ANTI-MONEY LAUNDERING ACT (RA 9160), AS AMENDED BY RA 9194 (12) Hijacking and other violations under Republic Act

ns under Republic Act No. 6235; destructive

Approved on September 29, 2001 arson and murder, including those perpetrated by terrorists against non-
combatant persons and similar targets;
(13) Fraudulent practices and other violations under Securities Regulation
What is the purpose of this Act? Code of 2000

To protect and preserve the integrity and confidentiality of bank accounts and (14) Felonies or offenses of a similar nature that are punishable under the
to ensure that the Philippines shall not be used as a money laundering site for penal laws of other countries.
the proceeds of any unlawful activity. Consistent with its foreign policy, the
State shall extend cooperation in transnational investigations and prosecutions Who can be guilty of money laundering offense?
of persons involved in money laundering activities wherever committed. (a) Any person knowing that any monetary instrument or property represents,
What is a Money Laundering offense? involves, or relates to, the proceeds of any unlawful activity, transacts or
attempts to transacts said monetary instrument or property.
It is a crime whereby the proceeds of an unlawful activity as herein defined are
transacted, thereby making them appear to have originated from legitimate
sources. (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
What are Unlawful Activities? result of which he falicitates the offense of money laundering referred to in
paragraph (a) above.
Any act or omission or series or combination thereof involving or having direct
relation to following: (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
(1) Kidnapping for ransom Council (AMLC), fails to do so.
(2) Violations under the Comprehensive Dangerous Act of 2002
What court has competent jurisdiction over a money laundering offense?
(3) Violations under Anti-Graft and Corrupt Practices Act
(4) Plunder The regional trial courts shall have jurisdiction to try all cases on money
laundering. Those committed by public officers and private persons who are in
(5) Robbery and extortion conspiracy with such public officers shall be under the jurisdiction of the
Sandiganbayan.
(6) Jueteng and Masiao
May a person be charged with and convicted of both the offense of
(7) Piracy on the high seas money laundering and the unlawful activity as herein defined?
(8) Qualified theft Yes.

(9) Swindling Suppose that any monetary instrument or property is in any way related to
an unlawful activity?
(10) Smuggling
The Court of Appeals, upon application ex parte by the AMLC and after
(11) Violations under the E-Commerce Act of 2000; determination that
probable cause exists may issue a freeze order which shall be effective The penalty of imprisonment from four (4) to seven (7) years and a fine of not
immediately. The freeze order shall be for a period of 20 days unless extended less than One million five hundred thousand Philippine pesos
by the court. (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 this Act.

May the AMLC inquire into or examine any particular deposit or

investment? 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
Yes. But only upon order of any competent court in cases of violation of this not more than Five
Act, when it has been established that there is probable cause that the hundred thousand Philippine pesos (PhP500,000.00), or both, shall be
deposits or investments are related to an unlawful activities or a money imposed on a person convicted under Section 4(c) of this Act.
laundering offense.
Exceptions: Unlawful activities defined in numbers (1), (2) and (12).
(b) Penalties for Failure to Keep Records. - The penalty of imprisonment from
May the BSP do the same inquiry and examination of any deposit or six (6) months to one (1) year or a fine of not less than One hundred thousand
investment? 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
Yes. When the examination is made in the course of a periodic or special
convicted under Section 9(b) of this Act.
examination, in accordance with the rules of examination of the BSP.

May this Act be used as a means of political harassment?

Of course not. This Act shall not be used for political persecution or (c) Malicious Reporting. - Any person who, with malice, or in bad faith, reports
harassment or as an instrument to hamper competition in trade and or files a completely unwarranted or false information relative to money
commerce. laundering transaction against any person shall be subject to a penalty of six
No case for money laundering may be filed against and no assets shall be (6) months to four (4) years imprisonment and a fine of not less than One
frozen, attached or forfeited to the prejudice of a candidate for an electoral hundred thousand Philippine pesos (PhP100,000.00) but not more than Five
office during an election period. 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
What will govern the restitution for the aggrieved party? Probation Law.

The provisions of the New Civil Code.

Penalty: 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
(a) Penalties for the Crime of Money Laundering. - The penalty of be, who participated in the commission of the crime or who shall have
imprisonment ranging from seven (7) to fourteen (14) years and a fine of not knowingly permitted or failed to prevent its commission. If the offender is a
less than Three Million Philippine pesos (PhP3,000,000.00) but not more than juridical person, the court may suspend or revoke its license. If the offender is
twice the value of the monetary instrument or property involved in the offense, an alien, he shall, in addition to the penalties herein prescribed, be deported
shall be imposed upon a person convicted under Section 4(a) of this Act. 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 2) Receive (directly or indirectly) in connection with any government contract or
same or purposely fails to testify shall suffer the same penalties prescribed project or by reason of the office or position : Commission, gift, share,
herein. percentage, kickbacks or any other form of pecuniary benefit from any person
and/or entity
3) Illegal or fraudulent conveyance or disposition : Assets of the Government or
(d) Breach of Confidentiality. - The punishment of imprisonment ranging from any of its subdivisions, agencies or instrumentalities or GOCCs and their
three (3) to eight (8) years and a fine of not less than Five hundred thousand subsidiaries
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 4) Obtaining, receiving or accepting (directly or indirectly) in any business
under Section 9(c). enterprise or
undertaking : Shares of stock, equity or any other form of interest or
participation including promise of future employment

PLUNDER (RA 7080) 5) Establishing the ff. to benefit particular persons or special interests :
Agricultural, industrial or commercial monopolies or other combinations and/or
Approved on July 12, 1991 implementation of decrees and orders
6) Taking undue advantage of the ff. to unjustly enrich himself at the expense
and to the damage and prejudice of the country and its citizens : Official
Who can be guilty of Plunder? position, authority, relationship, connection or influence

1) Any public officer who, by himself or in connivance with members of his

family, relatives by affinity or consanguinity, business associates, subordinates
or other persons, amasses, accumulates or acquires ill-gotten What must be the total value or aggregate amount of ill-gotten wealth?
wealth through a combination or series of overt criminal acts in the aggregate
amount or total value of at least P50 million. At least P50 Million.

