AMLC PROCEDURAL ISSUANCE (API)

A, B and C, No. 1
Series of 2019

Subject: Rules of Procedure in Administrative Cases under

Republic Act No. 9160 or the Anti-Money Laundering Act
of 2001, as Amended, and its Implementing Rules and
Regulations, and Guidelines and Other Issuances of the
Anti-Money Laundering Council, and the Imposition of
Administrative Sanctions

Pursuant to the authority vested upon the Anti-Money Laundering

Council (AMLC) under Sections 7(7), 7(11) and 14(f) of Republic Act (RA)
No. 9160 or the Anti-Money Laundering Act of 2001, as amended (AMLA),
the Rules of Procedure in Administrative Cases under Republic Act No.
9160, as Amended, and its Implementing Rules and Regulations, and
Guidelines and Other Issuances of the Anti-Money Laundering Council, and
the Imposition of Administrative Sanctions, are hereby promulgated:

RULE I
GENERAL PROVISIONS

Section 1. Title. - These Rules shall be known as the Rules of Procedure on

Administrative Cases under Republic Act No. 9160 or the Anti-Money
Laundering Act of 2001, as Amended, and its Implementing Rules and
Regulations, and Guidelines and Other Issuances of the Anti-Money
Laundering Council.

Section 2. Declaration of Policy. – It is the declared policy of the State to

protect and preserve the integrity and confidentiality of bank accounts, and
to ensure that the Philippines shall not be used as a money laundering and
terrorism financing site for the proceeds of any unlawful activity. Consistent
thereto, the State shall ensure compliance by covered persons with the
AMLA, its Implementing Rules and Regulations (IRR) and all issuances of
the Anti-Money Laundering Council (AMLC).

Section 3. Applicability. – These Rules shall apply to administrative cases

under the AMLA, and its IRR, and guidelines and other issuances of the
AMLC, committed from the date of effectivity of RA No. 10365, or 07 March
2013.
Section 4. Nature of Proceedings. – The proceedings under these Rules
shall be summary in nature, and shall be conducted without necessarily
adhering to the technical rules of procedures and evidence applicable to
judicial trials.

In the absence of applicable provision in these Rules, and pursuant to the

summary nature of these proceedings, the pertinent provisions of the Rules
of Court may be applied suppletorily.

Section 5. Repealing Clause. – The Rules on the Imposition of

Administrative Sanctions under Republic Act No. 9160, as Amended (RIAS),
are hereby repealed.

Section 6. Separability Clause. – If any part or provision of these Rules is

declared invalid or unconstitutional, other provisions not affected thereby
shall remain in force and effect.

Section 7. Definition of Terms. – For purposes of these Rules, the

following definitions are hereby adopted:

(a) Administrative Sanction. – refers to the action taken by the

AMLC involving a respondent found to have committed a
violation. It may include penalty and non-penalty measures,
such as assessment, reprimand, warning, or such other
measures as may be necessary and justified to prevent and
counteract money laundering and terrorism financing.

(b) Assessment. – refers to the monetary penalty imposed under

Rule IV of these Rules.

(c) Covered Person. – refers to persons and entities referred to as

such under the AMLA and its amendments.

(1) Persons supervised and/or regulated by the Bangko

Sentral ng Pilipinas (BSP), including their subsidiaries and
affiliates, which are also covered persons, supervised
and/or regulated by the BSP such as:

(a) Banks;
(b) Quasi-banks;
(c) Trust entities
(d) Pawnshops;
(e) Non-stock savings and loan associations;

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 (f) Other non-bank financial institutions, which under
special laws are subject to BSP supervision and/or
regulation;
(g) Electronic money issuers; and
(h) Foreign exchange dealers, money changers, and
remittance and transfer companies.

(2) Persons supervised or regulated by the Insurance

Commission (IC), such as:

(a) Insurance companies;

(b) Pre-need companies;
(c) Insurance agents;
(d) Insurance brokers;
(e) Professional reinsurers;
(f) Reinsurance brokers;
(g) Holding companies;
(h) Holding company systems;
(i) Mutual benefit associations; and
(j) All other persons and their subsidiaries and affiliates
supervised or regulated by the IC.

(3) Persons supervised or regulated by the Securities and

Exchange Commission (SEC), such as:

(a) Securities dealers, brokers, salesmen, investment

houses, and other similar persons managing securities
or rendering services, such as investment agents,
advisors, or consultants;
(b) Mutual funds or open-end investment companies,
close-end investment companies or issuers, and other
similar entities; and
(c) Other entities, administering or otherwise dealing in
commodities, or financial derivatives based thereon,
valuable objects, cash substitutes, and other similar
monetary instruments or properties, supervised or
regulated by the SEC.

(4) The following Designated Non-Financial Businesses and

Professions (DNFBPs):

(a) Jewelry dealers.

