AMLA

1. Explain the cycle of laundering under the Anti-Money Laundering Act (R.A. No.
9160)?
 Placement (i.e. moving the funds from direct association with the crime)
- initial entry of the proceeds of crime into the financial system
 Layering (Structuring) (i.e. disguising the trail to foil pursuit)
- moving the illicit funds internationally
 Integration (i.e. making the money available to the criminal, once again, from what seem to be
legitimate sources)

2. Joseph, a jeepney driver, was told by his brother, Elmer, a tricycle drive that an amount worth P15M
will be deposited to his savings account. He was instructed to withdraw the money asap and use part
of it to buy a house and lot while the rest (almost P6M) has to be sent to their other brother in the
province. This amount was the part of the ransom money in a kidnapping case. Elmer, however, was
acquitted in KFR case against him.
When ML case was filed against Joseph, he claimed that he does not know that the money came
from unlawful activity. Is he guilty of money laundering?

- Yes. Yes, Joseph is guilty of money laundering. In money laundering

prosecutions, liability based on circumstantial evidence is called willful
blindness, a situation where the individual seeks to avoid civil or criminal
liability for a wrongful act by intentionally putting himself in a position
where he will be unaware of the facts which would render him liable. Here
in this case, Joseph should know or ask Elmer where the money worth P15M
came from and why he should withdraw the money asap and use part of it to
buy a house and lot . To the fact that Joseph knows that his brother Elmer is
a tricycle driver and a tricycle driver cannot have that amount of money in a
one day or one month just from driving a tricycle. By saying that he does not
know that the money came from unlawful activity does not make him civilly
or criminally liable. Here, Joseph is aware, or has pertinent knowledge
based on the situation and yet he did not even ask his brother. Hence,
Joseph is guilty of money laundering.

3. Concept of Willful Blindness - deliberate failure to make a reasonable inquiry of wrongdoing (as
drug dealing in one's house) despite suspicion or an awareness of the high probability of its
existence.

4. Enrique owns Goodlogs, Inc. a big logging company. Although Goodlogs, Inc. would secure all the
necessary government permits and licenses before it cuts, collects and gathers timber, there are
areas – especially far flung localities – that it does not bother to secure government license anymore,
in violation of Sec. 68 of the Revised Forestry Code. These operations proved to be the most
profitable. To hide the proceeds of this illegal logging, Enrique would instruct his staff to mix the
profits of the legal with the illegal operations. Is there money laundering here?

- Yes. Violation of the Revised Forestry Code (PD 705) is among the Predicate
Crimes of Money Laundering.

5. Predicate Offenses under R.A. No. 9160

a. Kidnapping for ransom under the RPC
b. Drug Trafficking and other violations of the Comprehensive Dangerous Drugs Act of 2002
c. Graft and Corruption (RA 3019, as amended)
 d. Plunder (RA 7080, as amended)
e. Robbery and extortion (RPC)
f. Jueteng and Masiao (PD 1602)
g. Piracy (RPC, PD 532)
h. Qualified Theft (RPC)
i. Swindling/Estafa (RPC)
j. Smuggling (RA 455,1937)
k. Violations of Electronic Commerce Act of 2000 (RA 8792)
l. Hijacking 9RA 6235), Destructive Arson and Murder (RPC)
m. Terrorism and Conspiracy to Commit Terrorism (RA 9372)
n. Financing of Terrorism (RA 10168)
o. Bribery and Corruption of Public Officers (RPC)
p. Frauds and illegal Exactions and Transactions (RPC)
q. Malversation of Public Funds (RPC)
r. Trafficking in Persons (RA 9208)
s. Violations of the Philippine Fisheries Code of 1998 (RA 8550)
t. Violations of the Wildlife Resources Conservation and Protection Act (RA 9147)
u. Violations of the National Caves and Cave Resources Management Protection Act (RA
9072
v. Carnapping 9RA 6539)
w. Illegal/Unlawful Possession, Manufacture, Dealing in, Acquisition or Disposition of
Firearms, Ammunitions and Explosives (PD 1866); Amendments to AMLA
x. Fencing (PD 1612)
y. Illegal Recruitment (RA 8042)
z. Violations of the Intellectual Property Code
aa. Voyeurism 9RA 9995)
bb. Child Pornography (RA 9775)
cc. Child Prostitution, Trafficking, and other forms of Abuse (RA 7610)
dd. Fraudulent practices and other violations of the Securities Regulation Code (RA 8799)
ee. Felonies or offenses ff a similar nature that are punishable under the penal laws of other
countries.

 24. Violations of the National

Caves and Cave Resources
Management Protection Act
(R.A. No. 9072);
 25. Carnapping (R.A. NO.
6539);
 26. Illegal/Unlawful
Possession, Manufacture,
 Dealing in, Acquisition or
Disposition of Firearms,
 Ammunitions and Explosives
(PD 1866); Amendments to
AMLA: on
 27. Fencing (PD 1612);
 28. Illegal Recruitment (R.A.
No. 8042);
 29. Violations of the Intellectual
Property Code;
 30. Voyeurism (R.A. No. 9995);
 31. Child Pornography (R.A.
No. 9775);
 32. Child Prostitution,
Trafficking, and other forms of
Abuse (RA. No. 7610);
 33. Fraudulent practices and
other violations of the Securities
 Regulation Code (R.A. No.
8799); and
 34. Felonies or offenses ff a
similar nature that are
punishable under the penal
laws of other
 countries.
6. Being the only grandchild, Maria inherited several prime real estate properties from her grandfather
in 2011. Realizing that she will have to pay substantial amount of money for real estate tax, plus
penalties, she bribed tax officials so that the title to the properties can be transferred to her name at
a much lower tax. Maria also sold some of them to be more liquid and again paid bribe to avoid
paying the correct capital gains tax.
Proceeds from this sale and whatever she saved from capital gains tax were invested in a restaurant
business; some were used to construct a building while others were used to buy blue chip stocks. Is
there money laundering in this case?
- Yes. These are Legal obligations imposed upon covered persons.

7. Major Highlights of AMLA, as amended

1. Criminalized money laundering
2. Legal obligations imposed upon covered persons
3. Created a financial intelligence unit (AMLC)
4. Relaxed strict bank deposit secrecy laws and allows issuance of freeze order of bank deposits
5. Provided for freezing and forfeiture of dirty money or property
6. Provided for international cooperation in the transnational investion and prosecution of
money laundering offenses wherever committed