Cabunoc, Jugado, Narida, Tenefrancia

What is money laundering?

Money laundering is an act whereby proceeds of an c.Organization of contributions for the

unlawful activity are converted, concealed or disguised creation, operation or management of
to make them appear to have originated from companies; and
legitimate sources. d. Creation, operation or management of
juridical persons or arrangements, and
How is Money laundered through the financial buying and selling business entities.
system? 8. Casinos, including internet and ship-based casinos

1. Placement - invovles initial placement or COVERED TRANSACTION - a transaction in cash or

introduction of the illegal funds into the financial other equivalent monetary instrument involving a total
system. Financial institutions are usually used at this amount in excess of Five Hundred Thousand
point Pesos(Php500,000.00) within one (1) banking day.

2. Layering - invovles a series of financial transactions CONSERVATORSHIP

during which the dirty money is passed through a
series of procedures, putting layer upon layer of
persons and financial activities into the laundering A conservatorship is a court case where a judge
process. Ex. wire transfers, use of shell corporations. appoints a responsible person or organization (called
the conservator) to care for another adult (called the
3. Integration - the laundered funds are now conservatee) who cannot care for himself or herself
integrated back into the legitimate economy through or manage his or her own finances.
the purchase of properties, businesses and other
investments. Action of the Monetary Board
The Monetary Board may appoint a
What is the AMLC? The AMLC is the Philippines' conservator (who shall be competent and
financial intelligence unity, which is tasked to knowledgeable in bank operations and
implement the AMLA. management) for a period not exceeding 1
year
Covered Persons (Natural or Juridical) i. take charge of the assets, liabilities and
management of the bank or quasi-bank in
1. Banks, non-banks, quasi-banks, trust entities, FX question
dealers, pawnshops, money changers, remittance ii. reorganize the management thereof
and transfer companies and other similar entities iii. collect all monies and debts due and
and all other persons and their subsidiaries and iv. exercise all powers necessary to restore
affiliates supervised or regulated by the Bangko its viability, including the power to
Sentral ng Pilipinas (BSP); overrule or revoke the actions of the
2. Insurance companies, pre-need companies and all previous management and board of
other institutions supervised or regulated by the directors
Insurance Commission (IC);
3. Specific entities supervised or regulated by the
Securities and Exchange Commission (SEC), Termination of Conservatorship
including securities dealers, brokers, investment (a) When MB is satisfied that the
houses, mutual funds, trading advisors, and other institution can continue to operate on
entities administering or otherwise dealing in its own and the conservatorship is no
currency, commodities or financial derivatives; longer necessary; or
4. Jewelry Dealers in precious metals, for (b) When MB determines that the
transactions in excess of Php1,000,000.00; continuance in business of the
5. Jewelry Dealers in precious stones, for institution would involve probable loss
transactions in excess of Php1,000,000.00; to its depositors or creditors, in which
6. Company Service Providers which provide case proceedings for receivership and
services to 3rd Parties such as acting as formation liquidation shall be pursued.
agent, director, corporate secretary, partner or as
nominee shareholder, or providing registered
office, business address or accommodation
7. Persons who provide any of the ff. services:
a. Managing client money, securities or other
assets;
b. Management bank, savings & securities
accounts;
Cabunoc, Jugado, Narida, Tenefrancia
Suspicious Transactions Each Regulated Intermediary shall maintain a
complete file on all transactions that have
Transactions with a covered institution, regardless of been brought to the attention of the Reporting
the amount involved, where any of the following Officer/s or Unit, including transactions that are
circumstances exist(s): not reported to the Council.
1. there is no underlying legal or trade obligation,
purpose or economic justification;
2. the client is not properly identified; THE NEW CENTRAL BANK ACT
3. the amount involved is not commensurate with
Creation, Responsibilities and Corporate Powers of
the business or financial capacity of the client;
the Bangko Sentral
4. Taking into account all known circumstances, it
may be perceived that the clients transactions The State shall maintain a Central Monetary
are structured in order to avoid being the Authority that shall function and operate as an
subject of reporting requirements under the independent and accountable body corporate
Act; in the discharge of its mandated
5. Any circumstance relating to the transaction responsibilities concerning money, banking
which is observed to deviate from the profile of and credit.
the client and/or the clients past transactions There is hereby established an independent