2) Any person who participated with the said public officer in the commission of
an offense contributing to the crime of plunder shall likewise be punished for
such offense. What is the penalty?

Reclusion perpetua to death.

What is Ill-gotten wealth?

Any asset, property, business enterprise or material possession of any person, How is the penalty determined?
acquired by him directly or indirectly through dummies, nominees, agents,
subordinates and/or business associates by any combination or series of In the imposition of penalties, the degree of participation and the attendance of
specific or similar criminal means or schemes. mitigating circumstances shall be considered by the court.

How is ill-gotten wealth acquired? What shall happen to the ill-gotten wealth?
1) Misappropriation, conversion, misuse, or malversation : Public funds or raids Any or all ill-gotten wealth and their interests and other incomes and assets
on the public treasury including the properties and shares of stocks derived from the
deposit or investment thereof shall be forfeited in favor of the State.
Who is a Public Officer? If acquitted?

Any person holding any public office in the Philippine Government by virtue of He shall be entitled to reinstatement and to the salaries and other benefits
an appointment, election or contract. which he failed to receive during suspension, unless in the meantime,
administrative proceedings have been filed against him.

What is the scope of the Government?

Is plunder prescriptible?
It includes the National Government, and any of its subdivisions, agencies or
instrumentalities, including GOCCs and their subsidiaries. Yes. It shall prescribe in 20 years. However, the right of the State to recover
properties unlawfully acquired by public officers from them or from their
nominees or transferees shall not be barred by prescription, laches, or
estoppel.
What is a Person?

It includes any natural or juridical person, unless the context indicates

otherwise. BOUNCING CHECKS LAW

Batas Pambansa Blg. 22

Which court has competent jurisdiction over plunder cases?
BP.22 DOES NOT COVER MANAGER’S CHECK AND CASHIER’S CHECK. It
The Sandiganbayan in its original jurisdiction, until otherwise provided by law.
is as good as the money it represents and is therefore deemed as cash.
BP.22 COVERS ACCOMODATION OR GUARANTEE CHECK.
How is the crime of plunder established by means of evidence? BP.22 COVERS CROSSED CHECK since it is a negotiable instrument. It falls
within the coverage of BP. 22.
It shall not be necessary to prove each and every criminal act done by the
accused. It is sufficient to establish beyond reasonable doubt a pattern of overt The Supreme Court ruled that BP. 22 considers the mere act of issuing an
or criminal acts indicative of the overall unlawful scheme or conspiracy. unfunded check as an offense not only against property but also against public
order to stem the harm caused by these bouncing checks to the community.
(Mitra vs. People, July 05, 2010)
Will the public officer accused of plunder be suspended from office?
THE PRINCIPLE OF CONSPIRACY UNDER THE REVISED PENAL CODE IS
Yes. Any public officer against whom any criminal prosecution under a valid APPLICABLE IN BP.22 WHICH IS A SPECIAL LAW.
information under this Act in whatever stage of execution and mode of
participation, is pending in court, shall be suspended from office.

A. WAYS BY WHICH VIOLATION OF BP. 22 ARE COMMITTED.

What happens if he is convicted by final judgment? The gravamen of the offense punished by Batas Pambansa (B.P.) Blg. 22 is
the act of making or issuing a worthless check or a check that is dishonored
He shall lose all retirement or gratuity benefits under any law. upon its presentation for payment – It is not the nonpayment of the obligation
which the law punishes. The mere act of issuing a worthless check – whether
as a deposit, as a guarantee or even as evidence of pre-existing debt – is
malum prohibitum.
 date for failure to maintain sufficient funds or credit to cover the amount. The
THE ELEMENTS OF THE FIRST PARAGRAPH OF SECTION 1 OF BP.22 elements are as follows:
ARE AS FOLLOWS:
a) any person, makes or draws and issues a check;
1. The accused makes, draws or issues any check to apply to account or for
value; b) such person has sufficient funds in or credit with the drawee bank;

2. The accused knows at the time of the issuance that he or she does not have c) failure to keep sufficient funds or to maintain a credit to cover the full amount
sufficient funds in, or credit with, the drawee bank for of the check if presented within a period of ninety (90) days from the date
the payment of the check in full upon its presentment . appearing thereon;

d) for which reason it is dishonored by the drawee bank.

