ANTI-MONEY LAUNDERING ACT OF 2001 (RA 9160), As amended by R.A. No. 9194 & R.A.

No. 10167

1. Declared policies of AMLA

to protect and preserve the integrity and confidentiality of bank accounts and to 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.

From 2018 RA 9160 IRR:

(d) To protect life, liberty and property from acts of terrorism and to condemn terrorism and
those who support and finance it; and to recognize it as inimical and dangerous to national
security and the welfare of the people; and to make the financing of terrorism a crime against
the Filipino people, against humanity and against the law of nations.

(e) To recognize and to adhere to international commitments to combat the financing of

terrorism, specifically to the International Convention for the Suppression of the Financing of
Terrorism, as well as other binding terrorism related resolutions of the United Nations Security
Council, pursuant to Chapter 7 of the United Nations Charter.

(f) To reinforce the fight against terrorism by preventing and suppressing the commission of
said offenses through freezing and forfeiture of property or funds while protecting human rights.

2. Transactions covered by AMLA

“Covered transaction” is a single, series, or combination of transactions involving a total 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) consecutive banking days except
those between a covered institution and a person who, at the time of the transaction was a
properly identified client and the amount is commensurate with the business or financial
capacity of the client; or those with an underlying legal or trade obligation, purpose, origin or
economic justification.

It likewise refers to a single, series or combination or pattern of unusually large and 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 trade obligation or
contract.

To give teeth to the law it was changed:

Covered Transactions: Php 500,000 for cash, Php1,000,000 for jewelries, Php500,000

Suspicious Transactions
Realty Transaction – Php 500,000

3. Define the following terms:

a) Covered institution

· 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 (BSP);

· insurance companies and all other institutions supervised or regulated by the

Insurance Commission; and

· (i) securities dealers, brokers, salesmen, investment houses and other similar entities
managing securities or rendering services as investment agent, advisor, or consultant, (ii)
mutual funds, close-end investment companies, common trust funds, pre-need companies
and other similar entities, (iii) foreign exchange corporations, money changers, money
payment, remittance, and transfer companies and other similar entities, and (iv) 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 Securities and Exchange Commission.

As per 2016 – Revised IRR, Designated Non-Financial Businesses and Professions

(DNFBPs):

· Jewelry dealers, dealers in precious metals, and dealers in precious stones (in
excess of Php 1,000,000)

· 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.

· Persons, including lawyers and accountants (providing asset management services),

who provide any of the following services:

a. Managing of client money, securities or other assets;

 b. Management of bank, savings, securities or other assets;

c. Organization of contributions for the creation, operation or management of

companies; and

d. Creation, operation or management of juridical persons or arrangements, and

buying and selling business entities.

· Casinos, including internet and ship-based casinos, with respect to their casino cash
transactiotus related to they gaming operations (under RA 10927 amendment to 9160)

b) Covered transaction

· A transaction in cash or other equivalent monetary instrument exceeding Five

Hundred Thousand pesos (Php500,000.00)

· A transaction exceeding One Million pesos (Php1,000,000.00) in cases of jewelry

dealers, dealers in precious metals and dealers in precious stones.

· A casino cash transaction exceeding Five Million Pesos (PHP5,000,000.00) or its

equivalent in other currency. (2018 IRR)

c) Monetary instrument

· coins or currency of legal tender of the Philippines, or of any other country;

· drafts, checks and notes;

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

· other similar instruments where title thereto passes to another by endorsement,

assignment or delivery.

· Contracts or policies of insurance, life or non-life, contracts of suretyship, pre-need

plans, and member certificates issued by mutual benefit association (From 2018 IRR)

d) Offender

refers to any person who commits a money laundering offense.

e) Person

refers to any natural or juridical person.

f) Proceeds
refers to an amount derived or realized from an unlawful activity

g) Supervising Authority

“Supervising Authority” (SA) refers to the BSP, the SEC, the IC, or other government agencies
designated by law to supervise or regulate a particular financial institution or DNFBP. (IRR
2018)

Suspicious Transactions

“(b-1) ‘Suspicious transaction’ are 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 circumstance 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 transaction is in any 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 transaction that is similar or analogous to any of the foregoing.”

h) Transaction

refers to 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.

i) Unlawful activity

Unlawful activity means any conduct which constitutes a crime or which contravenes any law
whether such conduct occurred before or after the commencement of this Act and whether such
conduct occurred in the Republic or elsewhere.

