AN ACT DEFINING THE CRIME OF MONEY parties: (i) acting as a formation agent of juridical

LAUNDERING, PROVIDING PENALTIES THEREFOR persons; (ii) acting as (or arranging for another
AND FOR OTHER PURPOSES (REPUBLIC ACT NO. person to act as) a director or corporate secretary
9160, AS AMENDED BY RA 9194, RA 10167, RA 10365, of a company, a partner of a partnership, or a
RA 10927, AND RA 11521) similar position in relation to other juridical
persons; (iii) providing a registered office,
Be it enacted by the Senate and House of business address or accommodation,
Representatives of the Philippines in Congress correspondence or administrative address for a
assembled: company, a partnership or any other legal person
or arrangement; and (iv) acting as (or arranging for
Section 1. Short Title. – This Act shall be known as the another person to act as) a nominee shareholder
"Anti-Money Laundering Act of 2001." for another person; and

Section 2. Declaration of Policy. - It is hereby declared (7) persons who provide any of the following services:
the policy of the State to protect and preserve the integrity
and confidentiality of bank accounts and to ensure that (i) managing of client money, securities or other
the Philippines shall not be used as a money laundering assets;
site for the proceeds of any unlawful activity. Consistent
with its foreign policy, the State shall extend cooperation (ii) management of bank, savings or securities
in transnational investigations and prosecutions of accounts;
persons involved in money laundering activities wherever
committed, as well as in the implementation of targeted (iii) organization of contributions for the creation,
financial sanctions related to the financing of the operation or management of companies; and
proliferation of weapons of mass destruction, terrorism,
and financing of terrorism, pursuant to the resolution of (iv) creation, operation or management of juridical
the United Nations Security Council. persons or arrangements, and buying and selling
business entities.
Section 3. Definitions. - For purposes of this Act, the
following terms are hereby defined as follows: Notwithstanding the foregoing, the term ‘covered
persons’ shall exclude lawyers and accountants
(a) “Covered persons”, natural or juridical refer to: acting as independent legal professionals in
relation to information concerning their clients or
(1) banks, non-banks, quasi-banks, trust entities, where disclosure of information would
foreign exchange dealers, pawnshops, money compromise client confidences or the attorney-
changers, remittance and transfer companies and client relationship: Provided, That these lawyers
other similar entities and all other persons and and accountants are authorized to practice in the
their subsidiaries and affiliates supervised or Philippines and shall continue to be subject to the
regulated by the Bangko Sentral ng Pilipinas provisions of their respective codes of conduct
(BSP); and/or professional responsibility or any of its
amendments.
(2) insurance companies, pre-need companies and all
other persons supervised or regulated by the (8) casinos, including internet and ship-based casinos,
Insurance Commission (IC); with respect to their casino cash transactions
related to their gaming operations.
(3) (i) securities dealers, brokers, salesmen,
investment houses and other similar persons (9) Real estate developers and brokers;
managing securities or rendering services as
investment agent, advisor, or consultant, (ii) (10) Offshore gaming operation, as well as their
mutual funds, close-end investment companies, service providers, supervised, accredited or
common trust funds, and other similar persons, regulated by the Philippine Amusement and
and (iii) other entities administering or otherwise Gaming Corporation (PAGCOR) or any
dealing in currency, commodities or financial government agency.
derivatives based thereon, valuable objects, cash
substitutes and other similar monetary instruments (b) “Covered transactions” is a transaction in cash or
or property supervised or regulated by the other equivalent monetary instrument involving a total
Securities and Exchange Commission (SEC); amount in excess of Five hundred thousand pesos
(P500,000.00) within one (1) banking day; for covered
(4) jewelry dealers in precious metals, who, as a persons under Section 3(a)(8), a single casino cash
business, trade in precious metals, for transaction involving an amount in excess of Five
transactions in excess of One million pesos million pesos (P5,000,000.00) or its equivalent in any
(P1,000,000.00); other currency.

(5) jewelry dealers in precious stones, who, as a For covered persons under Section 3(a)(9) herein, a
business, trade in precious stones, for single cash transaction involving an amount in excess
transactions in excess of One million pesos of Seven million five hundred thousand pesos
(P1,000,000.00); (P7,500,000.00) or its equivalent in any other
currency.
(6) company service providers which, as a business,
provide any of the following services to third

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(b-1) “Suspicious transactions” are transactions with (i) “Unlawful activity” refers to any act or omission or
covered persons, regardless of the amounts series or combination thereof involving or having direct
involved, where any of the following circumstances relation to the following:
exist:
(1) Kidnapping for ransom under Article 267 of Act No.
1. There is no underlying legal or trade obligation, 3815, otherwise known as the Revised Penal Code,
purpose or economic justification; as amended;

2. The client is not properly identified; (2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16
of Republic Act No. 9165, otherwise known as the
3. The amount involved is not commensurate with Comprehensive Dangerous Drugs Act of 2002;
the business or financial capacity of the client;
(3) Section 3 paragraphs B, C, E, G, H and I of
4. Taking into account all known circumstances, it Republic Act No. 3019, as amended, otherwise
may be perceived that the client's transaction is known as the Anti-Graft and Corrupt Practices Act;
structured in order to avoid being the subject of
reporting requirements under the Act (4) Plunder under Republic Act No. 7080, as amended;

