ANTI-MONEY LAUNDERING ACT Moreover, under RA No.

9160, the AMLC may inquire

into or examine any particular deposit or investment
2006 BAR with any banking institution upon order of any
competent court for violation of the said Act. In the case
Q: Rudy is jobless but is reputed to be a jueteng at bar, the AMLC merely requested the disclosure; it did
operator. He has never been charged or convicted of not secure the requisite court order. The bank,
any crime. He maintains several banks accounts and therefore, was under no obligation to disclose Rudy’s
has purchased 5 houses and lots for his children deposits.
from the Luansing Realty, Inc. since he does not
have any visible job, the company reported his 4. Supposing the titles of the houses and lots are in
purchases to the AMLC. Thereafter, AMLC charged possession of the Luansing Realty, Inc., is it under
him with violation of the Anti-Money Laundering obligation to deliver the titles to Rudy?
Law. Upon request of the AMLC, the bank disclosed
to it Rudy’s bank deposits amounting to P100M. A: Yes. There being no freeze order over the subject
Subsequently, he was charged in court for violation houses and lots, Luansing Realty, Inc., is obliged to
of the Anti-Money Laundering Law. deliver the titles to Rudy who is the owner thereof.

1. Can Rudy move to dismiss the case on the ground 2007 BAR
that he has no criminal record?
Q: Name at least 5 predicate crimes to money
A: No. As with any crime, the absence of a criminal laundering.
record is not a defense against a charge for violation of
A:
the AntiMoney Laundering Law. Moreover, having a
criminal record is not an element of Money Laundering a. Kidnapping for ransom under Article 267 of Act no.
Offense defined under Section 4 of the Anti-Money 3815, otherwise known as the RPC, as amended;
Laundering Law
b. Sections 3,4,5,7,8, and 9 of Article Two of R.A. No.
2. To raise funds for his defense, Rudy sold the 6425, as amended, otherwise known as the Dangerous
houses and lots to a friend. Can Luansing Realty, Inc. Drugs Act of 1972;
be compelled to transfer to the buyer ownership of
the houses and lots? c. Section 3 paragraphs B,C,E,G,H, and I of R.A. No. 3019,
as amended, otherwise known as the Anti-Graft and
A: Yes. In the absence of a freeze order on the subject Corrupt Practices Act;
houses and lots pending criminal proceedings against
Rudy, the ownership thereof may be validly transferred d. Plunder under R.A. No. 7080, as amended;
to another, and Luansing Realty, Inc. can be compelled
e. Robbery and extortion under Articles 294, 295, 296,
to recognize the rights of the buyer as the new owner.
300, 301, and 302 of the RPC, as amended;
Section 7(6) in relation to Section 10 of the Anti-Money
Laundering Law required an Order from the Court of f. Jueteng and Masiao punished as illegal gambling
Appeals for the freezing of any money or property under PD No. 1602;
believed to be the proceeds of any unlawful activity
g. Piracy on the high seas under the RPC, as amended
3. In disclosing Rudy’s bank accounts to the AMLC, and PD No. 532;
did the bank violate any law?
h. Qualified theft under Article 310 of the RPC, as
A: Yes. The bank violated RA No. 1405 (Secrecy of Bank amended;
Deposits Act), which considers all deposits of whatever
nature with banks or banking institutions as absolutely i. Swindling under Article 315 of the RPC, as amended;
confidential and may not be examined, inquired or
looked into by any person, government officials, bureau j. Smuggling under R.A. Nos. 455 and 1937;
or office except upon depositor’s written permission; in
k. Violations under RA No. 8792, otherwise known as
cases of impeachment; upon order of a competent court
the Electronic Commerce Act of 2000;
in cases of bribery of, or dereliction of duty by public
official; and in cases where the money deposited or l. Hijacking and other violations under RA No. 6235;
invested is the subject matter of the litigation. The destructive arson and murder, as defined under the
disclosure was made before Rudy was charged in court RPC, as amended, including those perpetrated by
for violation of the Anti-Money Laundering Law. Hence, terrorists against non-combatant persons and similar
his deposits were technically not yet the subject matter targets;
of litigation.
m. Fraudulent practices and other violations under RA A: d. All of the above.
No. 8799, otherwise known as the SRC of 2000;
2013 BAR
n. Felonies or offenses of a similar nature that are
punishable under the penal laws of other countries. Q: From his first term in 2007, Congressman Abner
has been endorsing his pork barrel allocations to
2011 BAR Twin Rivers in exchange for a commission of 40% of
the face value of the allocation. Twin Rivers is a
MCQ nongovernmental organization whose supporting
papers, after audit, were found by the Commission
Q:Under the Anti-Money Laundering Law, a covered
on Audit to be fictitious. Other than to prepare and
institution is required to maintain a system of
submit falsified papers to support the encashment
verifying the true identity of their clients as well as
of the pork barrel checks, Twin Rivers does not
persons purporting to act on behalf of
appear to have done anything on the endorsed
(A) those doing business with such clients. projects and Congressman Abner likewise does not
appear to have bothered to monitor the progress of
(B) unknown principals. the projects he endorsed. The congressman
converted most of the commissions he generated
(C) the covered institution.
into US dollars, and deposited these in a foreign
(D) such clients. currency account with Banco de Plata (BDP).

