ANTI-MONEY LAUNDERING ACT of

2001 (AMLA), as amended by

RA 9194, RA 10167, RA 10365, RA
10927
 Money Laundering
- a crime committed by 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;
 Money Laundering
Cont’d.
(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);
 Money Laundering
Cont’d.
(5) aids, abets, assists in or counsels the
commission of the money laundering
offenses referred to in (1), (2), or (3);
(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).
 Money Laundering
Cont’d.
(7) This is also committed by failure to
report to the Anti-Money Laundering
Council (AMLC) by any covered person
knowing that a covered or suspicious
transaction is required under the Anti-
Money Laundering Law to be reported
thereto (RA 9160, as amended by RA
10365 approved on 2/15/13)
 ‘Covered transaction’
is a transaction in cash or other equivalent
monetary instrument involving a total amount in
excess of Five hundred thousand pesos
(P500,000.00) within one (1) banking day; for
casinos, a single casino transaction involving an
amount in excess of Five million pesos
(₱5,000,000.00) or its equivalent in any other
currency. (RA 9160, as amended by RA 10927)
 ‘Covered persons’
- natural or juridical, refer to:
(1) banks, non-banks, quasi-banks, trust
entities, foreign exchange dealers,
pawnshops, money changers, remittance
and transfer companies and other similar
entities and all other persons and their
subsidiaries and affiliates supervised or
regulated by the Bangko Sentral ng
Pilipinas (BSP);
 ‘Covered persons’
Cont’d.
(2) insurance companies, pre-need
companies and all other persons
supervised or regulated by the Insurance
Commission (IC);
 ‘Covered persons’
Cont’d.
(3)
(i) securities dealers, brokers,
salesmen, investment houses and other
similar persons managing securities or
rendering services as investment agent,
advisor, or consultant,
(ii) mutual funds, close-end
investment companies, common trust
funds, and other similar persons, and
 ‘Covered persons’
Cont’d.
(3)
(iii) other entities administering or
otherwise dealing in currency,
commodities or financial derivatives based
thereon, valuable objects, cash substitutes
and other similar monetary instruments
or property supervised or regulated by the
Securities and Exchange Commission (SEC);
 ‘Covered persons’
Cont’d.
(4) jewelry dealers in precious metals,
who, as a business, trade in precious
metals, for transactions in excess of One
million pesos (P1,000,000.00);
(5) jewelry dealers in precious stones, who,
as a business, trade in precious stones, for
transactions in excess of One million pesos
(P1,000,000.00);
 ‘Covered persons’
Cont’d.
(6) company service providers which, as a
business, provide any of the following
services to third parties:
(i) acting as a formation agent of
juridical persons;
 ‘Covered persons’
Cont’d.
(6)
(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;
 ‘Covered persons’
Cont’d.
(6)
(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
 ‘Covered persons’
Cont’d.
(6)
(iv) acting as (or arranging for
another person to act as) a nominee
shareholder for another person; and
(7) persons who provide any of the
following services:
(i) managing of client money,
securities or other assets;
 ‘Covered persons’
Cont’d.
(7) persons who provide any of the
following services:
(ii) management of bank, savings or
securities accounts;
(iii) organization of contributions for
the creation, operation or management of
companies; and
 ‘Covered persons’
Cont’d.
(7) persons who provide any of the
following services:
(iv) creation, operation or
management of juridical persons or
arrangements, and buying and selling
business entities.
 ‘Covered persons’
Cont’d.
(8) casinos, including internet and
ship-based casinos, with respect to their
casino cash transactions related to their
gaming operations.(RA 916, as amended
by RA 10927)
 ‘Covered persons’
NOTE:
The term ‘covered persons’ shall exclude
lawyers and accountants acting as independent
legal professionals in relation to information
concerning their clients or where disclosure of
information would compromise client
confidences or the attorney-client relationship
 ‘Covered persons’
QUESTION:
Jermaine is jobless but is reputed to be a
jueteng operator. He has never been charged or
convicted of any crime. He maintains several
bank accounts and has purchased several
houses from Artiaga Realty, Inc. Since he does
not have any visible job, Realty Company
reported his purchases to the AMLC.
 ‘Covered persons’
QUESTION:
Thereafter, AMLC charged him with violation of
the Anti-Money Laundering Law. Upon request
of the AMLC, the bank disclosed to it Jermaine’s
bank deposits amounting to 200 million pesos.