COMPARISON OF VIOLATION OF BP 22 FROM ESTAFA UNDER PAR. 2
There is a prima facie evidence of knowledge of insufficiency of funds when the [D], ARTICLE 315, OF THE REVISED PENAL CODE.
check was presented within 90 days from the date appearing on the check and
First, the elements of estafa under paragraph 2(d), Article 315 of the RPC are
was dishonored unless:
(1) the postdating or issuance of a check in payment of an obligation
a. such maker or drawer pays the holder thereof the amount due thereon within contracted at the time the check was issued; (2) lack of sufficiency of funds to
5 banking days after receiving notice that such check has not been paid by the cover the check; and (3) damage to the payee. (Cajigas vs. People, 580 SCRA
drawee, or 54, February 23, 2009)

b. makes arrangements for payment in full by the drawee of such check within
(5) banking days after receiving notice of non-payment.
For violation of the “Bouncing Check Law”, deceit and damage are not
essential or required. The essential element of the offense is knowledge on the
part of the maker or drawer of the check of the insufficiency of his funds. The
Is the 90 day-period to deposit the check an element of BP 22? gravamen of the offense is the issuance of a bad check, not the non-payment
of an obligation.
No. That the check must be deposited within ninety (90) days is simply one of
the conditions for the prima facie presumption of knowledge of lack of funds to
arise, but it is not an element of the offense, and neither does it discharge the
accused from his duty to maintain sufficient funds in the account within a Second, Article 315, Par.2 (d) is a crime against property because the issuance
reasonable time of the check is used as a means to obtain a valuable consideration from the
thereof. (Nagrarnpa vs. People, 386 SCRA 412). payee. On the other hand, in BP. 22, the mere act of issuing an unfunded
check is an offense against public
The notice of dishonor of a check may be sent to the drawer or maker, by the order to stem the harm caused by these bouncing checks to the community.
drawee bank, the (Mitra vs. People, July 05, 2010).
holder of the check, or the offended party. (Ambito vs. People, 579 SCRA 68,
February 13, 2009)
Third, in estafa, the failure of the drawer to deposit the amount necessary to
secure payment of the check within 3 days from receipt of notice from the bank
and or the payee or
ELEMENTS OF THE SECOND PARAGRAPH OF SECTION 1 OF BP.22.
holder that said check has been dishonored for lack or insufficiency of funds is
This way of violating B.P.22 suggests that at the time the check was issued, prima facie evidence of deceit constituting false pretense or fraudulent act.
the issuer had sufficient funds in or credit with the drawee bank. However, the
check was dishonored when presented for payment within 90 days from its
In B.P. 22, the failure of the drawer to pay in full the payee or holder within 5 There is deceit when one is misled -- by guile, trickery or by other means - to
banking days after receiving notice that the check has been rejected by the believe as true what is really false. (Dy vs. People, 571 SCRA 59, November
drawee bank gives rise to presumption of knowledge of insufficiency of funds 14, 2008)
or credit.

Damage as an element of estafa may consist in (1) the offended party being
Fourth, in estafa, the check is issued in payment of a simultaneous obligation deprived of his money or property as a result of the defraudation; (2)
to defraud the creditor. disturbance in property right; or
(3) temporary prejudice. (Nagrampa vs. People, 386 SCRA 412). To constitute
estafa, the act of postdating or issuing a check in payment of obligation must
be the efficient cause of defraudation and, as such, it should be either prior to,
In B.P. 22, the check is issued in payment of a pre-existing obligation. or simultaneous with, the act of fraud. (Nagrampa vs. People, 386 SCRA 412)

Fifth, in estafa, an endorser who is with knowledge that the check is worthless A PERSON MAY BE BOTH LIABLE FOR VIOLATION OF B.P. 22 AND
and had acted with deceit is liable. ANOTHER PROVISION OF THE REVISED PENAL CODE.

The filing of a criminal case under B.P. 22 shall not prejudice any liability
arising from a felony committed under the Revised Penal Code.
In B.P. 22, the persons liable are the maker, drawer and the issuer but not an
endorser.

B. DEFENSES IN BP. 22

Lastly, since estafa is mala in se, good faith is a proper defense.

B.P. 22 is mala prohibitum, it is punished by a special law and therefore, good
faith is not a defense. WHAT ARE THE POSSIBLE DEFENSES IN B.P. 22?

