BANK SECRECY LAW FOREIGN CURRENCY DEPOSIT ACT

REPUBLIC ACT No. 1405 REPUBLIC ACT No. 6426

AN ACT PROHIBITING DISCLOSURE OF OR INQUIRY INTO, DEPOSITS WITH ANY AN ACT INSTITUTING A FOREIGN CURRENCY DEPOSIT SYSTEM IN THE PHILIPPINES,
BANKING INSTITUTION AND PROVIDING PENALTY THEREFOR. AND FOR OTHER PURPOSES

Section 1. It is hereby declared to be the policy of the Government to give encouragement to Section 1. Title.– This act shall be known as the "Foreign Currency Deposit Act of the
the people to deposit their money in banking institutions and to discourage private hoarding so Philippines."
that the same may be properly utilized by banks in authorized loans to assist in the economic
development of the country. Section 2. Authority to deposit foreign currencies. – Any person, natural or juridical, may, in
accordance with the provisions of this Act, deposit with such Philippine banks in good standing,
Section 2. All deposits of whatever nature with banks or banking institutions in the Philippines as may, upon application, be designated by the Central Bank for the purpose, foreign currencies
including investments in bonds issued by the Government of the Philippines, its political which are acceptable as part of the international reserve, except those which are required by the
subdivisions and its instrumentalities, are hereby considered as of an absolutely confidential Central Bank to be surrendered in accordance with the provisions of Republic Act Numbered two
nature and may not be examined, inquired or looked into by any person, government official, hundred sixty-five (Now Rep. Act No. 7653).
bureau or office, except upon written permission of the depositor, or in cases of impeachment, or
upon order of a competent court in cases of bribery or dereliction of duty of public officials, or in Section 3. Authority of banks to accept foreign currency deposits. – The banks designated by
cases where the money deposited or invested is the subject matter of the litigation. the Central Bank under Section two hereof shall have the authority:
(1) To accept deposits and to accept foreign currencies in trust Provided, That numbered
Section 3. It shall be unlawful for any official or employee of a banking institution to disclose to accounts for recording and servicing of said deposits shall be allowed;
any person other than those mentioned in Section two hereof any information concerning said (2) To issue certificates to evidence such deposits;
deposits. (3) To discount said certificates;
(4) To accept said deposits as collateral for loans subject to such rules and regulations as
Section 4. All Acts or parts of Acts, Special Charters, Executive Orders, Rules and Regulations may be promulgated by the Central Bank from time to time; and
which are inconsistent with the provisions of this Act are hereby repealed. (5) To pay interest in foreign currency on such deposits.

Section 5. Any violation of this law will subject offender upon conviction, to an imprisonment of Section 4. Foreign currency cover requirements. – Except as the Monetary Board may
not more than five years or a fine of not more than twenty thousand pesos or both, in the otherwise prescribe or allow, the depository banks shall maintain at all times a one hundred
discretion of the court. percent foreign currency cover for their liabilities, of which cover at least fifteen percent shall be
in the form of foreign currency deposit with the Central Bank, and the balance in the form of
Section 6. This Act shall take effect upon its approval. foreign currency loans or securities, which loans or securities shall be of short term maturities
Approved: September 9, 1955 and readily marketable. Such foreign currency loans may include loans to domestic enterprises
which are export-oriented or registered with the Board of Investments, subject to the limitations
GENERAL BANKING LAW to be prescribed by the Monetary Board on such loans. Except as the Monetary Board may
otherwise prescribe or allow, the foreign currency cover shall be in the same currency as that of
REPUBLIC ACT No. 8791 the corresponding foreign currency deposit liability. The Central Bank may pay interest on the
foreign currency deposit, and if requested shall exchange the foreign currency notes and coins
AN ACT PROVIDING FOR THE REGULATION OF THE ORGANIZATION AND OPERATION into foreign currency instruments drawn on its depository banks. (As amended by PD No. 1453,
OF BANKS, QUASI-BANKS, TRUST ENTITIES AND FOR OTHER PURPOSES June 11, 1978.)