 ‘Covered persons’
QUESTION:
Subsequently, he was charged in court. To raise
funds for his defense, Jermaine sold the houses
and lots to a friend. Can Artiaga Realty, Inc.
refused to transfer to the buyer ownership of
the houses and lots?
 ‘Covered persons’
ANS: No, Artiaga Realty, Inc. cannot refuse to transfer
ownership of the houses. It is a real estate company,
hence it is not a covered institution under Sec 3, of the
Anti-Money Laundering Act. Only banking institutions,
insurance companies, securities dealers and brokers,
pre-need companies and other entities administering
or otherwise dealing in currency, commodities or
financial derivatives are covered institutions. Hence,
Artiaga Realty, Inc. may not use the Anti-Money
Laundering Act to refuse to transfer to the buyer
ownership of the houses and lots.
 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;
 Suspicious transaction
Cont’d.
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;
 Suspicious transaction
Cont’d.
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.
 UNLAWFUL ACTIVITY
refers to any act or omission or series or
combination thereof involving or having direct
relation to the following:
(1) Kidnapping for ransom under Article
267 of Act No. 3815, otherwise known as
the Revised Penal Code, as amended;
(2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14,
15 and 16 of Republic Act No. 9165,
otherwise known as the Comprehensive
Dangerous Drugs Act of 2002;
 UNLAWFUL ACTIVITY
Cont’d.
(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;
(4) Plunder under Republic Act No. 7080,
as amended;
(5) Robbery and extortion under Articles
294, 295, 296, 299, 300, 301 and 302 of
the Revised Penal Code, as amended;
 UNLAWFUL ACTIVITY
Cont’d.
(6) Jueteng and Masiao punished as illegal
gambling under Presidential Decree No.
1602;
(7) Piracy on the high seas under the
Revised Penal Code, as amended and
Presidential Decree No. 532;
(8) Qualified theft under Article 310 of the
Revised Penal Code, as amended;
 UNLAWFUL ACTIVITY
Cont’d.
(9) Swindling under Article 315 and Other
Forms of Swindling under Article 316 of
the Revised Penal Code, as amended;
(10) Smuggling under Republic Act Nos.
455 and 1937;
(11) Violations of Republic Act No. 8792,
otherwise known as the Electronic
Commerce Act of 2000;
 UNLAWFUL ACTIVITY
Cont’d.
(12) Hijacking and other violations under
Republic Act No. 6235; destructive arson
and murder, as defined under the Revised
Penal Code, as amended;
(13) Terrorism and conspiracy to commit
terrorism as defined and penalized under
Sections 3 and 4 of Republic Act No. 9372;
 UNLAWFUL ACTIVITY
Cont’d.
(14) Financing of terrorism under Section
4 and offenses punishable under Sections
5, 6, 7 and 8 of Republic Act No. 10168,
otherwise known as the Terrorism
Financing Prevention and Suppression Act
of 2012
 UNLAWFUL ACTIVITY
Cont’d.
(15) Bribery under Articles 210, 211 and
211-A of the Revised Penal Code, as
amended, and Corruption of Public
Officers under Article 212 of the Revised
Penal Code, as amended;
(16) Frauds and Illegal Exactions and
Transactions under Articles 213, 214, 215
and 216 of the Revised Penal Code, as
amended;
 UNLAWFUL ACTIVITY
Cont’d.
(17) Malversation of Public Funds and
Property under Articles 217 and 222 of the
Revised Penal Code, as amended;
(18) Forgeries and Counterfeiting under
Articles 163, 166, 167, 168, 169 and 176 of
the Revised Penal Code, as amended;
 UNLAWFUL ACTIVITY
Cont’d.
(19) Violations of Sections 4 to 6 of
Republic Act No. 9208, otherwise known
as the Anti-Trafficking in Persons Act of
2003;
(20) Violations of Sections 78 to 79 of
Chapter IV, of Presidential Decree No. 705,
otherwise known as the Revised Forestry
Code of the Philippines, as amended;
 UNLAWFUL ACTIVITY
Cont’d.
(21) Violations of Sections 86 to 106 of
Chapter VI, of Republic Act No. 8550,
otherwise known as the Philippine
Fisheries Code of 1998;
(22) Violations of Sections 101 to 107, and
110 of Republic Act No. 7942, otherwise
known as the Philippine Mining Act of
1995;
 UNLAWFUL ACTIVITY
Cont’d.
