8.4.

2 Definition of Terms *These services are often essential for the establishment and operation of companies,
making them important for regulatory oversight to prevent the misuse of corporate
Under Republic Act [Sec. 3], the term "covered persons" includes various entities and individuals structures.
involved in financial and business activities that are subject to regulatory oversight. These entities
and individuals are categorized based on the nature of their activities and the regulatory bodies 6. Service Providers: This includes persons who "provide any of the following services: (i)
that supervise them. The detailed classifications are as follows: managing of client money, securities or other assets; (ii) management of bank, savings or
securities accounts; (iii) organization of contributions for the creation, operation or
1. Financial Institutions: This category includes "banks, non-banks, quasi-banks, trust management of companies; and (iv) creation, operation or management of juridical persons
entities, foreign exchange dealers, pawnshops, money changers, remittance and transfer or arrangements, and buying and selling business entities" [Sec. 3(a)(7)].
companies, and other similar entities." It also covers "all other persons and their
subsidiaries and affiliates supervised or regulated by the Bangko Sentral ng Pilipinas *These providers play key roles in managing financial and corporate assets, necessitating
(BSP)" [Sec. 3(a)(1)]. their inclusion for monitoring potential financial crimes.

*These institutions handle financial transactions and services, making them significant in 7. Casinos: The definition includes "casinos, including internet and ship-based casinos, with
monitoring financial flows and ensuring compliance with financial regulations. respect to their casino cash transactions related to the gaming operations" [Sec. 3(a)(8)].
Casinos are included due to the large volumes of cash transactions they handle, which can
2. Insurance Entities: This includes "insurance companies, pre-need companies, and all be exploited for money laundering.
other persons supervised or regulated by the Insurance Commission (IC)" [Sec. 3(a)(2)].
8. Real Estate: This category includes "real estate developers and brokers" [Sec. 3(a)(9)].
*These entities provide various insurance products and services, requiring oversight to
prevent fraudulent activities and ensure that they meet their obligations to policyholders. *The real estate sector involves substantial transactions and investments, which can be
used to launder money or hide illicit gains.
3. Securities and Investment Entities: Encompassing "securities dealers, brokers, salesmen,
investment houses, and other similar persons managing securities or rendering services as
9. Offshore Gaming Operations: This includes "offshore gaming operations, as well as their
investment agents, advisors, or consultants," as well as "mutual funds, closed-end
service providers, supervised, accredited, or regulated by the Philippine Amusement and
investment companies, common trust funds, and other similar persons." This category also
Gaming Corporation (PAGCOR) or any government agency" [Sec. 3(a)(10)].
includes "other entities administering or otherwise dealing in currency, commodities or
financial derivatives based thereon, valuable objects, cash substitutes and other similar *These entities are included due to their involvement in online gaming and betting, which
monetary instruments or property supervised or regulated by the Securities and Exchange can be associated with financial crimes if not properly regulated.
Commission (SEC)" [Sec. 3(a)(3)].
Exclusions: The Act specifically excludes "lawyers and accountants acting as independent legal
*These entities engage in trading and managing investments, making them critical players professionals in relation to information concerning their clients or where disclosure of information
in the financial markets. would compromise client confidences or the attorney-client relationship." This exclusion applies
provided that "these lawyers and accountants are authorized to practice in the Philippines and
4. Jewelry Dealers: This covers dealers "in precious metals" who trade in such metals for
shall continue to be subject to the provisions of their respective codes of conduct and/or
"transactions in excess of One million pesos (P1,000,000.00)" and dealers "in precious
professional responsibility or any of its amendments" [Sec. 3].
stones" who conduct similar high-value transactions [Sec. 3(a)(4) and Sec. 3(a)(5)].
This ensures that professional confidentiality is maintained while also ensuring compliance with
*These dealers are included due to the high value and liquidity of precious metals and
ethical standards.
stones, which can be used for money laundering or other illicit financial activities.
Under Republic Act [Sec. 3], the terms "covered transaction" and "suspicious transaction" are
5. Company Service Providers: These are entities that "provide any of the following
precisely defined to establish clear criteria for identifying financial activities and transactions that
services to third parties: (i) acting as a formation agent of juridical persons; (ii) acting as
require reporting to regulatory authorities. These definitions are crucial for monitoring and
(or arranging for another person to act as) a director or corporate secretary of a company,
preventing money laundering, terrorism financing, and other illicit activities.
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 Covered Transaction:
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 A "covered transaction" refers to financial activities involving significant sums of money, which
shareholder for another person" [Sec. 3(a)(6)]. necessitate reporting to authorities due to the potential risk they pose for money laundering or other
illicit purposes. These transactions are categorized based on the nature of the activity and the 4. Structuring to Avoid Reporting:
threshold amounts, as outlined below: ○ A transaction is suspicious if "the client's transaction is structured in order to avoid
being the subject of reporting requirements under the Act" [Sec. 3(b-1)(4)].
1. General Cash Transactions: ○ This refers to deliberate actions taken to divide large transactions into smaller
○ This includes any transaction involving cash or an equivalent monetary instrument amounts to evade detection and reporting.
where the total amount exceeds Five hundred thousand pesos (P500,000.00) within 5. Deviation from Client Profile:
a single banking day [Sec. 3(b)]. The threshold is set to capture large cash ○ Transactions that "deviate from the profile of the client and/or the client's past
movements that may indicate suspicious activity, prompting mandatory reporting. transactions with the covered person" [Sec. 3(b-1)(5)] are flagged as suspicious, as
2. Jewelry and Precious Metals/Stones Dealers: they may indicate unusual activity that does not align with the client's typical
○ Transactions involving cash or equivalent monetary instruments that exceed One financial behavior.
million pesos (P1,000,000.00) are reportable when conducted by jewelry dealers, 6. Connection to Unlawful Activity:
dealers in precious metals, or dealers in precious stones [Sec. 3(b)]. The high value ○ Any transaction that is "related to an unlawful activity or offense under this Act that
of these goods makes such transactions vulnerable to exploitation for money is about to be, is being, or has been committed" [Sec. 3(b-1)(6)] is inherently
laundering. suspicious, as it directly involves illegal actions.
3. Casino Transactions: 7. Similar or Analogous Transactions:
○ For casinos, a "covered transaction" is defined as any single casino cash transaction ○ Finally, "any transaction that is similar or analogous to any of the foregoing" [Sec.
that involves an amount in excess of Five million pesos (P5,000,000.00) or its 3(b-1)(7)] is also considered suspicious, ensuring that all potentially illicit activities
equivalent in any other currency [Sec. 3(b)]. This applies specifically to the gaming are captured, even if they don't perfectly match the other criteria.
sector, where large sums are frequently exchanged, creating potential risks for
money laundering. Monetary Instrument [Sec. 3(c)]:
