NOTES:

“FOREIGN CURRENCY DEPOSIT ACT OF THE PHILIPPINES”

WHO HAS THE AUTHORITY TO DEPOSIT FOREIGN CURRENCY DEPOSIT?

 Any person, natural or juridical, may deposit with such Philippine banks in good standing, as may, upon
application, be designated by the Central Bank for the purpose, foreign currencies which are acceptable as part
of the international reserve, except those which are required by the Central Bank to be surrendered.

AUTHORITIES OF BANKS TO ACCEPT FOREIGN CURRENCY DEPOSIT?

(1) To accept deposits and to accept foreign currencies in trust

Provided, That numbered accounts for recording and servicing of said deposits shall be allowed;

(2) To issue certificates to evidence such deposits;

(3) To discount said certificates;

(4) To accept said deposits as collateral for loans subject to such rules and regulations as may be promulgated by the
Central Bank from time to time; and

(5) To pay interest in foreign currency on such deposits.

FOREIGN CURRENCY COVER REQUIREMENTS?

 Except as the Monetary Board may otherwise prescribe or allow,

 the depository banks shall maintain at all times a 100% foreign currency cover

-for their liabilities,

-of which cover at least 15% shall be in the form of foreign currency deposit with the Central Bank, and

-the balance in the form of foreign currency loans or securities, which loans or securities shall be of short term
maturities 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 to be prescribed by the Monetary Board on such loans.

 Except as the Monetary Board may otherwise prescribe or allow,

- foreign currency cover shall be in the same currency as that of 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 into foreign currency instruments drawn on its depository banks. (As amended by PD
No. 1453, June 11, 1978.)

 Depository banks which, on account of networth, resources, past performance, or other pertinent 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 maintaining fifteen percent (15%) of the cover in
the form of foreign currency deposit with the Central Bank.

 Subject to prior Central Bank approval when required by Central Bank regulations, said depository banks may
extend foreign currency loans to any domestic enterprise, without the 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.

WITHDRAWABILITY OR TRANSFERABILITY OF DEPOSITS

GR: no restriction on the withdrawal by the depositor of his deposit or on the transferability of the same abroad

EXC: those arising from the contract between the depositor and the bank
TAX EXEMPTION

 All foreign currency deposits made under this Act, as amended by PD No. 1035, as well as foreign
currency deposits authorized under PD No. 1034, including 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 nonresidents so long as the deposits are eligible or allowed under
aforementioned laws and, in the case of nonresidents, irrespective of whether or not they are engaged in trade
or business in the Philippines.

SECRECY OF FOREIGN CURRENCY DEPOSITS

 All foreign currency deposits authorized under this Act, as amended by PD No. 1035, as well as foreign currency
deposits authorized under PD No. 1034

- declared as and considered of an absolutely confidential nature and, except upon the written permission of the
depositor, in no instance shall foreign currency deposits be examined, inquired or looked into by any person,
government official, bureau or 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 attachment, garnishment, or any
other order or process of any court, legislative body, government agency or any administrative body whatsoever.

DEPOSIT INSURANCE COVERAGE

 The deposits under this Act shall be insured under Philippine Deposit Insurance Corporation, as well as its
implementing rules and regulations:

-Provided, That insurance payment shall be in the same currency in which the insured deposits are denominated.
 ANTI-MONEY LAUNDERING ACT OF 2001

POLICY OF THE STATE

1.) protect and preserve the integrity and confidentiality of bank accounts and

2.) ensure that the Philippines shall not be used as a money laundering site for the proceeds of any unlawful activity.

Consistent with its foreign policy, the State shall extend cooperation in transnational investigations and prosecutions of
persons involved in money laundering activities wherever committed.