5. Any circumstance relating to the transaction (5) Robbery and extortion under Articles 294, 295, 296,
which is observed to deviate from the profile of the 299, 300, 301 and 302 of the Revised Penal Code,
client and/or the client's past transactions with the as amended;
covered person;
(6) Jueteng and Masiao punished as illegal gambling
6. The transaction is in any way related to an under Presidential Decree No. 1602;
unlawful activity or offense under this Act that is
about to be, is being or has been committed; or (7) Piracy on the high seas under the Revised Penal
Code, as amended and Presidential Decree No.
7. Any transaction that is similar or analogous to 532;
any of the foregoing.
(8) Qualified theft under Article 310 of the Revised
(c) "Monetary Instrument" refers to: Penal Code, as amended;

(1) coins or currency of legal tender of the Philippines, (9) Swindling under Article 315 and Other Forms of
or of any other country; Swindling under Article 316 of the Revised Penal
Code, as amended;
(2) drafts, checks and notes;
(10) Smuggling under Republic Act Nos. 455 and
(3) securities or negotiable instruments, bonds, 1937;
commercial papers, deposit certificates, trust
certificates, custodial receipts or deposit substitute (11) Violations of Republic Act No. 8792, otherwise
instruments, trading orders, transaction tickets and known as the Electronic Commerce Act of 2000;
confirmations of sale or investments and money
market instruments; and (12) Hijacking and other violations under Republic Act
No. 6235; destructive arson and murder, as
(4) other similar instruments where title thereto defined under the Revised Penal Code, as
passes to another by endorsement, assignment or amended;
delivery.
(13) Terrorism and conspiracy to commit terrorism as
(d) "Offender" refers to any person who commits a money defined and penalized under Sections 3 and 4 of
laundering offense. Republic Act No. 9372;

(e) "Person" refers to any natural or juridical person. (14) Financing of terrorism under Section 4 and
offenses punishable under Sections 5, 6, 7 and 8
(f) "Proceeds" refers to an amount derived or realized of Republic Act No. 10168, otherwise known as
from an unlawful activity. the Terrorism Financing Prevention and
Suppression Act of 2012:
(g) "Supervising Authority" refers to the appropriate
supervisory or regulatory agency, department or (15) Bribery under Articles 210, 211 and 211-A of the
office supervising or regulating the covered Revised Penal Code, as amended, and
institutions enumerated in Section 3(a). Corruption of Public Officers under Article 212 of
the Revised Penal Code, as amended;
(h) "Transaction" refers to any act establishing any right
or obligation or giving rise to any contractual or legal (16) Frauds and Illegal Exactions and Transactions
relationship between the parties thereto. It also under Articles 213, 214, 215 and 216 of the
includes any movement of funds by any means with a Revised Penal Code, as amended;
covered institution.
(17) Malversation of Public Funds and Property under
Articles 217 and 222 of the Revised Penal Code,
as amended;

Atty. Javier Law Vlog

 (33) Fraudulent practice and other violations under
(18) Forgeries and Counterfeiting under Articles 163, Republic Act No. 8799, otherwise known as "The
166, 167, 168, 169 and 176 of the Revised Penal Securities Regulation Code of 2000;
Code, as amended;
(34) Violation of Section 9 (a)(3) of Republic Act No.
(19) Violations of Sections 4 to 6 of Republic Act No. 10697, otherwise known as the "Strategic Trade
9208, otherwise known as the Anti-Trafficking in Management Act", in relation to the proliferation
Persons Act of 2003; of weapons of mass destruction and its financing
pursuant to United Nations Security Council
(20) Violations of Sections 78 to 79 of Chapter IV, of Resolution Numbers 1718 of 2006 and 2231 of
Presidential Decree No. 705, otherwise known as 2015;
the Revised Forestry Code of the Philippines, as
amended; (35) Violation of Section 254 of Chapter II, Title X of the
National Internal Revenue Code of 1997, as
(21) Violations of Sections 86 to 106 of Chapter VI, of amended, where the deficiency basic tax due in
Republic Act No. 8550, otherwise known as the the final assessment is in excess of Twenty-five
Philippine Fisheries Code of 1998; million pesos (P25,000,000.00) per taxable year,
for each tax type covered and there has been a
(22) Violations of Sections 101 to 107, and 110 of finding of probable cause by the competent
Republic Act No. 7942, otherwise known as the authority: Provided, further, That there must be a
Philippine Mining Act of 1995; finding of fraud, willful misrepresenting or
malicious intent on the part of the taxpayer:
(23) Violations of Section 27(c), (e), (f), (g) and (i), of Provided, finally, That in no case shall the AMLC
Republic Act No. 9147, otherwise known as the institute forfeiture proceedings to recover
Wildlife Resources Conservation and Protection monetary instruments, property or proceeds
Act; representing, involving, or relating to a tax crime,
if the same has already been recovered or
(24) Violation of Section 7(b) of Republic Act No. 9072, collected by the Bureau of Internal Revenue (BIR)
otherwise known as the National Caves and Cave in a separate proceeding and
Resources Management Protection Act;
(36) Felonies and offenses of a similar nature that are
(25) Violation of Republic Act No. 6539, otherwise punishable under the penal laws of other
known as the Anti-Carnapping Act of 2002, as countries.
amended;
(j) “Precious metals” shall mean gold, silver, platinum,
(26) Violations of Sections 1, 3 and 5 of Presidential palladium, rhodium, ruthenium, iridium and osmium.
Decree No. 1866, as amended, otherwise known These include alloys of precious metals, solders and
as the decree Codifying the Laws on plating chemicals such as rhodium and palladium
Illegal/Unlawful Possession, Manufacture, plating solutions and potassium gold cyanide and
Dealing In, Acquisition or Disposition of Firearms, potassium silver cyanide and silver cyanide in salt
Ammunition or Explosives; solution.