Section 55. Prohibited Transactions. Depository banks which, on account of networth, resources, past performance, or other pertinent
55.1 No director, officer, employee or agent of any bank shall – criteria, have been qualified by the Monetary Board to function under an expanded foreign
currency deposit system, shall be exempt from the requirements in the preceding paragraph of
(b) Without order of a court of competent jurisdiction, disclose to any unauthorized person any maintaining fifteen percent (15%) of the cover in the form of foreign currency deposit with the
information relative to the funds or properties in the custody of the bank belonging to private Central Bank. Subject to prior Central Bank approval when required by Central Bank regulations,
individuals, corporations, or any other entity: Provided, that with respect to bank deposits, the said depository banks may extend foreign currency loans to any domestic enterprise, without the
provisions of existing laws shall prevail. limitations prescribed in the preceding paragraph regarding maturity and marketability, and such
loans shall be eligible for purposes of the 100% foreign currency cover prescribed in the
preceding paragraph. (As added by PD No. 1035.) modified accordingly, without prejudice, however, to deposits made thereunder.

Section 5. Withdrawability and transferability of deposits. – There shall be no restriction on the Section 12-A. Amendatory enactments and regulations. – In the event a new enactment or
withdrawal by the depositor of his deposit or on the transferability of the same abroad except regulation is issued decreasing the rights hereunder granted, such new enactment or regulation
those arising from the contract between the depositor and the bank. shall not apply to foreign currency deposits already made or existing at the time of issuance of
such new enactment or regulation, but such new enactment or regulation shall apply only to
Section 6. Tax exemption. – All foreign currency deposits made under this Act, as amended by foreign currency deposits made after its issuance. (As added by PD No. 1246, prom. Nov. 21,
PD No. 1035, as well as foreign currency deposits authorized under PD No. 1034, including 1977.)
interest and all other income or earnings of such deposits, are hereby exempted from any and all
taxes whatsoever irrespective of whether or not these deposits are made by residents or Section 13. Effectivity. – This Act shall take effect upon its approval.
nonresidents so long as the deposits are eligible or allowed under aforementioned laws and, in Approved, April 4, 1974
the case of nonresidents, irrespective of whether or not they are engaged in trade or business in
the Philippines. (As amended by PD No. 1246, prom. Nov. 21, 1977.) ANTI-MONEY LAUNDERING ACT

Section 7. Rules and regulations. – The Monetary Board of the Central Bank shall promulgate REPUBLIC ACT NO. 9160
such rules and regulations as may be necessary to carry out the provisions of this Act which AN ACT DEFINING THE CRIME OF MONEY LAUNDERING, PROVIDING PENALTIES
shall take effect after the publications in the Official Gazette and in a newspaper of national THEREFOR AND FOR OTHER PURPOSES
circulation for at least once a week for three consecutive weeks. In case the Central Bank
promulgates new rules and regulations decreasing the rights of depositors, rules and regulations Section 1. Short Title. – This Act shall be known as the "Anti-Money Laundering Act of 2001."
at the time the deposit was made shall govern.
Section 2. Declaration of Policy. – It is hereby declared the policy of the State to protect and
Section 8. Secrecy of foreign currency deposits. – All foreign currency deposits authorized preserve the integrity and confidentiality of bank accounts and to ensure that the Philippines
under this Act, as amended by PD No. 1035, as well as foreign currency deposits authorized shall not be used as a money laundering site for the proceeds of any unlawful activity.
under PD No. 1034, are hereby declared as and considered of an absolutely confidential nature Consistent with its foreign policy, the State shall extend cooperation in transnational
and, except upon the written permission of the depositor, in no instance shall foreign currency investigations and prosecutions of persons involved in money laundering activities whenever
deposits be examined, inquired or looked into by any person, government official, bureau or committed.