DEFINITIONS

 ‘Covered persons’, natural or juridical, refer to:

(1) banks, non-banks, quasi-banks, trust entities, foreign exchange dealers, pawnshops, money changers, remittance
and transfer companies and other similar entities and all other persons and their subsidiaries and affiliates supervised
or regulated by the Bangko Sentral ng Pilipinas (BSP);

(2) insurance companies, pre-need companies and all other persons supervised or regulated by the Insurance
Commission (IC);

(3) (i) securities dealers, brokers, salesmen, investment houses and other similar persons managing securities or
rendering services as investment agent, advisor, or consultant, (ii) mutual funds, close-end investment companies,
common trust funds, and other similar persons, and (iii) other entities administering or otherwise dealing in currency,
commodities or financial derivatives based thereon, valuable objects, cash substitutes and other similar monetary
instruments or property supervised or regulated by the Securities and Exchange Commission (SEC);

(4) jewelry dealers in precious metals, who, as a business, trade in precious metals, for transactions in excess of
P1,000,000.00;

(5) jewelry dealers in precious stones, who, as a business, trade in precious stones, for transactions in excess of
P1,000,000.00;

(6) company service providers which, as a business, provide any of the following services to third parties: (i) acting as
a formation agent of juridical persons; (ii) acting as (or arranging for another person to act as) a director or corporate
secretary of a company, a partner of a partnership, or a similar position in relation to other juridical persons; (iii)
providing a registered office, business address or

accommodation, correspondence or administrative address for a company, a partnership or any other legal person or
arrangement; and (iv) acting as (or arranging for another person to act as) a nominee shareholder for another person;
and

(6) persons who provide any of the following services: (i) 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
management of companies; and (iv) creation, operation or management of juridical persons or arrangements, and
buying and selling business entities. "Notwithstanding the foregoing, the term ‘covered persons’ shall exclude lawyers
and accountants acting as independent legal professionals in relation to information concerning their clients or where
disclosure of information would compromise client confidences or the attorney-client relationship: Provided, That these
lawyers and accountants are authorized to practice in the Philippines and shall continue to be subject to the provisions
of their respective codes of conduct and/or professional responsibility or any of its amendments.

 Covered transaction is a transaction in cash or other equivalent monetary instrument involving a total amount
in excess of PhP 500,000.00 within 1 banking day.

(b-1) 'Suspicious transaction' - transactions with covered institutions, regardless of the amounts involved, where any
of the following circumstances exist:

1. there is no underlying legal or trade obligation, purpose or economic justification;

2. the client is not properly identified;

3. the amount involved is not commensurate with the business or financial capacity of the client;
 4. taking into account all known circumstances, it may be perceived that the client's transaction is structured
in order to avoid being the subject of reporting requirements under the Act;

5. any circumstances relating to the transaction which is observed to deviate from the profile of the client
and/or the client's past transactions with the covered institution;

6. the transactions is in a way related to an unlawful activity or offense under this Act that is about to be, is
being or has been committed; or

7. any transactions that is similar or analogous to any of the foregoing."

(c) "Monetary instrument" refers to:

(1) coins or currency of legal tender of the Philippines, or of any other country;

(2) drafts, checks and notes;

(3) securities or negotiable instruments, bonds, commercial papers, deposit certificates, trust certificates,
custodial receipts or deposit substitute instruments, trading orders, transaction tickets and confirmations of
sale or investments and money market instruments; and

(4) other similar instruments where title thereto passes to another by endorsement, assignment or delivery.

(d) "Offender" - any person who commits a money laundering offense.

(e) "Person" - any natural or juridical person.

(f) "Proceeds" -an amount derived or realized from an unlawful activity.

(g) "Supervising Authority" -the appropriate supervisory or regulatory agency, department or office supervising or
regulating the covered institutions enumerated in Section 3(a).

(h) "Transaction" -any act establishing any right or obligation or giving rise to any contractual or legal relationship
between the parties thereto. It also includes any movement of funds by any means with a covered institution.

(j) Precious metals’ shall mean gold, silver, platinum, palladium, rhodium, ruthenium, iridium and osmium. These
include alloys of precious metals, solders and plating chemicals such as rhodium and palladium plating solutions and
potassium gold cyanide and potassium silver cyanide and silver cyanide in salt solution. "

(k) ‘Precious stones’ shall mean diamond, ruby, emerald, sapphire, opal, amethyst, beryl, topaz, and garnet that are
used in jewelry making, including those formerly classified as semi-precious stones."

"(i) ‘Unlawful activity’ - any act or omission or series or combination thereof involving or having direct relation to the
following:…………..