(27) Violation of Presidential Decree No. 1612, (k) “Precious stones” shall mean diamond, ruby,
otherwise known as the Anti-Fencing Law; emerald, sapphire, opal, amethyst, beryl, topaz, and
garnet that are used in jewelry making, including
(28) Violation of Section 6 of Republic Act No. 8042, those formerly classified as semi-precious stones.
otherwise known as the Migrant Workers and
Overseas Filipinos Act of 1995, as amended by (l) For purposes of covered persons under Section
Republic Act No. 10022; 3(a)(8), the following terms are hereby defined as
follows:
(29) Violation of Republic Act No. 8293, otherwise
known as the Intellectual Property Code of the (1) “Casino” refers to a business authorized by the
Philippines; appropriate government agency to engage in
gaming operations:
(30) Violation of Section 4 of Republic Act No. 9995,
otherwise known as the Anti-Photo and Video (i) “Internet-based” casinos shall refer a casinos
Voyeurism Act of 2009; in which persons participate by the use of
remote communication facilities such as, but
(31) Violation of Section 4 of Republic Act No. 9775, not limited to, internet, telephone, television,
otherwise known as the Anti-Child Pornography radio or any other kind of electronic or other
Act of 2009; technology for facilitating communication; and

(32) Violations of Sections 5, 7, 8, 9, 10(c), (d) and (e), (ii) “Ship-based casino” shall refer to casinos,
11, 12 and 14 of Republic Act No. 7610, otherwise the operation of which is undertaken on
known as the Special Protection of Children board a vessel, ship, boat or any other water-
Against Abuse, Exploitation and Discrimination; based craft wholly or partly intended for
gambling;

Atty. Javier Law Vlog

 (2) “Casino cash transaction” refers to transactions (b) converts, transfers, disposes of, moves, acquires,
involving the receipt of cash by a casino paid by possesses or uses said monetary instrument or
or on behalf of a customer, or transactions property;
involving the payout of cash by a casino to a
customer or to any person in his/her behalf; and (c) conceals or disguises the true nature, source,
location, disposition, movement or ownership of or
(3) “Gaming operations” refer to the activities of the rights with respect to said monetary instrument or
casino offering games of chance and any property;
variations thereof approved by the appropriate
government authorities. (d) attempts or conspires to commit money laundering
offenses referred to in paragraphs (a), (b) or (c);
(4) “Offshore gaming operator” refers to an entity
engaged in offering online games of chance or (e) aids, abets, assists in or counsels the commission
sporting events via the internet using a network of the money laundering offenses referred to in
and software program, by themselves or through paragraphs (a), (b) or (c) above; and
local service providers.
(f) performs or fails to perform any act as a result of
(5) “Service providers” refer to duly constituted which he facilitates the offense of money laundering
business corporations who provide components referred to in paragraphs (a), (b) or (c) above.
of offshore gaming operations to offshore gaming
operators. Money laundering is also committed by any covered
person who, knowing that a covered or suspicious
(m) “Real estate developer” refers to any natural or transaction is required under this Act to be reported to the
juridical person engaged in the business of Anti-Money Laundering Council (AMLC), fails to do so.
developing real estate development project for the
account of the developer and offering them for sale Section 5. Jurisdiction of Money Laundering Cases. –
or lease. The regional trial courts shall have jurisdiction to try all
cases on money laundering. Those committed by public
(n) “Real estate broker” refers to a duly registered and officers and private persons who are in conspiracy with
licensed natural person who, for a professional fee, such public officers shall be under the jurisdiction of the
omission or other valuable consideration, acts as an Sandiganbayan.
agent of a party in a real estate transaction to offer,
advertise, solicit, list, promote, mediate, negotiate, or SEC. 6. Prosecution of Money Laundering. –
effect the meeting of the minds on the sale,
purchase, exchange, mortgage, lease or joint (a) Any person may be charged with and convicted of
venture, or other similar transaction on real estate or both the offense of money laundering and the
any interest therein. unlawful activity as herein defined.

(o) “Targeted financial sanctions” refer to both asset (b) The prosecution of any offense or violation under
freezing and prohibition to prevent funds or other this Act shall proceed independently of any
assets from being made available, directly or proceeding relating to the unlawful activity.
indirectly, for the benefit of any individual, natural or
legal persons or entity designated pursuant to Section 7. Creation of Anti-Money Laundering Council
relevant United Nations Security Council resolution (AMLC). - The Anti-Money Laundering Council is hereby
and its designation processes. created and shall be composed of the Governor of the
Bangko Sentral ng Pilipinas as Chairman, the
(p) “Proliferation” financing refers when a person: Commissioner of the Insurance Commission and the
Chairman of the Securities and Exchange Commission,
(1) Makes available an asset; or as members. The AMLC shall act unanimously in the
discharge of its functions as defined hereunder:
(2) Provides a financial service; or
(1) to investigate suspicious transactions and covered
(3) Conducts a financial transaction; and the person transactions deemed suspicious after
knows that, or is reckless as to whether, the determination by AMLC, money laundering
asset, financial service or financial transaction is activities and other violations of this Act.
intended to, in whole or in part, facilitate
proliferation of weapons of mass destruction in (2) to issue orders addressed to the appropriate
relation to UN Security Council Resolution Supervising Authority or the covered institutions to
Number 1718 0f 2006 and 2231 of 2015. determine the true identity of the owner of any
monetary instrument or property subject of a
SEC. 4. Money Laundering Offense. – Money covered transaction or suspicious transaction
laundering is committed by any person who, knowing that report or request for assistance from a foreign
any monetary instrument or property represents, involves, State, or believed by the Council, on the basis of
or relates to the proceeds of any unlawful activity: substantial evidence, to be, in whole or in part,
wherever located, representing, involving, or
(a) transacts said monetary instrument or property; related to directly or indirectly, in any manner or by
any means, the proceeds of an unlawful activity.