office whether judicial or administrative or legislative, or any other entity whether public or
private; Provided, however, That said foreign currency deposits shall be exempt from Section 3. Definitions. For purposes of this Act, the following terms are hereby defined as
attachment, garnishment, or any other order or process of any court, legislative body, follows:
government agency or any administrative body whatsoever. (As amended by PD No. 1035, and a) "Covered Institution" refers to:
further amended by PD No. 1246, prom. Nov. 21, 1977.) 1) banks, non-banks, quasi-banks, trust entities, and all other institutions and their
subsidiaries and affiliates supervised or regulated by the Bangko Sentral ng Pilipinas
Section 9. Deposit insurance coverage. – The deposits under this Act shall be insured under the (BSP);
provisions of Republic Act No. 3591, as amended (Philippine Deposit Insurance Corporation), as 2) Insurance companies and all other institutions supervised or regulated by the
well as its implementing rules and regulations: Provided, That insurance payment shall be in the Insurance Commission; and
same currency in which the insured deposits are denominated. 3)
i) securities dealers, brokers, salesmen, investment houses and other similar
Section 10. Penal provisions. – Any willful violation of this Act or any regulation duly entities managing securities or rendering services as investment agent, advisor,
promulgated by the Monetary Board pursuant hereto shall subject the offender upon conviction or consultant,
to an imprisonment of not less than one year nor more than five years or a fine of not less than ii) mutual funds, close and investment companies, common trust funds, pre-need
five thousand pesos nor more than twenty-five thousand pesos, or both such fine and companies and other similar entities,
imprisonment at the discretion of the court. iii) foreign exchange corporations, money changers, money payment, remittance,
and transfer companies and other similar entities, and
Section 11. Separability clause. – The provisions of this Act are hereby declared to be iv) other entities administering or otherwise dealing in currency, commodities or
separable and in the event one or more of such provisions are held unconstitutional, the validity financial derivatives based thereon, valuable objects, cash substitutes and other
of other provisions shall not be affected thereby. similar monetary instruments or property supervised or regulated by Securities
and Exchange Commission.
Section 12. Repealing clause. – All acts, executive orders, rules and regulations, or parts b) "Covered transaction" is a single, series, or combination of transactions involving a total
thereof, which are inconsistent with any provisions of this Act are hereby repealed, amended or amount in excess of Four million Philippine pesos (Php4,000,000.00) or an equivalent
 amount in foreign currency based on the prevailing exchange rate within five (5) 12) Hijacking and other violations under Republic Act No. 6235; destructive arson and
consecutive banking days except those between a covered institution and a person who, at murder, as defined under the Revised Penal Code, as amended, including those
the time of the transaction was a properly identified client and the amount is commensurate perpetrated by terrorists against non-combatant persons and similar targets;
with the business or financial capacity of the client; or those with an underlying legal or 13) Fraudulent practices and other violations under Republic Act No. 8799, otherwise
trade obligation, purpose, origin or economic justification. known as the Securities Regulation Code of 2000;
14) Felonies or offenses of a similar nature that are punishable under the penal laws of
It likewise refers to a single, series or combination or pattern of unusually large and other countries.
complex transactions in excess of Four million Philippine pesos (Php4,000,000.00)
especially cash deposits and investments having no credible purpose or origin, underlying Section 4. Money Laundering Offense. – Money laundering is a crime whereby the proceeds of
trade obligation or contract. an unlawful activity are transacted, thereby making them appear to have originated from
legitimate sources. It is committed by the following:
c) "Monetary Instrument" refers to: (a) Any person knowing that any monetary instrument or property represents, involves, or
1) coins or currency of legal tender of the Philippines, or of any other country; relates to the proceeds of any unlawful activity, transacts or attempts to transact said
2) drafts, checks and notes; monetary instrument or property.
