Chapter Viii Law

CHAPTER VIII
SANCTIONS
RULE 25 – CRIMINAL SANCTIONS
Section 1. Penalties for ML.
The following are the penalties to be imposed on persons convicted of ML:
(a) Penalties for Section 4(a), (b), (c) and (d) of the AMLA.
The penalty of imprisonment ranging from seven (7) to fourteen (14) years and a fine of not less
than three million pesos (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 the AMLA, as amended.
(b) Penalties for Section 4(e) and (f) of the AMLA.

The penalty of imprisonment from four (4) to seven (7) years and a fine of not less than one
million five hundred thousand pesos (PHP1,500,000.00) but not more than three million pesos
(PHP3,000,000.00), shall be imposed upon a person convicted under Section 4(e) and (f) of the
AMLA, as amended.
Section 2. Penalties for Knowingly Participating in ML.

The penalty of imprisonment ranging from four (4) to seven (7) years and a fine corresponding
to not more than two hundred percent (200%) of the value of the monetary instrument or
property laundered shall be imposed upon the covered person, its directors, officers or
personnel who knowingly participated in the commission of the crime of ML.
Section 3. 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 pesos (PHP100,000.00), but not more than five hundred thousand pesos
(PHP500,000.00), or both, shall be imposed on a person convicted under Section 9(b) of the
AMLA.
Section 4. Penalties for Malicious Reporting.

4.1. Any person who, with malice, or in bad faith, reports or files a completely unwarranted or
false information relative to ML transaction against any person shall be subject to a penalty of
six (6) months to four (4) years imprisonment and a fine of not less than one hundred thousand
pesos (PHP100,000.00) but not more than five hundred thousand pesos (PHP500,000.00), at the
discretion of the court: Provided, that the offender is not entitled to avail of the benefits of the
Probation Law.
4.2. If the offender is a corporation, association, partnership or any other juridical person, the
penalty of imprisonment and/or fine shall be imposed upon the responsible officers, who
participated in, or allowed by their gross negligence the commission of the crime and the court
may suspend or revoke its license. If the offender is an alien, he shall, in addition to the
penalties herein prescribed, be deported without further proceedings after serving the penalties
herein prescribed. If the offender is a public official or employee, he shall, in addition to the
penalties prescribed herein, suffer perpetual or temporary absolute disqualification from office.
4.3. 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 herein prescribed.
Section 5. Penalties for 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 pesos (PHP500,000.00) but not more than one million pesos
(PHP1,000,000.00), shall be imposed on a person convicted for a violation under Section 9(c)
of the AMLA. In case of a breach of confidentiality that is published or reported by the media,
the responsible reporter, writer, president, publisher, manager and editor-in-chief shall be liable
under the AMLA.
Section 6. Criminal Liability of Corporate Entities.
If the offender is a corporate entity, the penalties herein shall be imposed upon the responsible
officers who participated in, or allowed by their gross negligence the commission of the crime;
and/or directors or trustees who willfully and knowingly voted for or assented to violate the
AMLA and TFPSA, their respective IRR, and other AMLC issuances.
RULE 26 – ADMINISTRATIVE SANCTIONS
Section 1. Coverage.
The Council shall, after due notice and hearing, impose administrative sanctions upon covered
persons, and their responsible directors, officers and employees, or any other person for
violations of the AMLA, this IRR, or for failure or refusal to comply with the orders,
resolutions and other issuances of the AMLC.
Section 2. Independent Proceedings.
The administrative proceedings before the AMLC, including the imposition of administrative
sanctions, shall be without prejudice to the filing of criminal charges against the persons
responsible for the violation. Page 82 of 94
Section 3. Nature of the Proceedings.

The administrative proceedings before the AMLC shall be non-litigious and summary in nature,
subject to the requirement of due process and substantial evidence.
Section 4. Rules on Imposition of Administrative Sanctions.
4.1. The AMLC shall promulgate or update the rules on the imposition of administrative
sanctions, taking into consideration the following:
(a) Requirement of notice and hearing, and substantial evidence;
(b) Need for an independent and impartial administrative adjudication unit to hear and
recommend actions on administrative cases;
(c) Exercise of AMLC’s discretion in choosing the type and extent of sanctions to be imposed,
if warranted;
(d) Types and extent of proportionate and dissuasive sanctions that may be imposed; and
(e) Attendant circumstances to be considered by the AMLC in determining, such as the nature
and gravity of the violation or irregularity.
4.2. In the absence of any applicable provision in the rules on the imposition of administrative
sanctions, and in order to effectuate the objectives of the AMLA, the pertinent provisions of the
Rules of Court may, in the interest of expeditious dispensation of administrative cases, and
whenever practicable and convenient, be applied by analogy or in a suppletory character and
effect.
Section 5. Types of Administrative Sanctions.
5.1. The Council shall, at its discretion, impose sanctions, including reprimand, warning, fine,
or such other measures as may be necessary and justified to prevent and counteract ML/TF, as
identified in the rules on the imposition of administrative sanctions.
5.2. Fines shall be in amounts as may be determined by the Council to be appropriate, which
shall not be more than five hundred thousand pesos (PHP500,000.00) per violation.
RULE 27 – CIVIL SANCTIONS