4. Real Estate Transactions:
○ In the real estate sector, a "covered transaction" occurs when a single cash A "monetary instrument" includes various financial tools and assets used in transactions or as a
transaction exceeds Seven million five hundred thousand pesos (P7,500,000.00) or store of value. These instruments are defined in the Act as follows:
its equivalent in any other currency [Sec. 3(b)]. Due to the high value associated
with real estate transactions, they are closely monitored to prevent their use in 1. Legal Tender:
laundering large amounts of money. ○ This includes "coins or currency of legal tender of the Philippines, or of any other
country," which are officially recognized forms of money that can be used to settle
Suspicious Transaction: transactions.
2. Drafts, Checks, and Notes:
A "suspicious transaction" refers to any financial activity, regardless of the amount involved, that ○ These are instruments such as "drafts, checks, and notes" used in financial
exhibits unusual characteristics or potentially illicit circumstances, suggesting a connection to transactions to transfer funds, make payments, or settle obligations. They serve as
illegal activities such as money laundering or terrorism financing. The following criteria outline a written promise or order to pay a specified amount.
what constitutes a suspicious transaction: 3. Securities and Negotiable Instruments:
○ This category covers "securities or negotiable instruments, bonds, commercial
1. Lack of Legal Basis or Economic Justification: papers, deposit certificates, trust certificates, custodial receipts or deposit substitute
○ A transaction is deemed suspicious if "there is no underlying legal or trade instruments," along with "trading orders, transaction tickets and confirmations of
obligation, purpose, or economic justification" [Sec. 3(b-1)(1)]. sale or investments, and money market instruments." These are financial assets that
○ This criterion highlights transactions that lack a clear, legitimate purpose, raising can be traded or transferred between parties, often used in investment or financing
red flags for potential illicit activities. activities.
2. Improper Client Identification: 4. Other Similar Instruments:
○ Transactions where "the client is not properly identified" [Sec. 3(b-1)(2)] are ○ The Act also includes "other similar instruments where title thereto passes to
considered suspicious, as proper identification is essential for ensuring the another by endorsement, assignment, or delivery," ensuring that all relevant
legitimacy of financial activities and preventing the involvement of anonymous or financial tools that can be transferred between parties are encompassed under the
fraudulent entities. law.
3. Inconsistent Amounts:
○ When "the amount involved is not commensurate with the business or financial Offender [Sec. 3(d)]:
capacity of the client" [Sec. 3(b-1)(3)], it indicates that the transaction might be
unusual or suspicious, potentially involving funds that are inconsistent with the
client's known financial status.
An "offender" is any person, defined in the Act as "any person who commits a money laundering demand for monetary compensation, is included as an unlawful activity due to its
offense." This term is crucial for identifying and prosecuting those involved in illegal financial direct relation to substantial illicit gains.
activities, ensuring that individuals or entities engaging in such crimes are held accountable. 2. Violations under the Comprehensive Dangerous Drugs Act of 2002 [Republic Act No.
9165]:
Person [Sec. 3(e)]: ○ Includes serious offenses such as drug trafficking, manufacturing, and distribution.
These violations are considered unlawful activities due to the significant financial
The term "person" includes "any natural or juridical person." This broad definition ensures that transactions and illicit profits derived from illegal drug operations.
both individuals and legal entities, such as corporations or organizations, are subject to the 3. Anti-Graft and Corrupt Practices Act [Sec. 3(b, c, e, g, h, i), Republic Act No. 3019]:
obligations and penalties outlined in the Act. It reflects the law's comprehensive approach to ○ Covers various forms of corruption, including bribery, extortion, and other corrupt
covering all potential actors in financial transactions. practices by public officials. These offenses undermine the integrity of public
service and involve significant financial misconduct, making them critical to the
Proceeds [Sec. 3(f)]: Act's scope on unlawful activities.
4. Plunder [Republic Act No. 7080]:
"Proceeds" refer to "an amount derived or realized from an unlawful activity." This definition is
○ Refers to the large-scale misappropriation of public wealth by government officials.
key in the context of anti-money laundering efforts, as it helps authorities trace and identify the
The Act defines plunder as an unlawful activity due to the magnitude of illicit gains
financial benefits obtained through illegal means, which are often the focus of legal action under
involved and the severe impact on public resources.
the Act.
5. Robbery and Extortion [Articles 294-302, Revised Penal Code]:
Supervising Authority [Sec. 3(g)]: ○ Encompasses various forms of robbery and extortion, including armed robbery and
threats for financial gain. These offenses are recognized as unlawful activities due
A "supervising authority" is defined as "the appropriate supervisory or regulatory agency, to their direct financial implications and the generation of illicit proceeds.
department, or office supervising or regulating the covered institutions enumerated in Section 6. Illegal Gambling [Presidential Decree No. 1602]:
3(a)." This authority plays a vital role in ensuring that financial institutions comply with the legal ○ Includes illegal gambling operations such as "jueteng" and "masiao," which are
requirements set forth in the Act, particularly those related to preventing financial crimes such as prevalent in the Philippines. The Act includes these activities as unlawful due to
money laundering. their association with organized crime and substantial illicit profits.
7. Piracy on the High Seas [Revised Penal Code and Presidential Decree No. 532]:
Transaction [Sec. 3(h)]: ○ Refers to acts of piracy, including hijacking and armed robbery at sea. These
offenses are defined as unlawful activities due to their significant financial
The term "transaction" encompasses "any act establishing any right or obligation or giving rise to consequences and the substantial illicit gains involved.
any contractual or legal relationship between the parties thereto." It also includes "any movement 8. Qualified Theft [Article 310, Revised Penal Code]:
of funds by any means with a covered institution." This broad definition covers all forms of ○ Involves theft committed with a breach of trust, typically by an individual entrusted
financial activity that could potentially be linked to money laundering, ensuring that they are with the property. The Act considers this a serious form of theft due to the trust
subject to the scrutiny and reporting requirements mandated by the Act. violation and the substantial sums often involved.
9. Swindling and Other Forms of Swindling [Articles 315-316, Revised Penal Code]:
These definitions within the Republic Act provide a comprehensive legal framework that supports ○ Includes fraudulent schemes designed to deceive and unlawfully obtain money or
the identification, regulation, and prevention of illicit financial activities. By explicitly defining property. These activities are recognized as unlawful due to their potential to
these key terms, the Act strengthens efforts to combat financial crimes and ensures that all relevant generate significant illicit financial gains.
aspects of financial transactions are covered under the law. 10. Smuggling [Republic Act Nos. 455 and 1937]:
○ Involves the illegal importation or exportation of goods to evade customs duties
8.4.3 Unlawful Activities and regulations. Smuggling is categorized as an unlawful activity due to its
financial implications and the illicit profits generated.
Under Republic Act No. 9160 [Sec. 3(i)], the term "unlawful activity" is defined to include a
11. Electronic Commerce Act Violations [Republic Act No. 8792]:
broad range of criminal acts or omissions that are directly related to money laundering and related
○ Encompasses offenses related to online fraud and cybercrimes, including financial
offenses. This comprehensive definition is crucial for the effective identification, prosecution, and schemes conducted through electronic means. These violations are considered
prevention of financial crimes. The following summarizes the specific unlawful activities covered
unlawful due to their sophisticated nature and significant financial impact.
by the Act, incorporating relevant phrases from the original legislation:
12. Hijacking, Destructive Arson, and Murder [Republic Act No. 6235]:
○ Includes severe crimes such as aircraft hijacking, deliberate arson with intent to
1. Kidnapping for Ransom [Article 267, Revised Penal Code]:
destroy, and murder. These offenses are categorized as unlawful due to their severe
○ Defined as the act of unlawfully seizing and carrying away a person with the intent
impact and substantial illicit gains.
to demand ransom for their release. This severe offense, characterized by its
13. Terrorism and Conspiracy to Commit Terrorism [Republic Act No. 9372]:
 ○ Encompasses acts of terrorism and conspiracies to commit such acts, including the 25. Anti-Carnapping Act Violations [Republic Act No. 6539]:
provision of financial support for terrorism. The Act considers these offenses ○ Refers to the illegal taking or stealing of motor vehicles. This offense is categorized
unlawful due to their threat to national and international security and the financial as unlawful due to the substantial financial implications and connection to
networks involved. organized crime.
14. Financing of Terrorism [Republic Act No. 10168]: 26. Illegal Possession of Firearms and Explosives [Presidential Decree No. 1866]:
○ Addresses the provision of funds or financial resources to support terrorist ○ Involves the unauthorized possession, manufacture, and trafficking of firearms,
activities. This unlawful activity is highlighted due to its critical role in sustaining ammunition, or explosives. These activities are considered unlawful due to their
terrorist operations and the need to disrupt such financial flows. potential to support organized crime and violence.
15. Bribery and Corruption of Public Officers [Articles 210-212, Revised Penal Code]: 27. Anti-Fencing Law Violations [Presidential Decree No. 1612]:
○ Involves acts of bribery and corrupt practices by public officials, including the ○ Covers the act of buying, receiving, or possessing stolen property. This law
acceptance of bribes. The Act includes these offenses as unlawful due to their identifies such activities as unlawful due to their role in perpetuating theft and other
impact on public trust and the substantial illicit gains involved. crimes.
16. Frauds and Illegal Exactions [Articles 213-216, Revised Penal Code]: 28. Violations of the Migrant Workers Act [Republic Act No. 8042]:
○ Refers to fraudulent acts by public officials, including illegal exactions and ○ Involves offenses related to the exploitation or abuse of migrant workers. These
demands for undue payments. These activities are considered unlawful due to their violations are categorized as unlawful due to their severe impact on individuals and
impact on public trust and the generation of illicit funds. their connection to organized crime.
17. Malversation of Public Funds and Property [Articles 217-222, Revised Penal Code]: 29. Violations of the Intellectual Property Code [Republic Act No. 8293]:
○ Involves the embezzlement or misuse of public funds or property by government ○ Includes offenses such as copyright infringement, trademark violations, and other
officials. This serious form of corruption is categorized as an unlawful activity due intellectual property crimes. These activities are recognized as unlawful due to their
to its significant financial impact and misuse of public resources. impact on innovation and potential for illicit profits.
18. Forgeries and Counterfeiting [Articles 163-176, Revised Penal Code]: 30. Anti-Photo and Video Voyeurism Act Violations [Republic Act No. 9995]:
○ Includes the forgery of documents and counterfeiting of currency. These offenses ○ Refers to the unauthorized recording and distribution of intimate images or videos.
are recognized as unlawful due to their role in producing fraudulent financial These violations are considered unlawful due to their infringement on privacy and
instruments used for money laundering. potential for illicit gains.
19. Anti-Trafficking in Persons Act Violations [Republic Act No. 9208]: 31. Anti-Child Pornography Act Violations [Republic Act No. 9775]:
○ Encompasses offenses related to human trafficking, including forced labor and ○ Covers offenses related to the creation, distribution, and possession of child
sexual exploitation. These violations are categorized as unlawful due to their severe pornography. These violations are categorized as unlawful due to the severe harm
human rights impacts and connection to organized crime. they cause to children and their association with organized crime.
20. Violations of the Revised Forestry Code [Presidential Decree No. 705]: 32. Special Protection of Children Against Abuse Violations [Republic Act No. 7610]:
○ Involves illegal logging and other breaches of forestry regulations. The Act ○ Involves offenses related to child abuse, exploitation, and discrimination. The Act
includes these activities as unlawful due to their environmental impact and the illicit recognizes these activities as unlawful due to their severe impact on the welfare of
profits generated. children.
21. Violations of the Philippine Fisheries Code [Republic Act No. 8550]: 33. Securities Regulation Code Violations [Republic Act No. 8799]:
○ Includes illegal fishing practices and overfishing. These offenses are considered ○ Includes fraudulent practices and other violations in the securities and investment
unlawful due to their impact on marine resources and the potential for illicit gains. markets. These offenses are considered unlawful due to their impact on financial
22. Violations of the Philippine Mining Act [Republic Act No. 7942]: markets and investor protection.
○ Refers to illegal mining activities and violations of mining regulations. The Act 34. Strategic Trade Management Act Violations [Republic Act No. 10697]:
defines these activities as unlawful due to their significant environmental and ○ Refers to offenses related to the proliferation of weapons of mass destruction and
financial implications. their financing. These activities are recognized as unlawful due to their threat to
23. Violations of the Wildlife Resources Conservation and Protection Act [Republic Act global security and financial systems.
No. 9147]: 35. Tax Evasion and Related Offenses [Section 254, National Internal Revenue Code]:
○ Covers illegal activities related to the exploitation of wildlife and their habitats. ○ Covers serious tax crimes involving fraudulent schemes to evade tax liabilities
These offenses are categorized as unlawful due to their detrimental effects on exceeding P25 million per taxable year. These offenses are considered unlawful
biodiversity and the illicit profits involved. due to their significant financial implications and impact on public revenue.
24. Violations of the National Caves and Cave Resources Management Protection Act 36. Felonies or Offenses of a Similar Nature:
[Republic Act No. 9072]: ○ Any comparable crimes punishable under the laws of other countries. This broad
○ Involves unauthorized activities that damage or exploit caves and cave resources. category emphasizes the Act's global reach in combating financial crimes,
The Act includes these offenses as unlawful due to their impact on environmental including those beyond national borders.
conservation.
These defined unlawful activities ensure that a wide array of criminal behaviors directly related to activity within casinos to ensure compliance with anti-money laundering
money laundering are addressed. By including these activities in the Act, a comprehensive regulations.
framework is established to facilitate effective legal actions against financial crimes and support
international efforts to combat money laundering. Gaming Operations [Sec. 3(l)(3)]:

Precious Metals [Sec. 3(j)]: ○ Definition: Gaming operations encompass all activities related to the offering of
games of chance, including various forms and variations of gambling that are
○ Definition: Precious metals are defined as gold, silver, platinum, palladium, approved by the appropriate government authorities. This includes all operational
rhodium, ruthenium, iridium, and osmium. Each of these metals must have a purity aspects of running a casino or similar gaming establishment.
level of 500 parts per 1,000 (50%) or more. This category also includes alloys of
these metals, as well as solders and plating chemicals. Offshore Gaming Operator [Sec. 3(l)(4)]:
○ Specific Examples: The Act includes specific chemicals used in various
applications, such as rhodium and palladium plating solutions, which are employed ○ Definition: An offshore gaming operator is an entity that provides online games of
in both industrial and decorative contexts. Potassium gold cyanide, containing at chance or sports betting services via the internet. These operators use a network and
least 68.3% gold, potassium silver cyanide, with at least 68% silver, and silver software to facilitate gaming activities, either independently or in collaboration
cyanide in salt solution, containing at least 54% silver, are also covered. These with local service providers who support their operations.
substances are used in electroplating and other processes requiring high-purity
metals. Service Providers [Sec. 3(l)(5)]:

Precious Stones [Sec. 3(k)]: ○ Definition: Service providers are business corporations that supply components
necessary for the functioning of offshore gaming operations. They provide various
○ Definition: Precious stones include diamonds, rubies, emeralds, sapphires, opals, services, including technology and support, crucial for the operation of online
amethysts, beryls, topazes, and garnets. These stones are utilized primarily in gaming platforms.
jewelry making due to their beauty and rarity. The definition also extends to stones
that were previously classified as semi-precious but are now recognized for their Real Estate Developer [Sec. 3(m)]:
significant value and utility in high-end jewelry.
○ Definition: A real estate developer is any natural or juridical person involved in the
Casino [Sec. 3(l)(1)]: business of developing real estate projects. These projects are then offered for sale
or lease. The developer is responsible for planning, constructing, and marketing the
○ General Definition: A casino is a business authorized by the appropriate properties.
government agency to engage in gaming operations, which includes various forms
of gambling. Real Estate Broker [Sec. 3(n)]:
○ Internet-Based Casino: Refers to casinos operating online, where participants
○ Definition: A real estate broker is a licensed professional who, for a fee or
engage in gaming activities through remote communication technologies such as
commission, acts as an agent in real estate transactions. This role includes offering,
the internet, telephone, or other electronic means. This definition includes any form
advertising, soliciting, listing, promoting, mediating, negotiating, and finalizing
of electronic or digital interaction used to facilitate gambling.
real estate deals, such as sales, purchases, exchanges, mortgages, leases, and joint
○ Ship-Based Casino: Refers to casinos located on vessels, ships, boats, or other
ventures.
watercraft that are specifically designed for gambling. The operations of these
casinos are regulated in a manner similar to land-based casinos but are conducted Targeted Financial Sanctions [Sec. 3(o)]:
on water.
○ Definition: Targeted financial sanctions involve measures such as asset freezing
and prohibitions designed to prevent funds or assets from being used for the benefit
of individuals, entities, or persons designated by relevant United Nations Security
Council resolutions. These sanctions are intended to limit financial resources
Casino Cash Transaction [Sec. 3(l)(2)]: available to designated parties and prevent their use in unlawful activities.

○ Definition: This term refers to any transaction involving the receipt of cash by a Proliferation Financing [Sec. 3(p)]:
casino from or on behalf of a customer, or the payout of cash by a casino to a
○ Definition: Proliferation financing refers to the act of making assets available,
customer or on their behalf. Such transactions are critical for monitoring financial
providing financial services, or conducting financial transactions with the
 knowledge or reckless disregard that such activities are intended to facilitate the a. Securities dealers, brokers, salesmen, investment houses, and other similar
proliferation of weapons of mass destruction. This definition is in line with United persons managing securities or rendering services, such as investment
Nations Security Council Resolutions 1718 of 2006 and 2231 of 2015, which agents, advisors, or consultants;
address the spread of such weapons and their financing. b. mutual funds or open-end investment companies, closed-end investment
companies or issuers, and other similar entities; and
These definitions and provisions from Republic Act No. 9160 establish a comprehensive c. other entities, administering or otherwise dealing in commodities, or
framework for regulating various financial and business activities related to precious metals, financial derivatives based thereon, valuable objects, cash substitutes, and
precious stones, gaming operations, real estate, and targeted financial sanctions. By including these other similar monetary instruments or properties, supervised or regulated by
specific terms and their applications, the Act aims to ensure effective monitoring and control over the SEC.
financial transactions and activities associated with money laundering and other financial crimes.
B. The following Designated Non-Financial Businesses and Professions (DNFBP):

1. Jewelry dealers.
8.4.4 Covered Persons 2. Dealers in precious metals, and dealers in precious stones.
3. Company service providers, which, as a business, provide any of the following services to
The following are the covered persons under the AMLA: third parties:
a. acting as a formation agent of juridical persons;
A. The following financial institutions: b. acting as (or arranging for another person to act as) a director or corporate secretary
1. Persons supervised and/or regulated by BSP, including their subsidiaries and of a company, a partner of a partnership, or a similar position in relation to other
affiliates, which are also covered persons, supervised and/or regulated by the BSP juridical persons;
such as: c. providing a registered office; business address or accommodation, correspondence
a. Banks; or administrative address for a company, a partnership or any other juridical person
b. Quasi-banks; or legal arrangement; and
c. Trust entities d. acting as (or arranging for another person to act as) a nominee shareholder for
d. Pawnshops; another person.
e. Non-stock savings and loan associations;
f. Other Non-bank financial institutions which under special laws are subject 4. Persons, including lawyers, accountants and other professionals, who provide any of the
to BSP supervision and/or regulation; following services:
g. Electronic money issuers; and
h. Foreign exchange dealers, money changers, and remittance and transfer a. Managing of client money, securities or other assets;
companies. b. Management of bank, savings, securities or other assets;
c. Organization of contributions for the creation, operation or management of
2. Persons supervised or regulated by Insurance Commission, such as: companies; and
d. Creation, operation or management of juridical persons or arrangements, and
a. Insurance companies; buying and selling business entities.
b. Pre-need companies;
c. Insurance agents; 5. Casinos, including internet-based casinos and ship-based casinos, with respect to their casino
d. Insurance brokers; cash transactions related to their gaming operations.
e. Professional reinsurers;
f. Reinsurance brokers; The “Casino Implementing Rules and Regulations of Republic Act No. 10927” shall
g. Holding companies; govern the implementation of the AMLA with regard to casinos, unless, otherwise
h. Holding company systems; indicated therein by the AMLC and the AGAs.
i. Mutual benefit associations; and
j. All other persons and their subsidiaries and affiliates supervised or NOTE:
regulated by the IC.
Republic Act No. 11521 included the following as covered persons:
3. Persons supervised or regulated by SEC, such as:
1. Real estate developers and brokers; and
 2. Offshore gaming operations, as well as their service providers, supervised, accredited or a. Any person may be charged with and convicted of both the offense of money laundering
regulated by the Philippine Amusement and Gaming Corporation (PAGCOR) or any and the unlawful activity as herein defined.
government agency.
b. The prosecution of any offense or violation under this Act shall proceed independently of
any proceeding relating to the unlawful activity.

8.4.5 Money Laundering, Terrorism and Financing, and Asset Forfeiture Prosecution of Money Laundering Cases.

MONEY LAUNDERING AND TERRORISM FINANCING 1. Independent Proceedings.

Section 1. Money Laundering. The prosecutions of ML and the associated unlawful activity shall proceed independently. Any
person may be charged with and convicted of both ML and the associated unlawful activity.
Money Laundering Offense – Money laundering is committed by any person who, knowing that
any monetary instrument or property represents, involves, or relates to the proceeds of any 2. Separate and Distinct Elements.
unlawful activity:
The elements of ML are separate and distinct from the elements of the associated unlawful activity.
a. transacts said monetary instrument or property; The elements of the unlawful activity, including the identity of the perpetrators and the details of
b. converts, transfers, disposes of, moves, acquires, possesses or uses said monetary the commission of the unlawful activity, need not be established by proof beyond reasonable doubt
instrument or property; in the case for ML.
c. conceals or disguises the true nature, source, location, disposition, movement or
ownership of or rights with respect to said monetary instrument or property; 3. Knowledge.
d. attempts or conspires to commit Money Laundering offenses referred to in (1), (2),
or (3) above; The element of knowledge may be established by direct or circumstantial evidence. The deliberate
e. aids, abets, assists in, or counsels the commission of the ML offenses referred to in non-performance of the preventive measures under the AMLA, this IRR, AMLC issuances, and
(1), (2), or (3) above; and SA’s guidelines by a covered person’s responsible directors, officers and employees shall be
f. performs or fails to perform any act as a result of which he facilitates the offense of considered in determining knowledge of the commission of ML offenses.
ML referred to in items (a), (b), or (c) above.
4. Rules of Procedure.
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-Money Laundering The Rules of Court shall govern all proceedings concerning the prosecution of ML. The
Council (AMLC), fails to do so. prosecution of ML and other violations of the AMLA shall be handled by the Department of
Justice, through its public prosecutors, the Office of the Ombudsman, through the Office of the
Section 2. Predicate Offenses to Money Laundering. Special Prosecutor, pursuant to the Rules on Criminal Procedure.