(23) Violations of Section 27(c), (e), (f), (g)
and (i), of Republic Act No. 9147,
otherwise known as the Wildlife
Resources Conservation and Protection
Act;
(24) Violation of Section 7(b) of Republic
Act No. 9072, otherwise known as the
National Caves and Cave Resources
Management Protection Act;
 UNLAWFUL ACTIVITY
Cont’d.
(25) Violation of Republic Act No. 6539,
otherwise known as the Anti-Carnapping
Act of 2002, as amended;
(26) Violations of Sections 1, 3 and 5 of
Presidential Decree No. 1866, as amended,
otherwise known as the decree Codifying
the Laws on Illegal/Unlawful Possession,
Manufacture, Dealing In, Acquisition or
Disposition of Firearms, Ammunition or
 UNLAWFUL ACTIVITY
Cont’d.
(27) Violation of Presidential Decree No.
1612, otherwise known as the Anti-
Fencing Law;
(28) Violation of Section 6 of Republic Act
No. 8042, otherwise known as the Migrant
Workers and Overseas Filipinos Act of
1995, as amended by Republic Act No.
10022;
 UNLAWFUL ACTIVITY
Cont’d.
(29) Violation of Republic Act No. 8293,
otherwise known as the Intellectual
Property Code of the Philippines;
(30) Violation of Section 4 of Republic Act
No. 9995, otherwise known as the Anti-
Photo and Video Voyeurism Act of 2009;
(31) Violation of Section 4 of Republic Act
No. 9775, otherwise known as the Anti-
Child Pornography Act of 2009;
 UNLAWFUL ACTIVITY
Cont’d.
(32) Violations of Sections 5, 7, 8, 9, 10(c),
(d) and (e), 11, 12 and 14 of Republic Act
No. 7610, otherwise known as the Special
Protection of Children Against Abuse,
Exploitation and Discrimination;
(33) Fraudulent practices and other
violations under Republic Act No. 8799,
otherwise known as the Securities
Regulation Code of 2000; and
 UNLAWFUL ACTIVITY
Cont’d.
(34) Felonies or offenses of a similar
nature that are punishable under the penal
laws of other countries.” (Sec. 3(i) RA 9160,
as amended by RA 10365)
 Anti-Money Laundering Council
The Anti-Money Laundering Council shall be
composed of the Governor of the Bangko
Sentral ng Pilipinas as chairman, the
Commissioner of the Insurance Commission and
the Chairman of the Securities and Exchange
Commission as members.
 Jurisdiction of Money Laundering
Cases
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 conspiracy with such public
officers shall be under the jurisdiction of the
Sandiganbayan. (Sec. 5)
Prosecution of Money Laundering.
Any person may be charged with and convicted
of both the offense of money laundering and
the unlawful activity as herein defined.
PREVENTION OF MONEY LAUNDERING
(Sec. 9)
(a) Customer Identification. —
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.
PREVENTION OF MONEY LAUNDERING
(Sec. 9)
(a) Customer Identification. —
Cont’d.
The provisions of existing laws to the contrary
notwithstanding, anonymous accounts, accounts
under fictitious names, and all other similar
accounts shall be absolutely prohibited. Peso and
foreign currency non-checking numbered accounts
shall be allowed. The BSP may conduct annual
testing solely limited to the determination of the
existence and true identity of the owners of such
accounts.
PREVENTION OF MONEY LAUNDERING
(Sec. 9)
(b) Record Keeping. — All records of all
transactions of covered institutions shall be
maintained and safely stored for five (5) years
from the dates of transactions.
With respect to closed accounts, the records on
customer identification, account files and
business correspondence, shall be preserved
and safely stored for at least five (5) years from
the dates when they were closed.
PREVENTION OF MONEY LAUNDERING
(Sec. 9)
(c) Reporting of Covered Transactions. —
Covered institutions shall report to the AMLC all
covered transactions within five (5) working
days from occurrence thereof, unless the
Supervising Authority concerned prescribes a
longer period not exceeding ten (10) working
days.
PREVENTION OF MONEY LAUNDERING
(Sec. 9)
When reporting covered transactions to the
AMLC, covered institutions and their officers,
employees, representatives, agents, advisors,
consultants or associates shall not be deemed to
have violated Republic Act No. 1405 (Law on
Secrecy of Bank Deposits), as amended;
Republic Act No. 6426 (Foreign Currency Deposit
Act), as amended; Republic Act No.
8791(General Banking Laws) and other similar
laws, but are prohibited from communicating,
PREVENTION OF MONEY LAUNDERING
(Sec. 9)
directly or indirectly, in any manner or by any
means, to any person the fact that a covered
transaction report was made, the contents
thereof, or any other information in relation
thereto.
