RFBT Amla PDF
RFBT Amla PDF
RFBT Amla PDF
9160 Anti Money
Laundering Act of
2001 as amended by
R.A.9194, R.A. 10365
John Paul Wania
Anti Money Laundering Council (Sec. 7)
• Governor of the BSP as
Chairman
• Commissioner of the
Insurance Commission as
member
• Chairman of Securities and
Exchange Commission
BSP
Governor –
Benjamin
Diokno
Com. Dennis
Funa –
Insurance
Commissioner
SEC
Chairman –
Emilio
Benito
Aquino
Why was it set up? Declaration of Policy
(Sec. 2)
• It is hereby declared the 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 site for the proceeds of
any unlawful activity. Consistent with its foreign policy, the State shall extend
cooperation in transnational investigations and prosecutions of persons
involved in money laundering activities wherever committed.
• (1) to require and receive covered transaction
reports from covered institutions;
• (2) to issue orders addressed to the appropriate
Supervising Authority or the covered institution to
determine the true identity of the owner of any
monetary instrument or property subject of a
covered transaction report or request for assistance
from a foreign State, or believed by the Council, on
the basis of substantial evidence, to be, in whole or
in part, wherever located, representing, involving, or
Powers of the related to, directly or indirectly, in any manner or by
any means, the proceeds of an unlawful activity;
AMLC (Sec.7) • (3) to institute civil forfeiture proceedings and all
other remedial proceedings through the Office of
the Solicitor General;
• (4) to cause the filing of complaints with the
Department of Justice or the Ombudsman for the
prosecution of money laundering offenses;
• (5) to initiate investigations of covered transactions,
money laundering activities and other violations of
this Act;
• (6) to freeze any monetary instrument or property alleged
to be proceeds of any unlawful activity;
• (7) to implement such measures as may be necessary and
justified under this Act to counteract money laundering;
• (8) to receive and take action in respect of, any request
from foreign states for assistance in their own anti‐money
laundering operations provided in this Act;
Powers of the • (9) to develop educational programs on the pernicious
effects of money laundering, the methods and techniques
used in money laundering, the viable means of preventing
AMLC money laundering and the effective ways of prosecuting
and punishing offenders; and
(continued) • (10) to enlist the assistance of any branch, department,
bureau, office, agency or instrumentality of the
government, including government‐owned and ‐controlled
corporations, in undertaking any and all anti‐money
laundering operations, which may include the use of its
personnel, facilities and resources for the more resolute
prevention, detection and investigation of money
laundering offenses and prosecution of offenders.
What is • Money laundering is a
Money derivative offense. A
derivative offense is a
Laundering?
crime that requires the
commission of another
crime (unlawful
activity/predicate crime)
Unlawful Activities
• (1) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise known as the Revised
Penal Code, as amended;
• (2) Sections 3, 4, 5, 7, 8 and 9 of Article Two of Republic Act No. 6425, as amended, otherwise
known as the Dangerous Drugs Act of 1972;
• (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;
• (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;
• (9) Swindling under Article 315 of the Revised Penal Code, as
amended;
• (10) Smuggling under Republic Act Nos. 455 and 1937;
• (11) Violations under Republic Act No. 8792, otherwise
Unlawful known as the Electronic Commerce Act of 2000;
• (12) Hijacking and other violations under Republic Act No.
6235; destructive arson and murder, as defined under the
Activities Revised Penal Code, as amended, including those
perpetrated by terrorists against non‐combatant persons
and similar targets;
• (13) Fraudulent practices and other violations under
Republic Act No. 8799, otherwise known as the Securities
Regulation Code of 2000;
• (14) Felonies or offenses of a similar nature that are
punishable under the penal laws of other countries.
• Money laundering is a crime whereby the proceeds of an unlawful
activity as herein defined are transacted, thereby making them
appear to have originated from legitimate sources. It is committed by
the following:
• “(a) Any person knowing that any monetary instrument or property
represents, involves, or relates to, the proceeds of any unlawful
How is activity, transacts or attempts to transact said monetary instrument
or property.
money • “(b) Any person knowing that any monetary instrument or property
involves the proceeds of any unlawful activity, performs or fails to
laundering perform any act as a result of which he facilitates the offense of
money laundering referred to in paragraph (a) above.
committed? • “(c) Any person knowing that any monetary instrument or property is
required under this Act to be disclosed and filed with the Anti‐Money
Laundering Council (AMLC), fails to do so.”
“Proceeds” refers to an amount derived or realized from an unlawful
activity.
Covered Persons
(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);
“(2) insurance companies, pre‐need companies and all other persons supervised or regulated by the Insurance
Commission (IC);
“(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 (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);
“(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
“(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; (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 legal person or arrangement; and (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;
(ii) management of bank, savings or securities accounts;
(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.\
8. Casino operators
“Notwithstanding the foregoing, 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: Provided, That these lawyers and accountants are authorized to practice in the Philippines and shall continue to be subject to the
provisions of their respective codes of conduct and/or professional responsibility or any of its amendments.”
Transactions and Reporting Requirements
Any act establishing any right or obligation or giving rise to any
contractual or legal relationship between the parties thereto. It also
includes any movement of funds by any means with a covered
person.
Transaction report ‐ a document required to be
submitted by a covered person to AMLC based on Covered Transactions
the activity of the underlying transaction within five
(5) working days from occurrence thereof, unless Suspected
the AMLC prescribes a different period not
exceeding fifteen (15) working days. Transactions
Covered Transactions
(Sec. 1, RA 9194)
• “(b) ‘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.”
“(b‐1) ‘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 “4. taking into account all known circumstances, it may be
Transaction perceived that the client’s transaction is structured in order to
avoid being the subject of reporting requirements under the Act;
(Sec. 2 RA 9194) “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;
“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.”
• 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
Know your clients and, in case of corporate clients,
Customer require a system of verifying their legal
existence and organizational structure, as
(KYC) –Sec. 9 well as the authority and identification of all
persons purporting to act on their behalf.
• All records of all transactions of covered
institutions shall be maintained and safely
stored for five (5) years from the dates of
Record transactions. With respect to closed
accounts, the records on customer
Keeping 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.