with the covered institution; central monetary authority, which shall be a
body corporate known as the Bangko Sentral
6. The transaction is in any way related
Ng Pilipinas, hereafter referred to as the
to an unlawful activity or any money laundering
Bangko Sentral.
activity or offense under the Act that is about to
The capital of the Bangko Sentral shall be
be, is being or has been committed; or
Fifty billion pesos (P50,000,000,000), to be
7. Any transaction that is similar, fully subscribed by the Government of the
analogous or identical to any of the foregoing. Republic, Ten billion pesos
(P10,000,000,000) of which shall be fully paid
Reportorial Requirement for by the Government upon the effectivity of
Each Regulated Intermediary shall institute a this Act and the balance to be paid for within a
system for the mandatory reporting of period of two (2) years from the effectivity of
covered transactions and suspicious this Act
transactions under Section 6. The Bangko Sentral shall provide policy
In the event that urgent disclosure is required, directions in the areas of money, banking and
particularly when the account concerned is credit.
part of an on-going investigation, an initial The primary objective of the Bangko Sentral is
notification should be made by telephone to to maintain price stability conducive to a
the Executive Director, Anti-Money balanced and sustainable growth of the
Laundering Council, Bangko Sentral ng economy. It shall also promote and maintain
Pilipinas monetary stability and the convertibility of the
The obligation to make the covered transaction peso.
and/or suspicious transaction report is on the The Bangko Sentral shall have its principal
employee, officer, and/or director of the place of business in Metro Manila, but may
Regulated Intermediary. Such reporting must maintain branches, agencies and
be done within five (banking) days after correspondents in such other places as the
initial detection of facts that may constitute a proper conduct of its business may require.
basis for filing such reports. Currency - all Philippine notes and coins issued or
Regulated Intermediaries, their directors, circulating in accordance with the provisions of this Act
officers and employees shall not warn their
customers when information relating to them is Legal Tender Power - (pursuant to BSP Circular No.
being reported to the council or communicate, 537, Series of 2006)
directly or indirectly such information to any coins shall be legal tender in amounts :
other person other than the Council. Any not exceeding P 1,000.00
violation of this confidentiality provision shall 1- , 5- ,10-piso
render them liable for criminal, civil and amounts not exceeding P 100.00
administrative sanctions under the Act. for denominations of 10- and 25- sentimo
Cabunoc, Jugado, Narida, Tenefrancia
CONSERVATORSHIP - REHABILITATED or otherwise placed in such a
condition so that it may be permitted to RESUME
A conservatorship is a court case where a judge BUSINESS with safety to its depositors and creditors
appoints a responsible person or organization (called and the general public: Any determination for the
the conservator) to care for another adult (called the resumption of business of the institution shall be
conservatee) who cannot care for himself or herself subject to prior approval of the MB
or manage his or her own finances. - If the receiver DETERMINES that the institution
CANNOT be REHABILITATED or permitted to
Action of the Monetary Board
The Monetary Board may appoint a conservator (who RESUME BUSINESS,
shall be competent and knowledgeable in bank a) the MB shall NOTIFY IN WRITING the BOARD of
operations and management) for a period not directors of its findings
exceeding 1 year b) and direct the receiver to PROCEED w/ the
v. take charge of the assets, liabilities and LIQUIDATION of the institution
management of the bank or quasi-bank in question
vi. reorganize the management thereof
vii. collect all monies and debts due and
viii. exercise all powers necessary to restore
its viability, including the power to overrule or
revoke the actions of the previous management
and board of directors

Termination of Conservatorship
(c) When MB is satisfied that the institution can
continue to operate on its own and the
conservatorship is no longer necessary; or
(d) When MB determines that the continuance in
business of the institution would involve probable
loss to its depositors or creditors, in which case
proceedings for receivership and liquidation shall
be pursued.

Bank Closure

- to prohibit a bank or quasi-bank from doing business

in the Philippines
- Monetary Board designates a receiver

- may be done summarily and without need of prior

hearing

Receivership

- a state or condition of a corporation over whom a

receiver has been appointed for the protection of its
assets for ultimate distribution and sale to creditors

Receiver - person or entity designated to:

- gather and take charge of all the assets and
liabilities of the institution, administer the same for the
benefit of the creditors, and exercise the general
powers of a receiver under the Rules of Court

NOT LATER than 90 DAYS FROM take over -- the

receiver shall DETERMINE as soon as possible,
whether the institition may be