3) securities or negotiable instruments, bonds, commercial papers, deposit certificates, (b) Any person knowing that any monetary instrument or property involves the proceeds
trust certificates, custodial receipts or deposit substitute instruments, trading orders, of any unlawful activity, performs or fails to perform any act as a result of which he
transaction tickets and confirmations of sale or investments and money marked facilitates the offense of money laundering referred to in paragraph (a) above.
instruments; and (c) Any person knowing that any monetary instrument or property is required under this
4) other similar instruments where title thereto passes to another by endorsement, Act to be disclosed and filed with the Anti-Money Laundering Council (AMLC), fails to
assignment or delivery. do so.
d) "Offender" refers to any person who commits a money laundering offense.
e) "Person" refers to any natural or juridical person. Section 5. Jurisdiction of Money Laundering Cases. – The regional trial courts shall have
f) "Proceeds" refers to an amount derived or realized from an unlawful activity. jurisdiction to try all cases on money laundering. Those committed by public officers and private
g) "Supervising Authority" refers to the appropriate supervisory or regulatory agency, persons who are in conspiracy with such public officers shall be under the jurisdiction of the
department or office supervising or regulating the covered institutions enumerated in Sandiganbayan.
Section 3(a).
h) "Transaction" refers to any act establishing any right or obligation or giving rise to any Section 6. Prosecution of Money Laundering. –
contractual or legal relationship between the parties thereto. It also includes any movement (a) Any person may be charged with and convicted of both the offense of money
of funds by any means with a covered institution. laundering and the unlawful activity as herein defined.
i) "Unlawful activity" refers to any act or omission or series or combination thereof involving (b) Any proceeding relating to the unlawful activity shall be given precedence over the
or having relation to the following: prosecution of any offense or violation under this Act without prejudice to the freezing
1) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise known as the and other remedies provided.
Revised Penal Code, as amended;
2) Sections 3, 4, 5, 7, 8 and 9 of Article Two of Republic Act No. 6425, as amended, Section 7. Creation of Anti-Money Laundering Council (AMLC). – The Anti-Money Laundering
otherwise known as the Dangerous Drugs Act of 1972; Council is hereby created and shall be composed of the Governor of the Bangko Sentral ng
3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No. 3019, as amended; Pilipinas as chairman, the Commissioner of the Insurance Commission and the Chairman of the
otherwise known as the Anti-Graft and Corrupt Practices Act; Securities and Exchange Commission as members. The AMLC shall act unanimously in the
4) Plunder under Republic Act No. 7080, as amended; discharge of its functions as defined hereunder:
5) Robbery and extortion under Articles 294, 295, 296, 299, 300, 301 and 302 of the (1) to require and receive covered transaction reports from covered institutions;
Revised Penal Code, as amended; (2) to issue orders addressed to the appropriate Supervising Authority or the covered
6) Jueteng and Masiao punished as illegal gambling under Presidential Decree No. institution to determine the true identity of the owner of any monetary instrument or
1602; property subject of a covered transaction report or request for assistance from a
7) Piracy on the high seas under the Revised Penal Code, as amended and Presidential foreign State, or believed by the Council, on the basis of substantial evidence to be in
Decree No. 532; whole or in part, whenever located, representing, involving, or related to, directly or
8) Qualified theft under, Article 310 of the Revised Penal Code, as amended; indirectly, in any manner or by any means, the proceeds of an unlawful activity;
9) Swindling under Article 315 of the Revised Penal Code, as amended; (3) to institute civil forfeiture proceedings and all other remedial proceedings through the
10) Smuggling under Republic Act Nos. 455 and 1937; Office of the Solicitor General;
11) Violations under Republic Act No. 8792, otherwise known as the Electronic Commerce (4) to cause the filing of complaints with the Department of Justice or the Ombudsman for
Act of 2000; the prosecution of money laundering offenses;
 (5) to initiate investigations of covered transactions, money laundering activities and other When reporting covered transactions to the AMLC, covered institutions and their officers,
violations of this Act; employees, representatives, agents, advisors, consultants or associates shall not be deemed to
(6) to freeze any monetary instrument or property alleged to be proceed of any unlawful have violated Republic Act No. 1405, as amended; Republic Act No. 6426, as amended;
activity; Republic Act No. 8791 and other similar laws, but are prohibited from communicating, directly or
(7) to implement such measures as may be necessary and justified under this Act to indirectly, in any manner or by any means, to any person the fact that a covered transaction
counteract money laundering; report was made, the contents thereof, or any other information in relation thereto. In case of
(8) To receive and take action in respect of, any request from foreign states for assistance violation thereof, the concerned officer, employee, representative, agent, advisor, consultant or
in their own anti-money laundering operations provided in this Act; associate of the covered institution, shall be criminally liable. However, no administrative,
(9) to develop educational programs on the pernicious effects of money laundering, the criminal or civil proceedings, shall lie against any person for having made a covered transaction
methods and techniques used in money laundering, the viable means of preventing report in the regular performance of his duties and in good faith, whether or not such reporting
money laundering and the effective ways of prosecuting and punishing offenders; and results in any criminal prosecution under this Act or any other Philippine law.