4. Institutions covered by AMLA

· 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 (BSP);
 · insurance companies and all other institutions supervised or regulated by the
Insurance Commission; and

· (i) securities dealers, brokers, salesmen, investment houses and other similar entities
managing securities or rendering services as investment agent, advisor, or consultant, (ii)
mutual funds, close-end regulated by Securities and Exchange Commission

· Designated Non-Financial Businesses and Professions

· Persons, including lawyers, accountants and other professionals, who provide (asset
management services) any of the following services:

o Managing of client money, securities or other assets;

o Management of bank, savings, securities or other assets;

o Organization of contributions for the creation, operation or management of

companies; and

o Creation, operation or management of juridical persons or arrangements, and

buying and selling business entities.

· (6) Casinos, including internet-based casinos and ship-based casinos, with respect to
their casino cash transactions related to their gaming operations.

The “Casino Implementing Rules and Regulations of Republic Act No. 10927” shall govern
the implementation of the AMLA with regard to casinos, unless, otherwise indicated therein
by the AMLC and the AGAs.

5. Obligations of covered institutions

a) Prevention of money laundering

DI ko sure ani HAHAHA:

Covered institutions shall formulate their respective money laundering prevention programs in
accordance with this Act including, but not limited to, information dissemination on money
laundering activities anits prevention, detection and reporting, and the training of responsible
officers and personnel of covered institutions

Hi wazzap

b) Customer identification requirements

Covered institutions shall establish and record the true identity of its clients based on official
documents. 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.

6. What is prohibited under the law?

PREVENTIVE MEASURES RULE 17 – PROHIBITED ACCOUNTS

Section 1. Anonymous Accounts and Accounts under Fictitious Names.

1.1. Covered persons shall maintain customers’ account only in the true and full name of the
account owner or holder.

1.2. Anonymous accounts, accounts under fictitious names, and all other similar accounts shall
be absolutely prohibited.

Section 2. Numbered Accounts.

2.1. Numbered accounts, except non-checking numbered accounts, shall not be allowed.

2.2. CTRs and STRs involving non-checking numbered accounts shall contain the true name of
the account holder.

7. How to prevent money laundering?

A. Customer Due Diligence. - Covered persons shall establish and record the true identity
of their clients based on official documents, as defined under Rule 3.M of this RIRR. They shall
maintain a system of verifying the true identity of their clients based on reliable, independent
source, documents, data, or information. In case of corporate clients, covered persons are
required to maintain 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. Covered
persons shall establish appropriate systems and methods, and adequate internal controls,
compliant with the AMLA, this RIRR, other AMLC issuances, the guidelines issued by the
Supervising Authorities, and internationally accepted anti-money laundering standards, for
verifying and recording the true and full identity of their customers.

B. Risk Assessment. - Covered persons shall develop clear, written, and graduated customer
acceptance policies and procedures, including a set of criteria for customers that are likely to
pose low, normal, or high risk to their operations. The criteria may include: (1) the nature of the
service or product to be availed of by the customers; (2) the purpose of the account or
transaction; (3) the amount of funds to be deposited by a customer or the size of transactions
undertaken; (4) the regularity or duration of the transaction; (5) the fact that a customer came
from a high risk jurisdiction; (6) the existence of suspicious transaction indicators; and (7) such
other factors the covered persons may deem reasonable or necessary to consider in assessing
the risk of a customer to money laundering.
C. Ongoing Monitoring of Customers, Accounts and Transactions. – Covered persons shall, on
the basis of materiality and risk, update all customer information and identification documents of
existing customers required to be obtained under the AMLA, this RIRR, other AMLC issuances,
and the guidelines issued by the Supervising Authorities.

