AMLA Summary
AMLA Summary
The AMLC is the Philippines financial intelligence unit, which is tasked to implement the AMLA. It is
composed of the Governor of the Bangko Sentral ng Pilipinas (BSP) as Chairman & the Commissioner of
the Insurance Commission (IC) and the Chairman of the Securities and Exchange Commission (SEC) as
members. The AMLC is authorized to:
Require and receive covered or suspicious transaction reports from covered institutions.
Issue orders to determine the true identity of the owner of any monetary instrument or property
that is the subject of a covered or suspicious transaction report, and to request the assistance of
a foreign country if the Council believes it is necessary.
Institute civil forfeiture and all other remedial proceedings through the Office of the Solicitor
General.
Cause the filing of complaints with the Department of Justice or the Ombudsman for the
prosecution of money laundering offenses.
Secure the order of the Court of Appeals to freeze any monetary instrument or property alleged to
be the proceeds of unlawful activity.
Implement such measures as may be necessary and justified to counteract money laundering.
Receive and take action on any request from foreign countries for assistance in their own anti-
money laundering operations.
Develop educational programs to make the public aware of the pernicious effects of money
laundering and how they can participate in bringing the offenders to the fold of the law.
Enlist the assistance of any branch of government for the prevention, detection, and investigation
of money laundering offenses and the prosecution of offenders. In this connection, the AMLC can
require intelligence agencies of the government to divulge any information that will facilitate the
work of the Council in going after money launderers.
Impose administrative sanctions on those who violate the law and the rules, regulations, orders,
and resolutions issued in connection with the enforcement of the law.
Covered Transactions
It criminalizes money laundering, meaning it makes money laundering a crime, and provides penalties
for its commission, including hefty fines and imprisonment.
It states clearly the determination of the government to prevent the Philippines from becoming a haven for
money laundering while ensuring to preserve the integrity and confidentiality of good bank accounts.
It creates an Anti-Money Laundering Council (AMLC) that is tasked to oversee the implementation of the
law and to act as a financial intelligence unit to receive and analyze covered and suspicious transaction
reports.
It establishes the rules and the administration process for the prevention, detection, and prosecution of
money laundering activities.
It relaxes the bank deposit secrecy laws authorizing the AMLC and the Bangko Sentral ng Pilipinas
access to deposit and investment accounts in specific circumstances.
It requires covered institutions to report covered and suspicious transactions and to cooperate with the
government in prosecuting offenders. It also requires them to know their customers and to safely keep all
records of their transactions.
It carries provisions to protect innocent parties by providing penalties for causing the disclosure to the
public of confidential information contained in the covered and suspicious transactions.
It establishes procedures for international cooperation and assistance in the apprehension and
prosecution of money laundering suspects.
Banks, offshore banking units, quasi-banks, trust entities, non-stock savings and loan
associations, pawnshops, and all other institutions, including their subsidiaries and affiliates
supervised and/or regulated by the Bangko Sentral ng Pilipinas (BSP)
Insurance companies, holding companies, and all other institutions supervised or regulated by the
Insurance Commission (IC)
Securities dealers, brokers, pre-need companies, foreign exchange corporations, investment
houses, trading advisers, as well as other entities supervised or regulated by the Securities and
Exchange Commission (SEC)
What are the Customer Identification Requirements KYC (Know Your Customer Rule)?
Establish and record the true identity of their clients based on official documents.
In the case of individual clients, maintain a system of verifying the true identity of their clients.
In the case of corporate clients, require a system verifying their legal existence and organizational
structure, as well as the authority and identification of all persons purporting to act on their behalf.
Establish appropriate systems and methods based on internationally compliant standards and
adequate internal controls for verifying and recording the true and full identity of their customers.
Maintain and safely store all records of all their transactions for five years from the transaction
dates;
Ensure that said records/files contain the full and true identity of the owners or holders of the
accounts involved in the covered transactions and all other identification documents;
Undertake the necessary adequate measures to ensure the confidentiality of such files;
Maintain and safely store all records of existing and new accounts and of new transactions for 5
years from October 17, 2001, or from the dates of the accounts or transactions, whichever is
later;
Anent closed accounts, preserve and safely store the records on customer identification, account
files, and business correspondence for at least 5 years from the dates they were closed;
If a money laundering case based on any record kept by the covered institution has been filed in
court, retain said files until it is confirmed that the case has been finally resolved or terminated by
the court; and
Suspicious Transactions
Integration. The money is once again made available to the criminal with the occupational and geographic
origin obscured or concealed. The laundered funds are now integrated back into the legitimate economy
through the purchase of properties, businesses and other investments.
c. the amount involved is not commensurate with the business or financial capacity of the client;
d. taking into account all known circumstances, it may be perceived that the clients transaction is
structured in order to avoid being the subject of reporting requirements under the Act;
e. any circumstance relating to the transaction which is observed to deviate from the profile of the client
and/or the clients past transactions with the covered institution;
f. 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
Reportorial Requirements
What are the sanctions for failure to report covered or suspicious transactions?
Any person, required to report covered and suspicious transactions failed to do so will be subject to the
penalty of 6 months to 4 years imprisonment or a fine of not less than P100,000.00 but not more than
P500,000, or both.
Are there confidentiality restrictions on the reporting of covered transaction and/or suspicious
transaction?
When reporting covered transactions or suspicious transactions to the AMLC, covered institutions and
their officers and employees, are prohibited from communicating, directly or indirectly, in any manner or
by any means, to any person, entity, the media, the fact that a covered or suspicious transaction report
was made, the contents thereof, or any other information in relation thereto. Neither may such reporting
be published or aired in any manner or form by the mass media, electronic mail, or other similar devices.
In the case of violation thereof, the concerned officer, an employee, of the covered institution, or media
shall be held criminally liable.
What are the other offenses punishable under the AMLA, as amended?
a. Failure to keep records is committed by any responsible official or employee of a covered institution
who fails to maintain and safely store all records of transactions for 5 years from the dates the
transactions were made or when the accounts were closed. The penalty is 6 months of 1-year
imprisonment or a fine of not less than P100,000.00 but not more than P500,000.00, or both.
b. Malicious reporting is committed by any person who, with malice or in bad faith, reports or files a
completely unwarranted or false information regarding a money laundering transaction against any
person. The penalty is 6 months to 4 years imprisonment and a fine of not less than P100,000.00 but not
more than P500,000.00. The offender is not entitled to the benefits of the Probation Law.
c. Breach of Confidentiality.
For this offense, the penalty is 3 to 8 years imprisonment and a fine of not less than P500,000 but not
more than P1 million. In case the prohibited information is reported by media, the responsible reporter,
writer, president, publisher, manager, and editor-in-chief are held criminally liable.
d. Administrative offenses.
The AMLC, after due investigation, can impose fines from P100,000.00 to P500,000.00 on officers and
employees of covered institutions or any person who violates the provisions of the AMLA, as amended,
the Implementing Rules and Regulations, and orders and resolutions issued pursuant thereto.