MONEY LAUNDERING OFFENSE

 is committed by any person who, knowing that any monetary instrument or property represents, involves, or
relates to the proceeds of any unlawful activity:

(a) transacts said monetary instrument or property;

(b) converts, transfers, disposes of, moves, acquires, possesses or uses said monetary instrument or property;

(c) conceals or disguises the true nature, source, location, disposition, movement or ownership of or rights with
respect to said monetary instrument or property;

(d) attempts or conspires to commit money laundering offenses referred to in paragraphs (a), (b) or (c);

(e) aids, abets, assists in or counsels the commission of the money laundering offenses referred to in paragraphs (a),
(b) or (c) above; and

(f) performs or fails to perform any act as a result of which he facilitates the offense of money laundering referred to in
paragraphs (a), (b) or (c) above.

 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 AntiMoney Laundering Council (AMLC), fails to do so.
PROSECUTION OF MONEY LAUNDERING

(a) Any person may be charged with and convicted of both the offense of money laundering and the unlawful activity
as herein defined.

(b) The prosecution of any offense or violation under this Act shall proceed independently of any proceeding relating
to the unlawful activity.

CREATION OF ANTI-MONEY LAUNDERING COUNCIL

 composed of the Governor of the BSP as Chairman, the Commissioner of the Insurance Commission and the
Chairman of the SEC, as members.

 The AMLC shall act unanimously in the discharge of its functions as defined hereunder:

(1) to require and receive covered or suspicious transaction reports from covered institutions;

(2) to issue orders addressed to the appropriate Supervising Authority or the covered institutions to determine the true
identity of the owner of any monetary instrument or preperty subject of a covered transaction or suspicious transaction
report or request for assistance from a foreign State, or believed by the Council, on the basis fo substantial evidence,
to be, in whole or in part, wherever located, representing, involving, or related to directly or indirectly, in any manner or
by any means, the proceeds of an unlawful activitity.

(3) to institute civil forfeiture proceedings and all other remedial proceedings through the Office of th Solicitor General;

(4) to cause the filing of complaints with the DOJ or the Ombudsman for the prosecution of money laundering
offenses;

(5) to investigate suspicious transactions and covered transactions deemed suspicious after an investigation by AMLC,
money laundering activities and other violations of this Act;

(6) to apply before the CA, ex parte, for the freezing of any monetary instrument or property alleged to be laundered,
proceeds from, or instrumentalities used in or intended for use in any unlawful activity as defined in Section 3(i) hereof;

(7) to implement such measures as may be necessary and justified under this Act to counteract money laundering;

(8) to receive and take action in respect of, any request from foreign states for assistance in their own anti-money
laundering operations provided in this Act;

(9) to develop educational programs on the pernicious effects of money laundering, the methods and techniques used
in the money laundering, the viable means of preventing money laundering and the effective ways of prosecuting and
punishing offenders;

(10) to enlist the assistance of any branch, department, bureau, office, agency, or instrumentality of the government,
including government-owned and -controlled corporations, in undertaking any and all anti-money laundering
operations, which may include the use of its personnel, facilities and resources for the more resolute prevention,
detection, and investigation of money laundering offenses and prosecution of offenders; and

11) to impose administrative sanctions for the violation of laws, rules, regulations, and orders and resolutions issued
pursuant thereto.

(12) to require the Land Registration Authority and all its Registries of Deeds to submit to the AMLC, reports on all real
estate transactions involving an amount in excess of P500,000.00 within 15 days from the date of registration of the
transaction, in a form to be prescribed by the AMLC. The AMLC may also require the Land Registration Authority and
all its Registries of Deeds to submit copies of relevant documents of all real estate transactions.

SECRETARIAT

 AMLC is hereby authorized to establish a secretariat to be headed by an Executive Director who shall be
appointed by the Council for a term of 5 years.