8. Requirements for customer identification

a) True identity of individuals or clients (Know your client) Customer Identification

Face-to Face Contact or Outsourcing the Conduct of Customer Identification

Trustee, Nominee and Agent Accounts.

Identification and Verification of a Beneficial Owner, Trustee, Nominee, or Agent. - Where an

account is opened or a transaction is conducted by any person in behalf of another, covered
persons shall establish and record the true and full identity and existence of both the account
holder or transactor and the beneficial owner or person on whose behalf the transaction is
being conducted.

The covered person shall determine the true nature of the parties’ capacities and duties by
obtaining a copy of the written document evidencing their relationship and apply the same
standards for assessing the risk profile and determining the standard of due diligence to be
applied to both. In case it entertains doubts as to whether the account holder or transactor is
being used as a dummy in circumvention of existing laws, it shall apply enhanced due diligence
or file a suspicious transaction report, if warranted.

b) Minimum Information/Documents Required for Individual Customers.

Rule 9.1.c. Minimum Information/Documents Required for Individual Customers. – Covered

institutions shall require customers to produce original accounts shall be allowed without the
establishment of such identity and in the manner herein provided. The BSP may conduct annual
testing for the purpose of determining the existence and true identity of the owners of such
accounts. The SEC and the IC may conduct similar testing more often than once a year and
covering such other related purposes as may be allowed under their respective charters.

For individual customers and authorized signatories of juridical entities, covered persons shall
gather the following customer information:

a. Name of customer

b. Date and place of birth;

c. Name of beneficial owner, if applicable;

d. Name of beneficiary (in case of insurance contracts or remittance transactions);

e. Present address;
f. Permanent address;

g. Contact number or information;

h. Nationality;

i. Specimen signatures or biometrics of the customer;

j. Nature of work and name of employer or nature of self‐employment/ business, if

applicable;

k. Sources of funds or property; and

l. Tax Identification Number (TIN), Social Security System (SSS) number, or Government
Service Insurance System (GSIS) number, if applicable.

c) Minimum Information/Documents Required for Corporate and Juridical Entities. –

Rule 9.1.d. Minimum Information/Documents Required for Corporate and Juridical Entities. –
Before establishing business relationships, covered institutions shall endeavor to ensure that
the customer is a corporate or juridical entity which has not been or is not in the process of
being, dissolved, wound up or voided, or that its business or operations has not been or is not in
the process of being, closed, shut down, phased out, or terminated. Dealings with shell
companies and corporations, being legal entities which have no business substance in their
own right but through which financial transactions may be conducted, should be undertaken
with extreme caution. The following minimum information/documents shall be obtained from
customers that are corporate or juridical entities, including shell companies and corporations:

(1) Articles of Incorporation/Partnership;

(2) By-laws;

(3) Official address or principal business address;

(4) List of directors/partners;

(5) List of principal stockholders owning at least two percent (2%) of the capital stock;

(6) Contact numbers;

(7) Beneficial owners, if any; and

(8) Verification of the authority and identification of the person purporting to act on behalf of the
client.

i. Name of entity;

ii. Name of authorized signatory;

iii. Name of beneficial owner, if applicable;

iv. Official address;

v. Contact number or information;

vi. Nature of business; and

vii. Specimen signatures or biometrics of the authorized signatory. i. Certificates of Registration

issued by the Department of Trade and Industry (DTI) for sole proprietors, or Certificate of
Incorporation issued by the Securities and Exchange Commission (SEC) for corporations and
partnerships, and by the BSP for money changers/foreign exchange dealers and remittance
agents;

ii. Secondary License or Certificate of Authority issued by the Supervising Authority or other
government agency;

iii. Articles of Incorporation/Partnership;

iv. Latest General Information Sheet;

v. Corporate/Partners’ Secretary Certificate citing the pertinent portion of the Board or Partners’
Resolution authorizing the signatory to sign on behalf of the entity; and

vi. For entities registered outside of the Philippines, similar documents and/or information duly
authenticated by a senior officer of the covered person assigned in the country of registration; in
the absence of said officer, the documents should be authenticated by the Philippine Consulate,
company register or notary public, where said entities are registered.]

http://www.amlc.gov.ph/laws/money-laundering/2016-revised-implementing-rules-and-
regulations-of-republic-act-no-9160-as-amended

d) Prohibition against Certain Accounts.

a. Anonymous Accounts and Accounts under Fictitious Names. - Covered persons shall
maintain customers’ account only in the true and full name of the account owner or holder.
Anonymous accounts, accounts under fictitious names, and all other similar accounts shall be
absolutely prohibited.

e) Prohibition against opening of Accounts without Face-to- face Contact.

