ANTI-MONEY LAUNDERING ACT (RA 9160)

"Anti-Money Laundering Act of 2001" 4. The following Designated Non-Financial Businesses

and Professions (DNFBPs):
Purposes a. Jewelry dealers, dealers in precious metals, and dealers
 to protect and preserve the integrity and in precious stones.
confidentiality of bank accounts and b. Company service providers which, as a business,
 to ensure that the Philippines shall not be provide any of the following services to third parties:
used as a money laundering site for the proceeds of  acting as a formation agent of juridical persons;
any unlawful activity  acting as a director or corporate secretary
 Consistent with its foreign policy, the  providing a registered office; business address or
Philippines shall extend cooperation in accommodation, correspondence or administrative
transnational investigations and prosecutions of address for a company, a partnership or any other
persons involved in money laundering activities legal person or arrangement; and
wherever committed.  acting as a nominee shareholder for another
person.
Covered Institutions c. Persons, including lawyers and accountants, who
"Person" refers to any natural or juridical person. provide any of the following services:
1. Persons supervised or regulated by BSP, such as:  Managing of client money, securities or other assets;
a. Banks;  Management of bank, savings, securities, assets
b. Non-banks;  Organization of contributions for the creation,
c. Quasi-banks; operation or management of companies; and
d. Trust entities;  Creation, operation or management of juridical
e. Pawnshops; persons or and buying arrangements, and selling business
f. Non-stock savings and loan associations; entities.
g. Electronic money issuers; and
h. All other persons and their subsidiaries and affiliates independent legal professionals are not covered person
supervised or regulated by the BSP.
 RIRR- foreign exchange dealers, money changers, and D? Casinos, including internet and ship-based casinos,
remittance and transfer companies with respect to their casino cash transactions related to
they gaming operations
 2. Persons supervised or regulated by IC, such as:
a. Insurance companies; Covered Transactions
b. Pre-need companies; 1. A transaction in cash or other equivalent monetary
c. Insurance agents; instrument exceeding Five Hundred Thousand pesos
d. Insurance brokers; (Php500,OOO.OO) within one banking day
e. Professional reinsurers; 2. A transaction exceeding One Million pesos (Php
f. Reinsurance brokers; l,OOO,OOO.OO) in cases of jewelry dealers, dealers in
g. Holding companies; precious metals and dealers in precious stones.
h. Holding company systems;  
i. Mutual benefit associations; and “Covered Transaction Report” (CTR)
j. All other persons and their subsidiaries and affiliates - Report of covered person to AMLC
supervised or regulated by the IC.
  Suspicious Transactions- regardless of the amount
3. Persons supervised or regulated by SEC, such as: 1. there is no underlying legal or trade obligation,
a. Securities dealers, brokers, salesmen, investment purpose or economic justification;
houses, and other similar persons managing 2. the client is not properly identified;
securities or rendering services such as investment 3. the amount involved is not commensurate with
agents, advisors, or consultants. the business or financial capacity of the client;
b. mutual funds or open-end companies, close-end 4. taking into account all known circumstances, it
investment companies or issuers and other similar may be perceived that the client's transaction is
entities; structured in order to avoid being the subject of
c. other entities administering or otherwise dealing in reporting requirements under the AMLA;
commodities, or financial derivatives based thereon, 5. any circumstance relating to the transaction
valuable objects, cash substitutes and other similar which is observed to deviate from the profile of
monetary instruments or properties supervised and the client and/or the client's past transactions
regulated by the SEC. with the covered person;
6. the transaction is in any way related to an unlawful "Bribery" "Corruption of Public Officers" 
activity or any money laundering activity or offense that is "Frauds and Illegal Exactions
about to be committed, is being or has been committed; or 17. "Malversation of Public Funds"
7. any transaction that is similar, analogous or identical 18. "Forgeries" and "Counterfeiting"
to any of the foregoing. 19. "Anti-Trafficking in Persons Act of 2003",
20. "Revised Forestry Code of the Philippines
“Suspicious Transaction Report” (STR) 21. "Philippine Fisheries Code of 1998";
- report of covered person to AMLC 22. Philippine Mining Act of 1995";
23. "Wildlife Resources Conservation and Protection
Monetary Instruments Act";
1. Coins or currency of legal tender of the 24. National Caves and Cave Resources Management
Philippines, or of any other country; Protection Act";
2. Credit instruments, including bank deposits, 25. Anti-Carnapping Act of 2002, as amended";
financial interest, royalties, commissions and other 26. "Codifying the Laws on Illegal/Unlawful Possession, .