Section 1. Asset Recovery.
Monetary instruments and properties related to ML/TF and associated unlawful shall be the
subject of freeze order and civil forfeiture proceedings, as provided under Rules 10 and 12
hereof.
Section 2. Restitution.
Restitution for any aggrieved party whose rights were violated shall be governed by the
provisions of the New Civil Code.
RULE 17
Implementing Rules and Regulations and
Money Laundering Prevention Programs
Rule 17.1. Implementing Rules and Regulations.-
(a) Within thirty (30) days from the effectivity of REPUBLIC ACT NO. 9160,
as amended by REPUBLIC ACT NO. 9194, the Bangko Sentral ng
Pilipinas, the Insurance Commission and the Securities and Exchange
Commission shall promulgate the Implementing Rules and Regulations
of the AMLA, which shall be submitted to the Congressional Oversight
Committee for approval.
(b) The Supervising Authorities, the BSP, the SEC and the IC shall, under
their own respective charters and regulatory authority, issue their
Guidelines and Circulars on anti-money laundering to effectively
implement the provisions of REPUBLIC ACT NO. 9160, AS AMENDED
BY REPUBLIC ACT NO. 9194.
Rule 17.2. Money Laundering Prevention Programs. –
Rule 17.2.a. Covered institutions shall formulate their respective money laundering prevention
programs in accordance with Section 9 and other pertinent provisions of the AMLA and these
Rules, including, but not limited to, information dissemination on money laundering activities
and their prevention, detection and reporting, and the training of responsible officers and
personnel of covered institutions, subject to such guidelines as may be prescribed by their
respective supervising authority. Every covered institution shall submit its own money
laundering program to the supervising authority
concerned within the non-extendible period that the supervising authority has
imposed in the exercise of its regulatory powers under its own charter.
Rule 17.2.b. Every money laundering program shall establish detailed

procedures implementing a comprehensive, institution-wide "know-your-client"
policy, set-up an effective dissemination of information on money laundering
activities and their prevention, detection and reporting, adopt internal policies,
procedures and controls, designate compliance officers at management level,
institute adequate screening and recruitment procedures, and set-up an audit
function to test the system.
RULE 30 – EXTRADITION
Section 1. ML as an Extraditable Offense.
With respect to the state parties that are signatories to the United Nations Convention Against
Transnational Organized Crime that was ratified by the Philippine Senate on October 22, 2001, ML is
deemed to be included as an extraditable offense in any extradition treaty existing between said state
parties, and the Philippines shall include ML as an extraditable offense in every extradition treaty that may
be concluded between the Philippines and any of said state parties in the future.
Section 2. TF as an Extraditable Offense.
The Philippines may, at its option, subject to the principle of reciprocity, consider the International
Convention for the Suppression of the Financing of Terrorism as a legal basis for requesting or granting
extradition in respect of any offenses set forth under the TFPSA.
Section 3. Extradition Requirements and Procedure.
Presidential Decree No. 1069 (Prescribing the Procedure for the Extradition of Persons Who Have
Committed Crimes in a Foreign Country) shall govern extradition proceedings.
Section 4. Negotiation of Future Treaties.
The Philippines shall negotiate for the inclusion of ML offenses among the extraditable offenses in all
future treaties.
Section 5. Prioritization and Monitoring.
The DOJ and the AMLC shall adopt a case management system, and clear processes for prioritization
and timely execution of extradition requests.

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CHAPTER VIII

(b) Penalties for Section 4(e) and (f) of the AMLA.

Section 2. Penalties for Knowingly Participating in ML.

Section 4. Penalties for Malicious Reporting.

Section 3. Nature of the Proceedings.

RULE 27 – CIVIL SANCTIONS

Rule 17.2.b. Every money laundering program shall establish detailed

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