 He must be a member of the Philippine Bar, at least 35 years of age and of good moral character,
unquestionable integrity and known probity. All members of the Secretariat must have served for at least 5 years
either in the Insurance Commission, the SEC or the BSP and shall hold full-time permanent positions within the
BSP

PREVENTION OF MONEY LAUNDERING; CUSTOMER IDENTIFICATION REQUIREMENTS AND RECORD

 They shall maintain a system of verifying the true identity of their clients and, in case of corporate clients, require
a system of verifying their legal existence and organizational structure, as well as the authority and identification
of all persons purporting to act on their behalf.

 The provisions of existing laws to the contrary notwithstanding, anonymous accounts, accounts under fictitious
names, and all other similar accounts shall be absolutely prohibited.

 Peso and foreign currency non-checking numbered accounts shall be allowed.

 The BSP may conduct annual testing solely limited to the determination of the existence and true identity of the
owners of such accounts.

(b) Record Keeping. - All records of all transactions of covered institutions shall be maintained and safely stored for 5
years from the dates of transactions. With respect to closed accounts, the records on customer identification, account
files and business correspondence, shall be preserved and safely stored for at least 5 years from the dates when they
were closed.

(c) Reporting of Covered and Suspicious Transactions. – Covered persons shall report to the AMLC all covered
transactions and suspicious transactions within 5 working days from occurrence thereof

- unless the AMLC prescribes a different period not exceeding 15 working days

 "Lawyers and accountants acting as independent legal professionals are not required to report covered and
suspicious transactions if the relevant information was obtained in circumstances where they are subject to
professional secrecy or legal professional privilege.

 "When reporting covered or suspicious transactions to the AMLC, covered persons and their officers and
employees are prohibited from communicating, directly or indirectly, in any manner or by any means, to any
person or entity, the media, the fact that a covered or suspicious transaction has been reported or is about to be
reported, the contents of the report, 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. In case of
violation thereof, the concerned officer and employee of the covered person and media shall be held criminally
liable.

 When reporting covered or suspicious transactions to the AMLC, covered instituting and their officers and
employees are prohibited from communicating directly or indirectly, in any manner or by any means, to any
person or entity, the media, the fact that a covered or suspicious transaction report was made, the contents
thereof, 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. In case of violation thereof, the
concerned officer and employee of the covered institution and media shall be held criminally liable.

FREEZING OF MONETORY INSTRUMENT OR PROPERTY

 Upon a verified ex parte petition by the AMLC and after determination that probable cause exists that any
monetary instrument or property is in any way related to an unlawful activity as defined in Section 3(i) hereof,

-the Court of Appeals may issue a freeze order

-which shall be effective immediately, and which shall not exceed 6 months depending upon the circumstances of the
case:

 Provided: no case filed against a person whose account has been frozen within the period determined by the
court, the freeze order shall be deemed ipso facto lifted:

 Provided, further: That this new rule shall not apply to pending cases in the courts.

 In any case, the court should act on the petition to freeze within 24 hours from filing of the petition. If the
application is filed a day before a nonworking day, the computation of the 24-hour period shall exclude the
nonworking days.

 "A person whose account has been frozen may file a motion to lift the freeze order and the court must resolve
this motion before the expiration of the freeze order.

 "No court shall issue a TRO or a writ of injunction against any freeze order, except the Supreme Court."
AUTHORITY TO INQUIRE INTO BANK DEPOSITS

 Notwithstanding the provisions of Republic Act No. 1405, as amended; Republic Act No. 6426, as amended;
Republic Act No. 8791; and other laws,

-the AMLC may inquire into or examine any particular deposit or investment, including related accounts, with any
banking institution or nonbank financial institution upon order of any competent court based on an ex parte application
in cases of violations of this Act, when it has been established that there is probable cause that the deposits or
investments, including related accounts involved, are related to an unlawful activity as defined in Section 3(i) hereof or
a money laundering offense under Section 4 hereof;

-except that no court order shall be required in cases involving activities defined in Section 3(i)(1), (2), and (12) hereof,
and felonies or offenses of a nature similar to those mentioned in Section 3(i)(1), (2), and (12), which are Punishable
under the penal laws of other countries, and terrorism and conspiracy to commit terrorism as defined and penalized
under Republic Act No. 9372."

-"Court of Appeals shall act on the application to inquire into or examine any deposit or investment with any banking
institution or non-bank financial institution within twenty-four (24) hours from filing of the application."