(b) Dealers in precious metals, and dealers in precious
stones.
(c) Company service providers, which, as a business,
provide any of the following services to third parties:

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 (i) Acting as a formation agent of juridical persons;
(ii) Acting as (or arranging for another person to act
as) a director or corporate secretary of a
company, a partner of a partnership, or a similar
position in relation to other juridical persons;
(iii) Providing a registered office; business address or
accommodation, correspondence or
administrative address for a company, a
partnership or any other juridical person or legal
arrangement; and
(iv) Acting as (or arranging for another person to act
as) a nominee shareholder for another person.

(d) Persons, including lawyers, accountants and other

professionals, who provide any of the following
services:

(i) Managing of client money, securities or other

assets;
(ii) Management of bank, savings, securities or other
assets;
(iii) Organization of contributions for the creation,
operation or management of companies; and
(iv) Creation, operation or management of juridical
persons or arrangements, and buying and selling
business entities.

(5) Casinos, including internet-based casinos and ship-based

casinos, with respect to their casino cash transactions
related to their gaming operations.

(d) Formal Charge. – refers to the initiation of an administrative

case upon a finding by the Litigation and Evaluation Group of
the AMLC Secretariat of the existence of a prima facie case.

(e) Prima Facie Case. – refers to an administrative case as herein

provided, based on evidence as may be sufficient to establish a
given fact, or the group or chain of facts constituting the basis
of a Formal Charge, and which, if not rebutted or contradicted,
will sustain the imposition of administrative sanctions against
the respondent.

(f) Report of Compliance (ROC). – refers to the findings of the

Compliance and Supervision Group of the AMLC Secretariat
relative to the compliance issues discovered in the (i) course
of a money laundering and terrorism financing investigation

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 and prosecution; (ii) exercise of its compliance checking
functions; or (iii) evaluation of findings of the supervising
authorities.

(g) Reprimand. – refers to a sanction of formal censure.

(h) Respondent. – refers to the covered person, its director,

partners, proprietor, officer or employee, who is the subject of
a formal charge.

(i) Restoration. – refers to the restitution of the value of a

monetary instrument or property that was released in
violation of a freeze order, provisional asset preservation
order or asset preservation order.

(j) Substantial Evidence. – refers to that quantum of proof which

a reasonable mind might accept as adequate to justify that a
specific violation was committed.

(k) Violation. – refers to non-compliance with any provision of

the AMLA, its IRR and all AMLC issuances. A violation is
committed either on a ‘per order/resolution’, ‘per account’,
‘per transaction’, ‘per customer’, ‘per examination’ or ‘daily’
basis. One violation shall be considered as one count.

(l) Warning. – refers to the AMLC’s action that effectively puts the
respondent on guard against the consequence of impending or
future violations.

RULE II
PROCEDURE

Section 1. Administrative Investigation: How Initiated. – Administrative

investigation may be initiated upon referral of the ROC to the Litigation and
Evaluation Group (LEG) of the AMLC Secretariat.

Section 2. Preliminary Administrative Investigation. – Upon receipt of

the ROC, the LEG shall conduct a fact-finding investigation, which involves
an ex-parte evaluation of documents, to determine whether a prima facie
case exists to warrant the filing of a Formal Charge.

In the absence of a prima facie case, the LEG shall notify the Compliance and
Supervision Group (CSG) of the AMLC Secretariat accordingly.

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Section 3. Formal Charge. –

(a) Upon determination of the existence of a prima facie case, the

LEG shall file a Formal Charge before the Adjudication and
Enforcement Unit (AEU) against the respondent. The Formal
Charge shall contain the following:

(1) Name and address of respondent;

(2) Specific violation of laws, rules and regulations;
(3) Date or period when the violation is committed;
(4) Statement of Facts;
(5) Statement of Attendant Circumstances;
(6) Statement of Findings;
(7) Statement that a prima facie case exists for a specific
violation; and
(8) Relevant documents.

(b) At any time prior to the actual receipt of the respondent’s

Answer, the Formal Charge may be withdrawn, without
prejudice to the re-filing of the Formal Charge within a
reasonable period of time, both as a matter of right, or on the
following grounds:

(1) Additional or newly-discovered evidence which could not

have been discovered and/or produced at the time of filing
of the Formal Charge; and
(2) Amendment of the ROC, requiring substantial amendments
to the Formal Charge.

(c) After actual receipt of the Answer, the LEG may withdraw the
Formal Charge, for good cause shown, without prejudice to the
re-filing of the Formal Charge, which shall be done within a
reasonable period of time.

(d) In both instances under (b) and (c), the respondent shall be
given ten (10) working days to file its Answer to the re-filed
Formal Charge.

Once the answer has been filed and revised by the respondent,
all the parties involved should be accordingly furnished with all
motions and resolutions.

