Republic Act No.

9160: Anti-Money Laundering Act of 2001 <AMLA>

Short Title:
Anti-Money Laundering Act of 2001.

Declaration of Policy (Sec. 2):

The State aims to protect the integrity of bank accounts and prevent the Philippines from being used for
money laundering. It will cooperate in transnational investigations and prosecutions.

Definitions (Sec. 3):

• Covered Institution: Banks, non-banks, insurance companies, securities dealers, etc.

• Covered Transaction: Transactions over PHP 4 million or suspicious large transactions.
• Monetary Instrument: Legal tender, checks, securities, etc.
• Unlawful Activity: Defined acts including kidnapping, drug trafficking, corruption, robbery, etc.

Money Laundering Offense (Sec. 4):

Involves transactions that disguise unlawful proceeds as legitimate.

Jurisdiction (Sec. 5):

Regional trial courts handle money laundering cases; Sandiganbayan for cases involving public officers.

Prosecution (Sec. 6):

Individuals can be charged with both money laundering and the underlying unlawful activity.

Anti-Money Laundering Council (AMLC) (Sec. 7):

• Composed of the Bangko Sentral ng Pilipinas Governor and heads of the Insurance Commission and
Securities and Exchange Commission.
• Functions include receiving reports, investigating transactions, and freezing assets related to money
laundering.

Customer Identification and Record Keeping (Sec. 9):

Covered institutions must verify client identities, keep records for five years, and report covered transactions
within five working days.

Authority to Freeze and Inquire (Secs. 10-11):

The AMLC can freeze accounts linked to unlawful activities and inquire into bank deposits upon court order.

Forfeiture Provisions (Sec. 12):

Civil forfeiture applies to assets related to money laundering, allowing individuals to claim legitimate
ownership.

Mutual Assistance among States (Sec. 13):

The AMLC can assist foreign states in investigations and receive assistance from them, under certain
conditions.

Penal Provisions (Sec. 14):

• Money laundering penalties: 7-14 years imprisonment and fines from PHP 3 million to double the
value of the involved assets.
• Lesser penalties for other violations, such as failure to keep records or malicious reporting.
Incentives and Rewards (Sec. 15):
Incentives for government agencies and personnel involved in successful investigations and prosecutions.

Political Harassment Prohibition (Sec. 16):

The Act cannot be used for political persecution, especially during elections.

Restitution (Sec. 17):

Restitution for aggrieved parties follows provisions of the New Civil Code.

Implementing Rules and Regulations (Sec. 18):

Rules to implement this Act must be promulgated within 30 days of its effectivity.

Oversight Committee (Sec. 19):

A Congressional Oversight Committee will oversee implementation and review rules.

Appropriations Clause (Sec. 20):

Initial funding of PHP 25 million for the AMLC, with future appropriations included in the General
Appropriations Act.

Separability Clause (Sec. 21):

If any provision is invalid, the remaining provisions remain effective.

Repealing Clause (Sec. 22):

Inconsistent laws are repealed or amended.

Effectivity (Sec. 23):

The Act takes effect 15 days after publication.
 REPUBLIC ACT NO.1405 <BS LAW>

AN ACT PROHIBITING DISCLOSURE OF OR INQUIRY INTO, DEPOSITS WITH ANY BANKING INSTITUTION
AND PROVIDING PENALTY THEREFOR

SECTION 1. It is hereby declared to be the policy of the Government to give encouragement to the people to deposit
their money in banking institutions and to discourage private hoarding so that the same may be properly utilized by
banks in authorized loans to assist in the economic development of the country.

SECTION 2. All deposits of whatever nature with banks or banking institutions in the Philippines including
investments in bonds issued by the Government of the Philippines, its political subdivisions and its instrumentalities,
are hereby considered as of an absolutely confidential nature and may not be examined, inquired or looked into by
any person, government official, bureau or office, except upon written permission of the depositor, or in cases of
impeachment, or upon order of a competent court in cases of bribery or dereliction of duty of public officials, or in
cases where the money deposited or invested is the subject matter of the litigation.