-"To ensure compliance with this Act, the BSP may, in the course of a periodic or special examination, check the
compliance of a Covered institution with the requirements of the AMLA and its implementing rules and regulations."
-"For purposes of this section, ‘related accounts’ shall refer to accounts, the funds and sources of which originated
from and/or are materially linked to the monetary instrument(s) or property(ies) subject of the freeze order(s)."

 "A court order ex parte must first be obtained before the AMLC can inquire into these related Accounts:

-Provided, That the procedure for the ex parte application of the ex parte court order for the principal account shall be
the same with that of the related accounts."

 "The authority to inquire into or examine the main account and the related accounts shall comply with the
requirements of Article III, Sections 2 and 3 of the 1987 Constitution, which are hereby incorporated by
reference."

FORFEITURE PROVISIONS

 Civil Forfeiture. – Upon determination by the AMLC that probable cause exists that any monetary instrument or
property is in any way related to an unlawful activity as defined in Section 3(i) or a money laundering offense
under Section 4 hereof, the AMLC shall file with the appropriate court through the Office of the Solicitor General,
a verified ex parte petition for forfeiture, and the Rules of Court on Civil Forfeiture shall apply.

-forfeiture includes those other monetary instrument or property having an equivalent value to that of the monetary
instrument or property found to be related in any way to an unlawful activity or a money laundering offense, when with
due diligence, the former cannot be located, or it has been substantially altered, destroyed, diminished in value or
otherwise rendered worthless by any act or omission, or it has been concealed, removed, converted, or otherwise
transferred, or it is located outside the Philippines or has been placed or brought outside the jurisdiction of the court, or
it has been commingled with other monetary instrument or property belonging to either the offender himself or a third
person or entity, thereby rendering the same difficult to identify or be segregated for purposes of forfeiture. "

 Claim on Forfeited Assets. – Where the court has issued an order of forfeiture of the monetary instrument or
property in a criminal prosecution for any money laundering offense defined under Section 4 of this Act, the
offender or any other person claiming an interest therein may apply, by verified petition, for a declaration that the
same legitimately belongs to him and for segregation or exclusion of the monetary instrument or property
corresponding thereto.

-verified petition shall be filed with the court which rendered the judgment of forfeiture, within 15 days from the date of
the finality of the order of forfeiture, in default of which the said order shall become final and executor. This provision
shall apply in both civil and criminal forfeiture. "

 Payment in Lieu of Forfeiture. – Where the court has issued an order of forfeiture of the monetary instrument
or property subject of a money laundering offense defined under Section 4, and said order cannot be enforced
because any particular monetary instrument or property cannot, with due diligence, be located, or it has been
substantially altered, destroyed, diminished in value or otherwise rendered worthless by any act or omission,
directly or indirectly, attributable to the offender, or it has been concealed, removed, converted, or otherwise
transferred to prevent the same from being found or to avoid forfeiture thereof, or it is located outside the
 Philippines or has been placed or brought outside the jurisdiction of the court, or it has been commingled with
other monetary instruments or property belonging to either the offender himself or a third person or entity,
thereby rendering the same difficult to identify or be segregated for purposes of forfeiture, the court may, instead
of enforcing the order of forfeiture of the monetary instrument or property or part thereof or interest therein,
accordingly order the convicted offender to pay an amount equal to the value of said monetary instrument or
property. This provision shall apply in both civil and criminal forfeiture."

MUTUAL ASSISTANCE AMONG STATES

(a) Request for Assistance from a Foreign State. - Where a foreign State makes a request for assistance in the
investigation or prosecution of a money laundering offense, the AMLC may execute the request or refuse to execute
the same and inform the foreign State of any valid reason for not executing the request or for delaying the execution
thereof. The principles of mutuality and reciprocity shall, for this purpose, be at all times recognized.