intangible property; Manufacture, Dealing In, Acquisition or Disposition of
3. Drafts, checks and notes; Firearms, Ammunition or Explosives";
4. Stocks or shares, participation or interest in a 27. "Anti-Fencing Law";
corporation or in a commercial enterprise or profit- 28. "Migrant Workers and Overseas Filipinos Act of
making venture and evidenced by a certificate, 1995", as amended by Republic Act No. 10022;
contract, instrument, whether written or electronic in 29. Violation of Republic Act No. 8293, otherwise known
character, including those enumerated in Section 3 of as the "Intellectual Property Code of the Philippines, as
the Securities Regulation Code; amended";
5. A participation or interest in any non-stock, 30. "Anti-Photo and Video Voyeurism Act of 2009";
non-profit corporation; 31. "Anti-Child Pornogrophy Act of 2009";
6. Securities or negotiable instruments, bonds, 32. "Special Protection of Children Against Abuse,
commercial papers, deposit certificates, trust Exploitation and Discrimination";
certificates, custodial receipts or deposit substitute 33. "Securities Regulation Code of 2000";
instruments, trading orders, transaction tickets and 34. Felonies or offenses of a nature similar to the
confirmations of sale or investments and money aforementioned unlawful activities that are punishable
market instruments; under the penal laws of other countries.
7. Contracts or policies of insurance, life or non-
life, contracts of suretyship, pre-need plans and Money Laundering Offenses
member certificates issued by mutual benefit A. Any person who, knowing that any monetary
association; and instrument or property represents, involves, or relates to
8. Other similar instruments where title thereto the proceeds of any unlawful activity:
passes to another by endorsement, assignment or 1. transacts said monetary instrument or property;
delivery. 2. converts, transfers, disposes of, moves, acquires,
possesses or uses said monetary instrument or
Unlawful Activities property;
1. Kidnapping for Ransom 3. conceals or disguises the true nature, source,
2. Comprehensive Dangerous Drugs Act of 2002 location, disposition, movement or ownership of or
3. Anti-Graft and Corrupt Practices Act rights with respect to said monetary instrument or
4. Plunder property;
5. "Robbery" and "Extortion" 4. attempts or conspires to commit money laundering
6. "Jueteng" (Luzon) and "Masiao" (vis/mmin) offenses referred to in (1), (2) or (3) above;
7. Piracy on the High Seas 5. aids, abets, assists in or counsels the commission of
8. "Qualified Theft" the money laundering offenses referred to in (1), (2)
9. "Swindling" or (3) above; and
10. "Smuggling" "Tariff and Customs Code of the 6. performs or fails to perform any act as a result of
Philippines"; which he facilitates the offense of money laundering
11. "Electronic Commerce Act of 2000"; referred to in (1), (2) or (3) above.
12. "Hijacking" "Anti-Hijacking Law"; "Destructive Arson";  
and "Murder", as defined under the Revised Penal Code, as B. Any covered person who, knowing that a covered or
amended; suspicious transaction is required under the AMLA to be
13. "Terrorism" and "Conspiracy to Commit Terrorism" reported to the AMLC, fails to do so.