All unlawful activities, as defined herein, are the predicate offenses to money laundering 5. No Money Laundering Case During Election Period.
committed under Rule 9, Section 1(a) hereof.
No case for ML may be filed against a candidate for an electoral office during an election period.
Section 3. Jurisdiction over Money Laundering Cases.
Section 5. Terrorism Financing.
3.1. Regional Trial Court.
The provisions of the Terrorism Financing Prevention and Suppression Act (TFPSA - RA. 10168)
The regional trial courts shall have jurisdiction to try ML cases committed by private individuals, and its 2018 Implementing Rules and Regulations (IRR) shall govern matters relating to Terrorism
and public officers not covered by the jurisdiction of the Sandiganbayan. Financing (TF), including the implementation of the relevant targeted financial sanctions.

3.2. Sandiganbayan. RULE 12 – ASSET FORFEITURE

The Sandiganbayan shall have jurisdiction to try ML cases committed by public officers under its Section 1. General Rules on Asset Forfeiture.
jurisdiction, and private persons who are in conspiracy with such public officers.
The following rules shall be observed in asset forfeiture proceedings:
Section 4. Prosecution of Money Laundering Cases.
 a. No prior criminal charge, pendency of a case, or conviction for an unlawful activity or ML a. A person whose monetary instrument or property has been preserved may file a motion to
offense is necessary for the commencement or the resolution of a petition for civil forfeiture. discharge the asset preservation order.
b. If an asset preservation order is imposed on an account of a covered person that it uses for
b. No asset shall be attached or forfeited to the prejudice of a candidate for an electoral office payment of salary, rent, suppliers, and/or taxes in the ordinary course of a legitimate
during an election period. business, the covered person may apply with the court which issued the asset preservation
order to discharge the same by submitting a bond or other acceptable securities of equal
Section 1. Civil Forfeiture. value to the amount or value subject of the asset preservation order. The bond or security
when approved by the court shall secure the payment or enforcement of any order or
1.1. Petition for Civil Forfeiture. judgment that the AMLC may recover in the appropriate action relating to the asset
preservation order.
Upon determination that probable cause exists that any monetary instrument or property is in any
way related to an unlawful activity or ML offense, the AMLC shall file with the regional trial Section 2. Asset Forfeiture in Money Laundering Cases.
court, through the Office of the Solicitor General, a verified petition for civil forfeiture.
Where there is conviction for ML, the court shall issue a judgment of forfeiture in favor of the
1.2. Equal Value Assets. Government of the Philippines with respect to the monetary instrument or property found to be
proceeds of or related to an unlawful activity.
The petition for civil forfeiture shall include other monetary instrument or property of equal value
in cases where the monetary instrument or property that should be subject of forfeiture: Section 3. Claim on Forfeited Assets.
a. cannot be located despite due diligence; a. Where the court has issued an order of forfeiture of the monetary instrument or property in
b. has been substantially altered, destroyed, diminished in value or otherwise rendered a criminal prosecution for any ML offense, the offender or any other person claiming an
worthless by any act or omission; interest therein may apply, by verified petition, for a declaration that the same legitimately
c. has been concealed, removed, converted, or otherwise transferred; belongs to him and for segregation or exclusion of the monetary instrument or property
d. is located outside the Philippines or has been placed or brought outside the jurisdiction of corresponding thereto.
the court; or b. The verified petition shall be filed with the court which rendered the judgment of forfeiture,
e. has been commingled with other monetary instruments or property belonging to either the within fifteen (15) days from the date of the finality of the order of forfeiture, in default of
offender himself or a third person or entity, thereby rendering the same difficult to identify which the said order shall become executory.
or be segregated for purposes of forfeiture. c. This provision shall also apply in civil forfeiture.
1.3. Rule of Procedure. Section 4. Payment in Lieu of Forfeiture.
Civil forfeiture proceedings shall be governed by the “Rule of Procedure in Cases of Civil 4.1 Where the court has issued an order of forfeiture of the monetary instrument or property subject
Forfeiture, Asset Preservation, and Freezing of Monetary Instrument, Property, or Proceeds of an ML offense, and said order cannot be enforced because:
Representing, Involving, or Relating to an Unlawful Activity or Money Laundering Offense under
Republic Act No. 9160, as Amended” (A.M. No. 05-11-04-SC). a. any particular monetary instrument or property cannot, with due diligence, be located;
b. it has been substantially altered, destroyed, diminished in value or otherwise rendered
1.4. Asset Preservation Order. worthless by any act or omission, directly or indirectly, attributable to the offender;
c. it has been concealed, removed, converted, or otherwise transferred to prevent the same
Upon verified petition by the AMLC, with prayer for issuance of asset preservation order, and
from being found or to avoid forfeiture thereof;
after determination that probable cause exists that any monetary instrument or property is in any
d. it is located outside the Philippines or has been placed or brought outside the jurisdiction
way related to an unlawful activity, the Regional Trial Court may issue an asset preservation order,
of the court; or
in accordance with the “Rule of Procedure in Cases of Civil Forfeiture, Asset Preservation, and
e. it has been commingled with other monetary instruments or property belonging to either
Freezing of Monetary Instrument, Property, or Proceeds Representing, Involving, or Relating to
the offender himself or a third person or entity, thereby rendering the same difficult to
an Unlawful Activity or Money Laundering Offense under Republic Act No. 9160, as Amended”
identify or be segregated for purposes of forfeiture, the court may, instead of enforcing the
(A.M. No. 05-11-04-SC), which shall be effective immediately, forbidding any transaction,
order of forfeiture of the monetary instrument or property or part thereof or interest therein,
withdrawal, deposit, transfer, removal, conversion, concealment or other disposition of the subject
accordingly order the convicted offender to pay an amount equal to the value of said
monetary instrument or property.
monetary instrument or property.
1.5. Motion to Discharge.
4.2. This provision shall apply in both civil and criminal forfeiture.
 1. The concerned covered persons shall immediately, upon receipt of the court order or
AMLC Resolution, give the AMLC and/or its Secretariat full access to all information,
8.4.6 Preventive Measures and Obligations of Covered Persons documents or objects pertaining to the deposit, investment, account and or transaction.
2. Certified true copies of the documents pertaining to deposit, investment account and/or
SEC. 9. Prevention of Money Laundering; Customer Identification Requirements and transaction subject of the bank inquiry shall be submitted to the AMLC Secretariat, within
Record Keeping. - 5 working days from receipt of the court order or notice of AMLC Resolution.
(a) Customer Identification - Covered institutions shall establish and record the true identity of its 3. Keep the confidentiality of the inquiry, and ensure that the owner of any monetary
clients based on official documents. They shall maintain a system of verifying the true identity of instrument or property or other unauthorized personnel shall not be informed about the
their clients and, in case of corporate clients, require a system of verifying their legal existence and inquiry, to prevent tipping-off.
organizational structure, as well as the authority and identification of all persons purporting to act
on their behalf.
(b) Record Keeping 8.4.6.1 Prohibited Accounts

Availability of Records The provisions of existing laws to the contrary notwithstanding, anonymous accounts, accounts
1. Covered persons shall ensure that all Customer Due Diligence (CDD) information and under fictitious names, and all other similar accounts shall be absolutely prohibited. Peso and
transaction records are available swiftly to domestic competent authorities in the exercise of their foreign currency non-checking numbered accounts shall be allowed. The BSP may conduct annual
official functions or upon order by a competent authority. testing solely limited to the determination of the existence and true identity of the owners of such
2. Covered persons shall take measures to ensure that customer records are submitted in the accounts.
manner, quality and period as would assist the AML in its prompt financial investigations and
institution of legal actions. Anonymous Accounts: Accounts that are not registered in the true name of the owner. This
includes any accounts under fictitious names, aliases, or those that cannot be linked to a verifiable
(c) Reporting of Covered and Suspicious Transactions - Covered persons shall report to the AML identity.
all covered transactions and suspicious transactions within five (5) working days from occurrence Accounts Under Fictitious Names: Similar to anonymous accounts, these are accounts where the
thereof, unless the AMLC prescribes a different period not exceeding fifteen (15) working days. identity of the account holder is falsified or obscured.