(e) At any time before the submission of the case for Resolution, the
respondent, upon motion, may propose to the AMLC payment of
the assessment. The AMLC, upon good cause shown by the

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 respondent, may grant the proposal, which shall have the effect
of striking out the case against the respondent, as if no case was
filed.

Section 4. Modes of Service. - Service of notices, orders, resolutions or

pleadings and motions shall be by way of personal delivery, courier service
or registered mail. In case the whereabouts of the respondents cannot be
reasonably determined, service of orders or notices shall be by a publication
in a newspaper of general circulation.

In case of filing by registered mail, the pleading or motion shall be deemed

filed on the date shown by the postmark on the envelope. In case of filing
using other modes, it shall be deemed filed on the date stamped “Received”
by the AMLC Secretariat.

Section 5. Notice of Formal Charge. – The AEU shall notify the respondent
of the filing of Formal Charge in the manner stated in the immediately
preceding section.

Section 6. Prohibited Pleadings. – No motions or requests for clarification,

bills of particulars, dismissal, quashal, or reconsideration on the filing of the
Formal Charge and other interlocutory orders shall be entertained.

Section 7. Answer. – The Answer shall be in writing, under oath, indicate

the date of receipt of the Notice, and contain all material facts and certified
true copies of supporting evidence. Non-compliance with these
requirements shall render the Answer insufficient in form and substance.

The Answer shall be filed with the AEU within ten (10) working days from
receipt of the Notice of Formal Charge. Upon motion filed prior to the
expiration of the period to file Answer, and for good cause shown, an
extension of time to file Answer may be granted for a non-extendible period
of ten (10) working days reckoned from the expiration of the original ten
(10) working days.

If the respondent fails to file the Answer within the prescribed period, files
an Answer that is insufficient in form and substance, or files any document
other than an Answer, the respondent shall be considered to have waived
the right to file an Answer, and the case shall be submitted for resolution
based on available records.

Section 8. Clarificatory Meeting. – The AEU may, at its discretion, call the
parties to a clarificatory meeting, concerning the facts, evidence, issues and
other relevant matters.

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Section 9. Disposition of the Case. – After giving all the parties the
opportunity to be heard, the AEU shall, based on the evidence, recommend
to the AMLC the imposition of appropriate administrative sanctions or to
the Executive Director of the AMLC Secretariat or, in his absence, the
Officer-in-Charge, the dismissal of the Formal Charge.

Section 10. Resolution. – Upon finding of substantial evidence that the

respondent committed violations as charged, the AMLC shall issue a
Resolution imposing such administrative sanctions as may be proper,
setting forth the factual and legal basis thereof. In case of dismissal of the
Formal Charge, the Executive Director of the AMLC Secretariat or, in his
absence, the Officer-in-Charge, shall issue the Resolution.

Section 11. Motion for Reconsideration. – The respondent may file a

motion for reconsideration of the AMLC Resolution within ten (10) working
days from receipt thereof.

No second, or extension of time to file, motion for reconsideration shall be

allowed.

The filing of a motion for reconsideration shall stay the execution of the
Resolution sought to be reconsidered.

Section 12. Grounds. – The motion for reconsideration shall be based on

any of the following grounds:

(a) Newly-discovered evidence which could not have been

discovered and produced at the time the respondent filed its
Answer, and which if presented, would materially affect the
Resolution rendered;

(b) Substantial mistake in the appreciation of evidence; or

(c) Erroneous computation of assessment.

Section 13. Finality of the Resolution. – The Resolution shall immediately

become final and executory if no motion for reconsideration is filed within
the prescribed period.

Section 14. Notice of Execution. – If the Resolution involves the payment

of assessment and restoration, if applicable, the AEU shall issue a Notice of
Execution directing the respondent to make payment and restoration, if
applicable, within ten (10) working days from receipt thereof.

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Payment of assessments shall be in the form of Manager’s Check payable to
the account of the “Anti-Money Laundering Council”, or through direct debit
to the Demand Deposit Account, at the option of the respondents in cases of
restoration, the respondent shall submit a proof of its compliance within the
same period.

Section 15. Surcharge. – A surcharge equivalent to six percent (6%) per

annum of the outstanding assessment shall be imposed upon the
respondent for its failure to pay the assessment within the prescribed
period.

RULE III
ATTENDANT CIRCUMSTANCES

Section 1. Attendant Circumstances. – The following attendant

circumstances shall be considered in determining the imposition of
appropriate administrative sanctions for a specific violation:

(a) Asset Size. – the financial capability of respondents to comply

with the requirements of the AMLA, its IRR and all AMLC
issuances in relation to: (1) the money laundering and terrorism
financing risks the respondents face or their financial capability
poses; or (2) the respondents’ impact on public interest.