Atty. Javier Law Vlog

 (3) to institute civil forfeiture proceedings and all other (15) to implement targeted financial sanctions in
remedial proceedings through the Office of the relation to proliferation of weapons of mass
Solicitor General; destruction and its financing, including ex parte
freeze, without delay, against all funds and other
(4) to cause the filing of complaints with the Department assets that are owned and controlled, directly or
of Justice or the Ombudsman for the prosecution of indirectly, including funds and assets derived or
money laundering offenses; generated therefrom, by individuals or entities
designated and listed under United Nations
(5) to investigate suspicious transactions and covered Security Council Resolution Numbers 1718 of 2006
transactions deemed suspicious after an and 2231 of 2015 and their successor resolutions
investigation by AMLC, money laundering activities as well as any binding resolution of the Security
and other violations of this Act; Council; and

(6) to apply before the Court of Appeals, ex parte, for (16) to preserve, manage or dispose assets pursuant to
the freezing of any monetary instrument or property a freeze order, asset preservation order, or
alleged to be laundered, proceeds from, or judgment of forfeiture: Provided, however, That
instrumentalities used in or intended for use in any pending their turnover to the national government,
unlawful activity as defined in Section 3(i) hereof; all expenses incurred in relation to the duties herein
mentioned shall be deducted from the amount to be
(7) to implement such measures as may be necessary turned over to the national government.
and justified under this Act to counteract money
laundering; Section 8. Creation of a Secretariat. – The AMLC is
hereby authorized to establish a secretariat to be headed
(8) to receive and take action in respect of, any request by an Executive Director who shall be appointed by the
from foreign states for assistance in their own anti- Council for a term of five (5) years. He must be a member
money laundering operations provided in this Act; of the Philippine Bar, at least thirty-five (35) years of age
and of good moral character, unquestionable integrity and
(9) to develop educational programs on the pernicious known probity. All members of the Secretariat must have
effects of money laundering, the methods and served for at least five (5) years either in the Insurance
techniques used in the money laundering, the viable Commission, the Securities and Exchange Commission
means of preventing money laundering and the or the Bangko Sentral ng Pilipinas (BSP) and shall hold
effective ways of prosecuting and punishing full-time permanent positions within the BSP.
offenders;
SEC. 8-A. Information Security and Confidentiality. -
(10) to enlist the assistance of any branch, department, The AMLC and its Secretariat shall securely protect
bureau, office, agency, or instrumentality of the information received or processed and shall not reveal, in
government, including government-owned and - any manner, any information known to them by reason of
controlled corporations, in undertaking any and all their office. This prohibition shall apply even after their
anti-money laundering operations, which may separation from the AMLC.
include the use of its personnel, facilities and
resources for the more resolute prevention, The AMLC shall formulate rules governing information
detection, and investigation of money laundering exchange and dissemination, the security and
offenses and prosecution of offenders; and confidentiality of such information, including procedures
for handling, storage, and protection of, as well as access
(11) to impose administrative sanctions for the violation to such information.
of laws, rules, regulations, and orders and
resolutions issued pursuant thereto. Section 9. Prevention of Money Laundering; Customer
Identification Requirements and Record Keeping. –
(12) to require the Land Registration Authority and all its
Registries of Deeds to submit to the AMLC, reports (a) Customer Identification - Covered institutions shall
on all real estate transactions involving an amount establish and record the true identity of its clients
in excess of Five hundred thousand pesos based on official documents. They shall maintain a
(P500,000.00) within fifteen (15) days from the date system of verifying the true identity of their clients
of registration of the transaction, in a form to be and, in case of corporate clients, require a system
prescribed by the AMLC. The AMLC may also of verifying their legal existence and organizational
require the Land Registration Authority and all its structure, as well as the authority and identification
Registries of Deeds to submit copies of relevant of all persons purporting to act on their behalf.
documents of all real estate transactions.
The provisions of existing laws to the contrary
(13) in the conduct of its investigation, the AMLC shall notwithstanding, anonymous accounts, accounts
apply for the issuance of a search and seizure order under fictitious names, and all other similar
with any competent court; accounts shall be absolutely prohibited. Peso and
foreign currency non-checking numbered accounts
(14) in the conduct of its investigation, the AMLC shall shall be allowed. The BSP may conduct annual
apply for the issuance of subpoena ad testing solely limited to the determination of the
testificandum and/or subpoena duces tecum with existence and true identity of the owners of such
any competent court; accounts.