(b) Powers of the AMLC to Act on a Request for Assistance from a Foreign State. - The AMLC may execute a
request for assistance from a foreign State by:

(1) tracking down, freezing, restraining and seizing assets alleged to be proceeds of any unlawful activity
under the procedures laid down in this Act;

(2) giving information needed by the foreign State within the procedures laid down in this Act; and

(3) applying for an order of forfeiture of any monetary instrument or property in the court:

-Provided: court shall not issue such an order unless the application is accompanied by an authenticated copy of the
order of a court in the requesting State ordering the forfeiture of said monetary instrument or property of a person who
has been convicted of a money laundering offense in the requesting State, and a certification or an affidavit of a
competent officer of the requesting State stating that the conviction and the order of forfeiture are final and that no
further appeal lies in respect of either.

(c) Obtaining Assistance from Foreign States. In…..

(1) tracking down, freezing, restraining and seizing assets alleged to be proceeds of any unlawful activity;

(2) obtaining information that it needs relating to any covered transaction, money laundering offense or any
other matter directly or indirectly related thereto;

(3) to the extent allowed by the law of the foreign State, applying with the proper court therein for an order to
enter any premises belonging to or in the possession or control of, any or all of the persons named in said
request, and/or search any or all such persons named therein and/or remove any document, material or
object named in said request: Provided, That the documents accompanying the request in support of the
application have been duly authenticated in accordance with the applicable law or regulation of the foreign
State; and

4) applying for an order of forfeiture of any monetary instrument or property in the proper court in the foreign
State:

-Provided: request is accompanied by an authenticated copy of the order of the RTC ordering the forfeiture of said
monetary instrument or property of a convicted offender and an affidavit of the clerk of court stating that the conviction
and the order of forfeiture are final and that no further appeal lies in respect of either.

(d) Limitations on Requests for Mutual Assistance. - AMLC may refuse to comply with any request for assistance
where the action sought by the request contravenes any provision of the Constitution or the execution of a request is
likely to prejudice the national interest of the Philippines unless there is a treaty between the Philippines and the
requesting State relating to the provision of assistance in relation to money laundering offenses.

(e) Requirements for Requests for Mutual Assistance from Foreign States. -

(1) confirm that an investigation or prosecution is being conducted in respect of a money launderer named
therein or that he has been convicted of any money laundering offense;
 (2) state the grounds on which any person is being investigated or prosecuted for money laundering or the
details of his conviction;

(3) give sufficient particulars as to the identity of said person;

(4) give particulars sufficient to identify any covered institution believed to have any information, document,
material or object which may be of assistance to the investigation or prosecution;

(5) ask from the covered institution concerned any information, document, material or object which may be of
assistance to the investigation or prosecution;

(6) specify the manner in which and to whom said information, document, material or object obtained
pursuant to said request, is to be produced;

(7) give all the particulars necessary for the issuance by the court in the requested State of the writs, orders or
processes needed by the requesting State; and

(8) contain such other information as may assist in the execution of the request.

(f) Authentication of Documents. - For purposes of this Section, a document is authenticated if the same is signed or
certified by a judge, magistrate or equivalent officer in or of, the requesting State, and authenticated by the oath or
affirmation of a witness or sealed with an official or public seal of a minister, secretary of State, or officer in or of, the
government of the requesting State, or of the person administering the government or a department of the requesting
territory, protectorate or colony. The certificate of authentication may also be made by a secretary of the embassy or
legation, consul general, consul, vice consul, consular agent or any officer in the foreign service of the Philippines
stationed in the foreign State in which the record is kept, and authenticated by the seal of his office.

(g) Extradition. - The Philippines shall negotiate for the inclusion of money laundering offenses as herein defined
among extraditable offenses in all future treaties.

PENAL PROVISIONS

(a) Penalties for the Crime of Money Laundering.

 imprisonment ranging from 7-14 years and a fine of not less than Php3,000,000.00 but not more than twice the
value of the monetary instrument or property involved in the offense,

 shall be imposed upon a person convicted under Section 4(a), (b), (c) and (d) of this Act.

 "The penalty of imprisonment from 4-7 years and a fine of not less than Php1,500,000.00 but not more than
Php3,000,000.00, shall be imposed upon a person convicted under Section 4(e) and (f) of this Act.

 "The penalty of imprisonment from 6-4 years or a fine of not less than Php100,000.00 but not more than
Php500,000.00, or both, shall be imposed on a person convicted under the last paragraph of Section 4 of this
Act.