A: (D) such clients. Based on amply-supported tips given by a

congressman from another political party, the Anti-
Money Laundering Council sent BDP an order: (1) to
confirm Cong. Abner's deposits with the bank and to
2012 BAR provide details of these deposits; and (2) to hold all
MCQ withdrawals and other transactions involving the
congressman's bank accounts.
Q:The Anti-Money Laundering Law is a law that
seeks to prevent money laundering activities by As counsel for BDP, would you advise the bank to
providing for more transparency in the Philippine comply with the order?
Financial System, hence the following institutions A: I shall advise Banco de Plata no to comply with the
are covered by the law, except: order of the Anti-Money Laundering Council. It cannot
a. bank and any financial institutions; inquire into the deposits of Congressman Abner,
regardless of currency, without a bank inquiry order
b. pawnshops; from a competent court, because crimes involved are
not kidnapping for ransom, violations of the
c. casino operators; Comprehensive Dangerous Drugs Act, hijacking and
other violations of Republic Act No. 6235, destructive
d. All of the above
arson, murder, and terrorism and conspiracy to commit
A: c. casino operators terrorism (Sec. 11 of Anti-Money Laundering Act).

Q:For purposes of determining violation of the The Anti-Money Laundering Council cannot order
prov1s1ons of Anti-Money Laundering Law, a Banco de Plata to hold all withdrawals and other
transaction is considered as a "Suspicious transactions involving the accounts of Congressman
Transaction" with "Covered Institutions" regardless Abner. It is the Court of Appeals which has the power to
of the amount involved, where which the following issue a freeze order over the accounts upon petition of
circumstances exist/s? the Anti-Money Laundering Council (Anti-Money
Laundering Act; Republic v. Carbini Green Ross, 489
a. the amount involved is not commensurate with SCRA 644, 2006).
the client's business or financial capacity;
MCQ
b. there is no underlying legal or trade obligation,
purpose or economic justification; Under the Anti-Money Laundering Act, a depositor’s
bank account may be frozen.
c. client is not properly identified;
(A) By the bank when the account is the subject of a
d. All of the above. suspicious or covered transaction report
(B) By the Anti-Money Laundering Council (AMLC) the necklace for P2 million. She then deposited the
when the account belongs to a person already entire amount in her checking account with Metro
convicted of money laundering Bank. Promptly, Metro Bank reported the
transaction to the Anti-Money Laundering Council
(C) By the Regional Trial Court, upon ex parte (AMLC).
motion by the AMLC, in a criminal prosecution for
money laundering pending before it. Given that her appropriation was theft, may Flora
be successfully prosecuted for money laundering?
(D) By the Court of Appeals motu proprio in an Explain briefly your answer.
appeal from a judgment of conviction of a criminal
charge for money laundering. A: No, she cannot be prosecuted for money laundering.
Under AMLA, the predicate crime or unlawful activity
(E) In none of the above. referred to is qualified theft, not plain theft.
A: (E) In none of the above. (Section 10 of the Anti- B. Prosperous Bank is a domestic bank with head
Money Laundering Act) office in Makati. It handles the banking
requirements of thousands of clients.
(Sec. 10, as amended, provides that “upon a verified ex
parte petition by the AMLC and after determination that The AMLC initiated a discreet investigation of the
probable cause exists that any monetary instrument or financial transactions of Lorenzo, a suspected drug
property is in any way related to an unlawful activity as trafficker based in Naga City. The intelligence group
defined in Sec. 3(i), the Court of Appeals may issue a of the AMLC, in coordination with the counterpart
freeze order which shall be effective immediately and group from the PDEA and the NBI, gathered ample
which shall not exceed 6 months…”) evidence establishing Lorenzo’s unlawful drug
activities. The AMLC had probable cause that his
2015 BAR
deposits and investments in various banks,
Suspicious Transactions including Prosperous Bank, were related to money
laundering.
Q: What is the distinction between a “covered
transaction report” and a “suspicious transaction Accordingly, the AMLC now transmits to Prosperous
report” Bank a formal demand to allow its agent to examine
the banking transactions of Lorenzo, but
A: A covered transaction report involves transaction/s Prosperous Bank refuses the demand.
in cash or other equivalent monetary instrument
involving a total amount in excess of 500k within one Is Prosperous Bank’s refusal justified? Explain your
banking day while suspicious transaction report answer.
involves transactions with covered institutions
A: No, the bank cannot refuse. The AMLC may inquire
regardless of the amounts involved made under any of
into or examine any particular deposit or investment
the suspicious circumstances enumerated by law.
with any banking institution when it has been
Q: Does the Anti-Money Laundering Council have established that there is probable cause that the
the authority to freeze deposits? Explain deposits or investments are related to an unlawful
activity. No court order is required if the predicate
A: No. The authority to freeze deposits is lodged with crime is violation of the Dangerous Drugs Act.
and based upon the order of the Court of Appeals
(Section 10 of RA 9160 as amended).

2016 BAR

A. Flora, a frequent traveller, found a purse

concealed between the cushions of a large sofa
inside the VIP lounge in NAIA while she was waiting
for her flight to be called. Inside the purse was a
very valuable diamond-studded necklace. She
decided not to turn over the purse to the airport
management, and instead to keep it. On her return
from her travels, she had a dependable jeweller
appraise the necklace, and the latter told her that
the necklace was easily worth at least P5 million in
the open market. To test the appraisal, she pawned