1. The presentation of the registry card, with an unauthorized signature, does

not meet the required proof beyond reasonable doubt that the petitioner
“SIMULTANEOUS OBLIGATION” FROM “PRE-EXISTING” OBLIGATION. received such noticed, especially considering that he denied receiving it.
(Suarez v. People 555, SCRA 238, June 19, 2008)
“Simultaneous obligation” as an element of estafa connotes that the issuance
of a check is used as a means to obtain valuable consideration from the 2. Presumption of knowledge of insufficiency of funds is not conclusive as it
payee. Deceit is the efficient cause for defraudation. To defraud is to deprive may be rebutted by full payment. (Tan vs. Philippine Commercial International
some right, interest, or property by deceitful devise. (People vs.Quesada, 60 Bank 552 SCRA 532, April 23, 2008)
Phil. 515)
3. Under B.P. Blg. 22, the prosecution must prove not only that the accused
In the issuance of a check in payment of a “pre-existing obligation”, the drawer issued a check
derives no material benefit in return as its consideration had long been that was subsequently dishonored. It must also establish that the accused was
delivered to him before the check was issued. Since an obligation has already actually notified that the check was dishonored, and that he or she failed,
been contracted, the accused in this case obtain nothing when he issued the within five (5) banking days from receipt of the notice, to pay the holder of the
check, his debt for the payment thereof had been contracted prior to its check the amount due thereon or to make arrangement for its payment.
issuance.
4. Prescription is a proper defense. The prescriptive period is 4 years reckoned Court has not decriminalized B.P. 22 violations, nor have removed
from the lapse of the five (5) banking days from notice of dishonor within which imprisonment as an alternative penalty.
to make good the check.
Needless to say, the determination of whether the circumstances warrant the
5. Forgery of the signature appearing on the check (Ilusorio vs. Court of imposition of a fine alone rests solely upon the judge. Should the judge decide
Appeals, 353 SCRA 89) that imprisonment is the more appropriate penalty, Administrative Circular No.
12-2000 ought not to be deemed a hindrance. (Lunaria vs. People, 5701 SCRA
572, November 11, 2008).
ADMINISTRATIVE CIRCULAR NO. 13-2001 is a circular addressed to all
An agreement surrounding the issuance of dishonored checks is irrelevant to judges which clarifies Administrative Circular No. 12-2000 on the penalty for
the prosecution for violation of Batas Pambansa Blg. 22. (Dreamwork violation of Batas Pambansa Blg. 22. It provides:
Construction, Inc. v. Janiola 591 SCRA 466, June 30, 2009)
The clear tenor and intention of Administrative Circular No. 12-2000 is not to
remove imprisonment as an alternative penalty, but to lay down a rule of
preference in the application of the penalties provided for in B.P. Blg. 22.
LACK OF VALUABLE CONSIDERATION is not A PROPER DEFENSE IN
VIOLATION OF B.P. 22. The pursuit of this purpose clearly does not foreclose the possibility of
imprisonment for violations of B.P. 22. Neither does it defeat the legislative
(Dreamwork Construction, Inc. v. Janiola 591 SCRA 466, June 30, 2009) intent behind the law.
NOVATION is not A PROPER DEFENSE IN B.P. 22.

Thus, Administrative Circular No. 12-2000 establishes a rule of preference in

IS “STOP PAYMENT” A PROPER DEFENSE IN BP. 22? the application of the penal provisions of B.P. Blg. 22 such that where the
circumstances of both the offense and the offender clearly indicate good faith
PAYMENT” or countermand, yet if it was clear from the statement of account
or a clear mistake of fact without taint of negligence, the imposition of a fine
that the check
alone should be considered as the more appropriate penalty.
bounced due to insufficiency of funds, the drawer of the check is still
liable.Chang vs. IAC, 146 SCRA 46 BAR Q. [2002] It is, therefore, understood that:

1. Administrative Circular 12-2000 does not remove imprisonment as an

alternative penalty for violations of B.P. Blg. 22;
C. CORPORATION IN RELATION TO BP. 22
2. The Judges concerned may, in the exercise of sound discretion, and taking
Section 1 of the law provides: “Where the check is drawn by a corporation, into consideration the peculiar circumstances of each case, determine whether
company or entity, the person or persons who actually signed the check in the imposition of a fine alone would best serve the interests of justice or
behalf of such drawer shall be liable whether forbearing to impose imprisonment would depreciate the seriousness
of the offense, work violence on the social order, or otherwise be contrary to
The officer who is accused of signing the check must receive the notice of
the imperatives of justice;
dishonor. Constructive
3. Should only a fine be imposed and the accused be unable to pay the fine,
notice to the corporation, who has a separate personality from its officer, is not
there is no to the application of the Revised Penal Code provisions on
enough.
subsidiary imprisonment.

ADMINISTRATIVE CIRCULAR NO. 12-2000 refers to the imposition of

penalties for violation of B.P. 22. It provides:
 Republic of the Philippines (3) (i) securities dealers, brokers, salesmen, investment houses and
Congress of the Philippines other similar entities managing securities or rendering services as
Metro Manila investment agent, advisor, or consultant, (ii) mutual funds, closed-end
Twelfth Congress investment companies, common trust funds, pre-need companies and
other similar entities, (iii) foreign exchange corporations, money
First Regular Session
changers, money payment, remittance, and transfer companies and
(Official Gazette Version) other similar entities, and (iv) other entities administering or otherwise
dealing in currency, commodities or financial derivatives based thereon,
Begun and held in Metro Manila, on Monday, the twenty third day of July, valuable objects, cash substitutes and other similar monetary
two thousand one. instruments or property supervised or regulated by Securities and
Exchange Commission.
[REPUBLIC ACT NO. 9160]
(b) “Covered transaction” is a single, series, or combination of
AN ACT DEFINING THE CRIME OF MONEY LAUNDERING, PROVIDING transactions involving a total amount in excess of Four million Philippine
PENALTIES THEREFOR AND FOR OTHER PURPOSES pesos (Php4,000,000.00) or an equivalent amount in foreign currency
based on the prevailing exchange rate within five (5) consecutive
Be it enacted by the Senate and the House of Representatives of the banking days except those between a covered institution and a person
Philippines in Congress assembled. who, at the time of the transaction was a properly identified client and
the amount is commensurate with the business or financial capacity of
SECTION 1. Short Title. — This Act shall be known as the “Anti-Money the client; or those with an underlying legal or trade obligation, purpose,
Laundering Act of 2001.” origin or economic justification.