SECTION 3. It shall be unlawful for any official or employee of a banking institution to disclose to any person other
than those mentioned in Section two hereof any information concerning said deposits.

SECTION 4. All Acts or parts of Acts, Special Charters, Executive Orders, Rules and Regulations which are inconsistent
with the provisions of this Act are hereby repealed.

SECTION 5. Any violation of this law will subject offender upon conviction, to an imprisonment of not more than five
years or a fine of not more than twenty thousand pesos or both, in the discretion of the court.

SECTION 6. This Act shall take effect upon its approval.

Batas Pambansa Blg. 22: An Act Penalizing the Making or Drawing and Issuance of a
Check Without Sufficient Funds or Credit <BP22>

Section 1: Checks Without Sufficient Funds

• Offense: Issuing a check without sufficient funds or credit in the drawee bank.
• Penalty:
o Imprisonment of 30 days to 1 year, or
o Fine of up to double the amount of the check (not exceeding PHP 200,000), or both.
• Corporations: Persons who sign checks on behalf of corporations are liable if the check is
dishonored.

Section 2: Evidence of Knowledge of Insufficient Funds

• A check dishonored due to insufficient funds within 90 days is prima facie evidence that the issuer
knew of the insufficiency, unless they pay or make arrangements within 5 banking days after
receiving notice.

Section 3: Duty of Drawee; Rules of Evidence

• The drawee bank must provide a written reason for dishonoring a check. A dishonored check with a
reason stated serves as prima facie evidence of the check's issuance and dishonor.

Section 4: Credit Constructed

• "Credit" refers to an arrangement with the bank for the payment of the check.

Section 5: Liability Under the Revised Penal Code

• This act does not preclude prosecution under the Revised Penal Code for related offenses.

Section 6: Separability Clause

• If any part of this act is declared unconstitutional, the remaining provisions continue in force.

Section 7: Effectivity

• This act takes effect 15 days after publication in the Official Gazette.
Republic Act No. 3765: Truth in Lending Act <TILA>

Section 1: Title
This Act shall be known as the "Truth in Lending Act."

Section 2: Declaration of Policy

The State aims to protect citizens from being unaware of the true cost of credit, ensuring full disclosure to
prevent uninformed use of credit detrimental to the national economy.

Section 3: Definitions

• Board: The Monetary Board of the Central Bank of the Philippines.

• Credit: Any loan, mortgage, conditional sales contract, rental-purchase contract, or similar
arrangements.
• Finance Charge: Includes interest, fees, and other charges related to the extension of credit as
prescribed by the Board.
• Creditor: Any person engaged in extending credit who requires a finance charge.
• Person: Includes individuals, corporations, partnerships, and government agencies.

Section 4: Disclosure Requirements

Creditors must provide a clear written statement before finalizing a credit transaction, including:

1. Cash or delivered price of the property/service.

2. Down payment or trade-in amounts.
3. The difference between the above amounts.
4. Itemized charges not related to the extension of credit.
5. Total amount to be financed.
6. Finance charge expressed in pesos and centavos.
7. The finance charge percentage expressed as a simple annual rate on the outstanding balance.

Section 5: Rules and Regulations

The Board shall create necessary rules and regulations to implement this Act, including classifications to
prevent evasion and facilitate enforcement.

Section 6: Penalties
(a) Creditors failing to disclose required information face a penalty of PHP 100 or double the finance charge,
up to a maximum of PHP 2,000. Actions to recover can be brought within one year.
(b) This Act does not affect the validity of any contract.
(c) Willful violations may incur fines of PHP 1,000 to PHP 5,000 or imprisonment of 6 months to 1 year.
(d) The Philippine Government and its agencies are exempt from penalties.
(e) A final judgment in a criminal proceeding serves as prima facie evidence in related civil actions.

Section 7: Effectivity
This Act takes effect upon approval
PDIC LAW RA 3591

Section 1: Creation of PDIC

• Establishes the Philippine Deposit Insurance Corporation (PDIC) to insure deposits in all banks
that qualify under the law. The PDIC is granted specific powers to fulfill its duties.