14. "Financing of Terrorism"
 identity of the owner of any monetary instrument or
property subject of a CTR/STR
Jurisdiction of money laundering cases 3. to institute civil forfeiture proceedings and all other
A. Regional Trial Court. - The regional trial courts shall remedial proceedings through the Office of the Solicitor
have the jurisdiction to try money laundering cases General;
committed by private individuals, and public officers 4. to file complaints with the DOJ or the Office of the
not covered by the jurisdiction of the Sandiganbayan. Ombudsman for the prosecution of money laundering
  offenses and other violations under the AM LA;
B. Sandiganbayan. - The Sandiganbayan shall have 5. to investigate suspicious transactions and covered
jurisdiction to try money laundering cases committed transactions deemed suspicious after investigation by
by public officers under its jurisdiction, and private the money laundering activities and other violations of
persons who are in conspiracy with such public the AMLA;
officers. 6. to file with the Court of Appeals, ex parte through
the Office of the Solicitor General:
Prosecution of money laundering a. petition for the freezing of any monetary instrument
A. Independent Proceedings. - The prosecution of or property that is in any way related to an unlawful
money laundering and the unlawful activity shall activity; or
proceed independently. b. an application for authority to inquire into or examine
B. Separate and Distinct Elements. - The elements any particular deposit or investment, including related
of money laundering are separate and distinct from the accounts, with any banking institution or non-bank
elements of the unlawful activity. The elements of the financial institution.
unlawful activity, including the identity of the 7. to formulate and implement such measures as may be
perpetrators and the details of the commission of the necessary and justified under the AMLA to counteract
unlawful activity, need not be established by proof money laundering.
beyond reasonable doubt in the case for money 8. to receive and take action in respect of any request
laundering. from foreign states for assistance in their own anti-
C. Knowledge. - The element of knowledge may be money laundering operations as provided in the AMLA.
established by direct or circumstantial evidence. 9. to develop educational programs, including awareness
D. Rules of Procedure. - The Rules of Court shall campaign on the pernicious effects, methods and
govern all proceedings concerning the prosecution of techniques, prevention, ways of prosecuting offenders
money laundering. 10. to enlist the assistance of any branch, department,
  bureau, office, agency or instrumentality of the
Anti-money laundering council (AMLC) government, including government-owned and
The AMLC is composed of the: -controlled corporations, in undertaking any and all anti-
 Governor of the BSP as Chairperson money laundering operations, which may include the use
 Commissioner of the IC of its personnel, facilities and resources for the more
 Chairperson of the SEC, as Members. resolute prevention, detection and investigation of money
- Must be a unanimous decision laundering offenses and prosecution of offenders.
The AMLC Secretariat. 11. to impose administrative sanctions for the violation
A. Executive Director of laws, rules, regulations, orders, and resolutions issued
- Head of AMLC secretariat pursuant thereto.
- Appointed by AMLC by 5 year term 12. to require the Land Registration Authority and all its
- Member of philippine bar (CPA-LAWYER can be) Registries of Deeds to submit to the AMLC, reports on all
- Atleast 35 years of age real estate transactions involving an amount in excess of
- Served atleast 5 years in BSP, IC, SEC Five hundred thousand pesos (P500,OOO.OO) within
- good moral character, unquestionable integrity fifteen (15) days from the date of registration of the
and known probity transaction, in a form to be prescribed by the AMLC. The
B. Composition AMLC may also require the Land Registration Authority
e. Detail and Secondment and all its Registries of Deeds to submit copies of relevant
documents of all real estate transactions.
