THE ANTI-MONEY LAUNDERING ACT regulated by the Securities and

(R.A. No. 9160, as amended by R.A. No. Exchange Commission (SEC);

9194, R.A. No. 10167 and R.A. No.
10365) 4) Jewelry dealers in precious metals,
who, as a business, trade in precious
Policy of the Law metals, for transactions in excess of
One million pesos (P1,000,000.00);
1. To protect and preserve the integrity
and confidentiality of bank accounts 5) Jewelry dealers in precious stones,
and to ensure that the Philippines shall who, as a business, trade in precious
not be used as a money laundering site stones, for transactions in excess of
for the proceeds of any unlawful One million pesos (P1,000,000.00);
activity; and
2. The State shall extend cooperation in 6) Company service providers which, as
transnational investigations and a business, provide any of the
prosecutions of persons involved in following services to third parties: (i)
money laundering activities wherever acting as a formation agent of juridical
committed. persons; (ii) acting as (or arranging for
another person to act as) a director or
Covered Institutions corporate secretary of a company, a
partner of a partnership, or a similar
1) Banks, non-banks, quasi-banks, trust position in relation to other juridical
entities, foreign exchange dealers, persons; (iii) providing a registered
pawnshops, money changers, office, business address or
remittance and transfer companies accommodation, correspondence or
and other similar entities and all other administrative address for a company,
persons and their subsidiaries and a partnership or any other legal person
affiliates supervised or regulated by or arrangement; and (iv) acting as (or
the BSP; arranging for another person to act as)
a nominee shareholder for another
2) Insurance companies, pre-need person; and
companies and all other persons
supervised or regulated by the 7) Persons who provide any of the
Insurance Commission (IC); following services: (i) managing of
client money, securities or other
assets; (ii) management of bank,
3) (i) Securities dealers, brokers, savings or securities accounts; (iii)
salesmen, investment houses and organization of contributions for the
other similar persons managing creation, operation or management of
securities or rendering services as companies; and (iv) creation,
investment agent, advisor, or operation or management of juridical
consultant, (ii) mutual funds, close- persons or arrangements, and buying
end investment companies, common and selling business entities (R.A. No.
trust funds, and other similar persons, 10635, Sec. 1).
and (iii) other entities administering or
otherwise dealing in currency, Obligations of Covered Institutions
commodities or financial derivatives
based thereon, valuable objects, cash 1. To ensure that true and full identity of
substitutes and other similar monetary all Bank customers is established and
instruments or property supervised or to understand the nature of customers
business;
2. To preserve and store all records of all from the profile and/or the clients past
business transactions for a period of at transactions with the covered
least five (5) years; and institution;
3. To report covered and suspicious 4. Amount involved is not commensurate
transactions to AMLC within ten (10) with the business or financial capacity
working days from occurrence thereof of the client;
as per Circular No. 612, dated 13 June 5. Taking into account all known
2008, unless Supervising Authority circumstances, it may be perceived that
prescribes longer period or upon the clients transaction is structured in
verified/ confirm knowledge of the Bank order to avoid being the subject of
on basis for suspicious transaction. reporting requirement under the Act;
6. Transaction is in any way related to
Covered Transactions unlawful activity or offense under this
1. Any transaction in cash or other Act that is about to be, is being, or has
equivalent monetary instrument been committed; or
involving a total amount in excess of 7. Analogous or similar transactions to
Five hundred thousand pesos (Php any of the foregoing.
500,000.00) within one (1) banking day
(R.A. No. 9194, Sec. 1). When is Money Laundering Committed
2. Jewelry dealers in precious stones,
who, as a business, trade in precious Money laundering is committed by any
stones, for transactions in excess of person who, knowing that any monetary
One million pesos (P1,000,000.00) instrument or property represents,
(R.A. No. 10635, Sec. 1). involves, or relates to the proceeds of any
3. The Land Registration Authority and all unlawful activity: (TCC-AAP-F)
its Registries of Deeds to submit to the
AMLC, reports on all real estate 1. Transacts said monetary instrument or
transactions involving an amount in property
excess of Five hundred thousand
pesos (P500,000.00) within fifteen (15) 2. Converts, transfers, disposes of,
days from the date of registration of the moves, acquires, possesses or uses
transaction, in a form to be prescribed said monetary instrument or property
by the AMLC. The AMLC may also
require the Land Registration Authority 3. Conceals or disguises the true nature,
and all its Registries of Deeds to submit source, location, disposition,
copies of relevant documents of all real movement or ownership of or rights
estate transactions (R.A. No. 10635, with respect to said monetary
Sec. 7). instrument or property