(10) to enlist the assistance of any branch, department, bureau, office, agency or
instrumentality of the government, including government-owned and –controlled When reporting covered transactions to the AMLC, covered institutions and their officers,
corporations, in undertaking any and all anti-money laundering operations, which may employees, representatives, agents, advisors, consultants or associates are prohibited from
include the use of its personnel, facilities and resources for the more resolute communicating, directly or indirectly, in any manner or by any means, to any person, entity, the
prevention, detection and investigation of money laundering offenses and prosecution media, the fact that a covered transaction report was made, the contents thereof, or any other
of offenders. 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. In case of violation thereof,
Section 8. Creation of a Secretariat. – The AMLC is hereby authorized to establish a secretariat the concerned officer, employee, representative, agent, advisor, consultant or associate of the
to be headed by an Executive Director who shall be appointed by the Council for a term of five covered institution, or media shall be held criminally liable.
(5) years. He must be a member of the Philippine Bar, at least thirty-five (35) years of age and of
good moral character, unquestionable integrity and known probity. All members of the Section 10. Authority to Freeze. – Upon determination that probable cause exists that any
Secretariat must have served for at least five (5) years either in the Insurance Commission, the deposit or similar account is in any way related to an unlawful activity, the AMLC may issue a
Securities and Exchange Commission or the Bangko Sentral ng Pilipinas (BSP) and shall hold freeze order, which shall be effective immediately, on the account for a period not exceeding
full-time permanent positions within the BSP. fifteen (15) days. Notice to the depositor that his account has been frozen shall be issued
simultaneously with the issuance of the freeze order. The depositor shall have seventy-two (72)
Section 9. Prevention of Money Laundering; Customer Identification Requirements and Record hours upon receipt of the notice to explain why the freeze order should be lifted. The AMLC has
Keeping. – seventy-two (72) hours to dispose of the depositor's explanation. If it falls to act within seventy-
(a) Customer Identification, - Covered institutions shall establish and record the true two (72) hours from receipt of the depositor's explanation, the freeze order shall automatically be
identity of its clients based on official documents. They shall maintain a system of dissolved. The fifteen (15)-day freeze order of the AMLC may be extended upon order of the
verifying the true identity of their clients and, in case of corporate clients, require a court, provided that the fifteen (15)-day period shall be tolled pending the court's decision to
system of verifying their legal existence and organizational structure, as well as the extend the period.
authority and identification of all persons purporting to act on their behalf.
No court shall issue a temporary restraining order or writ of injunction against any freeze order
The provisions of existing laws to the contrary notwithstanding, anonymous accounts, issued by the AMLC except the Court of Appeals or the Supreme Court.
accounts under fictitious names, and all other similar accounts shall be absolutely
prohibited. Peso and foreign currency non-checking numbered accounts shall be Section 11. Authority to inquire into Bank Deposits. – Notwithstanding the provisions of Republic
allowed. The BSP may conduct annual testing solely limited to the determination of Act No. 1405, as amended; Republic Act No. 6426, as amended; Republic Act No. 8791, and
the existence and true identity of the owners of such accounts. other laws, the AMLC may inquire into or examine any particular deposit or investment with any
banking institution or non-bank financial institution upon order of any competent court in cases of
(b) Record Keeping – All records of all transactions of covered institutions shall be violation of this Act when it has been established that there is probable cause that the deposits
maintained and safely stored for five (5) years from the date of transactions. With or investments involved are in any way related to a money laundering offense: Provided, That
respect to closed accounts, the records on customer identification, account files and this provision shall not apply to deposits and investments made prior to the effectivity of this Act.