Rule 9.1.f. Prohibition against opening of Account without Face-to-face Contact. – No new
accounts shall be opened and created without face-to-face contact and full compliance with the
requirements under Rule 9.1.c of these Rules.

f) Numbered Accounts.
Numbered Accounts. - Numbered accounts, except non-checking numbered accounts, shall
not be allowed.

Covered and suspicious transaction reports involving non-checking numbered accounts shall
contain the true name of the account holder.

9. How long shall the records be kept?

a) Existing and New Accounts and New Transactions.

Record Keeping. - Covered persons shall maintain and safely store for five (5) years from the
dates of transactions all records of customer identification and transaction documents.

b) Closed Accounts.

2 Closed Accounts. - Covered persons shall maintain and safely store for at least five (5)
years from the dates the accounts were closed, all records of customer identification and
transaction documents.

c) Retention of Records in Case a Money Laundering Case has been filed in Court.

1. Retention of Records Where the Account is the Subject of a Case. - If a case has been filed
in court involving the account, records must be retained and safely kept beyond the five (5)-year
period, until it is officially confirmed by the AMLC Secretariat that the case has been resolved,
decided or terminated with finality.

d) Form of Records.

3. Form of Records. - Covered persons shall retain all records as originals or in such forms as
are admissible in court.

Covered persons shall, likewise, keep the electronic copies of all covered and suspicious
transaction reports for, at least, five (5) years from the dates of submission to the AMLC.

For low risk customers, it is sufficient that covered persons shall maintain and store, in whatever
form, a record of customer information and transactions

10. Rule regarding reporting of covered and suspicious transactions (reportorial

requirements)

B. Record Keeping. - Covered persons shall maintain and safely store for five (5) years from
the dates of transactions all records of customer identification and transaction documents.

1. Retention of Records Where the Account is the Subject of a Case. - If a case has been filed
in court involving the account, records must be retained and safely kept beyond the five (5)-year
period, until it is officially confirmed by the AMLC Secretariat that the case has been resolved,
decided or terminated with finality.
2 Closed Accounts. - Covered persons shall maintain and safely store for at least five (5)
years from the dates the accounts were closed, all records of customer identification and
transaction documents.

3. Form of Records. - Covered persons shall retain all records as originals or in such forms as
are admissible in court.

Covered persons shall, likewise, keep the electronic copies of all covered and suspicious
transaction reports for, at least, five (5) years from the dates of submission to the AMLC. For
low risk customers, it is sufficient that covered persons shall maintain and store, in whatever
form, a record of customer information and transactions.

C. Transaction Reporting. - Covered persons shall report to the AMLC all covered transactions
and suspicious transactions within five (5) working days, unless the AMLC prescribes a different
period not exceeding fifteen (15) working days, from the occurrence thereof.

For suspicious transactions, “occurrence” refers to the date of determination of the suspicious
nature of the transaction, which determination should be made not exceeding ten (10) calendar
days from the date of transaction. However, if the transaction is in any way related to, or the
person transacting is involved in or connected to, an unlawful activity or money laundering
offense, the 10-day period for determination shall be reckoned from the date the covered
person knew or should have known the suspicious transaction indicator.

Should a transaction be determined to be both a covered and a suspicious transaction, the

same shall be reported as a suspicious transaction.