For juridical persons, the total assets, as indicated in the audited

financial statement or its equivalent, as of the year the violation
was committed, shall be the basis for determining the asset size.
In case of natural persons, asset size shall be the gross income as
indicated in the income tax return for the year the violation was
committed.
For this purpose, respondents shall be classified as follows:

(1) Micro - Php10,000,000.00 and below

(2) Small - Php10,000,000.01 to Php100,000,000.00
(3) Medium - Php100,000,000.01 to Php1,000,000,000.00
(4) Large A - Php1,000,000,000.01 to Php50,000,000,000.00
(5) Large B - Php50,000,000,000.01 and above

(b) Gravity of Violations. – The gravity of violations refers to the

importance or significance of the specific provision of the AMLA,
its IRR and all AMLC directives and issuances, in relation to its
effect on the AMLC’s discharge of its mandate. It shall take into
account all relevant facts and circumstances.

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 For this purpose, violations shall be classified by gravity as Grave,
Major, Serious, Less Serious, and Light as provided in Table A,
Section 2, Rule IV of these Rules.

Non-compliance with covered transaction reporting

requirements shall be governed by separate matrix as provided in
Table B, Section 2, Rule IV of these Rules.

(c) Aggravating Circumstances. – These refer to circumstances or

conditions relating to the commission of an act that increase the
liability of the respondent. These include the following:

(1) History of Non-Compliance. – violations of a similar nature

for which a respondent has been previously sanctioned
within the two (2)-year period immediately preceding the
examination or investigation under consideration, shall be
considered as an aggravating circumstance.

For purposes hereof, the nature of violations shall be

classified as follows:

(a) Customer Due Diligence;

(b) Record Keeping;
(c) Transaction Reporting;
(d) Compliance on freeze, bank inquiry and asset
preservation orders; and orders relating to AMLC
investigation;
(e) Money Laundering and Terrorism Financing Prevention
Program; and
(f) Violations of orders, resolutions and other issuances of
the AMLC.

(2) Concealment or Deliberate Effort to Hide the Violation. –

The deliberate effort to hide the violation with the intention
to deceive shall be considered as an aggravating
circumstance.

Concealment is presumed in cases where the officers or

employees of the respondent complicate the transaction to
make it difficult to uncover, which may also include refusal
to provide information/documents that would support a
finding of liability, or employment of any other means to
cover up any violation.

(3) Material Misrepresentation. – The act of misstating a fact,

knowing or believing that: (i) what he is saying is not true or

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 (ii) is not sure whether or not his statement is true, but
passes it off as true anyway; and is likely to induce a
reasonable person to assent or that the maker knows is likely
to induce the recipient to assent, is an aggravating
circumstance.

(d) Mitigating Circumstances. – These are conditions or

circumstances attendant in the commission of the offense and
may serve to lessen the degree of liability of the respondent. These
include the following:

(1) Voluntary Disclosure. – Voluntary disclosure by the

respondent of the offense or violation committed before its
discovery by the CSG or the Supervising Authorities or
Appropriate Government Agencies shall be considered a
mitigating circumstance.

(2) Corrective Measures. – Actions taken by respondents to

correct the findings of the CSG or Supervising Authorities
prior to the referral of the ROC to the LEG shall be considered
a mitigating circumstance.

(3) AML Rating. – An AML Rating of 3 or 4 shall be considered a

mitigating circumstance.

(4) Such other circumstances that are proven to be beyond the

control of the covered person shall be considered mitigating.

RULE IV
ADMINISTRATIVE SANCTIONS AND WARNINGS

Section 1. Administrative Sanctions and Warnings. – The AMLC shall,

where the circumstances warrant, impose administrative sanctions and
warnings as provided herein upon any respondent for the violation of the
AMLA and its IRR, or for failure or refusal to comply with the orders,
resolutions and other issuances of the AMLC.

Assessments shall be in amounts as may be determined by the AMLC to be

appropriate, which shall not be more than Five Hundred Thousand Pesos
(Php500,000.00) per violation. In no case shall the aggregate assessment
exceed five percent (5%) of the asset size of the respondent based on its
audited financial statements as of the year of the compliance testing covered
by the sampled data. If the violations were committed over several years, as
of the last year of violation covered by the sampled data during the

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 compliance testing. Otherwise, the audited financial statements as used of
the supervising authorities shall be the basis of the respondent’s asset size.