Accounts Subject to Strict Scrutiny (Not explicitly prohibited but closely monitored):
1. Accounts with Suspicious Transaction Patterns: Accounts that show activity inconsistent
Primary Duties of Covered Persons with the customer's known profile or business nature. These accounts are not prohibited
1. Covered persons shall comply with all the requirements under the AMLA and Terrorism but are monitored for any signs of money laundering or terrorist financing.
Financing Prevention and Suppression Act (TFPSA), their respective IRR, and other 2. Accounts Linked to Designated Individuals or Entities: Accounts associated with
AMLC issuances. individuals or entities on international or domestic sanctions lists (such as those related to
2. The covered persons' board of directors, partners or sole proprietors shall be ultimately terrorism financing or money laundering) are subject to freezing or restrictions.
responsible for the covered persons' compliance with the AMLA and TFPSA, their 3. Dormant Accounts Used for Unusual Transactions: Dormant accounts that suddenly show
respective IRR, and other AMLC issuances. significant activity may be investigated, though they are not outright prohibited.
4. Shell Company Accounts: Accounts held by entities that have no active business operations
Covered persons shall have the following duties in relation to AMLC investigations: and are used mainly to hide the true origin of funds are flagged for additional scrutiny.
1. Give the authorized personnel of the AML, full access to all information, documents or
objects pertaining to the account, transaction and/or person subject of the investigation
immediately upon receipt of the request or order; 8.4.6.2 Customer Due Diligence
2. Submit within 5 working days from receipt of the request or order from the AMLC,
certified true copies of the documents pertaining to account, transaction and/or person Customer Due Diligence (CDD) refers to the procedure of identifying and verifying the true
subject of the investigation; and identity of customers, and their agents and beneficial owners, including understanding and
3. Keep the confidentiality of the investigation and ensure that the owner of any monetary monitoring of their transactions and activities.
instrument or property, or other unauthorized personnel, shall not be informed about the
investigation, to prevent tipping off. Section 1. Purpose and Applicability of CDD

Covered persons shall have the following duties in relation to bank inquiry orders: 1.1. Purpose of CDD

Covered persons shall conduct CDD for the following purposes:

 a. To identify the customer, and its agents and beneficial owners; Section 1. Purpose and Applicability of Beneficial Ownership
b. To determine the risk posed by each customer;
c. To establish, maintain, close or terminate the account or business relationship; and The concept of Beneficial Ownership under Republic Act No. 9160, also known as the Anti-
d. To assess the level of monitoring to be applied. Money Laundering Act of 2001, is designed to identify the natural person(s) who ultimately own
or control a customer or the person on whose behalf a transaction is being conducted.
1.2. When is a CDD Required? Understanding beneficial ownership is crucial for financial institutions to prevent the misuse of
corporate vehicles or other legal entities for money laundering, terrorist financing, or other illicit
Covered persons shall undertake CDD measures when: activities.

1. Establishing a Business Relationship: Section 2. When is Beneficial Ownership Identification Required?

2. Occasional Transaction:
3. Suspicious Transaction: Beneficial ownership identification is required in the following scenarios:
4. Doubts About Customer Identity and:
5. Existing Accounts: 1. Establishing a Business Relationship: When a financial institution enters into a new
business relationship with a customer, it must identify and verify the beneficial owner(s).
Section 2. CDD Procedures 2. Occasional Transactions: For significant one-time transactions, financial institutions
must determine whether the customer is acting on behalf of another person and, if so,
Financial institutions must follow specific procedures to conduct CDD, including: identify the beneficial owner(s).
3. Suspicious Transactions: If there are suspicions that a customer is engaging in illegal
● Customer Identification: Collecting and verifying the identity of customers using reliable activities, financial institutions must identify and verify the beneficial owner(s) involved.
and independent sources of information. 4. Complex or Unusual Structures: When dealing with corporate entities or trusts that have
● Understanding the Customer’s Business: Obtaining information on the purpose and complex ownership structures, financial institutions must take additional steps to
intended nature of the business relationship, including understanding the customer’s understand the ownership and control mechanisms to identify the beneficial owner(s).
activities and assessing the risks involved.
● Ongoing Monitoring: Continuously monitoring customer transactions and activities to Section 3. Procedures for Identifying Beneficial Ownership
ensure they are consistent with the institution’s knowledge of the customer and to detect
any suspicious behavior. Financial institutions must undertake the following steps to identify beneficial ownership:

Section 3. Record-Keeping 1. Customer Information Collection: Collect sufficient information from the customer to
understand the ownership and control structure of the entity.
Financial institutions must keep records of CDD information and transactions for a specified 2. Verification: Verify the identity of the beneficial owner(s) using reliable, independent
period, typically five years, as required by RA 9160. These records must be readily available for sources. This may involve examining documents, conducting independent searches, or
review by competent authorities and should be maintained in a manner that ensures confidentiality requesting additional information.
and security. 3. Understanding the Nature of Ownership: Determine the level of control or ownership
interest held by the beneficial owner(s) to assess the risk associated with the customer.
Section 4. Reporting Obligations 4. Ongoing Monitoring: Continuously monitor the customer’s transactions and activities,
especially if the ownership structure changes, to ensure the beneficial owner(s) remain
Financial institutions are required to report suspicious transactions to the Anti-Money Laundering accurately identified.
Council (AMLC) promptly. Failure to comply with CDD and reporting requirements may result
in penalties and sanctions under RA 9160. Section 4. Record-Keeping and Reporting Obligations

These rules ensure that financial institutions play a crucial role in detecting and preventing Financial institutions are required to:
financial crimes, thereby contributing to the overall stability and integrity of the financial system.
● Maintain Records: Keep detailed records of the beneficial ownership information for a
8.4.7 Beneficial Ownership period specified by the law, typically five years, ensuring these records are secure and
accessible for review by authorities.
Beneficial ownership- refers to the natural person(s) who ultimately own or control a customer, ● Report to AMLC: Report any suspicious transactions related to beneficial ownership to
or the natural person on whose behalf a transaction is being conducted. It also includes those the Anti-Money Laundering Council (AMLC). Failure to identify and report beneficial
persons who exercise ultimate effective control over a legal entity or arrangement, such as a ownership can result in penalties and sanctions under RA 9160.
corporation, trust, or partnership.
Section 5. Compliance and Penalties or any other information in relation thereto. Neither may such reporting be published or
aired in any manner or form by the mass media, electronic mail, or other similar devices.
Non-compliance with beneficial ownership requirements can lead to significant penalties, (Sec. 9)
including fines, sanctions, and potential criminal liability for financial institutions and their ○ Violation: The concerned officer, employee, representative, agent, advisor,
officers. Ensuring compliance with these rules is essential for maintaining the integrity of the consultant or associate of the covered institution, or media shall be held criminally
financial system and supporting efforts to combat financial crimes. liable. (Sec. 9)