(b) Penalties for Failure to Keep Records. T

 imprisonment from 6-1 year or a fine of not less than Php100,000.00 but not more than Php500,000.00, or both,
shall be imposed on a person convicted under Section 9(b) of this Act.

(c) Malicious Reporting.

 Any person who, with malice, or in bad faith, reports or files a completely unwarranted or false information
relative to money laundering transaction against any person shall be subject to a penalty to 6-4 years
imprisonment and a fine of not less than Php100,000.00 but not more than Php500,000.00, at the discretion of
the court:

 Provided: offender is not entitled to avail the benefits of the Probation Law.

 "offender is a corporation, association, partnership or any juridical person, the penalty shall be imposed upon the
responsible officers, as the case may be, who participated in, or allowed by their gross negligence, the
commission of the crime.

-court may suspend or revoke its license.

 offender is a public official or employee, he shall, in addition to the penalties prescribed herein, suffer perpetual
or temporary absolute disqualification from office, as the case may be.

"Any public official or employee who is called upon to testify and refuses to do the same or purposely fails to testify
shall suffer the same penalties prescribed herein.

(d) Breach of Confidentiality.

 imprisonment ranging from 3-8 years and a fine of not less than Php500,000.00 but not more than
Php1,000,000.00 shall be imposed on a person convicted for a violation under Section 9(c).

 In the case of a breach of confidentiality that is published or reported by media, the responsible reporter, writer,
president, publisher, manager and editor-in-chief shall be liable under this Act.

(e) The penalty of imprisonment ranging from 4-7 years and a fine corresponding to not more than 200% of the value
of the monetary instrument or property laundered shall be imposed upon the covered person, its directors, officers or
pesonnel who knowingly participated in the commission of the crime of money laundering. "

(f) Imposition of Administrative Sanctions.

 imposition shall be without prejudice to the filing of criminal charges against the persons responsible for the
violation.

 "After due notice and hearing, the AMLC shall, at its discretion, impose sanctions, including monetary penalties,
warning or reprimand, upon any covered person, its directors, officers, employees or any other person for the
violation of this Act, its implementing rules and regulations, or for failure or refusal to comply with AMLC orders,
resolutions and other issuances. Such monetary penalties shall be in amounts as may be determined by the
AMLC to be appropriate, which shall not be more than P500,000.00 per violation.

 "The AMLC may promulgate rules on fines and penalties taking into consideration the attendant circumstances,
such as the nature and gravity of the violation or irregularity. "

(g) The provision of this law shall not be construed or implemented in a manner that will discriminate against certain
customer types, such as politically-exposed persons, as well as their relatives, or against a certain religion, race or
ethnic origin, or such other attributes or profiles when used as the only basis to deny these persons access to the
services provided by the covered persons. Whenever a bank, or quasi-bank, financial institution or whenever any
person or entity commits said discriminatory act, the person or persons responsible for such violation shall be subject
to sanctions as may be deemed appropriate by their respective regulators."

PROHIBITIONS AGAINS POLITICAL HARASSMENT

 This Act shall not be used for political persecution 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 forfeited to the
prejudice of a candidate for an electoral office during an election period.

RESTITUTION

-for any agrieved person be governed by civil code

NON-INTERVENTION IN THE BIR OPERATIONS

 Nothing contained in this Act nor in related antecedent laws or existing agreements shall be construed to allow
the AMLC to participate in any manner in the operations of the BIR.
The authority to inquire into or examine the main account and the related accounts shall comply with the requirements
of Article III, Sections 2 and 3 of the 1987 Constitution, which are hereby incorporated by reference. Likewise, the
constitutional injunction against ex post facto laws and bills of attainder shall be respected in the implementation of
this Act."
 TRUTH IN LENDING ACT

STATE POLICY

 to protect its citizens from a lack of awareness of the true cost of credit to the user by assuring a full disclosure of
such cost with a view of preventing the uninformed use of credit to the detriment of the national economy.

DEFINITIONS

 Board- Monetary Board of the Central Bank of the Philippines.