Section 2. Table of Violations and Corresponding Sanctions. – The

following are the specific violations and their corresponding sanctions:

A. The following are the specific violations and their corresponding

sanctions based on the entity size and gravity of violations:

TABLE A:
A. GRAVE VIOLATION
Administrative Sanctions
Micro Small Medium Large A Large B
₱25,000 per ₱62,500 per ₱125,000 per ₱187,500 per ₱250,000 Per
violation, but violation, but violation, but violation, but violation, but
Minimum
not exceeding not exceeding not exceeding not exceeding not exceeding
₱1 Million ₱2.5 Million ₱5 Million ₱7.5 Million ₱10 Million
₱37,500 per ₱93,750 per ₱187,500 per ₱281,250 per ₱375,000 per
violation, but violation, but violation, but violation, but violation, but
Medium
not exceeding not exceeding not exceeding not exceeding not exceeding
₱1.5 Million ₱3.75 Million ₱7.5 Million ₱11 Million ₱15 Million
₱50,000 per ₱125,000 per ₱250,000 per ₱375,000 per ₱500,000 per
violation, but violation, but violation, but violation, but violation, but
Maximum
not exceeding not exceeding not exceeding not exceeding not exceeding
₱2 Million ₱5 Million ₱10 Million ₱15 Million ₱20 Million
1. Non-compliance with the requirement to Assessment is on per Resolution (FO) or Order
immediately freeze, upon receipt of the (PAPO, APO) basis, plus restoration, whenever
notice of the Freeze Order (FO), applicable.
Provisional Asset Preservation Order
(PAPO), and Asset Preservation Order
(APO), the monetary instrument or
property identified in the FO, and related
accounts, the PAPO and the APO.
2. Lifting the effects of the FO, PAPO, and/or Assessment is on a per account basis, plus
APO during its effectivity. restoration, whenever applicable.
3. Non-compliance with the requirement to Assessment is on a per account basis.
immediately give the AMLC and/or its
Secretariat full access to all information,
documents or objects pertaining to the
deposit, investment, account,
transaction, and/or person subject of
inquiry or investigation.
4. Non-compliance with the Guidelines on Assessment is on a per customer basis
Digitization of Customer Records.
B. MAJOR VIOLATION
Administrative Sanctions

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 Micro Small Medium Large A Large B
₱15,000 per
₱37,500 per ₱75,000 per ₱112,500 per ₱150,000 per
violation, but
violation, but violation, but violation, but violation, but
Minimum not exceeding
not exceeding not exceeding not exceeding not exceeding
₱500
₱ 1.5 Million ₱2.5 Million ₱3.5 Million ₱5 Million
Thousand
₱22,500 per
₱56,250 per ₱112,500 per ₱168,750 per ₱225,000 per
violation, but
violation, but violation, but violation, but violation, but
Medium not exceeding
not exceeding not exceeding not exceeding not exceeding
₱750
₱2 Million ₱3.5 Million ₱5.5 Million ₱7.5 Million
Thousand
₱30,000 per ₱75,000 per ₱150,000 per ₱225,000 per ₱300,000 per
violation, but violation, but violation, but violation, but violation, but
Maximum
not exceeding not exceeding not exceeding not exceeding not exceeding
₱1 Million ₱2.5 Million ₱5 Million ₱7.5 Million ₱10 Million
1. Non-compliance with the requirement to Assessment is on a per customer basis.
obtain all information to establish and
record the true identity of each customer
and/or the person on whose behalf the
transaction is being conducted.

2. Non-compliance with the requirement to Assessment is on a per account basis.

retain and safely keep records beyond
the five (5)-year period, where the
account is the subject of a case, until it is
officially confirmed by the AMLC
Secretariat that the case has been
resolved, decided or terminated with
finality.

3. Non-compliance with the requirement to Assessment is on a per account or suspicious

report to the AMLC suspicious transaction report (STR) basis.
transactions.

C. SERIOUS VIOLATION
Administrative Sanctions
Micro Small Medium Large A Large B
₱10,000 per ₱25,000 per ₱50,000 per ₱75,000 per ₱100,000 per
violation, but violation, but violation, but violation, but violation, but
Minimum not exceeding not exceeding not exceeding not exceeding not exceeding
₱100 ₱250 ₱500 ₱750 ₱1 Million
Thousand Thousand Thousand Thousand
₱15,000 per ₱37,500 per
₱75,000 per ₱112,500 per ₱150,000 per
violation, but violation, but
violation, but violation, but violation, but
Medium not exceeding not exceeding
not exceeding not exceeding not exceeding
₱250 ₱750
₱1.5 Million ₱2 Million ₱2.5 Million
Thousand Thousand

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 ₱20,000 per
₱50,000 per ₱100,000 per ₱150,000 per ₱200,000 per
violation, but
violation, but violation, but violation, but violation, but
Maximum not exceeding
not exceeding not exceeding not exceeding not exceeding
₱500
₱1 Million ₱2.5 Million ₱3.75 Million ₱5 Million
Thousand
1. Non-compliance with the requirement to Assessment is on a per examination basis.
conduct institutional risk assessment.

2. Non-compliance with the requirement to Assessment is on a per examination basis

formulate a Money Laundering /
Terrorism Financing Prevention
Program (MTPP).

3. Allowing the opening of anonymous Assessment is on a per account basis.

accounts, accounts under fictitious
names, and all other similar accounts.