PREVENTION OF MONEY LAUNDERING
(Sec. 9)
In case of violation thereof, the concerned
officer, employee, representative, agent, advisor,
consultant or associate of the covered
institution, shall be criminally liable.
EXCEPTION: No administrative, criminal or civil
proceedings, shall lie against any person for
having made a covered transaction report in the
regular performance of his duties and in good
faith.
PREVENTION OF MONEY LAUNDERING
(Sec. 9)
In case of violation thereof, the concerned
officer, employee, representative, agent, advisor,
consultant or associate of the covered
institution, shall be criminally liable.
EXCEPTION: No administrative, criminal or civil
proceedings, shall lie against any person for
having made a covered transaction report in the
regular performance of his duties and in good
faith.
PREVENTION OF MONEY LAUNDERING
(Sec. 9)
When reporting covered transactions to the
AMLC, covered institutions and their officers,
employees, representatives, agents, advisors,
consultants or associates are prohibited from
communicating, directly or indirectly, in any
manner or by any means, to any person, entity,
the media, the fact that a covered transaction
report was made, the contents thereof, or any
other information in relation thereto. ….
PREVENTION OF MONEY LAUNDERING
(Sec. 9)
…. Neither may such reporting be published or
aired in any manner or form by the mass media,
electronic mail, or other similar devices. In case
of violation thereof, the concerned officer,
employee, representative, agent, advisor,
consultant or associate of the covered
institution, or media shall be held criminally
liable.
 FREEZING OF MONETARY
INSTRUMENT OR PROPERTY
The Court of Appeals may issue a Freeze Order
under the following conditions:
(1) There must be a verified ex parte
petition by the AMLC
(2) CA must determine that probable
cause exists that any monetary instrument
or property is in any way related to an
unlawful activity as defined in Section 3(i)
of Republic Act No. 9160
 FREEZING OF MONETARY
INSTRUMENT OR PROPERTY
Cont’d.
(3) The freeze order shall be effective
immediately,
(4) The freeze order shall be for a period of
twenty (20) days
(5) Within the twenty (20)-day period, the
Court of Appeals shall conduct a summary
hearing, with notice to the parties, to
determine whether or not to modify or lift
the freeze order, or extend its effectivity.
 FREEZING OF MONETARY
INSTRUMENT OR PROPERTY
Cont’d.
The total period of the freeze order issued
by the Court of Appeals under this
provision shall not exceed six (6) months.
(Sec. 10, RA 9160 as amended by RA
10927)
 FREEZING OF MONETARY
INSTRUMENT OR PROPERTY
NOTE:
If there is no case filed against a person
whose account has been frozen within the
period determined by the Court of
Appeals, not exceeding six (6) months, the
freeze order shall be seemed ipso
facto lifted:
 FREEZING OF MONETARY
INSTRUMENT OR PROPERTY
NOTE:
This is without prejudice to an asset
preservation order that the Regional Trial
Court having jurisdiction over the appropriate
anti-money laundering case or civil forfeiture
case may issue on the same account depending
upon the circumstances of the case, where the
Court of Appeals will remand the case and its
records:
 FREEZING OF MONETARY
INSTRUMENT OR PROPERTY
NOTE: The freeze order or asset preservation
order issued under this Act shall be limited only
to the amount of cash or monetary instrument
or value of property that the court finds there is
probable cause to be considered as proceeds of
a predicate offense, and the freeze order or
asset preservation order shall not apply to
amounts in the same account in excess of the
amount or value of the proceeds of the
predicate offense.
 FREEZING OF MONETARY
INSTRUMENT OR PROPERTY
a. The Court of Appeals should act on the
petition to freeze within twenty-four (24) hours
from filing of the petition. If the application is
filed a day before a nonworking day, the
computation of the twenty-four (24)-hour
period shall exclude the nonworking days. (Sec.
10, RA 9160 as amended by RA 10167)
 FREEZING OF MONETARY
INSTRUMENT OR PROPERTY
b. A person whose account has been frozen may
file a motion to lift the freeze order and the
court must resolve this motion before the
expiration of freeze order (Section 10, RA 9160,
as amended by RA 10167 and RA 10365)
c. No court shall issue a temporary restraining
order or a writ of injunction against any freeze
order, except the Supreme Court (Sec. 10, RA
9160, as amended by RA 10167)
 AUTHORITY OF AMLC TO INQUIRE
INTO AND EXAMINE BANK DEPOSITS
(Sec. 11, RA 9160, as amended by RA
10167)
The AMLC may inquire into or examine any
particular deposit or investment, including
related accounts, with any banking institution or
non-bank financial institution. This can be either
upon order of the court or even without court
order in certain exceptional cases.