11. How is money-laundering crime committed?

Rule 4. Money Laundering. - Money laundering is committed by:

A. Any person who, knowing that any monetary instrument or property represents, involves, or
relates to the proceeds of any unlawful activity:

1. transacts said monetary instrument or property;

2. converts, transfers, disposes of, moves, acquires, possesses or uses said monetary
instrument or property;

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

4. attempts or conspires to commit money laundering offenses referred to in (1), (2), or (3)
above;
5. aids, abets, assists in, or counsels the commission of the money laundering offenses referred
to in (1), (2), or (3) above; and

6. performs or fails to perform any act as a result of which he facilitates the offense of money
laundering referred to in (1), (2), or (3) above.B. Any covered person who, knowing that a
covered or suspicious transaction is required under the AMLA to be reported to the AMLC, fails
to do so.

12. What are unlawful activities?

refers to any act or omission or series or combination thereof involving or having relation to the
following:

1.Kidnapping for Ransom

2. Offenses related to Dangerous Drugs Act of 1972

3. Offenses related to Anti-Graft and Corrupt Practices Act

4. Plunder

5. Robbery and Extortion

6. Jueteng and Masio punished as illegal gambling

7. Piracy on high seas

8. Qualified theft

9. Swindling

10. Smuggling

11. Violations under Electronic Commerce Act of 2000

12. Hijacking and other violations, destructive arson and murder including perpetrated by
terrorists against non- combatant persons and similar targets

13. Fraudulent practices and other violations under Securities Regulation Code of 2000

14. Felonies or offenses of a similar nature

15. Bribery and Corruption of Public Officers

16. Frauds and Illegal Exactions and Transactions

17. Malversation of Public Funds and Property

18. Forgeries and Counterfeiting

19. Violations of Anti-Trafficking in Persons Act of 2003, as amended

20. Violation of Philippine Fisheries Code of 1998, Philippine Forestry Code of the Philippine,
Philippine Mining Act of 1995, Wildlife Resources and Conversation and Protection Act and
National Caves and Cave Resources Management Protection Act, as amended.

21. Violations of Sections of PD 1866 as amended otherwise known as “Codifying the Laws on
Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition or Disposition of Firearms,
Ammunition or Explosives”.

22. Violation of Anti-Fencing Law

23. Violation of Migrant Workers and Overseas Filipinos Act of 1995

24. Violation of Intellectual Property Code of the Philippines

25. Violation of Anti-Photo and Video Voyeurism Act of 2009, Anti- Child Pornography Act of
2009, Special Protection of Children Against Abuse, Exploitation and Discrimination.

13. What are penalties and other consequences for violating AMLA?

Penalties for the Crime of Money Laundering.

Rule 14.1. Penalties for the Crime of Money Laundering.

Rule 14.1.a. Penalties under Section 4 (a) of the AMLA. – The penalty of imprisonment ranging
from seven (7) to fourteen (14) years and a fine of not less than Three Million Philippine 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) of the
AMLA.

Rule 14.1.b. Penalties under section 4 (b) 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
Philippine Pesos (Php1,500,000.00) but not more than Three Million Philippine Pesos
(Php3,000,000.00), shall be imposed upon a person convicted under Section 4 (b) of the AMLA.

Rule 14.1.c. Penalties under Section 4 (c) of the AMLA. – The penalty of imprisonment from six
(6) months to four (4) years or a fine of not less than One Hundred Thousand Philippine Pesos
(Php100,000.00) but not more than Five Hundred Thousand Philippine Pesos (Php500,000.00),
or both, shall be imposed on a person convicted under Section 4 (c) of the AMLA.

Rule 14.2. Penalties for Failure to Keep Records under Section 9 (b) of the AMLA. – The
penalty of imprisonment from six (6) months to one (1) year or a fine of not less than One
Hundred Thousand Philippine Pesos (Php100,000.00) but not more than Five Hundred
Thousand Philippine Pesos (Php500,000.00), or both, shall be imposed on a person convicted
under Section 9 (b) of the AMLA.
Rule 14.3. Penalties for 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 of six (6) months to four (4) years
imprisonment and a fine of not less than One Hundred Thousand Philippine Pesos
(Php100,000.00) but not more than Five Hundred Thousand Philippine Pesos (Php500,000.00),
at the discretion of the court: Provided, That the offender is not entitled to avail the benefits of
the Probation Law.