SEC. 2. Declaration of Policy. — It is hereby declared the policy of the It likewise refers to a single, series or combination or pattern of
State to protect and preserve the integrity and confidentiality of bank unusually large and complex transactions in excess of Four million
accounts and to ensure that the Philippines shall not be used as a Philippine pesos (Php4,000,000.00) especially cash deposits and
money laundering site for the proceeds of any unlawful activity. investments having no credible purpose or origin, underlying trade
Consistent with its foreign policy, the State shall extend cooperation in obligation or contract.
transnational investigations and prosecutions of persons involved in
money laundering activities wherever committed. (c) “Monetary instrument” refers to:

SEC. 3. Definitions. — For purposes of this Act, the following terms are (1) coins or currency of legal tender of the Philippines, or of any other
hereby defined as follows: country;

(a) “Covered institution” refers to: (2) drafts, checks and notes;

(1) banks, non-banks, quasi-banks, trust entities, and all other (3) securities or negotiable instruments, bonds, commercial papers,
institutions and their subsidiaries and affiliates supervised or regulated deposit certificates, trust certificates, custodial receipts or deposit
by the Bangko Sentral ng Pilipinas (BSP); substitute instruments, trading orders, transaction tickets and
confirmations of sale or investments and money market instruments;
(2) insurance companies and all other institutions supervised or and
regulated by the Insurance Commission; and
(4) other similar instruments where title thereto passes to another by
endorsement, assignment or delivery.
(d) “Offender” refers to any person who commits a money laundering (9) Swindling under Article 315 of the Revised Penal Code, as amended;
offense.
(10) Smuggling under Republic Act Nos. 455 and 1937;
(e) “Person” refers to any natural or juridical person.
(11) Violations under Republic Act No. 8792, otherwise known as the
(f) “Proceeds” refers to an amount derived or realized from an unlawful Electronic Commerce Act of 2000;
activity.
(12) Hijacking and other violations under Republic Act No. 6235;
(g) “Supervising Authority” refers to the appropriate supervisory or destructive arson and murder, as defined under the Revised Penal Code,
regulatory agency, department or office supervising or regulating the as amended, including those perpetrated by terrorists against non-
covered institutions enumerated in Section 3(a). combatant persons and similar targets;

(h) “Transaction” refers to any act establishing any right or obligation or (13) Fraudulent practices and other violations under Republic Act No.
giving rise to any contractual or legal relationship between the parties 8799, otherwise known as the Securities Regulation Code of 2000;
thereto. It also includes any movement of funds by any means with a
covered institution. (14) Felonies or offenses of a similar nature that are punishable under
the penal laws of other countries.
(i) “Unlawful activity” refers to any act or omission or series or
combination thereof involving or having relation to the following: SEC. 4. Money Laundering Offense. — Money laundering is a crime
whereby the proceeds of an unlawful activity are transacted, thereby
(1) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise making them appear to have originated from legitimate sources. It is
known as the Revised Penal Code, as amended; aSCHcA committed by the following:

(2) Sections 3, 4, 5, 7, 8 and 9 of Article Two of Republic Act No. 6425, (a) Any person knowing that any monetary instrument or property
as amended, otherwise known as the Dangerous Drugs Act of 1972; represents, involves, or relates to, the proceeds of any unlawful activity,
transacts or attempts to transact said monetary instrument or property.
(3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No. 3019, as
amended; otherwise known as the Anti-Graft and Corrupt Practices Act; (b) Any person knowing that any monetary instrument or property
involves the proceeds of any unlawful activity, performs or fails to
(4) Plunder under Republic Act No. 7080, as amended; perform any act as a result of which he facilitates the offense of money
laundering referred to in paragraph (a) above.
(5) Robbery and extortion under Articles 294, 295, 296, 299, 300, 301
and 302 of the Revised Penal Code, as amended; (c) Any person knowing that any monetary instrument or property is
required under this Act to be disclosed and filed with the Anti-Money
(6) Jueteng and Masiao punished as illegal gambling under Presidential Laundering Council (AMLC), fails to do so.
Decree No. 1602;
SEC. 5. Jurisdiction of Money Laundering Cases. — The regional trial
(7) Piracy on the high seas under the Revised Penal Code, as amended courts shall have jurisdiction to try all cases on money laundering. Those
and Presidential Decree No. 532; committed by public officers and private persons who are in conspiracy
with such public officers shall be under the jurisdiction of the
Sandiganbayan.
(8) Qualified theft under Article 310 of the Revised Penal Code, as
amended;
SEC. 6. Prosecution of 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
(a) Any person may be charged with and convicted of both the offense provided in this Act;
of money laundering and the unlawful activity as herein defined.
(9) to develop educational programs on the pernicious effects of money
(b) Any proceeding relating to the unlawful activity shall be given laundering, the methods and techniques used in money laundering, the
precedence over the prosecution of any offense or violation under this viable means of preventing money laundering and the effective ways of
Act without prejudice to the freezing and other remedies provided. prosecuting and punishing offenders; and