business correspondence, shall be preserved and safety stored for at least five (5)
years from the dates when they were closed. Section 12. Forfeiture Provisions. –
(c) Reporting of Covered Transactions. – Covered institutions shall report to the AMLC (a) Civil Forfeiture. – When there is a covered transaction report made, and the court
all covered transactions within five (5) working days from occurrence thereof, unless has, in a petition filed for the purpose ordered seizure of any monetary instrument or
the Supervising Authority concerned prescribes a longer period not exceeding ten (10) property, in whole or in part, directly or indirectly, related to said report, the Revised
working days. Rules of Court on civil forfeiture shall apply.
 (b) Claim on Forfeited Assets. – Where the court has issued an order of forfeiture of the needs relating to any covered transaction, money laundering offense or any other
monetary instrument or property in a criminal prosecution for any money laundering matter directly or indirectly, related thereto; (3) to the extent allowed by the law of the
offense defined under Section 4 of this Act, the offender or any other person claiming Foreign State, applying with the proper court therein for an order to enter any
an interest therein may apply, by verified petition, for a declaration that the same premises belonging to or in the possession or control of, any or all of the persons
legitimately belongs to him and for segregation or exclusion of the monetary named in said request, and/or search any or all such persons named therein and/or
instrument or property corresponding thereto. The verified petition shall be filed with remove any document, material or object named in said request: Provided, That the
the court which rendered the judgment of conviction and order of forfeiture, within documents accompanying the request in support of the application have been duly
fifteen (15) days from the date of the order or forfeiture, in default of which the said authenticated in accordance with the applicable law or regulation of the foreign State;
order shall become final and executory. This provision shall apply in both civil and and (4) applying for an order of forfeiture of any monetary instrument or property in the
criminal forfeiture. proper court in the foreign State: Provided, That the request is accompanied by an
(c) Payment in Lieu of Forfeiture. – Where the court has issued an order of forfeiture of authenticated copy of the order of the regional trial court ordering the forfeiture of said
the monetary instrument or property subject of a money laundering offense defined monetary instrument or property of a convicted offender and an affidavit of the clerk of
under Section 4, and said order cannot be enforced because any particular monetary court stating that the conviction and the order of forfeiture are final and that no further
instrument or property cannot, with due diligence, be located, or it has been appeal lies in respect of either.
substantially altered, destroyed, diminished in value or otherwise rendered worthless (d) Limitations on Request for Mutual Assistance. – The AMLC may refuse to comply
by any act or omission, directly or indirectly, attributable to the offender, or it has been with any request for assistance where the action sought by the request contravenes
concealed, removed, converted or otherwise transferred to prevent the same from any provision of the Constitution or the execution of a request is likely to prejudice the
being found or to avoid forfeiture thereof, or it is located outside the Philippines or has national interest of the Philippines unless there is a treaty between the Philippines and
been placed or brought outside the jurisdiction of the court, or it has been commingled the requesting State relating to the provision of assistance in relation to money
with other monetary instruments or property belonging to either the offender himself or laundering offenses.