Atty. Javier Law Vlog

 (b) Record Keeping – All records of all transactions of related to an unlawful activity as defined in Section
covered institutions shall be maintained and safely 3(i) hereof, the Court of Appeals may issue a freeze
stored for five (5) years from the date of order which shall be effective immediately, for a
transactions. With respect to closed accounts, the period of twenty (20) days. Within the twenty (20)
records on customer identification, account files day period, the Court of Appeals shall conduct a
and business correspondence, shall be preserved summary hearing, with notice to the parties, to
and safety stored for at least five (5) years from the determine whether or not to modify or lift the freeze
dates when they were closed. order, or extend its effectivity. The total period of the
freeze order issued by the Court of Appeals under
(c) Reporting of Covered and Suspicious this provision shall not exceed six (6) months. This
Transactions -- Covered persons shall report to is without prejudice to an asset preservation order
the AMLC all covered transactions and suspicious that the Regional Trial Court having jurisdiction over
transactions within five (5) working days from the appropriate anti-money laundering case or civil
occurrence thereof, unless the AMLC prescribes a forfeiture case may issue on the same account
different period not exceeding fifteen (15) working depending on the circumstances of the case, where
days. the Court of Appeals will remand the case and its
records: Provided, That if there is no case filed
Lawyers and accountants acting as independent against a person whose account has been frozen
legal professionals are not required to report within the period determined by the Court of
covered and suspicious transactions if the relevant Appeals, not exceeding six (6) months, the freeze
information was obtained in circumstances where order shall be deemed ipso facto lifted: Provided,
they are subject to professional secrecy or legal further, That this new rule shall not apply to pending
professional privilege. cases in the courts. In any case, the court should act
on the petition to freeze within twenty-four (24) hours
Should a transaction be determined to be both a from filing of the petition. If the application is filed a
covered transaction and a suspicious transaction, day before a nonworking day, the computation of the
the covered institution shall be required to report twenty-four (24) hour period shall exclude the
the same as a suspicious transaction. nonworking days.

When reporting covered or suspicious transactions The freeze order or asset preservation order issued
to the AMLC, covered institutions and their officers under this Act shall be limited only to the amount of
and employees shall not be deemed to have cash or monetary instrument or value of property
violated Republic Act No. 1405, as amended, that court finds there is probable cause to be
Republic Act No. 6426, as amended, Republic Act considered as proceeds of a predicate offense, and
No. 8791 and other similar laws, but are prohibited the freeze order or asset preservation order shall not
from communicating, directly or indirectly, in any apply to amounts in the same account in excess of
manner or by an means, to any person, the fact that the amount or value of the proceeds of the predicate
a covered or suspicious transaction report was offense.
made, the contents thereof, or any other
information in relation thereto. In case of violation A person whose account has been frozen may file a
thereof, the concerned officer and employee of the motion to lift the freeze order and the court must
covered institution shall be criminally liable. resolve this motion before the expiration of the
However, no administrative, criminal or civil freeze order.
proceedings, shall lie against any person for having
made a covered or suspicious transaction report in No court shall issue a temporary restraining order or
the regular performance of his duties in good faith, a writ of injunction against any freeze order, except
whether or not such reporting results in any criminal the Supreme Court.
prosecution under this Act of any other law.
(b) For purposes of implementing targeted financial
When reporting covered or suspicious transactions sanctions in relation to proliferation of weapons of
to the AMLC, covered persons and their officers mass destruction and its financing, as provided
and employees are prohibited from communicating, under Section 7 (15), the AMLC shall have the power
directly or indirectly, in any manner or by any to issue, ex parte, an order to freeze without delay.
means, to any person or entity, the media, the fact
that a covered or suspicious transaction has been The freeze order shall be effective until the basis for
reported or is about to be reported, the contents of its issuance shall have been lifted. During the
the report, or any other information in relation effectivity of the freeze order, the aggrieved party
thereto. Neither may such reporting be published or may, within twenty (20) days from issuance, file with
aired in any manner or form by the mass media", the Court of Appeals a petition to determine the basis
electronic mail, or other similar devices. In case of of the freeze order according to the principle of
violation thereof, the concerned officer and effective judicial protection: Provided, That the
employee of the covered person and media shall be person whose property or funds have been frozen
held criminally liable. may withdraw such sums as the AMLC determines
to be reasonably needed for monthly family needs
Section 10. Freezing Monetary Instrument or Property. and sustenance including the services of counsel
and the family medical needs of such person.
(a) Upon a verified ex parte petition by the AMLC and
after determination that probable cause exists that The AMLC, if circumstance warrant, may initiate civil
any monetary instrument or property is in any way forfeiture proceedings to preserve the assets and to