4. Allowing the opening of checking Assessment is on a per account basis.

numbered accounts.

5. Non-compliance with the requirements Assessment is on a per customer basis.

on “Customer Verification Process.”

6. Non-compliance with the requirement to Assessment is on a per customer basis.

obtain more than three (3) but not all
information to establish and record the
true identity of each customer and/or the
person on whose behalf the transaction is
being conducted.

7. Non-compliance with the requirements Assessment is on a per customer or on a per

on “Identification and Verification of account basis, as the case may be.
Agents.”

8. Non-compliance with the requirements Assessment is on a per account basis.

on “Beneficial Ownership Verification.”

9. Non-compliance with the requirements Assessment is on a per account basis.

on “Determination of the Purpose of
Relationship.”

10. Non-compliance with the requirements Assessment is on a per account basis.

on “Ongoing Monitoring Process.”

11. Non-compliance with the requirement to Assessment is on a per customer basis.

Risk Profile customers.

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12. Non-compliance with the requirements Assessment is on a per customer basis.
on “Life Insurance and Other Investment-
related Insurance Policies.”

13. Non-compliance with the requirements Assessment is on a per customer basis.

of the provisions on “Politically-Exposed
Persons.”

14. Non-compliance with the requirements Assessment is on a per transaction basis.

of the provisions on “Correspondent
Banking.”

15. Non-compliance with the requirements Assessment is on a per examination basis.

on “New Technologies.”

16. Non-compliance with the requirements Assessment is on a per transaction basis.

of the provisions on “Wire Transfers”,
including the requirements on “Money or
Value Transfer Services Provider” and
“Implementation of Targeted Financial
Sanctions.”

17. Non-compliance with the requirements Assessment is on a per transaction basis.

of the provisions on “Shell Bank, Shell
Company and Bearer Share Entity.”

18. Non-compliance with the requirements Assessment is on a per customer basis.

of the provisions on “High-Risk
Jurisdiction or Geographical Location.”

19. Non-compliance with the requirements Assessment is on a per examination basis.

of the provisions on Foreign Branches
and Subsidiaries.

20. Non-compliance with the requirement to Assessment is on a per examination basis.

establish a transaction monitoring
system.

21. Non-compliance with the requirement to Assessment is on a per account basis.

maintain and safely store for five (5)
years from the dates of transactions, or
from dates the accounts were closed, all
records of transactions, including
customer identification documents.

22. Non-compliance with the requirement to Assessment is on a per examination basis.

register with the AMLC’s electronic
reporting system within the prescribed
period.

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23. Non-compliance with the requirement to Assessment is on a per account basis, plus
secure a written confirmation from the restoration in cases where there is civil
AMLC before the expiration of the freeze forfeiture or money laundering case filed and
order. the monetary instruments were withdrawn,
transferred or dissipated.
24. Non-compliance with the requirement to Assessment is on a per account basis.
submit certified true copies of the
documents pertaining to deposit,
investment, account, transaction, and/or
person subject of inquiry or
investigation, within five (5) working
days from receipt of the court order or
AMLC Resolution.

25. All other violations of orders, resolutions Assessment is on a per resolution, rule,
and other issuances of the AMLC. regulation, circular, order and guideline basis.
D. LESS SERIOUS VIOLATION
Administrative Sanctions
Micro Small Medium Large A Large B
₱50,000
₱12,500 per ₱25,000 per ₱37,500 per
₱5,000 per per violation,
violation, but violation, but violation, but
violation, but but not
Minimum not exceeding not exceeding not exceeding
not exceeding exceeding
₱125 ₱250 ₱375
₱50 Thousand ₱500
Thousand Thousand Thousand
Thousand
₱75,000
₱18,750 per ₱37,500 per ₱56,250 per
₱7,500 per per violation,
violation, but violation, but violation, but
violation, but but not
Medium not exceeding not exceeding not exceeding
not exceeding exceeding
₱200 ₱375 ₱550
₱75 Thousand ₱750
Thousand Thousand Thousand
Thousand

₱10,000 per ₱25,000 per ₱50,000 per ₱75,000 per

₱100,000 per
violation, but violation, but violation, but violation, but
violation, but
Maximum not exceeding not exceeding not exceeding not exceeding
not exceeding
₱100 ₱250 ₱500 ₱750
₱1 Million
Thousand Thousand Thousand Thousand
1. Non-compliance with the other Assessment is on a per examination basis.
requirements on the contents of the
MTPP (Insufficient Contents). Where the
basis of the Major and Serious violations
are absence of MTPP provisions, in such
case, the penalty under such violations
will apply

2. Non-compliance with the requirement on Assessment is on a per examination basis.

“Continuing Education and Training
Program.”

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3. Non-compliance with less than three (3) Assessment is on a per account basis.
of the required information to establish
and record the true identity of each
customer and/or the person on whose
behalf the transaction is being conducted.