8.4.8 Record Keeping Requirements HISTORY OF AMLA LAW

1. Period for Retention REPUBLIC ACT NO. 9194 (AMENDMENT TO RA NO. 9160)
● All records of all transactions of covered institutions shall be maintained and safely stored
for five (5) years from the dates of transactions. AN ACT AMENDING REPUBLIC ACT NO. 9160, OTHERWISE KNOWN AS THE
○ Existing and New Accounts and New Transactions: All records shall be “ANTI-MONEY LAUNDERING ACT OF 2001”
maintained and safely stored for five (5) years from October 17, 2001 or from the
dates of the accounts or transactions, whichever is later. Key Points on Amended Sections:
○ Closed Accounts: The record on customer identification, account files and
business correspondence shall be preserved and safely stored for at least five (5) Section 3 Amendments:
years from the dates when they were closed.
1. Paragraph (b) - Covered Transaction:
● Covered institutions shall likewise keep the electronic copies of all covered and suspicious
○ A "covered transaction" is defined as any cash or monetary instrument transaction
transaction reports for at least five (5) years from the dates of submission to the AMLC.
exceeding P500,000.00 within one banking day.
2. New Paragraph (b-1) - Suspicious Transaction:
2. Retention of Records Where a Case of Money Laundering, Civil Forfeiture or
○ Introduces the concept of "suspicious transactions" regardless of amount, including
Underlying Unlawful Activity, Has Been Filed in Court
scenarios where there is no legal or economic basis for the transaction, where the
● The records must be retained and safely kept beyond the 5-year period until it is
client isn't properly identified, or where the transaction deviates from the client's
confirmed that the case has been resolved, decided or terminated with finality by the court.
usual profile, among others.
3. Paragraph (i) - Unlawful Activity:
3. Kinds of Records
○ Expands the definition of "unlawful activity" to include a wide range of criminal
● Customer Identification
offenses such as kidnapping for ransom, drug offenses, corruption, plunder,
● Transaction Records
robbery, illegal gambling, piracy, qualified theft, fraud, smuggling, and certain
● Suspicious Transaction Reports
electronic and securities-related crimes.
4. Form of Records Section 4 Amendment:
● Records shall be retained as originals in such forms as are admissible in court pursuant to
existing laws and the applicable rules promulgated by the Supreme Court. ● Money Laundering Offense:
○ Clarifies the definition of a money laundering offense, detailing three specific acts:
8.4.9 Safe Harbor transacting with knowledge that the funds are illicit, facilitating money laundering,
and failing to report required information to the Anti-Money Laundering Council
1. Protection from Legal Action (AMLC).
● 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 Section 7 Amendment:
faith, whether or not such reporting results in any criminal prosecution under Republic Act
No. 9160 or any other Philippine law. (Sec. 9) ● Creation of the AMLC:
○ Establishes the AMLC and outlines its functions, including receiving transaction
2. Confidentiality of Reports reports, investigating suspicious activities, initiating civil forfeiture proceedings,
● When reporting covered transactions to the AMLC, covered institutions and their officers, and applying for freeze orders on assets related to unlawful activities.
employees, representatives, agents, advisors, consultants or associates are prohibited from
communicating, directly or indirectly, in any manner or by any means, to any person, Section 9(c) Amendment:
entity, the media, the fact that a covered transaction report was made, the contents thereof,
 ● Reporting of Covered and Suspicious Transactions: a. The definition of "covered persons" was expanded to include more types of non-
○ Requires covered institutions to report suspicious transactions within 5 working financial businesses and professions (DNFBPs). The amendment specifically
days, prohibits communication of these reports to unauthorized persons, and included:
provides immunity to institutions reporting in good faith. i. Jewelry dealers, real estate agents, dealers in precious metals and
stones, and company service providers.
Section 10 Amendment: 2. Section 3(i)
a. RA 10365 added more crimes to the list that could lead to money laundering.
● Freezing of Monetary Instruments or Property: New crimes include terrorism financing, human trafficking, and environmental
○ Empowers the Court of Appeals to issue a freeze order on assets suspected of being crimes. This expansion was necessary to keep up with the ways criminals were
related to unlawful activities, with a freeze period of up to 6 months. The order can finding new ways to launder money. It added nos. 15-34.
be contested by the affected party. 3. Section 3
a. The amendment added dealers in precious metals and stones to the list of
Section 11 Amendment: "covered persons." This means that businesses involved in buying, selling, or
dealing with items like gold, diamonds, and other valuable stones or metals now
● Authority to Inquire into Bank Deposits:
have obligations under the Anti-Money Laundering Act. These businesses must:
○ Allows the AMLC to inquire into bank deposits with a court order, or without a
i. Report Suspicious Transactions: If they notice any transactions that
court order in cases involving kidnapping for ransom or certain fraud-related
seem unusual or potentially linked to illegal activities, they are required to
activities, and applies to both peso and foreign currency deposits.
report them to the Anti-Money Laundering Council (AMLC).
Section 14 Amendments: ii. Monitor Large Transactions: Any large transactions, particularly those
that exceed a certain threshold, need to be carefully monitored and
1. Paragraph (c) - Malicious Reporting: documented to ensure they are not part of a money laundering scheme.
○ Penalizes malicious or false reporting of money laundering with imprisonment of 4. Section 4
6 months to 4 years and fines ranging from P100,000.00 to P500,000.00. a. The amendment to Section 4 provided a clearer and more comprehensive
2. Paragraph (d) - Breach of Confidentiality: definition of money laundering. It emphasized that any act of engaging in or
○ Establishes penalties for breaching confidentiality, including imprisonment of 3 to attempting to engage in, directly or indirectly, a transaction involving the
8 years and fines of P500,000.00 to P1,000,000.00. Includes additional penalties proceeds of any unlawful activity is considered money laundering. This includes:
for corporate offenders, aliens, and public officials. i. Conversion or Transfer: Converting or transferring illicit funds to
conceal their illegal origin or to help someone evade legal consequences
Section 23 Amendment: related to the crime.
ii. Concealment or Disguise: Hiding or disguising the true nature, source,
● Effectivity: location, ownership, or control of illicitly acquired assets.
○ Specifies that the Act will take effect 15 days after publication in the Official iii. Acquisition, Possession, or Use: Acquiring, possessing, or using assets
Gazette or in two national newspapers. known to be the proceeds of unlawful activities.
iv. Aiding and Abetting: Assisting or facilitating the commission of money
laundering, including acting as an intermediary or helping to organize
transactions that involve illegal funds.
● Inclusion of Attempted Acts: The amendment also clarified that even attempting to
perform any of the above acts is considered a money laundering offense, not just
REPUBLIC ACT NO. 10365 successful transactions.
5. Section 6(a)
AN ACT FURTHER STRENGTHENING THE ANTI-MONEY LAUNDERING LAW,
a. The amendment gave the AMLC broader powers, particularly in freezing
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9160, OTHERWISE KNOWN
transactions and properties that are suspected to be related to money laundering or
AS THE “ANTI-MONEY LAUNDERING ACT OF 2001”, AS AMENDED
its predicate crimes. Under the amendment, the AMLC can:
i. Freeze Without Court Order: The AMLC now has the authority to
Sections Amended by RA 10365
freeze any suspicious transaction or property without the need for a court
1. Section 3(a) order. This freeze can be imposed for up to 20 days if there is probable
cause to believe that the assets are involved in money laundering.
 ii. Extension of Freeze Order: After the initial 20 days, the AMLC can seek
approval from the Court of Appeals to extend the freeze for another six AN ACT DESIGNATING CASINOS AS COVERED PERSONS UNDER REPUBLIC
months if necessary. ACT NO. 9160, OTHERWISE KNOWN AS THE “ANTI-MONEY LAUNDERING ACT
iii. Expedited Action: This amendment allows the AMLC to act swiftly in OF 2001”, AS AMENDED
preventing the dissipation, transfer, or concealment of assets that are
suspected of being tied to illegal activities. The ability to freeze assets Sections Amended by RA 10927
without a court order ensures that suspected funds or properties can be
secured immediately, reducing the risk of them being moved out of reach. Section 3 Amendments
6. Section 7 (Powers of the Anti-Money Laundering Council) 1. Section 3(a)
a. The powers of the Anti-Money Laundering Council (AMLC) were expanded, ● The definition of "covered persons" was expanded to include casinos, including internet
particularly in relation to freezing transactions and properties. The AMLC was and ship-based casinos, with respect to their casino cash transactions related to their
given the authority to freeze assets without a court order for a period not gaming operations.
exceeding 20 days in cases of probable cause. 2. Section 3(b)
7. Section 9(c) ● A new provision specifies the reporting threshold for casinos, which is any single cash
a. The amendment introduced enhanced customer due diligence (CDD) measures, transaction in excess of PHP 5,000,000 or its equivalent in other currencies. This provision
requiring covered persons to conduct thorough checks on customers, particularly is included in the revised "Covered Transaction" definition.
for high-risk clients such as politically exposed persons (PEPs). ● ‘Covered transaction’ is a transaction in cash or other equivalent monetary instrument
8. Section 10 involving a total amount in excess of Five hundred thousand pesos (P500,000.00) within
a. This section was revised to allow the AMLC to freeze monetary instruments or one (1) banking day; for covered persons under Section 3(a)(8), a single casino cash
properties suspected to be related to money laundering without a court order, for a transaction involving an amount in excess of Five million pesos (P5,000,000.00) or its
period not exceeding 20 days, subject to extension by the Court of Appeals. equivalent in any other currency.
9. Section 12
a. The amendment to Section 12 under RA 10365 ensures that financial institutions 3. Section 3
and their employees are protected from any legal action when they report ● Inserted a new paragraph to define the terms ‘Casino’, ‘Internet-based casino’, ‘Ship-
suspicious transactions in good faith. This protection encourages more institutions based casino’, ‘Casino cash transaction’ and ‘Gaming operations’.
to report potentially illegal activities without fear of repercussions.
10. Section 14 Section 10 Amendment
a. This section was clarified to include penalties for both malicious and grossly ● Modified the powers of the Anti-Money Laundering Council (AMLC) to enable it to apply
negligent reporting of suspicious transactions. for a freeze order on any monetary instrument or property that is in any way related to an
11. Section 20(new section) unlawful activity, particularly concerning newly covered entities such as casinos.
a. This section clarifies that the Anti-Money Laundering Council (AMLC) cannot
interfere with or participate in the operations of the Bureau of Internal Revenue Section 18 Amendment
(BIR). It ensures that the AMLC's functions and powers do not extend to ● Inserted a new paragraph to read as follows:
influencing or managing the activities of the BIR, maintaining a clear separation ● “Within ninety (90) days from the effectivity of this Act. the AMLC, the Philippine
between the two agencies. Amusement and Gaming Corporation (PAGCOR) and other government regulatory
12. Section 21(new section) agencies shall jointly promulgate the rules and regulations to implement the provisions of
a. This section establishes that any inquiry or examination of financial accounts this Act as applicable to casinos as covered institutions. The implementing rules applicable
must adhere to constitutional protections, specifically: to other covered institutions shall not apply to casinos unless it is expressly so provided
i. Due Process: Compliance with Article III, Sections 2 and 3 of the 1987 under the rules and regulations to implement the provisions of this Act.”
Constitution, which guarantee the right to privacy and protection against
unreasonable searches and seizures.
ii. No Ex Post Facto Laws or Bills of Attainder: The implementation of the
Act must respect constitutional prohibitions against laws that impose REPUBLIC ACT NO. 11521
penalties for actions done before the law was enacted (ex post facto) and
AN ACT FURTHER STRENGTHENING THE ANTI-MONEY LAUNDERING LAW,
laws that declare individuals guilty without trial (bills of attainder).
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9160, OTHERWISE KNOWN
AS THE "ANTI-MONEY LAUNDERING ACT OF 2001", AS AMENDED

