ARE UNLAWFUL ACTIVITIES?
1. Kidnapping for ransom.
2. Drug offenses (violation of specific provisions of the Comprehensive Dangerous Dugs Act of 2002)
3. Graft and corrupt practices.
4. Plunder
5. Robbery and Extortion.
6. Jueteng and masiao
7. Piracy on the high seas
8. Qualified theft.
9. Swindling.
10. Smuggling.
11. E-commerce violations.
12. Hijacking, destructive arson and murder, including those perpetrated by terrorists against non-combatants and
similar (civilian) targets.
13. Securities fraud.
14. Similar offenses punishable under the penal laws of foreign countries.
15. Frauds and Illegal Transactions under articles 213-216 RPC.
 WHAT ARE UNLAWFUL ACTIVITIES?
16. Forgeries and Counterfeiting
17. Forestry violations.
18. Fisheries violations.
19. Firearms violations.
20. Fencing.
21. Caves protection law.
22. Carnapping.
23. Child Abuse.
24. Child Porno.
25. Malversation.
26. Mining laws.
27. Migrant workers and OFWs.
28. Terrorism.
29. Terrorism Financing.
30. Wildlife Protection.
31. Bribery and Corruption of Public Officers.
32. Intellectual Property Law violations.
33. Voyeurism (Photo and Video).
COVERED PERSONS

 Report to the AMLC all covered and suspicious

transactions within five(5) working days from occurrence
thereof
SAFE HARBOR PROVISION

 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 or any
other law.
COVERED PERSONS
natural of Juridical, refer to:

(1) banks, non-banks, quasi-banks, trust entities, foreign exchange dealers, pawnshops,
money changers, remittance and transfer companies and other similar entities and all
other persons and their subsidiaries and affiliates supervised or regulated by the Bangko
Sentral ng Pilipinas (BSP);
(2) Insurance companies, pre-need companies and oll aother persons supervised or
regulated by the Insurance Commission(IC);
(3) (i) securities dealers, brokers, salesmen, investment houses and other similar persons
managing securities or rendering service sas investment agent, advisor, or consultant, (ii)
mutual funds, close-end investment companies, common trust funds, and other similar
person, and (iii) other entities administering or otherwise dealing in currency,
commodities or financial derivatives based thereon, valuable objects, cash substitutues
and other similar monetary instruments or property supervised or regulated by the
Securities and Exchange Commission (SEC);
4. Jewelry dealers in precious metals, who, as a business, trade in precious metals,
for transactions in excess of One million pesos (P 1,000,000.00);
5. Jewelry dealers in precious stones, who, as a business, trade in precious metals,
for transactions in excess of One million pesos (P 1,000,000.00);
6. Company service provider which, as a business, provide any of the following
services to third parties: a) acting as a formation agent of juridical persons; b)
acting as (or arranging for another person to act as) a director or corporate secretary
of a company, a partner of a partnership, or a similar position in relation to other
juridical persons; c) 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 d) acting as (or
arranging for another person to act as) a nominee shareholder for another person.
7. Persons who provide any of the following services:
Managing of client money, securities or other assets;
b) Management of bank, savings or securities accounts;
c) Organization of contributions for the creation, operation or management of companies; and
d) Creation, operation or management of juridical persons or arrangements, and buying and
selling business entities.

Notwithstanding the foregoing, the term “covered persons” shall exclude lawyers and
accountants acting as independent legal professionals in relation to information concerning
their clients or where disclosure of information would compromise client confidences or the
attorney-client relationship: Provided, that these lawyers and accountants are authorized to
practice in the Philippines and shall continue to be subject to the provisions of their respective
codes of conduct and/or professional responsibility or any of its amendments.
COVERED PERSONS

8. casinos, including internet and ship-based casinos, with respect to

their casino cash transactions related to their gaming operations.
COVERED TRANSACTIONS

 Transaction, in cash or other equivalent monetary instrument,

involving a total amount in excess of P500,000 (threshold amount)
within one banking day.

 For casinos: a single casino transaction involving an amount in

excess of Five million pesos (P5,000,000.00) or its equivalent in
any other currency.
SUSPICIOUS TRANSACTION
A transaction with a covered institution, regardless of the amount involved, where any of
the following circumstances exists.

 1. No underlying legal or trade obligation, purpose or economic justification

 2. Client is not properly identified
 3. Amount involved is not commensurate with the business or financial capacity
 4. Transaction is structured in order to avoid being the subject of reporting
requirements
 5.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 transaction is in any way related to an unlawful activity or offense under
this Act that is about to be, is being or has been committed.
 6. Similar or analogous transactions.
PREVENTIVE MEASURES AND
OBLIGATIONS OF COVERED PERSONS
 CUSTOMER INDENTIFICATION
- 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 person purporting to act on their behalf.

- For trustee, nominee and agency accounts: Verify and record the true and full
identity of the person(s) on whose behalf a transaction being conducted.
MINIMUM INFORMATION/ DOCUMENTS
REQUIRED FOR CORPORATE AND JURIDICAL
ENTITIES


(1) Articles of Incorporation/Partnership;
(2) By-laws;
(3) Official address or principal business address;
(4) List of directors/partners;
(5) List of principal stockholders owning at least two percent (2%) of the capital
stock;
(6) Contact numbers;
(7) Beneficial owners, if any; and
(8) Verification of the authority and identification of the person purporting to act
on behalf of the client.
RECORD KEEPING

 All records of all transactions of covered institutions shall be maintained and

safely stored for five(5) years from the dates of transactions. Said records and
files shall contain the full and true identity of the owners or holders of the
accounts involved in the covered transactions and all other customer identification
documents.
 If closed account-at least five(5) years from the dates when they were closed.
 If a money laundering case was filed-file must be retained until it is confirmed
that the case has been finally resolved or terminated by the court.
PROHIBITION AGAINST CERTAIN
ACCOUNTS
 Covered institutions shall maintain accounts only in the true name of the account
owner or holder. The provisions of existing laws to the contrary notwithstanding,
anonymous accounts, accounts under fictitious names, incorrect name accounts
and all other similar accounts shall be absolutely prohibited.
 No new accounts shall be opened and created without face-to-face contact and full
compliance with the minimum documentary requirements for individual
customers
 Peso and foreign currency non-checking numbered accounts shall be
allowed: Provided, That the true identity of the customer is satisfactorily
established based on official and other reliable documents and records, and that
the information and documents required under the provisions of these Rules are
obtained and recorded by the covered institution.
AMLC POWERS
 Inquire into deposits or investments

When?
upon order of any competent court based on an ex parte application in cases of
violations of this Act, when it has established that there is probable cause that the
deposits or investments involved are in any way related to any unlawful activity
and/or money laundering offense.
NO COURT ORDE SHALL BE
REQUIRED IN:
 Kidnapping for ransom
 Drug offense (violation of specific provisions of the Comprehensive Dangerous
Drugs Act of 2002).
 Hijacking, destructive arson and murder , including those perpetrated by terrorists
against non-combatants and similar (civilian) targets.
 Similar foreign offenses.
 AMLC’s authority under the Anti-Terror Law
FREEZE ORDER

 WHEN?

- Upon a verified ex parte petition by the AMLC and after determination that
probable cause exists that any monetary instrument or property is in any way
related to as unlawful activity as defined in Section 3 (i) hereof, the Court of
Appeals may issue a freeze order which shall be effective immediately, for a
period of 20 days.
- Under the Anti-Terror Law