4. Non-compliance with the requirement to Assessment is on a per account basis.

obtain at least three (3) criteria for risk
profiling (Deficient Risk Profiling
Mechanism).

5. Non-compliance with the requirement to Assessment is on a per transaction basis.

indicate the true name of the account
holder in covered transaction reports
(CTRs) and STRs involving non-checking
numbered accounts.

6. Non-compliance with the requirement on Assessment is on a per transaction basis.

the accuracy and completeness of
covered and suspicious transactions
reports.

7. Non-compliance with the requirement to Assessment is on a per Resolution (FO) basis.

submit to the AMLC within twenty-four
(24) hours from receipt of the freeze
order a detailed written return on the
accounts subject of the freeze order. For
related accounts, the twenty-four (24)
hours shall be reckoned from the
determination thereof.

E. LIGHT VIOLATION
Administrative Sanctions
Micro Small Medium Large A Large B
₱12,500 per ₱18,750 per ₱25,000 per
₱2,500 per ₱6,250 per
violation, but violation, but violation, but
violation, but violation, but
Minimum not exceeding not exceeding not exceeding
not exceeding not exceeding
₱125 ₱150 ₱250
₱25 Thousand ₱50 Thousand
Thousand Thousand Thousand
₱3,750 per ₱9,375 per ₱18,750 per ₱28,125 per ₱37,500 per
violation, but violation, but violation, but violation, but violation, but
Medium not exceeding not exceeding not exceeding not exceeding not exceeding
₱37.5 ₱100 ₱150 ₱250 ₱375
Thousand Thousand Thousand Thousand Thousand
₱5,000 per
₱12,500 per ₱25,000 per ₱37,500 per ₱50,000 per
violation, but
Maximum violation, but violation, but violation, but violation, but
not exceeding
not exceeding not exceeding not exceeding not exceeding
₱50 Thousand

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 ₱125 ₱250 ₱350 ₱500
Thousand Thousand Thousand Thousand
1. Non-compliance with the requirement to Assessment is on a per account basis
submit complete information on the
detailed return on the FO.

2. Non-compliance with the requirement to Assessment is on per Resolution (Freeze Order)

submit to the AMLC an electronic basis.
detailed return of the FO in a format
prescribed by the latter.

3. Non-compliance with the requirement to Assessment is on a per violation basis.

keep electronic copies of all CTRs or STRs
for, at least, five (5) years from the dates
of submission to the AMLC.

A. Assessments involving non-compliance with submission of CTRs

within the required period shall be as follows:
TABLE B:
A. MAJOR Administrative Sanctions
VIOLATIONS: Micro Small Medium Large A Large B
Non- ₱3,750.00 ₱11,250.00
₱1,500.00 ₱7,500.00 ₱15,000.00
compliance per CT, per CT, but
per CT, per CT, but per CT, but
with the but not not
Minimum but not not not
covered exceeding exceeding
exceeding exceeding exceeding
transaction ₱2.5 ₱7.5
₱1 Million ₱5 Million ₱10 Million
reporting Million Million
requirement ₱2,250.00 ₱5,625.00
representing ₱11,250.00 ₱16,875.00 ₱22,500.00
per CT, per CT,
more than per CT, but per CT, but per CT, but
but not but not
25% of the Medium exceeding exceeding
not not not
total exceeding exceeding exceeding
₱1.5 ₱3.75
sampled ₱7.5 Million ₱11 Million ₱15 Million
Million Million
population ₱3,000.00 ₱7,500.00 ₱5,000.00 ₱22,500.00 ₱30,000.00
of CTRs per CT, per CT, per CT, but per CT, but per CT, but
within the Maximum but not but not not not not
examination exceeding exceeding exceeding exceeding exceeding
period ₱2 Million ₱5 Million ₱10 Million ₱15 Million ₱20 Million
B. SERIOUS Administrative Sanctions
VIOLATIONS: Micro Small Medium Large A Large B
₱1,000.00 ₱2,500.00 ₱7,500.00
Non- ₱5,000.00 ₱10,000.00
per CT, per CT, per CT, but
compliance per CT, but per CT, but
Minimum but not but not not
with the not not
exceeding exceeding exceeding
covered exceeding exceeding
₱500 ₱1.25 ₱3.75
transaction ₱2.5 Million ₱5 Million
Thousand Million Million