Rule 14.4. Where Offender is a Juridical Person. – If the 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 the commission of the crime or who shall have
knowingly permitted or 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
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,
as the case may be.

Rule 14.5. Refusal by a Public Official or Employee to Testify. – Any public official or employee
who is called upon the testify and refuses to do the same or purposely fails to testify shall suffer
the same penalties prescribed herein.

Rule 14.6. 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 Philippine
Pesos (Php500,000.00) but not more than One Million Philippine Pesos (Php1,000,000.00),
shall be imposed on a person convicted for a violation under Section 9(c) of the AMLA.

Violation

SEC. 4. Money Laundering Offense. — Money laundering is a crime whereby the proceeds of
an unlawful activity are transacted, thereby making them appear to have originated from
legitimate sources. It is committed by the following:

Rule 14.1.a. Penalties under Section 4 (a) of the AMLA (a) Any person knowing that any
monetary instrument or property represents, involves, or relates to, the proceeds of any
unlawful activity, transacts or attempts to transact said monetary instrument or property.

(b) Any person knowing that any monetary instrument or property involves the proceeds of any
unlawful activity, performs or fails to perform any act as a result of which he facilitates the
offense of money laundering referred to in paragraph (a) above.

(c) Any person knowing that any monetary instrument or property is required under this Act to
be disclosed and filed with the Anti-Money Laundering Council (AMLC), fails to do so.

14. Consequences of malicious reporting

D. Penalties for 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 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.

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, as the case
may be, 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, 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 herein prescribed.

15. When is freezing of accounts ordered?

A. Freeze Order - Upon 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, the Court of Appeals may issue a freeze order, which shall be effective
immediately, directing the concerned covered persons and government agency to desist from
allowing any transaction, withdrawal, transfer, removal, conversion, concealment, or other
disposition of the subject monetary instrument or property.

15. When examination of accounts under AMLA is done notwithstanding the provisions
of secrecy of bank deposits.

Rule 9.3.c. Exemption from Bank Secrecy Laws. – When reporting covered transactions to the
AMLC, banks and their officers, employees, representatives, agents, documents of identity
issued by an official authority, bearing a photograph of the customer. Examples of such
documents are identity cards and passports. The following minimum information/documents
shall be obtained from individual customers:

(1) Name;

(2) Present address;

(3) Permanent address;

(4) Date and place of birth;

(5) Nationality;
(6) Nature of work and name of employer or nature of self-employment/business;

(7) Contact numbers;

(8) Tax identification number, Social Security System number or Government Service and
Insurance System number;

(9) Specimen signature;

(10) Source of fund(s); and

(11) Names of beneficiaries in case of insurance contracts and whenever applicable.

[A. Bank Inquiry with Court Order. - Notwithstanding the provisions of Republic Act No. 1405,
(AN ACT PROHIBITING DISCLOSURE OF OR INQUIRY INTO, DEPOSITS WITH ANY
BANKING INSTITUTION AND PROVIDING PENALTY THEREFOR) as amended; Republic Act
No. 6426,( AN ACT INSTITUTING A FOREIGN CURRENCY DEPOSIT SYSTEM IN THE
PHILIPPINES, AND FOR OTHER PURPOSES) as amended; Republic Act No. 8791,( AN ACT
PROVIDING FOR THE REGULATION OF THE ORGANIZATION AND OPERATIONS OF
BANKS, QUASI-BANKS, TRUST ENTITIES AND FOR OTHER PURPOSES) and other laws,
the AMLC may inquire into or examine any particular deposit or investment account, including
related accounts, with any banking institution or non-bank financial institution, upon order by the
Court of Appeals based on an ex parte application in cases of violation of the AMLA when it has
been established that probable cause exists that the deposits or investments involved, including
related accounts, are in any way related to an unlawful activity or a money laundering offense.]

16. Does AMLA provide safe harbor provision?

Safe Harbor Provision. - No administrative, criminal or civil proceedings shall lie against any
person for having made a covered transaction or suspicious transaction report in the regular
performance of his duties and in good faith, whether or not such reporting results in any criminal
prosecution under the AMLA or any other Philippine law.