REPUBLIC ACT NO. 10927 Amendments present in RA 11521:

Section 2: Policy Update ● Requires the AMLC to create necessary rules and regulations within 90 days of the Act’s
effectivity.
● The State now explicitly aims to prevent money laundering and cooperate internationally
on financial sanctions related to WMD proliferation and terrorism.

Section 3: Definitions Update

SUBMITTED BY:
● Expanded Definitions:
○ Covered Persons: Includes real estate developers, brokers, and offshore gaming BORJA, Mary Gabrielle
operators. BUCASAS, Kyla Chelsey
○ Covered Transactions: Includes large transactions in cash or casinos. CABANBAN, Jheriemae
○ Suspicious Transactions: Includes transactions lacking clear purpose or deviating CAMARA, Ross Mariel
from known patterns. CARBONEL, Mark Kelcy
○ Unlawful Activities: Adds specific financial crimes and violations related to tax CARIAGA, Aprilyn Ann
evasion and strategic trade.

Section 7: AMLC Structure and Functions References:

● Specifies that the AMLC is headed by the BSP Governor and includes the Insurance http://www.amlc.gov.ph/images/PDFs/FINAL%202018%20IRRv1.pdf
Commissioner and SEC Chairman.
● Outlines AMLC responsibilities like investigating suspicious activities, applying for court http://www.amlc.gov.ph/laws/money-laundering/2015-10-16-02-50-56/republic-act-9194
orders, and managing frozen assets.
https://issuances-library.senate.gov.ph/sites/default/files/2022-07/RA%209160.pdf
Section 8-A: Information Security (new section)
https://issuances-library.senate.gov.ph/sites/default/files/2023-02/ra%252010927.pdf
● Confidentiality: AMLC must protect sensitive information and has rules for handling and
http://www.amlc.gov.ph/laws/money-laundering/2015-10-16-02-50-56/ra-10927-designating-
securing it.
casinos-as-covered-persons-under-ra-9160-amla-2001
Section 10: Freezing Orders http://www.amlc.gov.ph/laws/money-laundering/2015-10-16-02-50-56/republic-act-10167
● Allows AMLC to request asset freezes from the Court of Appeals, which can last up to 6 https://lawphil.net/statutes/repacts/ra2021/ra_11521_2021.html
months. Limits are placed on the amounts that can be frozen.
http://www.amlc.gov.ph/laws/money-laundering/2015-10-16-02-50-56/republic-act-9194
Section 12: Asset Preservation Orders
http://www.amlc.gov.ph/laws/money-laundering/2015-10-16-02-50-56/republic-act-10365
● Only the Court of Appeals or Supreme Court can issue orders against asset preservation.

Section 14(d): Penalties for Breach of Confidentiality

● Imposes fines and imprisonment for breaches of confidentiality, with additional penalties
for public officials and media involved.

Section 20: Non-Intervention in BIR Operations

● AMLC cannot interfere with BIR operations but can collaborate on investigations
involving money laundering.

Implementing Rules and Regulations