Section 2: Board of Directors

• PDIC is governed by a Board of Directors with three members: the Governor of the Central Bank of
the Philippines, and two appointees of the President, one of whom serves as the full-time Chairman.
• The Board has the authority to issue rules, direct management, appoint officers, and authorize
necessary expenditures for PDIC's operations.

Section 3: Definitions

• Provides definitions for key terms, including "Board of Directors," "Bank," "Receiver," "Insured
Bank," "Deposit," and others.
• For example, an "insured bank" is any bank with deposits insured by PDIC, while "insured deposit"
refers to the net amount owed to a depositor, up to a maximum of ₱10,000.

Section 4: Bank Eligibil ity for Deposit Insurance

• Any bank engaged in receiving deposits can apply to insure its deposit liabilities with PDIC.
• Before approving insurance, PDIC evaluates the bank's financial condition, management, and capital
adequacy, among other factors.

Section 5: Factors for Bank Eligibility

• The Board of Directors considers a bank's financial history, capital structure, management,
community service, and its powers before approving deposit insurance.

Section 6: Assessment and Premiums

• Sets out the system for calculating insurance premiums for banks, including the assessment base
(bank’s deposit liabilities) and rates, which are capped at one-twelfth of 1% annually.
• Banks must submit certified statements of their deposit liabilities twice a year and pay premiums
accordingly.
• A portion of PDIC's assessment income is transferred to its capital account, while the remainder is
credited to insured banks.

Section 7: Termination of Insured Status

• Insured banks can terminate their insurance by giving 90 days' notice to PDIC.
• PDIC can also terminate a bank's insured status if it engages in unsafe practices or violates laws,
following notice and a hearing.

Section 8: Corporate Powers of PDIC

 • Lists PDIC’s corporate powers, including adopting a corporate seal, making contracts, suing and
being sued, appointing officers, conducting examinations of banks, and acting as a receiver for closed
banks.

Section 9: Examination and Reporting

• PDIC can examine any insured bank or applicant bank and require regular reports on its condition.
• The Board of Directors appoints examiners to investigate banks, and all reports must be published as
directed by PDIC.

Section 10: Insurance Fund and Payment of Insured Deposits

• Establishes a permanent insurance fund of ₱5,000,000 to carry out PDIC's functions.

• When an insured bank becomes insolvent, PDIC pays depositors up to ₱10,000 either in cash or by
transferring deposits to another insured bank.
• PDIC is subrogated to the depositor's rights against the closed bank after making payments.

Section 11: Payment Discharge

• PDIC is discharged from liability upon payment of insured deposits to depositors.

• PDIC may withhold payment if the depositor has liabilities to the closed bank, such as loans or
stockholder obligations.

Section 12: Investment and Borrowing Powers

• PDIC may invest its funds in obligations of the Republic of the Philippines or government-guaranteed
obligations.
• PDIC can borrow funds from the Central Bank of the Philippines for insurance purposes, with a loan
cap of ₱100 million.

Section 13: Borrowing from the Central Bank

• Authorizes PDIC to borrow from the Central Bank for insurance purposes, with a maximum limit of
₱100 million, based on terms fixed by PDIC and the Central Bank.

Section 14: Tax Exemption

• PDIC’s notes, debentures, and bonds are exempt from taxation.

Section 15: Reporting and Auditing

• PDIC must annually report its operations to Congress.

• The General Auditing Office audits PDIC’s financial transactions and submits a report to Congress.

Section 16: Display of Insurance Status

• Banks must display signs and advertisements stating their deposits are insured by PDIC.
• Banks cannot pay dividends or interest while in default on assessments owed to PDIC.

Section 17: Restrictions on Bank Officers

 • Bank officers convicted of crimes involving dishonesty or breach of trust cannot serve without
PDIC’s written consent. Violations result in daily fines.

Section 18: Severability Clause

• If any part of the Act is found invalid, the remaining provisions continue to be effective.

Section 19: Repeal of Inconsistent Laws

• All laws or orders inconsistent with this Act are repealed.

Section 20: Effective Date

• The Act takes effect upon approval, and PDIC begins business upon the organization of its Board of
Directors and certification by the Treasurer of the Philippines that the insurance fund has been
appropriated.