SEC. 7. Creation of Anti-Money Laundering Council (AMLC). — The Anti- (10) to enlist the assistance of any branch, department, bureau, office,
Money Laundering Council is hereby created and shall be composed of agency or instrumentality of the government, including government-
the Governor of the Bangko Sentral ng Pilipinas as chairman, the owned and -controlled corporations, in undertaking any and all anti-
Commissioner of the Insurance Commission and the Chairman of the money laundering operations, which may include the use of its
Securities and Exchange Commission as members. The AMLC shall act personnel, facilities and resources for the more resolute prevention,
unanimously in the discharge of its functions as defined hereunder: detection and investigation of money laundering offenses and
prosecution of offenders.
(1) to require and receive covered transaction reports from covered
institutions; SEC. 8. Creation of a Secretariat. — The AMLC is hereby authorized to
establish a secretariat to be headed by an Executive Director who shall
(2) to issue orders addressed to the appropriate Supervising Authority or be appointed by the Council for a term of five (5) years. He must be a
the covered institution to determine the true identity of the owner of any member of the Philippine Bar, at least thirty-five (35) years of age and of
monetary instrument or property subject of a covered transaction report good moral character, unquestionable integrity and known probity. All
or request for assistance from a foreign State, or believed by the members of the Secretariat must have served for at least five (5) years
Council, on the basis of substantial evidence, to be, in whole or in part, either in the Insurance Commission, the Securities and Exchange
wherever located, representing, involving, or related to, directly or Commission or the Bangko Sentral ng Pilipinas (BSP) and shall hold full-
indirectly, in any manner or by any means, the proceeds of an unlawful time permanent positions within the BSP.
activity;
SEC. 9. Prevention of Money Laundering; Customer Identification
(3) to institute civil forfeiture proceedings and all other remedial Requirements and Record Keeping. — (a) Customer Identification. —
proceedings through the Office of the Solicitor General; 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
(4) to cause the filing of complaints with the Department of Justice or clients, require a system of verifying their legal existence and
the Ombudsman for the prosecution of money laundering offenses; organizational structure, as well as the authority and identification of all
persons purporting to act on their behalf.
(5) to initiate investigations of covered transactions, money laundering
activities and other violations of this Act; The provisions of existing laws to the contrary notwithstanding,
anonymous accounts, accounts under fictitious names, and all other
(6) to freeze any monetary instrument or property alleged to be similar accounts shall be absolutely prohibited. Peso and foreign
proceeds of any unlawful activity; currency non-checking numbered accounts shall be allowed. The BSP
may conduct annual testing solely limited to the determination of the
(7) to implement such measures as may be necessary and justified existence and true identity of the owners of such accounts.
under this Act to counteract money laundering;
(b) Record Keeping. — All records of all transactions of covered (15) days. Notice to the depositor that his account has been frozen shall
institutions shall be maintained and safely stored for five (5) years from be issued simultaneously with the issuance of the freeze order. The
the dates of transactions. With respect to closed accounts, the records depositor shall have seventy-two (72) hours upon receipt of the notice to
on customer identification, account files and business correspondence, explain why the freeze order should be lifted. The AMLC has seventy-two
shall be preserved and safely stored for at least five (5) years from the (72) hours to dispose of the depositor’s explanation. If it fails to act
dates when they were closed. within seventy-two (72) hours from receipt of the depositor’s
explanation, the freeze order shall automatically be dissolved. The
(c) Reporting of Covered Transactions. — Covered institutions shall fifteen (15)-day freeze order of the AMLC may be extended upon order
report to the AMLC all covered transactions within five (5) working days of the court, provided that the fifteen (15)-day period shall be tolled
from occurrence thereof, unless the Supervising Authority concerned pending the court’s decision to extend the period.
prescribes a longer period not exceeding ten (10) working days.
No court shall issue a temporary restraining order or writ of injunction
When reporting covered transactions to the AMLC, covered institutions against any freeze order issued by the AMLC except the Court of
and their officers, employees, representatives, agents, advisors, Appeals or the Supreme Court.
consultants or associates shall not be deemed to have violated Republic
Act No. 1405, as amended; Republic Act No. 6426, as amended; SEC. 11. Authority to Inquire into Bank Deposits. — Notwithstanding the
Republic Act No. 8791 and other similar laws, but are prohibited from provisions of Republic Act No. 1405, as amended; Republic Act No. 6426,
communicating, directly or indirectly, in any manner or by any means, to as amended; Republic Act No. 8791, and other laws, the AMLC may
any person the fact that a covered transaction report was made, the inquire into or examine any particular deposit or investment with any
contents thereof, or any other information in relation thereto. In case of banking institution or non-bank financial institution upon order of any
violation thereof, the concerned officer, employee, representative, competent court in cases of violation of this Act when it has been
agent, advisor, consultant or associate of the covered institution, shall established that there is probable cause that the deposits or
be criminally liable. However, no administrative, criminal or civil investments involved are in any way related to a money laundering
proceedings, shall lie against any person for having made a covered offense: Provided, That this provision shall not apply to deposits and
transaction report in the regular performance of his duties and in good investments made prior to the effectivity of this Act.
faith, whether or not such reporting results in any criminal prosecution
under this Act or any other Philippine law. SEC. 12. Forfeiture Provisions.