a third person or entity, thereby rendering the same difficult to identify or be (e) Requirements for Requests for Mutual Assistance from Foreign State. – A
segregated for purposes of forfeiture, the court may, instead of enforcing the order of request for mutual assistance from a foreign State must (1) confirm that an
forfeiture of the monetary instrument or property or part thereof or interest therein, investigation or prosecution is being conducted in respect of a money launderer
accordingly order the convicted offender to pay an amount equal to the value of said named therein or that he has been convicted of any money laundering offense; (2)
monetary instrument or property. This provision shall apply in both civil and criminal state the grounds on which any person is being investigated or prosecuted for money
forfeiture. laundering or the details of his conviction; (3) gives sufficient particulars as to the
identity of said person; (4) give particulars sufficient to identity any covered institution
Section 13. Mutual Assistance among States. – believed to have any information, document, material or object which may be of
(a) Request for Assistance from a Foreign State. – Where a foreign State makes a assistance to the investigation or prosecution; (5) ask from the covered institution
request for assistance in the investigation or prosecution of a money laundering concerned any information, document, material or object which may be of assistance
offense, the AMLC may execute the request or refuse to execute the same and inform to the investigation or prosecution; (6) specify the manner in which and to whom said
the foreign State of any valid reason for not executing the request or for delaying the information, document, material or object detained pursuant to said request, is to be
execution thereof. The principles of mutuality and reciprocity shall, for this purpose, be produced; (7) give all the particulars necessary for the issuance by the court in the
at all times recognized. requested State of the writs, orders or processes needed by the requesting State; and
(b) Power of the AMLC to Act on a Request for Assistance from a Foreign State. – (8) contain such other information as may assist in the execution of the request.
The AMLC may execute a request for assistance from a foreign State by: (1) tracking (f) Authentication of Documents. – For purposes of this Section, a document is
down, freezing, restraining and seizing assets alleged to be proceeds of any unlawful authenticated if the same is signed or certified by a judge, magistrate or equivalent
activity under the procedures laid down in this Act; (2) giving information needed by officer in or of, the requesting State, and authenticated by the oath or affirmation of a
the foreign State within the procedures laid down in this Act; and (3) applying for an witness or sealed with an official or public seal of a minister, secretary of State, or
order of forfeiture of any monetary instrument or property in the court: Provided, That officer in or of, the government of the requesting State, or of the person administering
the court shall not issue such an order unless the application is accompanied by an the government or a department of the requesting territory, protectorate or colony. The
authenticated copy of the order of a court in the requesting State ordering the certificate of authentication may also be made by a secretary of the embassy or
forfeiture of said monetary instrument or properly of a person who has been convicted legation, consul general, consul, vice consul, consular agent or any officer in the
of a money laundering offense in the requesting State, and a certification of an foreign service of the Philippines stationed in the foreign State in which the record is
affidavit of a competent officer of the requesting State stating that the conviction and kept, and authenticated by the seal of his office.
the order of forfeiture are final and then no further appeal lies in respect or either. (g) Extradition. – The Philippines shall negotiate for the inclusion of money laundering
(c) Obtaining Assistance from Foreign States. – The AMLC may make a request to offenses as herein defined among extraditable offenses in all future treaties.
any foreign State for assistance in (1) tracking down, freezing, restraining and seizing
assets alleged to be proceeds of any unlawful activity; (2) obtaining information that it Section 14. Penal Provisions. –
 (a) Penalties for the Crime of Money Laundering. The penalty of imprisonment ranging and initiated an investigation, prosecution and conviction of persons involved in the offense
from seven (7) to fourteen (14) years and a fine of not less than Three million penalized in Section 4 of this Act.
Philippine pesos (Php 3,000,000.00) but not more than twice the value of the
monetary instrument or property involved in the offense, shall be imposed upon a Section 16. Prohibitions Against Political Harassment. – This Act shall not be used for political
person convicted under Section 4(a) of this Act. prosecution or harassment or as an instrument to hamper competition in trade and commerce.
No case for money laundering may be filed against and no assets shall be frozen, attached or
The penalty of imprisonment from four (4) to seven (7) years and a fine of not less forfeited to the prejudice of a candidate for an electoral office during an election period.
than One million five hundred thousand Philippine pesos (Php 1,500,000.00) but not
more than Three million Philippine pesos (Php 3,000,000.00), shall be imposed upon Section 17. Restitution. – Restitution for any aggrieved party shall be governed by the
a person convicted under Section 4(b) of this Act. provisions of the New Civil Code.

The penalty of imprisonment from six (6) months to four (4) years or a fine of not less Section 18. Implementing Rules and Regulations. – Within thirty (30) days from the effectivity of
than One hundred thousand Philippine pesos (Php 100,000.00) but not more than this Act, the Bangko Sentral ng Pilipinas, the Insurance Commission and the Securities and
Five hundred thousand Philippine pesos (Php 500,000.00), or both, shall be imposed Exchange Commission shall promulgate the rules and regulations to implement effectivity the
on a person convicted under Section 4(c) of this Act. provisions of this Act. Said rules and regulations shall be submitted to the Congressional
Oversight Committee for approval.
