ANTI-MONEY

LAUNDERING
ACT
(R.A. 9160, AS AMENDED BY R.A. 9194, R.A. 10167
& 10365)
Policy of the Law

1. To protect 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; and
2. The State shall extend cooperation in transnational
investigations and prosecutions of persons involved in
money laundering activities wherever committed.
Anti-Money Laundering Council

1. Governor of the Bangko Sentral ng Pilipinas – Chairman

2. Commissioner of the Insurance Commission – member
3. Chairman of the Securities and Exchange Commission -
member
Functions (per RA 9194 as
amended by 10365 and 11521)
1. To require and receive covered or suspicion transaction
reports from covered institutions
2. To issue order addressed to the appropriate Supervising
Authority or the covered institution to determine the true
identity of the owner of any monetary instrument or property
subject of a covered transaction or suspicious transaction
report or request for assistance from a foreign State, on the
basis of substantial evidence, representing the proceeds of an
unlawful activity
Functions (per RA 9194 as
amended by 10365 and 11521)
3. To institute civil forfeiture proceedings 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 determination by AMCL,
money laundering activities, and other violations of this Act.
Functions (per RA 9194 as
amended by 10365 and 11521)
6. To apply before the Court of Appeals, ex parte, for the
freezing of any monetary instrument or property alleged to
be the proceeds of any unlawful activity
7. To implement such measures as may be necessary and
justified to counteract money laundering
8. To receive and take action in respect of, any request from
foreign states for assistance in their own anti-money
laundering operations
Functions (per RA 9194 as
amended by 10365 and 11521)
9. To develop educational programs on the pernicious effects
of money laundering, the methods and techniques used in
money laundering, the viable means of preventing money
laundering and the effective ways of prosecuting and
punishing offenders
10. To enlist the assistance of any government branch, agency
or instrumentality in undertaking any and all anti-money
laundering operations
Functions (per RA 9194 as
amended by 10365 and 11521)
11. To impose administrative sanctions for the violation of laws,
rules, regulations and orders, and resolutions issued
12. To require Land Registration Authority (LRA) and all its
Registries of Deeds to submit to the AMLC, reports on all
real estate transactions involving an amount in excess of
500,000 within 15 days from the date of registration of the
transaction and to require the LRA and ROD to submit copies
of relevant documents of all real estate transactions.
Functions (per RA 9194 as
amended by 10365 and 11521)
13. In the conduct of its investigation, the AMLC shall apply for the issuance
of a search and seizure order with any competent court
14. In the conduct of its investigation, the AMLC shall apply for the issuance
of subpoena ad testificandum and/or subpoena duces tecum with any
competent court
15. To implement targeted financial sanctions in relation to proliferation
of weapons of mass destruction and its financing, including ex parte
freeze, without delay, against all funds and other assets that are
owned and controlled by individuals or entities designated and listed
under Nations Security Council (as terrorists)
The concept of Money Laundering

A crime whereby the proceeds of an unlawful activity are

transacted, thereby making them appear to have
originated from legitimate sources (RA 9160 Sec 4)
Money Laundering
Money Laundering is a crime committed by any person who
knowing that any monetary instrument or property represents,
involves, or relates to the proceeds of any unlawful activity:
1. Transacts said monetary instrument or property
2. Converts, transfers, disposes of, moves, acquires,
possesses or uses said monetary instrument or property
3. Conceals or disguises the true nature, source, location,
disposition, movement or ownership of or rights with
respect to said monetary instrument or property
 Money Laundering
4. Attempts or conspires to commit money laundering offenses
referred to in 1, 2, or 3.
5. Aids, abets, assists in or counsels the commission of the money
laundering offenses referred to in 1, 2, or 3
6. Performs or fails to perform any act as a result of which he
facilitates the offense of money laundering referred to in 1, 2, or 3
7. 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 AMLC, fails to do so
Covered Entities/Institutions under
AMLA
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 BSP;
2. Insurance companies, pre-need companies and all other
persons supervised or regulated by the Insurance
Commission
Covered Entities/Institutions under
AMLA
3. (i) Securities dealers, brokers, salesmen, investment houses
and other similar persons managing securities or rendering
services as investment agent, advisor, or consultant, (ii)
mutual funds, close-end investment companies, common
trust funds, and other similar persons, and (iii) other entities
administering or 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 SEC
Covered Entities/Institutions under
AMLA
4. Jewelry dealers in precious metals, who, as a business,
trade in precious metals, for transactions in excess of One
million pesos (1,000,000);
5. Jewelry dealers in precious stones, who, as a business,
trade in precious stones, for transactions in excess of One
million pesos (1,000,000);
Covered Entities/Institutions under
AMLA
6. Company service providers which, as a business, provide any of the
following services to third parties: (i)acting as a formation agent of
juridical persons; (ii) 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;
(iii) 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 (iv) acting
as (or arranging for another person to act as) a nominee shareholder
for another person; and
Covered Entities/Institutions under
AMLA
7. Persons who provide any of the following services:
(i) Managing of client money, securities or other assets;
(ii) Management of bank, savings or securities account;
(iii) Organization of contributions for the creation, operation or
management of companies; and
(iv) Creation, operation or management of juridical persons or
arrangements, and buying and selling business entities
(RA 10365 Sec 1)
Covered Entities/Institutions under
AMLA
Under RA 10927, covered persons shall include “casinos” including
ship-based and internet-based ones, provided every casino
transaction shall be in excess of P5,000,000 or its equivalent in any
currency