Suspicious Transactions 4. Attempts or conspires to commit

Transactions with covered institutions money laundering offenses referred to
regardless of the amounts involved, in 1, 2, or 3
where any of the following circumstances
exists: (No Id D Notbf ARA) 5. Aids, abets, assists in or counsels the
commission of the money laundering
1. There is no underlying legal or trade offenses referred to in 1, 2, or 3
obligation, purpose or economic
justification; 6. Performs or fails to perform any act as
2. Client is not properly identified; a result of which he facilitates the
3. Any circumstance relating to the offense of money laundering referred to
transaction which is observed to devise in 1, 2, or 3
 terrorism
7. Money laundering is also committed by 14. Financing of terrorism and offenses
any covered person who, knowing that punishable under Terrorism Financing
a covered or suspicious transaction is Prevention and Suppression Act of
required under this Act to be reported 2012
to the AMLC, fails to do so (R.A. No. 15. Bribery and Corruption of Public
10365, Sec. 4). Officers
16. Frauds and Illegal Exactions and
3 Phases of Money Laundering Transactions
17. Forgeries and Counterfeiting
1. Placement the launderer inserts the 18. Violations of the Anti-Trafficking in
dirty money into a legitimate financial Persons Act of 2003
institution usually in the form of cash 19. Violations of Revised Forestry Code of
bank deposits (DIZON, supra at pp. the Philippines
431); 20. Violations of Philippine Mining Act of
2. Layering it involves sending money 1995
through various financial transactions 21. Violations of Philippine Mining Act of
to change its form and make it more 1995
difficult to follow. This is the most 22. Felonies or offenses of a similar nature
complex phase (Id.); that are punishable under the penal
3. Integration the money enters laws of other countries
mainstream economy in legitimate- 23. Violations of Section 27(c), (e), (f), (g)
looking form, appearing to have come and (i), of Republic Act No. 9147,
from some legitimate transaction. It otherwise known as the Wildlife
may involve a final bank transfer into Resources Conservation and
the account of a local business in which Protection Act
the launderer is investing in exchange 24. Violation of Section 7(b) of Republic Act
for a cut of the profits or the sale of high No. 9072, otherwise known as the
value items bought during the layering National Caves and Cave Resources
stage (DIZON, supra at pp. 431-4320. Management Protection Act
25. Violation of Republic Act No. 6539,
Unlawful Activities or Predicate Crimes otherwise known as the Anti-
1. Kidnapping for ransom Carnapping Act of 2002, as amended
2. Unlawful acts under the 26. Violations of Sections 1, 3 and 5 of
Comprehensive Dangerous Drug Act of Presidential Decree No. 1866, as
2002 amended, otherwise known as the
3. Corrupt Practices of public officers decree Codifying the Laws on
under Anti-Graft and Corrupt Practices Illegal/Unlawful Possession,
Act Manufacture, Dealing In, Acquisition or
4. Plunder Disposition of Firearms, Ammunition or
5. Robbery and extortion Explosives
6. Jueteng and Masiao punished as illegal 27. Violation of Presidential Decree No.
gambling 1612, otherwise known as the Anti-
7. Piracy on the high seas Fencing Law
8. Qualified theft 28. Violation of Section 6 of Republic Act
9. Swindling and other forms of swindling No. 8042, otherwise known as the
10. Smuggling Migrant Workers and Overseas
11. Violations of the Electric Commerce Act Filipinos Act of 1995, as amended by
of 2000 Republic Act No. 10022
12. Hijacking 29. Violation of Republic Act No. 8293,
13. Terrorism and conspiracy to commit otherwise known as the Intellectual
 Property Code of the Philippines through the Office of the Solicitor
30. Violation of Section 4 of Republic Act General;
No. 9995, otherwise known as the Anti- 4. To cause the filing of complaints with
Photo and Video Voyeurism Act of the Department of Justice or the
2009 Ombudsman for the prosecution of
31. Violation of Section 4 of Republic Act money laundering offenses;
No. 9775, otherwise known as the Anti- 5. To investigate suspicious transactions
Child Pornography Act of 2009 and covered transactions deemed
32. Violations of Sections 5, 7, 8, 9, 10(c), suspicious after an investigation by
(d) and (e), 11, 12 and 14 of Republic AMLC, money laundering activities and
Act No. 7610, otherwise known as the other violations of this Act;
Special Protection of Children Against 6. To apply before the Court of Appeals,
Abuse, Exploitation and Discrimination ex parte, for the freezing of any
33. Fraudulent practices and other monetary instrument or property
violations under Republic Act No. 8799, alleged to be laundered, proceeds
otherwise known as the Securities from, or instrumentalities used in or
Regulation Code of 2000 (R.A. No. intended for use in any unlawful activity
10635, Sec. 2). as defined in Section 3(i) hereof;
7. To implement such measures as may
The Anti-Money Laundering Council be necessary and justified under this
(AMLC) Act to counteract money laundering;
8. To receive and take action in respect of,
Composition any request from foreign states for
1. Chairman: Governor of the BSP; assistance in their own anti-money
2. Commissioner of the Insurance laundering operations provided in this
Commission; and Act;
3. Chairman of the Securities and 9. To develop educational programs on
Exchange Commission (R.A. No. the pernicious effects of money
9160, Sec. 7). laundering, the methods and
techniques used in the money
Functions laundering, the viable means of
1. To require and receive covered or preventing money laundering and the
suspicious transaction reports from effective ways of prosecuting and
covered institutions; punishing offenders;
2. To issue orders addressed to the 10. To enlist the assistance of any branch,
appropriate Supervising Authority or department, bureau, office, agency, or
the covered institutions to determine instrumentality of the government,
the true identity of the owner of any including government-owned and -
monetary instrument or property controlled corporations, in undertaking
subject of a covered transaction or any and all anti-money laundering
suspicious transaction report or request operations, which may include the use
for assistance from a foreign State, or of its personnel, facilities and resources
believed by the Council, on the basis of for the more resolute prevention,
substantial evidence, to be, in whole or detection, and investigation of money
in part, wherever located, representing, laundering offenses and prosecution of
involving, or related to directly or offenders;
indirectly, in any manner or by any 11. To impose administrative sanctions for
means, the proceeds of an unlawful the violation of laws, rules, regulations,
activity; and orders and resolutions issued
3. To institute civil forfeiture proceedings pursuant thereto;(R.A. No. 9194, Sec.
and all other remedial proceedings 5) and
12. To require the Land Registration the court must resolve this motion before
Authority and all its Registries of Deeds the expiration of the freeze order (R.A. No.
to submit to the AMLC, reports on all 10365, Sec. 8).
real estate transactions involving an
amount in excess of Five hundred No court shall issue a TRO or Writ of
thousand pesos (P500,000.00) within Injunction against any freeze order, except
fifteen (15) days from the date of the Supreme Court (R.A. No. 10365, Sec.
registration of the transaction, in a form 8).
to be prescribed by the AMLC. The
AMLC may also require the Land
Registration Authority and all its Authority to Inquire in Bank Deposits
Registries of Deeds to submit copies of The AMLC may inquire into any deposit or
relevant documents of all real estate investment, including related accounts,
transactions (R.A. No. 10365, Sec. 7). upon order of any competent court there is
probable cause that the deposits or
Freezing of Monetary Instrument or investments, including related accounts
Property involved, are related to an unlawful activity.