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reporting ₱1,500.00 ₱3,750.00 ₱7,500.00 ₱11,250.00 ₱15,000.00
requirement per CT, per CT, per CT, but per CT, but per CT, but
representing Medium but not but not not not not
more than exceeding exceeding exceeding exceeding exceeding
5% but not ₱750 ₱1.875 ₱3.75 ₱5.5 ₱7.5 Million
more than Thousand Million Million Million
25% of the
total ₱5,000.00
₱2,000.00 ₱10,000.00 ₱15,000.00 ₱20,000.00
sampled per CT, but
per CT, per CT, but per CT, but per CT, but
population not
Maximum but not not not not
of CTRs filed exceeding
exceeding exceeding exceeding exceeding
₱2.5
within the ₱1 Million ₱5 Million ₱7.5 Million ₱10 Million
Million
examination
period.
C. LESS Administrative Sanctions
SERIOUS Micro Small Medium Large A Large B
VIOLATIONS:
₱500.00 ₱1,250.00 ₱2,500.00 ₱3,750.00 ₱5,000.00
Non- per CT, per CT, per CT, but per CT, but per CT, but
compliance Minimum but not but not not not not
with the exceeding exceeding exceeding exceeding exceeding
covered ₱100 ₱250 ₱500 ₱750 ₱1 Million
transaction Thousand Thousand Thousand Thousand
reporting ₱750.00 ₱1,875.00 ₱3,750.00 ₱5,625.00 ₱7,500.00
per CT, per CT, per CT, but per CT, but per CT, but
representing
but not but not not not not
5% or less of Medium
exceeding exceeding exceeding exceeding exceeding
the total ₱250 ₱625 ₱1.25 ₱1.875 ₱2.5 Million
sampled Thousand Thousand Million Million
population ₱1,000.00 ₱2,500.00 ₱7,500.00
of CTRs filed ₱5,000.00 ₱10,000.00
per CT, per CT, per CT, but
within the Maximum per CT, but per CT, but
but not but not not
not not
examination exceeding exceeding exceeding
exceeding exceeding
period. ₱500 ₱1.250 ₱3.750
₱2.5 Million ₱5 Million
Thousand Million Million

Section 3. Determination of the Amount of Assessment. –

(a) In determining the amount of the assessment, a three (3)-stage

assessment shall be conducted as follows:

Step 1:
Determine the nature of offense, whether: (a) Grave; (b)
Major; (c) Serious; (d) Less Serious or (e) Light Violation;

Step 2:

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 Determine the classification of respondent as to asset size,
whether: (a) Micro; (b) Small; (c) Medium; (d) Large A or
(e) Large B; and

Step 3:
Determine the presence of aggravating and/or mitigating
circumstances, as listed under Section 1 of Rule III hereof.

(b) The minimum penalty must be imposed if the mitigating

circumstances outweigh the aggravating circumstances. On the
other hand, maximum penalty must be imposed if the aggravating
circumstances outweigh the mitigating circumstances. In the
absence of mitigating or aggravating circumstances, the medium
penalty must be imposed.

(c) Both the aggravating and mitigating factors shall be considered

for initial penalty imposition and subsequent request for
reconsideration.

Section 4. Warnings and Non-monetary Sanctions. – The AMLC may

impose against the respondent warnings or non-monetary sanctions that
may include, but are not limited to, any, or a combination of, the following:

(a) Warning that future infractions or other acts of a similar nature

shall be dealt with more sternly;

(b) Reprimand of the respondent, with directive to correct the

deficiencies within a reasonable period of time;

(c) Submission of a Compliance Commitment signed by the

respondent indicating the specific timelines of concrete measures
to correct the respondent’s deficiencies, and of regular reporting
of updates on said corrective measures;

(d) Revocation of the certificate of registration issued by the AMLC;

(e) Referral of the administrative Resolution to the appropriate

Supervising Authority or Appropriate Government Agency for
appropriate action; and

(f) Publication of the administrative Resolution involving

(assessment) grave or major violations or repeat significant non-
compliance.

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Section 5. Dispensing of Imposition of Monetary Sanctions. – The AMLC
may dispense with the imposition of monetary sanctions in the following
cases:

(a) Where a light violation was committed, provided that corrective

action was immediately taken after its attention was called by the
CSG or Supervising Authorities;

(b) Where a less serious violation was committed, provided that the
case refers to a first-time violation and the respondent took
corrective action within a reasonable time after its attention was
called by the CSG or Supervising Authorities;

(c) Where a serious or major violation was committed, provided that

the case refers to a first-time violation and the respondent took
corrective action within a reasonable time after its attention was
called by the CSG or Supervising Authorities, and there is no
aggravating circumstance.

In the foregoing cases, a reprimand, or warning that another

violation shall be sternly dealt with, or both, may be imposed; and

(d) The AMLC may suspend any imposition of monetary sanctions and
instead, impose a warning or any of the non-monetary sanctions or
a combination thereof.

Section 6. Retroactive Effect. – This Issuance shall have retroactive effect

unless prejudicial to the respondent.

Section 7. Effectivity. – This Issuance shall take effect immediately upon

publication in a newspaper of general circulation.

FOR THE AMLC:

(original signed)
MEL GEORGIE B. RACELA
Executive Director
Anti-Money Laundering Council Secretariat

26 July 2019

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