Atty. Javier Law Vlog

 protect it from dissipation. No court shall issue a that of the monetary instrument or property found to
temporary restraining order or a writ of injunction be related in any way to an unlawful activity or a
against the freeze order, except the Court of Appeals money laundering offense, when with due diligence,
or the Supreme Court. the former cannot be located, or it has been
substantially altered, destroyed, diminished in value
SEC. 11. Authority to Inquire into Bank Deposits. – or otherwise rendered worthless by any act or
Notwithstanding the provisions of Republic Act No. 1405, omission, or it has been concealed, removed,
as amended; Republic Act No. 6426, as amended; converted, or otherwise transferred, or it is located
Republic Act No. 8791; and other laws, the AMLC may outside the Philippines or has been placed or
inquire into or examine any particular deposit or brought outside the jurisdiction of the court, or it has
investment, including related accounts, with any banking been commingled with other monetary instrument or
institution or non-bank financial institution upon order of property belonging to either the offender himself or a
any competent court based on an ex parte application in third person or entity, thereby rendering the same
cases of violations of this Act, when it has been difficult to identify or be segregated for purposes of
established that there is probable cause that the deposits forfeiture.
or investments, including related accounts involved, are
related to an unlawful activity as defined in Section 3(i) (b) Claim on Forfeited Assets. – Where the court has
hereof or a money laundering offense under Section 4 issued an order of forfeiture of the monetary
hereof; except that no court order shall be required in instrument or property in a criminal prosecution for
cases involving activities defined in Section 3(i)(1), (2), any money laundering offense defined under
and (12) hereof, and felonies or offenses of a nature Section 4 of this Act, the offender or any other person
similar to those mentioned in Section 3(i)(1), (2), and (12), claiming an interest therein may apply, by verified
which are Punishable under the penal laws of other petition, for a declaration that the same legitimately
countries, and terrorism and conspiracy to commit belongs to him and for segregation or exclusion of
terrorism as defined and penalized under Republic Act the monetary instrument or property corresponding
No. 9372. thereto. The verified petition shall be filed with the
court which rendered the judgment of forfeiture,
The Court of Appeals shall act on the application to inquire within fifteen (15) days from the date of the finality of
into or examine any deposit or investment with any the order of forfeiture, in default of which the said
banking institution or non-bank financial institution within order shall become final and executor. This provision
twenty-four (24) hours from filing of the application. shall apply in both civil and criminal forfeiture.

To ensure compliance with this Act, the Bangko Sentral (c) Payment in Lieu of Forfeiture. – Where the court
ng Pilipinas may, in the course of a periodic or special has issued an order of forfeiture of the monetary
examination, check the compliance of a Covered instrument or property subject of a money laundering
institution with the requirements of the AMLA and its offense defined under Section 4, and said order
implementing rules and regulations. cannot be enforced because any particular monetary
instrument or property cannot, with due diligence, be
For purposes of this section, ‘related accounts’ shall refer located, or it has been substantially altered,
to accounts, the funds and sources of which originated destroyed, diminished in value or otherwise
from and/or are materially linked to the monetary rendered worthless by any act or omission, directly
instrument(s) or property(ies) subject of the freeze or indirectly, attributable to the offender, or it has
order(s). been concealed, removed, converted, or otherwise
transferred to prevent the same from being found or
A court order ex parte must first be obtained before the to avoid forfeiture thereof, or it is located outside the
AMLC can inquire into these related Accounts: Provided, Philippines or has been placed or brought outside
That the procedure for the ex parte application of the ex the jurisdiction of the court, or it has been
parte court order for the principal account shall be the commingled with other monetary instruments or
same with that of the related accounts. property belonging to either the offender himself or a
third person or entity, thereby rendering the same
The authority to inquire into or examine the main account difficult to identify or be segregated for purposes of
and the related accounts shall comply with the forfeiture, the court may, instead of enforcing the
requirements of Article III, Sections 2 and 3 of the 1987 order of forfeiture of the monetary instrument or
Constitution, which are hereby incorporated by reference. property or part thereof or interest therein,
accordingly order the convicted offender to pay an
Section 12. Forfeiture Provisions. – amount equal to the value of said monetary
instrument or property. This provision shall apply in
(a) Civil Forfeiture. – Upon determination by the AMLC both civil and criminal forfeiture.
that probable cause exists that any monetary
instrument or property is in any way related to an (d) No court shall issue a temporary restraining order
unlawful activity as defined in Section 3 (i) or a (TRO) or a writ of injunction against any provisional
money laundering offense under Section 4 hereof, asset preservation order or asset preservation,
the AMLC shall file with the appropriate court except the Court of Appeals or the Supreme Court.
through the Office of the Solicitor General, a verified
ex parte petition for forfeiture, and the Rules of Court Section 13. Mutual Assistance among States. –
on Civil Forfeiture shall apply.
(a) Request for Assistance from a Foreign State. –
The forfeiture shall include those other monetary Where a foreign State makes a request for
instrument or property having an equivalent value to assistance in the investigation or prosecution of a