 AUTHORITY OF AMLC TO INQUIRE
INTO AND EXAMINE BANK DEPOSITS
(Sec. 11, RA 9160, as amended by RA
10167)
a. COURT ORDER REQUIRED: Examination by
AMLC based on a Court Order upon Ex Parte
Application – in cases of violations of Republic
Act No. 9160 as amended, when it has been
established that there is probable cause that the
deposits or investments, including related
accounts involved, are related to (1) an Unlawful
Activity or (2) a money laundering offense.
 AUTHORITY OF AMLC TO INQUIRE
INTO AND EXAMINE BANK DEPOSITS
(Sec. 11, RA 9160, as amended by RA
10167)
RELATED ACCOUNTS. A court order ex parte
must first be obtained before the AMLC can
inquire into Related Accounts.
NOTE: RELATED ACCOUNTS shall refer to
accounts, the funds and sources of which
originated from and/or are materially linked to
the monetary instrument(s) or property(ies)
subject of the freeze order(s).
 AUTHORITY OF AMLC TO INQUIRE
INTO AND EXAMINE BANK DEPOSITS
(Sec. 11, RA 9160, as amended by RA
10167)
(1) RELATED ACCOUNTS. A court order ex parte
must first be obtained before the AMLC can
inquire into Related Accounts.
NOTE: RELATED ACCOUNTS shall refer to
accounts, the funds and sources of which
originated from and/or are materially linked to
the monetary instrument(s) or property(ies)
subject of the freeze order(s).
 AUTHORITY OF AMLC TO INQUIRE
INTO AND EXAMINE BANK DEPOSITS
(Sec. 11, RA 9160, as amended by RA
10167)
(2) The Court of Appeals must act on the
application within 24 hours from the filing.
 AUTHORITY OF AMLC TO INQUIRE
INTO AND EXAMINE BANK DEPOSITS
(Sec. 11, RA 9160, as amended by RA
10167)
b. NO COURT ORDER shall be required for the
examination of bank deposits by AMLC in cases
involving:
1. Kidnapping for ransom under Article
267 of Act No. 3815, otherwise known as
the Revised Penal Code, as amended;
 AUTHORITY OF AMLC TO INQUIRE
INTO AND EXAMINE BANK DEPOSITS
(Sec. 11, RA 9160, as amended by RA
10167)
Cont’d.
2. Sections 4, 5, 7, 8, 9, 10, 12, 13, 14, 15
and 16 of Republic Act No. 9165 otherwise
known as the Comprehensive Dangerous
Drugs Act of 2002;
 AUTHORITY OF AMLC TO INQUIRE
INTO AND EXAMINE BANK DEPOSITS
(Sec. 11, RA 9160, as amended by RA
10167)
Cont’d.
3. Hijacking and other violations under
Republic Act No. 6235; destructive arson and
murder, as defined under the Revised Penal
Code, as amended, including those
perpetrated by terrorists against non-
combatant persons and similar targets;
 AUTHORITY OF AMLC TO INQUIRE
INTO AND EXAMINE BANK DEPOSITS
(Sec. 11, RA 9160, as amended by RA
10167)
Cont’d.
4. Felonies or offenses of a nature similar
to those mentioned in Section 3(i)(1), (2),
and (12), which are punishable under the
penal laws of other countries; and
5. Terrorism and conspiracy to commit
terrorism as defined and penalized under
Republic Act No. 9372;
 AUTHORITY OF AMLC TO INQUIRE
INTO AND EXAMINE BANK DEPOSITS
(Sec. 11, RA 9160, as amended by RA
10167)
Cont’d.
c. The authority of AMLC to inquire into or
examine the main account and the related
accounts shall comply with the requirements of
Article III, Sections 2 and 3 of the 1987
Constitution
NOTE: Secs. 2 and 3 of Art III of the 1987 Consti.
Section 2. xxx no search warrant or warrant of
arrest shall issue except upon probable cause to
be determined personally by the judge after
examination under oath or affirmation of the
complainant and the witnesses he may produce,
and particularly describing the place to be
searched and the persons or things to be seized.
Section 3. (1) The privacy of communication and
correspondence shall be inviolable except upon
lawful order of the court, or when public safety
or order requires otherwise, as prescribed by
law. xxx