Under RA 11521, signed into law in 2020, covered person also

include ‘real estate developers and brokers’ and “offshore gaming
operators as well as their services providers, supervised or
accredited or regulated by PAGCOR or any agency”
Covered Entities/Institutions under
AMLA
The term “covered persons” shall exclude:
(a) Lawyers
(b) Accountants
Acting as independent legal professionals with regard to client
information or disclosure, provided they are authorized to
practice in the Philippines and shall continue to be subject to
the provision of their codes of conduct and/or professional
responsibility
Obligations of Covered Institutions

1. Client Identification - To ensure that true and full

identity of all bank customers is established and to
understand the nature of customer’s business;
2. Record Keeping - To preserve and store all records of
all business transactions for a period of at least five (5)
years; and
Obligations of Covered Institutions

3. Reporting - To report covered and suspicious

transactions to AMLC within 10 working days from
occurrence thereof as per Circular No. 612 dated 13
June 2008, unless Supervising Authority prescribes
longer period or upon verified/ confirmed knowledge of
the Bank on basis of suspicious transaction
Covered Transactions

1. Any transaction in cash or other equivalent monetary

instrument involving a total amount in excess of
P500,000 within one (1) banking day; RA 9194 Sec. 1
2. Jewelry dealers in precious stones, who, as a business,
trade in precious stones, for transaction in excess of
P1,000,000; RA 10365 Sec 1
Covered Transactions

3. Real estate transactions in excess of P500,000 which

must be reported by the Land Registration Authority
and Register of Deeds within 15 days from the date of
registration in a form prescribed by AMLC; RA 10365
Sec 7
 Covered Transactions
4. Single casino cash transaction involving an amount in excess of
P5,000,000 or its equivalent in any other currency; RA 11521 Sec.
3
Note: This includes casino operators, internet-based casinos and ship-
based casinos
Casino cash transaction - refers to transactions involving the receipt
of cash by a casino paid by or on behalf of a customer, or
transactions involving the payout of cash by a casino to a customer or
to any person in his/her behalf; and
Covered Transactions

5. Single cash transaction of real estate developers and

brokers involving an amount in excess of 7,500,000 or
its equivalent in any other currency
Suspicious Transactions

Transactions with covered institutions regardless of the

amounts involved, where any of the following
circumstances exist:
1. There is no underlying legal or trade obligation, purpose
or economic justification
2. Client is not properly identified
 Suspicious Transactions
3. Any circumstance relating to the transaction which is
observed to devise from the profile and/or the client’s past
transactions with the covered institution;
4. Amount involved is not commensurate with the business or
financial capacity of the client;
5. Taking into account all known circumstances, it may be
perceived that the client’s transaction is structured in order to
avoid being the subject of reporting requirement under the
Act;
 Suspicious Transactions
6. 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; or
7. Analogous or similar transactions to any of the foregoing
Safe Harbor Provision