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 money laundering offense, the AMLC may execute
the request or refuse to execute the same and (e) Requirements for Requests for Mutual
inform the foreign State of any valid reason for not Assistance from Foreign State. – A request for
executing the request or for delaying the execution mutual assistance from a foreign State must (1)
thereof. The principles of mutuality and reciprocity confirm that an investigation or prosecution is being
shall, for this purpose, be at all times recognized. conducted in respect of a money launderer named
therein or that he has been convicted of any money
(b) Power of the AMLC to Act on a Request for laundering offense; (2) state the grounds on which
Assistance from a Foreign State. – The AMLC any person is being investigated or prosecuted for
may execute a request for assistance from a foreign money laundering or the details of his conviction;
State by: (1) tracking down, freezing, restraining (3) gives sufficient particulars as to the identity of
and seizing assets alleged to be proceeds of any said person; (4) give particulars sufficient to identity
unlawful activity under the procedures laid down in any covered institution believed to have any
this Act; (2) giving information needed by the information, document, material or object which
foreign State within the procedures laid down in this may be of assistance to the investigation or
Act; and (3) applying for an order of forfeiture of any prosecution; (5) ask from the covered institution
monetary instrument or property in the court: concerned any information, document, material or
Provided, That the court shall not issue such an object which may be of assistance to the
order unless the application is accompanied by an investigation or prosecution; (6) specify the manner
authenticated copy of the order of a court in the in which and to whom said information, document,
requesting State ordering the forfeiture of said material or object detained pursuant to said
monetary instrument or properly of a person who request, is to be produced; (7) give all the
has been convicted of a money laundering offense particulars necessary for the issuance by the court
in the requesting State, and a certification of an in the requested State of the writs, orders or
affidavit of a competent officer of the requesting processes needed by the requesting State; and (8)
State stating that the conviction and the order of contain such other information as may assist in the
forfeiture are final and then no further appeal lies in execution of the request.
respect or either.
(f) Authentication of Documents. – For purposes of
(c) Obtaining Assistance from Foreign States. – The this Section, a document is authenticated if the
AMLC may make a request to any foreign State for same is signed or certified by a judge, magistrate or
assistance in (1) tracking down, freezing, equivalent officer in or of, the requesting State, and
restraining and seizing assets alleged to be authenticated by the oath or affirmation of a witness
proceeds of any unlawful activity; (2) obtaining or sealed with an official or public seal of a minister,
information that it needs relating to any covered secretary of State, or officer in or of, the government
transaction, money laundering offense or any other of the requesting State, or of the person
matter directly or indirectly, related thereto; (3) to administering the government or a department of
the extent allowed by the law of the Foreign State, the requesting territory, protectorate or colony. The
applying with the proper court therein for an order certificate of authentication may also be made by a
to enter any premises belonging to or in the secretary of the embassy or legation, consul
possession or control of, any or all of the persons general, consul, vice consul, consular agent or any
named in said request, and/or search any or all officer in the foreign service of the Philippines
such persons named therein and/or remove any stationed in the foreign State in which the record is
document, material or object named in said kept, and authenticated by the seal of his office.
request: Provided, That the documents
accompanying the request in support of the (g) Extradition. – The Philippines shall negotiate for the
application have been duly authenticated in inclusion of money laundering offenses as herein
accordance with the applicable law or regulation of defined among extraditable offenses in all future
the foreign State; and (4) applying for an order of treaties.
forfeiture of any monetary instrument or property in
the proper court in the foreign State: Provided, That SEC. 14. Penal Provisions. –
the request is accompanied by an authenticated
copy of the order of the regional trial court ordering (a) Penalties for the Crime of Money Laundering. The
the forfeiture of said monetary instrument or penalty of imprisonment ranging from seven (7) to
property of a convicted offender and an affidavit of fourteen (14) years and a fine of not less than Three
the clerk of court stating that the conviction and the million Philippine pesos (Php3,000,000.00) but not
order of forfeiture are final and that no further more than twice the value of the monetary
appeal lies in respect of either. instrument or property involved in the offense, shall
be imposed upon a person convicted under Section
(d) Limitations on Request for Mutual Assistance. – 4(a), (b), (c) and (d) of this Act.
The AMLC may refuse to comply with any request
for assistance where the action sought by the The penalty of imprisonment from four (4) to seven
request contravenes any provision of the (7) years and a fine of not less than One million five
Constitution or the execution of a request is likely to hundred thousand Philippine pesos
prejudice the national interest of the Philippines (Php1,500,000.00) but not more than Three million
unless there is a treaty between the Philippines and Philippine pesos (Php3,000,000.00), shall be
the requesting State relating to the provision of imposed upon a person convicted under Section
assistance in relation to money laundering 4(e) and (f) of this Act.
offenses.

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 The penalty of imprisonment from six (6) months to monetary instrument or property laundered shall be
four (4) years or a fine of not less than One hundred imposed upon the covered person, its directors,
thousand Philippine pesos (Php100,000.00) but not officers or personnel who knowingly participated in
more than Five hundred thousand Philippine pesos the commission of the crime of money laundering.
(Php500,000.00), or both, shall be imposed on a
person convicted under the last paragraph of (f) Imposition of Administrative Sanctions. The
Section 4 of this Act. imposition of the administrative sanctions shall be
without prejudice to the filing of criminal charges
(b) Penalties for Failure to Keep Records. The against the persons responsible for the violation.
penalty of imprisonment from six (6) months to one
(1) year or a fine of not less than One hundred After due notice and hearing, the AMLC shall, at its
thousand Philippine pesos (Php 100,000.00) but not discretion, impose sanctions, including monetary
more than Five hundred thousand Philippine pesos penalties, warning or reprimand, upon any covered
(Php 500,000.00), or both, shall be imposed on a person, its directors, officers, employees or any
person convicted under Section 9(b) of this Act. other person for the violation of this Act, its
implementing rules and regulations, or for failure or
(c) Malicious Reporting. Any person who, with malice, refusal to comply with AMLC orders, resolutions
or in bad faith, reports or files a completely and other issuances. Such monetary penalties shall
unwarranted or false information relative to money be in amounts as may be determined by the AMLC
laundering transaction against any person shall be to be appropriate, which shall not be more than Five
subject to a penalty to six (6) months to four (4) years hundred thousand Philippine pesos (P500,000.00)
imprisonment and a fine of not less than One per violation.1âwphi1
hundred thousand Philippine pesos
(Php100,000.00) but not more than Five hundred The AMLC may promulgate rules on fines and
thousand Philippine pesos (Php500,000.00), at the penalties taking into consideration the attendant
discretion of the court: Provided, That the offender is circumstances, such as the nature and gravity of
not entitled to avail the benefits of the Probation Law. the violation or irregularity.