Functions of AMLC
1. to require and receive covered or suspicious transaction
reports from covered persons;
2. to issue orders addressed to the appropriate Supervising
Authority or the covered person to determine the true
 a fine corresponding to not more than two
hundred percent (200%) of the value of the monetary
Prevention of money laundering instrument or property laundered
A. Customer Due Diligence  shall be imposed upon the covered person,
B. Record Keeping its directors, officers or personnel who knowingly
Covered persons shall maintain and safely store for five participated in the commission of the crime of
(5) years from the dates of transactions all records of money laundering.
customer identification and transaction documents of  
their customers. C. Penalties for Failure to Keep Records. -
 Retention of Records Where the  6 months to 1 year
Account is the Subject of a Case  fine of not less than one hundred thousand
 Closed Accounts pesos (Php100,000.00) but not more than five
 Form of Records hundred thousand pesos (Php5OO,OOO.OO), or
C. Transaction Reporting both
Reporting of covered and suspicious transactions  shall be imposed on a person convicted
- Covered persons shall report to the AMLC all covered under Section 9(b) of the AM LA
transactions and suspicious transactions within five (5)
working days, unless the AMLC prescribes a different D. Penalties for Malicious Reporting. - Any person who,
period not exceeding fifteen (15) working days, from the with malice, or in bad faith, reports or files a completely
occurrence thereof. unwarranted or false information relative to money
 Substance and Form of Reports. laundering transaction against any person shall be subject
 Confidentiality of Reporting to
 Safe Harbor Provision  6 months to 4 years
 Enrollment with the AMLC's Reporting  a fine of not less than one hundred thousand pesos
System (Php100,000.00) but not more than five hundred
- For suspicious transaction, occurrence means it thousand pesos (Php500,OOO.OO), at the discretion of
should be made not exceeding 10 calendar days from the court:
date of transaction but it must be reckoned when the  Provided, that the offender is not entitled to avail of
person transacting is involved in unlawful activity the benefits of the Probation Law.
   If the offender is a corporation, association,
Penalties for the crime of money laundering partnership or any other juridical person, the penalty
A. Penalties for Money Laundering. - The following are the of imprisonment and/or fine shall be imposed upon
penalties to be imposed on persons convicted of money the responsible officers, as the case may be, who
laundering: participated in, or allowed by their gross negligence
the commission of the crime and the court may
1. Penalties for Section 4(a), (b), (c) and (d) of the AMLA. - suspend or revoke its license.
 7 to 14 yrs. Imprisonment  If the offender is an alien, he shall, in addition to the
 a fine of not less than three million pesos penalties herein prescribed, be deported without
(Php3,000,000.00), but not more than twice the value of further proceedings after serving the penalties herein
the monetary instrument or property involved in the prescribed.
offense  If the offender is a public official or employee, he
 2. Penalties for Section 4(e) and (f) of the AMLA. - shall, in addition to the penalties prescribed herein,
 4-7 yrs imprisonment suffer perpetual or temporary absolute
 a fine of not less than one million five disqualification from office, as the case may be. Any
hundred thousand pesos (Php1,SOO,000.00) but not more public official or employee who is called upon to testify
than three million pesos (Php3,000,000.00) and refuses to do the same or purposely fails to testify
 3. Penalties for the Last Paragraph of Section 4 of the AMLA. shall suffer the same penalties herein prescribed.
 6 months to 4 years  
 fine of not less than one hundred thousand E. Penalties for Breach of Confidentiality. -
pesos (Php100,000.00) but not more than five hundred -3 to 8 yrs
thousand pesos (PhpSOO,OOO.OO), or both, -fine of not less than five hundred thousand pesos
  (Php500,OOO.OO) but not more than one million pesos
B. Penalties for Knowingly Participating in the Commission (Php1,OOO,OOO.OO)
of Money Laundering. - -In case of a breach of confidentiality that is published or
 4-7 yrs reported by the media, the responsible reporter, writer,
 president, publisher, manager and editor-inchief shall be
liable under the AM LA.
 
F. Criminal Liability of Corporate Entities. - If the offender is a
corporate entity, the penalties herein shall be imposed upon the
responsible officers who participated in, or allowed by their gross
negligence the commission of the crime; and/or directors or trustees
who willfully and knowingly voted for or assented to violate the
AMLA, this RIRR, or other AMLC issuances.