No ADMINISTRATIVE, CRIMINAL, or CIVIL PROCEEDINGS

shall lie against any person for having made a covered
transaction report in the regular performance of his duties and
in good faith, whether or not such reporting results in any
criminal prosecution under this Act or any other law.
 3 Phases of Money Laundering
1. Placement – the launderer inserts the dirty money into a
legitimate financial institution usually in the form of cash bank
deposits
2. Layering – it involves sending money through various financial
transactions to change its form and make it more difficult to
follow. This is the most complex phase
 3 Phases of Money Laundering
3. Integration – the money enters mainstream economy in
legitimate-looking form, appearing to have come from some
legitimate transaction. It may involve a final bank transfer into
the account of a local business in which the launderer is
“investing’ in exchange for a cut of the profits or the sale of
high value items bought during the layering stage.
 Unlawful Activities or Predicate
Crimes
1. Kidnapping for ransom
2. Unlawful acts under the Comprehensive Dangerous Drugs
Act of 2002
3. Corrupt Practices of public officers under Anti-Graft and
Corrupt Practices Act
4. Plunder
5. Robbery and extortion
6. Jueteng and Masiao punished as illegal gambling
 Unlawful Activities or Predicate
Crimes
7. Piracy on the high seas
8. Qualified theft
9. Swindling and other forms of swindling
10. Smuggling
11. Violations of E-commerce act of 2000
12. Hijacking
13. Terrorism and conspiracy to commit terrorism
 Unlawful Activities or Predicate
Crimes
14. Financing of terrorism
15. Bribery and Corruption of Public Officers
16. Frauds and illegal Exactions and Transactions
17. Forgeries and Counterfeiting
18. Violation of the Anti-Trafficking in Persons Act of 2003
19. Violation of Revised Forestry Code of the Philippines
20.Violation of Philippine Mining Act of 1995
 Unlawful Activities or Predicate
Crimes
21. Felonies or offenses of a similar nature punishable under the penal laws
of other countries
22. Violation of the Wildlife Resources Conservation and Protection Act
23. Violation of National Caves and Cave Resources Management
Protection Act
24. Violation of Anti-Carnapping Act of 2002
25. Violation of the decree Codifying the Laws on Illegal/Unlawful
Possession, Manufacture, Dealing In, Acquisition or Disposition of
Firearms, Ammunitions or Explosives
 Unlawful Activities or Predicate
Crimes
26. Violation of Anti-Fencing Law
27. Violation of the Migrant Workers and Overseas Filipinos Act
28. Violation of the Intellectual Property Code of the Philippines
29. Violation of Anti-Photo and Video Voyeurism Act of 2009
30.Violation of Anti-Child Pornography Act of 2009
31. Violation of Special Protection of Children Against Abuse,
Exploitation and Discrimination
32. Fraudulent practices and other violations under the Securities
Regulations Code of 2000
 Freezing of Monetary Instrument or
Property
- The power of the AMLC to freeze accounts has been deleted under
RA 9194 (Sec. 7)
- The Court of Appeals may issue a freeze order which shall be
effective immediately, and which shall not exceed six (6) months
depending upon the circumstance of the case upon:
1. A verified ex parte petition by the AMLC
2. After determination that probable cause exists that any monetary
instrument or property is in any way related to an unlawful activity
as defined in Sec. 3 (i) of RA 10365
 Freezing of Monetary Instrument or
Property
- The court shall act on the petition to freeze within 24 hours
from filing of the petition (RA 10365, Sec 8)
- IF there is no case filed against a person whose account has
been frozen within the period determined by the court, the
freeze order shall be deemed ipso facto lifted (RA 10365 Sec
8)
 Duties of Covered Institutions

1. Implement Freeze Order – upon receipt of freeze order, the

covered person or government agency shall immediately
freeze the monetary instrument or property and shall
immediately desist from and not allow any
transaction/withdrawal/transfer/removal
2. Freeze Related Accounts – freeze accounts wherever these
may be found. If the related accounts cannot be determined
within 24 hours due to volume or complexity, effect the
freezing of related accounts within a reasonable period.
 Duties of Covered Institutions

3. Furnish Copy of Freeze Order to Owner or Holder –

immediately furnish a copy of the notice of the freeze order
upon the owner or holder of the monetary instrument or
property or related accounts subject of the order
4. Submit Detailed Return – Within 24 hours from receipt of
freeze order, the covered person or government agency shall
submit a written detailed return on the freeze order to the
Court of Appeals and to the AMLC.
 Remedy Against Freeze Order

- A person whose account has been frozen may file a motion to

lift the freeze order and the court must resolve this motion
before the expiration of the freeze order
- No court shall issue a TRO or Writ of Injunction against any
freeze order, except the Supreme Court
 Authority to Inquire in Bank
Deposits
- The AMLC may inquire into any deposit or investment, including
related accounts, upon order of any competent court if there is
probable cause that the deposits or investments, including
related accounts involved, are related to an unlawful activity.
 Authority to Inquire in Bank
Deposits
- No court order shall be required in the following:
1. Kidnapping for ransom
2. Violation of Comprehensive Dangerous Drugs Act
3. Hijacking and other violations of RA 6235
4. Destructive arson and murder, including those perpetuated by
terrorists
5. Felonies or offenses of a nature similar to those mentioned above
6. Terrorism and conspiracy to commit terrorism