 Credit- any loan, mortgage, deed of trust, advance, or discount; any conditional sales contract; any contract to
sell, or sale or contract of sale of property or services, either for present or future delivery, under which part or all
of the price is payable subsequent to the making of such sale or contract; any rental-purchase contract; any
contract or arrangement for the hire, bailment, or leasing of property; any option, demand, lien, pledge, or other
claim against, or for the delivery of, property or money; any purchase, or other acquisition of, or any credit upon
the security of, any obligation of claim arising out of any of the foregoing; and any transaction or series of
transactions having a similar purpose or effect.

 Finance charge- includes interest, fees, service charges, discounts, and such other charges incident to the
extension of credit as the Board may be regulation prescribe.

 Creditor -any person engaged in the business of extending credit (including any person who as a regular
business practice make loans or sells or rents property or services on a time, credit, or installment basis, either
as principal or as agent) who requires as an incident to the extension of credit, the payment of a finance charge.

 Person- any individual, corporation, partnership, association, or other organized group of persons, or the legal
successor or representative of the foregoing, and includes the Philippine Government or any agency thereof, or
any other government, or of any of its political subdivisions, or any agency of the foregoing.

 Any creditor shall furnish to each person to whom credit is extended, prior to the consummation of the
transaction, a clear statement in writing setting forth, to the extent applicable and in accordance with rules and
regulations prescribed by the Board, the following information:

(1) the cash price or delivered price of the property or service to be acquired;
(2) the amounts, if any, to be credited as down payment and/or trade-in;
(3) the difference between the amounts set forth under clauses (1) and (2);
(4) the charges, individually itemized, which are paid or to be paid by such person in connection with the transaction
but which are not incident to the extension of credit;
(5) the total amount to be financed;
(6) the finance charge expressed in terms of pesos and centavos; and
(7) the percentage that the finance bears to the total amount to be financed expressed as a simple annual rate on the
outstanding unpaid balance of the obligation.

 (a) Any creditor who in connection with any credit transaction fails to disclose to any person any information in
violation of this Act or any regulation issued thereunder shall be liable to such person in the amount of P100 or in
an amount equal to twice the finance charged required by such creditor in connection with such transaction,
whichever is the greater, except that such liability shall not exceed P2,000 on any credit transaction.

- Action to recover such penalty may be brought by such person within one year from the date of the occurrence of the
violation, in any court of competent jurisdiction.

-In any action under this subsection in which any person is entitled to a recovery, the creditor shall be liable for
reasonable attorney's fees and court costs as determined by the court.

(b) Except as specified in subsection (a) of this section, nothing contained in this Act or any regulation contained in this
Act or any regulation thereunder shall affect the validity or enforceability of any contract or transactions.

(c) Any person who willfully violates any provision of this Act or any regulation issued thereunder shall be fined by not
less than P1,00 or more than P5,000 or imprisonment for not less than 6 months, nor more than one year or both.

(d) No punishment or penalty provided by this Act shall apply to the Philippine Government or any agency or any
political subdivision thereof.
(e) A final judgment hereafter rendered in any criminal proceeding under this Act to the effect that a defendant has
willfully violated this Act shall be prima facie evidence against such defendant in an action or proceeding brought by
any other party against such defendant under this Act as to all matters respecting which said judgment would be an
estoppel as between the parties thereto.
 UNCLAIMED BALANCES

DEFINITIONS

 Unclaimed balances- include credits or deposits of money, bullion, security or other evidence of indebtedness of
any kind, and interest thereon with banks, buildings and loan associations, and trust corporations, as hereinafter
defined, in favor of any person known to be dead or who has not made further deposits or withdrawals during the
preceding ten years or more. Such unclaimed balances, together with the increase and proceeds thereof, shall
be deposited with the Treasurer of the Philippines to the credit of the Government of the Republic of the
Philippines to be used as the National Assembly may direct

 "Banks", "building and loan associations" and "trust corporations"- shall refer to institutions defined under
Section two, thirty-nine and fifty-six, respectively, of Republic Act Numbered Three Hundred Thirty Seven,
otherwise known as the General Banking Act, as amended, whether organized under special charters or not.