When reporting covered transactions to the AMLC, covered institutions (a) Civil Forfeiture. — When there is a covered transaction report made,
and their officers, employees, representatives, agents, advisors, and the court has, in a petition filed for the purpose ordered seizure of
consultants or associates are prohibited from communicating, directly or any monetary instrument or property, in whole or in part, directly or
indirectly, in any manner or by any means, to any person, entity, the indirectly, related to said report, the Revised Rules of Court on civil
media, the fact that a covered transaction report was made, the forfeiture shall apply.
contents thereof, or any other information in relation thereto. Neither
may such reporting be published or aired in any manner or form by the (b) Claim on Forfeiture Assets. — Where the court has issued an order of
mass media, electronic mail, or other similar devices. In case of violation forfeiture of the monetary instrument or property in a criminal
thereof, the concerned officer, employee, representative, agent, advisor, prosecution for any money laundering offense defined under Section 4
consultant or associate of the covered institution, or media shall be held of this Act, the offender or any other person claiming an interest therein
criminally liable. may apply, by verified petition, for a declaration that the same
legitimately belongs to him and for segregation or exclusion of the
SEC. 10. Authority to Freeze. — Upon determination that probable cause monetary instrument or property corresponding thereto. The verified
exists that any deposit or similar account is in any way related to an petition shall be filed with the court which rendered the judgment of
unlawful activity, the AMLC may issue a freeze order, which shall be conviction and order of forfeiture, within fifteen (15) days from the date
effective immediately, on the account for a period not exceeding fifteen
of the order of forfeiture, in default of which the said order shall become said monetary instrument or property of a person who has been
final and executory. This provision shall apply in both civil and criminal convicted of a money laundering offense in the requesting State, and a
forfeiture. 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
(c) Payment in Lieu of Forfeiture. — Where the court has issued an order no further appeal lies in respect of either. AEDISC
of forfeiture of the monetary instrument or property subject of a money
laundering offense defined under Section 4, and said order cannot be (c) Obtaining Assistance from Foreign States. — The AMLC may make a
enforced because any particular monetary instrument or property request to any foreign State for assistance in (1) tracking down,
cannot, with due diligence, be located, or it has been substantially freezing, restraining and seizing assets alleged to be proceeds of any
altered, destroyed, diminished in value or otherwise rendered worthless unlawful activity; (2) obtaining information that it needs relating to any
by any act or omission, directly or indirectly, attributable to the offender, covered transaction, money laundering offense or any other matter
or it has been concealed, removed, converted or otherwise transferred directly or indirectly related thereto; (3) to the extent allowed by the law
to prevent the same from being found or to avoid forfeiture thereof, or it of the foreign State, applying with the proper court therein for an order
is located outside the Philippines or has been placed or brought outside to enter any premises belonging to or in the possession or control of,
the jurisdiction of the court, or it has been commingled with other any or all of the persons named in said request, and/or search any or all
monetary instruments or property belonging to either the offender such persons named therein and/or remove any document, material or
himself or a third person or entity, thereby rendering the same difficult object named in said request: Provided, That the documents
to identify or be segregated for purposes of forfeiture, the court may, accompanying the request in support of the application have been duly
instead of enforcing the order of forfeiture of the monetary instrument authenticated in accordance with the applicable law or regulation of the
or property or part thereof or interest therein, accordingly order the foreign State; and (4) applying for an order of forfeiture of any monetary
convicted offender to pay an amount equal to the value of said instrument or property in the proper court in the foreign State: Provided,
monetary instrument or property. This provision shall apply in both civil That the request is accompanied by an authenticated copy of the order
and criminal forfeiture. of the regional trial court ordering the forfeiture of said monetary
instrument or property of a convicted offender and an affidavit of the
SEC. 13. Mutual Assistance among States. clerk of court stating that the conviction and the order of forfeiture are
final and that no further appeal lies in respect of either.
(a) Request for Assistance from a Foreign State. — Where a foreign
State makes a request for assistance in the investigation or prosecution (d) Limitations on Request for Mutual Assistance. — The AMLC may
of a money laundering offense, the AMLC may execute the request or refuse to comply with any request for assistance where the action
refuse to execute the same and inform the foreign State of any valid sought by the request contravenes any provision of the Constitution or
reason for not executing the request or for delaying the execution the execution of a request is likely to prejudice the national interest of
thereof. The principles of mutuality and reciprocity shall, for this the Philippines unless there is a treaty between the Philippines and the
purpose, be at all times recognized. requesting State relating to the provision of assistance in relation to
money laundering offenses.
(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 (e) Requirements for Requests for Mutual Assistance from Foreign
foreign State by: (1) tracking down, freezing, restraining and seizing States. — A request for mutual assistance from a foreign State must (1)
assets alleged to be proceeds of any unlawful activity under the confirm that an investigation or prosecution is being conducted in
procedures laid down in this Act; (2) giving information needed by the respect of a money launderer named therein or that he has been
foreign State within the procedures laid down in this Act; and (3) convicted of any money laundering offense; (2) state the grounds on
applying for an order of forfeiture of any monetary instrument or which any person is being investigated or prosecuted for money
property in the court: Provided, That the court shall not issue such an laundering or the details of his conviction; (3) give sufficient particulars
order unless the application is accompanied by an authenticated copy of as to the identity of said person; (4) give particulars sufficient to identify
the order of a court in the requesting State ordering the forfeiture of any covered institution believed to have any information, document,
material or object which may be of assistance to the investigation or pesos (Php500,000.00), or both, shall be imposed on a person convicted
prosecution; (5) ask from the covered institution concerned any under Section 4(c) of this Act.
information, document, material or object which may be of assistance to
the investigation or prosecution; (6) specify the manner in which and to (b) Penalties for Failure to Keep Records. The penalty of imprisonment
whom said information, document, material or object obtained pursuant from six (6) months to one (1) year or a fine of not less than One
to said request, is to be produced; (7) give all the particulars necessary hundred thousand Philippine pesos (Php100,000.00) but not more than
for the issuance by the court in the requested State of the writs, orders Five hundred thousand Philippine pesos (Php500,000.00), or both, shall
or processes needed by the requesting State; and (8) contain such other be imposed on a person convicted under Section 9(b) of this Act.
information as may assist in the execution of the request.
(c) Malicious Reporting. Any person who, with malice, or in bad faith,
(f) Authentication of Documents. — For purposes of this Section, a report or files a completely unwarranted or false information relative to
document is authenticated if the same is signed or certified by a judge, money laundering transaction against any person shall be subject to a
magistrate or equivalent officer in or of, the requesting State, and penalty of six (6) months to four (4) years imprisonment and a fine of
authenticated by the oath or affirmation of a witness or sealed with an not less than One hundred thousand Philippine pesos (Php100,000.00)
official or public seal of a minister, secretary of State, or officer in or of, but not more than Five hundred thousand Philippine pesos
the government of the requesting State, or of the person administering (Php500,000.00), at the discretion of the court: Provided, That the
the government or a department of the requesting territory, offender is not entitled to avail the benefits of the Probation Law.
protectorate or colony. The certificate of authentication may also be
made by a secretary of the embassy or legation, consul general, consul, If the offender is a corporation, association, partnership or any juridical
vice consul, consular agent or any officer in the foreign service of the person, the penalty shall be imposed upon the responsible officers, as
Philippines stationed in the foreign State in which the record is kept, and the case may be, who participated in the commission of the crime or
authenticated by the seal of his office. 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
(g) Extradition. — The Philippines shall negotiate for the inclusion of license. If the offender is an alien, he shall, in addition to the penalties
money laundering offenses as herein defined among extraditable herein prescribed, be deported without further proceedings after serving
offenses in all future treaties. the penalties herein prescribed. If the offender is a public official or
employee, he shall, in addition to the penalties prescribed herein, suffer
SEC. 14. Penal Provisions. — (a) Penalties for the Crime of Money perpetual or temporary absolute disqualification from office, as the case
Laundering. The penalty of imprisonment ranging from seven (7) to may be.
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 Any public official or employee who is called upon to testify and refuses
monetary instrument or property involved in the offense, shall be to do the same or purposely fails to testify shall suffer the same
imposed upon a person convicted under Section 4(a) of this Act. penalties prescribed herein.