The power of the AMLC to freeze accounts Exceptions: No court order shall be
has been deleted under R.A. No. 9194 required in the following: (KD-HD-FT)
(Sec. 7).
1. Kidnapping for ransom under Art.
The Court of Appeals (CA) may issue a 267, RPC;
freeze order which shall be effective 2. Violations of the Comprehensive
immediately, and which shall not exceed Dangerous Drug Act of 2002
six (6) months depending upon the (R.A.No. 4, 5, 6, 7, 8, 9, 10, 12, 13,
circumstances of the case upon: 14, 15 &16);
1. A verified ex parte petition by the 3. Hijacking and other violations of
AMLC; and R.A. No. 6235;
2. After determination that probable 4. Destructive arson and murder
cause exists that any monetary under the RPC, including those
instrument or property is in any way perpetrated by terrorists against
related to an unlawful activity as non-combatant persons and similar
defined in Sec. 3(i) of R.A. No. targets;
10365. 5. Felonies or offenses of a nature
similar to those mentioned above,
The court should act on the petition to which are punishable under the
freeze within twenty-four (24) hours from penal laws of other countries; and
filing of the petition (R.A. No. 10365, Sec. 6. Terrorism and conspiracy to commit
8). terrorism as defined and penalized
under R.A. No. 9372 (R.A. No.
If there is no case filed against a person 10167, Sec. 2).
whose account has been frozen within the
period determined by the court, the freeze
order shall be deemed ipso facto lifted
(R.A. No. 10365, Sec. 8).

Remedy Against Freeze Order

A person whose account has been frozen
may file a motion to lift the freeze order and