If the offender is a corporation, association, (g) The provision of this law shall not be construed or
partnership or any juridical person, the penalty shall implemented in a manner that will discriminate
be imposed upon the responsible officers, as the against certain customer types, such as politically-
case may be, who participated in, or allowed by their exposed persons, as well as their relatives, or
gross negligence, the commission of the crime. If the against a certain religion, race or ethnic origin, or
offender is a juridical person, the court may suspend such other attributes or profiles when used as the
or revoke its license. If the offer is an alien, he shall, only basis to deny these persons access to the
in addition to the penalties herein prescribed, be services provided by the covered persons.
deported without further proceedings after serving Whenever a bank, or quasi-bank, financial
the penalties herein prescribed. If the offender is a institution or whenever any person or entity
public official or employee, he shall, in addition to the commits said discriminatory act, the person or
penalties prescribed herein, suffer perpetual or persons responsible for such violation shall be
temporary absolute disqualification from office, as subject to sanctions as may be deemed appropriate
the case may be. by their respective regulators.

Any public official or employee who is called upon to Section 15. [deleted by RA 9194]
testify and refuses to do the same or purposely fails
to testify shall suffer the same penalties prescribed Section 16. Prohibitions Against Political Harassment.
herein. – This Act shall not be used for political prosecution or
harassment or as an instrument to hamper competition in
(d) Breach of Information Security and trade and commerce.
Confidentiality. The punishment of imprisonment
ranging from three (3) to eight (8) years and a fine of No case for money laundering may be filed against and
not less than Five hundred thousand Philippine no assets shall be frozen, attached or forfeited to the
pesos (P500,000.00) but not more than One million prejudice of a candidate for an electoral office during an
Philippine pesos (P1,000,000.00), shall be imposed election period.
on a person convicted for a violation under Section
9(c) 0r Section 8-A on information security and Section 17. Restitution. – Restitution for any aggrieved
confidentiality of this Act. If the offender is public party shall be governed by the provisions of the New Civil
official or employee, he shall, in addition to the Code.
penalties prescribed herein, suffer the penalty of
perpetual or temporary absolute disqualification from Section 18. Implementing Rules and Regulations. –
public office, as the case may be. In the case of a Within thirty (30) days from the effectivity of this Act, the
breach of confidentiality that is published or reported Bangko Sentral ng Pilipinas, the Insurance Commission
by media, the responsible reporter, writer, president, and the Securities and Exchange Commission shall
publisher, manager and editor-in-chief shall be liable promulgate the rules and regulations to implement
under this Act. effectivity the provisions of this Act. Said rules and
regulations shall be submitted to the Congressional
(e) The penalty of imprisonment ranging from four (4) to Oversight Committee for approval.
seven (7) years and a fine corresponding to not more
than two hundred percent (200%) of the value of the

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Covered institutions shall formulate their respective Section 24. Repealing Clause. – All laws, decrees,
money laundering prevention programs in accordance executive orders, rules and regulations or parts thereof,
with this Act including, but not limited to, information including the relevant provisions of Republic Act No.
dissemination on money laundering activities and its 1405, as amended; Republic Act No. 6426, as amended;
prevention, detection and reporting, and the training of Republic Act No. 8791, as amended and other similar
responsible officers and personnel of covered institutions. laws, as are inconsistent with this Act, are hereby
repealed, amended or modified accordingly.
Within ninety (90) days from the effectivity of this Act, the
AMLC, the Philippine Amusement and Gaming Section 23. Effectivity. – This Act shall take effect fifteen
Corporation (PAGCOR) and other government regulatory (15) days after its complete publication in the Official
agencies shall jointly promulgate the rules and regulations Gazette or in at least two (2) national newspapers of
to implement the provisions of this Act as applicable to general circulation.
casinos as covered institutions. The implementing rules
applicable to other covered institutions shall not apply to
casinos unless it is expressly so provided under the rules
and regulations to implement the provisions of this Act.

Section 19. Congressional Oversight Committee. –

There is hereby created a Congressional Oversight
Committee composed of seven (7) members from the
Senate and seven (7) members from the House of
Representatives. The members from the Senate shall be
appointed by the Senate President based on the
proportional representation of the parties or coalitions
therein with at least two (2) Senators representing the
minority. The members from the House of
Representatives shall be appointed by the Speaker also
based on proportional representation of the parties or
coalitions therein with at least two (2) members
representing the minority.

The Oversight Committee shall have the power to

promulgate its own rules, to oversee the implementation
of this Act, and to review or revise the implementing rules
issued by the Anti-Money Laundering Council within thirty
(30) days from the promulgation of the said rules.

Section 20. Non-Intervention in the Bureau of Internal

Revenue (BIR) Operations. - Nothing contained in this
Act nor in related antecedent laws or existing agreements
shall be construed to allow the AMLC to participate in any
manner in the operation of the BIR. The AMLC, may,
however, coordinate with the BIR On investigations in
relating to violations of Section 254 of NIRC, as amended,
as a predicate offense to money laundering.

SEC. 21. The authority to inquire into or examine the main

account and the related accounts shall comply with the
requirements of Article III, Sections 2 and 3 of the 1987
Constitution, which are hereby incorporated by reference.
Likewise, the constitutional injunction against ex post
facto laws and bills of attainder shall be respected in the
implementation of this Act.

Section 22. Appropriations Clause. – The AMLC shall be

provided with an initial appropriation of Twenty-five million
Philippine pesos (Pshp 25,000,000.00) to be drawn from
the national government. Appropriations for the
succeeding years shall be included in the General
Appropriations Act.

Section 23. Separability Clause. – If any provision or

section of this Act or the application thereof to any person
or circumstance is held to be invalid, the other provisions
or sections of this Act, and the application of such
provision or section to other persons or circumstances,
shall not be affected thereby.

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