The penalty of imprisonment from four (4) to seven (7) years and a fine (d) Breach of Confidentiality. The punishment of imprisonment ranging
of not less than One million five hundred thousand Philippine pesos from three (3) to eight (8) years and a fine of not less than Five hundred
(Php1,500,000.00) but not more than Three million Philippine pesos thousand Philippine pesos (Php500,000.00) but not more than One
(Php3,000,000.00), shall be imposed upon a person convicted under million Philippine pesos (Php1,000,000.00), shall be imposed on a
Section 4(b) of this Act. person convicted for a violation under Section 9(c).

The penalty of imprisonment from six (6) months to four (4) years or a SEC. 15. System of Incentives and Rewards. — A system of special
fine of not less than One hundred thousand Philippine pesos incentives and rewards is hereby established to be given to the
(Php100,000.00) but not more than Five hundred thousand Philippine appropriate government agency and its personnel that led and initiated
an investigation, prosecution and conviction of persons involved in the SEC. 20. Appropriations Clause. — The AMLC shall be provided with an
offense penalized in Section 4 of this Act. initial appropriation of Twenty-five million Philippine pesos
(Php25,000,000.00) to be drawn from the national government.
SEC. 16. Prohibitions Against Political Harassment. — This Act shall not Appropriations for the succeeding years shall be included in the General
be used for political persecution or harassment or as an instrument to Appropriations Act.
hamper competition in trade and commerce.
SEC. 21. Separability Clause. — If any provision or section of this Act or
No case for money laundering may be filed against and no assets shall the application thereof to any person or circumstance is held to be
be frozen, attached or forfeited to the prejudice of a candidate for an invalid, the other provisions or sections of this Act, and the application of
electoral office during an election period. such provision or section to other persons or circumstances, shall not be
affected thereby.
SEC. 17. Restitution. — Restitution for any aggrieved party shall be
governed by the provisions of the New Civil Code. SEC. 22. Repealing Clause. — All laws, decrees, executive orders, rules
and regulations or parts thereof, including the relevant provisions of
SEC. 18. Implementing Rules and Regulations. — Within thirty (30) days Republic Act No. 1405, as amended; Republic Act No. 6426, as
from the effectivity of this Act, the Bangko Sentral ng Pilipinas, the amended; Republic Act No. 8791, as amended and other similar laws, as
Insurance Commission and the Securities and Exchange Commission are inconsistent with this Act, are hereby repealed, amended or
shall promulgate the rules and regulations to implement effectively the modified accordingly.
provisions of this Act. Said rules and regulations shall be submitted to
the Congressional Oversight Committee for approval. SEC. 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
Covered institutions shall formulate their respective money laundering newspapers of general circulation.
prevention programs in accordance with this Act including, but not
limited to, information dissemination on money laundering activities and The provisions of this Act shall not apply to deposits and investments
its prevention, detection and reporting, and the training of responsible made prior to its effectivity.
officers and personnel of covered institutions.

SEC. 19. Congressional Oversight Committee. — There is hereby created

a Congressional Oversight Committee composed of seven (7) members
from the Senate and seven (7) members from the House of
Representatives. The members from the Senate shall be appointed by
the Senate President based on the proportional representation of the
parties or coalitions therein with at least two (2) Senators representing
the minority. The members from the House of 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.

The Oversight Committee shall have the power to promulgate its own
rules, to oversee the implementation of this Act, and to review or revise
the implementing rules issued by the Anti-Money Laundering Council
within thirty (30) days from the promulgation of the said rules.