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    Anti Money Laundering Act Memo

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    Ipe Closa
    The document outlines key aspects of the Anti Money Laundering Act in the Philippines, including defining covered transactions and suspicious transactions, money laundering crimes, prohibited anonymous accounts, customer due diligence and record keeping requirements, reporting obligations, and penalties. Covered transactions are those over 500,000 PHP within one day, while suspicious transactions can be any amount that lack economic purpose, proper customer ID, or seem structured to avoid reporting. Money laundering involves conducting financial transactions with proceeds known to be from unlawful activities. Prohibited are anonymous accounts and those under fictitious names. Banks must verify customer identities and maintain records for 5 years. Failure to comply can result in fines or imprisonment.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd

    Anti Money Laundering Act Memo

    Uploaded by

    Ipe Closa
    361 views4 pages
    The document outlines key aspects of the Anti Money Laundering Act in the Philippines, including defining covered transactions and suspicious transactions, money laundering crimes, prohibited anonymous accounts, customer due diligence and record keeping requirements, reporting obligations, and penalties. Covered transactions are those over 500,000 PHP within one day, while suspicious transactions can be any amount that lack economic purpose, proper customer ID, or seem structured to avoid reporting. Money laundering involves conducting financial transactions with proceeds known to be from unlawful activities. Prohibited are anonymous accounts and those under fictitious names. Banks must verify customer identities and maintain records for 5 years. Failure to comply can result in fines or imprisonment.

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    Memo on AMLA

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    Anti Money Laundering Act Memo.doc

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    The document outlines key aspects of the Anti Money Laundering Act in the Philippines, including defining covered transactions and suspicious transactions, money laundering crimes, prohibited anonymous accounts, customer due diligence and record keeping requirements, reporting obligations, and penalties. Covered transactions are those over 500,000 PHP within one day, while suspicious transactions can be any amount that lack economic purpose, proper customer ID, or seem structured to avoid reporting. Money laundering involves conducting financial transactions with proceeds known to be from unlawful activities. Prohibited are anonymous accounts and those under fictitious names. Banks must verify customer identities and maintain records for 5 years. Failure to comply can result in fines or imprisonment.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    361 views4 pages

    Anti Money Laundering Act Memo

    Uploaded by

    Ipe Closa
    The document outlines key aspects of the Anti Money Laundering Act in the Philippines, including defining covered transactions and suspicious transactions, money laundering crimes, prohibited anonymous accounts, customer due diligence and record keeping requirements, reporting obligations, and penalties. Covered transactions are those over 500,000 PHP within one day, while suspicious transactions can be any amount that lack economic purpose, proper customer ID, or seem structured to avoid reporting. Money laundering involves conducting financial transactions with proceeds known to be from unlawful activities. Prohibited are anonymous accounts and those under fictitious names. Banks must verify customer identities and maintain records for 5 years. Failure to comply can result in fines or imprisonment.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    of 4

    Anti Money Laundering Act

    I.

    Covered Transactions
    (b) "Covered transaction" a transaction in cash or other equivalent monetary
    instrument involving a total amount in excess of five hundred thousand pesos (Php
    500,000.00) within one (1) banking day.
    b-1 Suspicious Transaction is a transaction, regardless of amount, where any of the
    following circumstances exists:
    There is no underlying legal/trade obligation, purpose or economic justification;
    The client is not properly identified;
    The amount involved is not commensurate with the business or financial capacity of
    the client;
    Taking into account all known circumstances, it may be perceived that the clients
    transaction is structured in order to avoid being the subject of reporting requirements
    under the AMLA ;
    Any circumstance relating to the transaction which is observed to deviate from the
    profile of the client and/or the clients past transactions with the covered person;
    The transaction is in any way related to an unlawful activity or any money
    laundering activity or offense under the AMLA, that is about to be, is being or has
    been committed; or
    Any transaction that is similar, analogous or identical to any of the foregoing.

    II.

    Criminal Act: Money Laundering


    A. Definition: a crime whereby the proceeds of an unlawful activity are transacted,
    thereby making them appear to have originated from legitimate sources.
    B. Definition of unlawful activity: refers to any act or omission or series or
    combination thereof involving or having relation to the following (as may be
    applicable in the circumstances given):
    (1)
    (2)

    Qualified theft under Article 310 of the Revised Penal Code, as amended;
    Swindling under Article 315 of the Revised Penal Code, as amended;

    C. Punishable Acts
    (i)

    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.

    (ii)

    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.
    (iii)

    III.

    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.

    Prohibition on anonymous accounts, accounts under fictitious names and all other
    similar accounts are prohibited.
    SEC. 9. Prevention of Money Laundering; Customer Identification
    Requirements and Record Keeping.
    (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. 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.

    IV.

    Who can report:


    - Based on the AMLA, covered persons such as banks are mandated to submit
    covered and suspicious transaction reports.

    V.

    Penalties
    (a) Penalties for the Crime of Money Laundering.

    The penalty of imprisonment ranging from seven (7) to fourteen (14) years
    and a fine of not less than Three million Philippine pesos (Php 3,000,000.00)
    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 this Act.

    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 this Act.

    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 this Act.

    (b) Penalties for Failure to Keep Records. The penalty of imprisonment from six

    (6) months to one (1) year or a fine of not less than One hundred thousand
    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 this Act.
    (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.
    (c) Malicious Reporting. Any person who, with malice, or in bad faith, reports or
    files a completely unwarranted or false information relative to money laundering
    transaction against any person shall be subject to a penalty 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.
    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.
    Any public official or employee who is called upon to testify and refuses to do the
    same or purposely fails to testify shall suffer the same penalties prescribed herein.
    (d) Breach of Confidentiality. 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).

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