(b) Penalties for Failure to Keep Records. The penalty of imprisonment from six (6)
months to one (1) year or a fine of not less than One hundred thousand Philippine Covered institutions shall formulate their respective money laundering prevention programs in
pesos (Php 100,000.00) but not more than Five hundred thousand Philippine pesos accordance with this Act including, but not limited to, information dissemination on money
(Php 500,000.00), or both, shall be imposed on a person convicted under Section 9(b) laundering activities and its prevention, detection and reporting, and the training of responsible
of this Act. officers and personnel of covered institutions.
(c) Malicious Reporting. Any person who, with malice, or in bad faith, report or files a
completely unwarranted or false information relative to money laundering transaction Section 19. Congressional Oversight Committee. – There is hereby created a Congressional
against any person shall be subject to a penalty of six (6) months to four (4) years Oversight Committee composed of seven (7) members from the Senate and seven (7) members
imprisonment and a fine of not less than One hundred thousand Philippine pesos (Php from the House of Representatives. The members from the Senate shall be appointed by the
100,000.00) but not more than Five hundred thousand Philippine pesos (Php Senate President based on the proportional representation of the parties or coalitions therein
500,000.00), at the discretion of the court: Provided, That the offender is not entitled to with at least two (2) Senators representing the minority. The members from the House of
avail the benefits of the Probation Law. 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.
If the offender is a corporation, association, partnership or any juridical person, the The Oversight Committee shall have the power to promulgate its own rules, to oversee the
penalty shall be imposed upon the responsible officers, as the case may be, who implementation of this Act, and to review or revise the implementing rules issued by the Anti-
participated in the commission of the crime or who shall have knowingly permitted or Money Laundering Council within thirty (30) days from the promulgation of the said rules.
failed to prevent its commission. If the offender is a juridical person, the court may
suspend or revoke its license. If the offender is an alien, he shall, in addition to the Section 20. Appropriations Clause. – The AMLC shall be provided with an initial appropriation of
penalties herein prescribed, be deported without further proceedings after serving the Twenty-five million Philippine pesos (Php 25,000,000.00) to be drawn from the national
penalties herein prescribed. If the offender is a public official or employee, he shall, in government. Appropriations for the succeeding years shall be included in the General
addition to the penalties prescribed herein, suffer perpetual or temporary absolute Appropriations Act.
disqualification from office, as the case may be;
Section 21. Separability Clause. – If any provision or section of this Act or the application
Any public official or employee who is called upon to testify and refuses to do the thereof to any person or circumstance is held to be invalid, the other provisions or sections of
same or purposely fails to testify shall suffer the same penalties prescribed herein. this Act, and the application of such provision or section to other persons or circumstances, shall
not be affected thereby.
(d) Breach of Confidentiality. The punishment of imprisonment ranging from three (3) to
eight (8) years and a fine of not less than Five hundred thousand Philippine pesos Section 22. Repealing Clause. – All laws, decrees, executive orders, rules and regulations or
(Php 500,000.00) but not more than One million Philippine pesos (Php 1,000,000.00), parts thereof, including the relevant provisions of Republic Act No. 1405, as amended; Republic
shall be imposed on a person convicted for a violation under Section 9(c). Act No. 6426, as amended; Republic Act No. 8791, as amended and other similar laws, as are
inconsistent with this Act, are hereby repealed, amended or modified accordingly.
Section 15. System of Incentives and Rewards. – A system of special incentives and rewards is
hereby established to be given to the appropriate government agency and its personnel that led Section 23. Effectivity. – This Act shall take effect fifteen (15) days after its complete publication
in the Official Gazette or in at least two (2) national newspapers of general circulation.

The provisions of this Act shall not apply to deposits and investments made prior to its effectivity.