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RA NO. 9160 "Anti-Money Laundering Act of 2001" Purpose
RA NO. 9160 "Anti-Money Laundering Act of 2001" Purpose
PRINCIPLES
1. The AMLC, as the country’s financial intelligence unit, is vested by law with independence to
perform its mandate. It upholds the continuous development of a team of highly ethical and
professional personnel and implements efficient processes in the delivery of its mandate.
2. The AML/CTF laws, rules and regulations and other relevant issuances are implemented using a
risk-based approach in a way that responds to the need to bring the financially excluded into the
regulated financial sector, while at the same time maintaining effective safeguards and effective
controls against money laundering/terrorism financing risks.
3. A strong compliance culture, good governance and observance of high ethical standards in the
conduct of business are good foundations for an effective AML/CTF regime. It will be developed and
sustained through capacity building and deterrence of violations through imposition of appropriate,
proportionate and dissuasive sanctions.
4. A sound risk management system to identify, assess, mitigate, monitor, and control risks associated
with money laundering/terrorism financing is essential.
5. Timely and effective domestic and international cooperation and established coordination
mechanism are critical in the investigation and prosecution of money laundering/terrorism financing
and associated unlawful activities.
6. The implementation of AML laws, rules and regulations shall conform to international AML/CTF
standards and best practices.
7. The observance of the constitutional requirements on due process, and injunction against ex post
facto laws and bills of attainder.
DEFINITION OF TERMS
1. COVERED INSTITUTIONS
Supervised or regulated by Bangko Sentral ng Pilipinas
I. Banks
II. Non-banks
III. Quasi-banks
IV. Trust entities
V. Pawnshops
VI. Non-stock savings and loan associations
VII. Electronic money issuers
VIII. All other persons and their subsidiaries and affiliates supervised or regulated by the
BSP
2. COVERED TRANSACTIONS
In cash or other equivalent monetary instrument exceeding Php 500, 000 within one banking
day
Exceeds Php 1, 000, 000 in cases of jewelry dealers, dealers in precious metals and stones.
AMENDMENTS:
RA 10927
A single casino transaction involving an amount in excess of 5, 000, 000 or its equivalent in
any other currency..
RA 11521
A single cash transaction involving an amount in excess of 7, 500, 000 or its equivalent in
any other currency
CTR or “Covered Transaction Report”- report of covered person to AMLC
3. SUPICIOUS TRANSACTIONS
No underlying legal or trade obligation, purpose/economic justification
the client is not properly identified;
the amount involved is not commensurate with the business or financial capacity of the
client;
taking into account all known circumstances, it may be perceived that the client's transaction
is structured in order to avoid being the subject of reporting requirements under the AMLA;
any circumstance relating to the transaction which is observed to deviate from the profile of
the client and/or the client's past transactions with the covered person;
the transaction is in any way related to an unlawful activity or any money laundering activity
or offense that is about to be committed, is being or has been committed; or
any transaction that is similar, analogous or identical to any of the foregoing.
STR or “Suspicious Transaction Report”- report of covered person to AMLC
4. MONETARY INSTRUMENT
Coins or currency of legal tender of the Philippines, or of any other country;
Credit instruments, including bank deposits, financial interest, royalties, commissions and
other intangible property;
Drafts, checks and notes;
Stocks or shares, participation or interest in a corporation or in a commercial enterprise or
profitmaking venture and evidenced by a certificate, contract, instrument, whether written or
electronic in character, including those enumerated in Section 3 of the Securities Regulation
Code;
A participation or interest in any non-stock, non-profit corporation;
Securities or negotiable instruments, bonds, commercial papers, deposit certificates, trust
certificates, custodial receipts or deposit substitute instruments, trading orders, transaction
tickets and confirmations of sale or investments and money market instruments;
Contracts or policies of insurance, life or nonlife, contracts of suretyship, pre-need plans and
member certificates issued by mutual benefit association; and
Other similar instruments where title thereto passes to another by endorsement, assignment
or delivery.
UNLAWFUL ACTIVITIES
1. Kidnap for Randsom
2. Comprehensive Dangerous Drugs Act of 2002
3. Anti-Graft and Corrupt Practices Act
4. Plunder
5. "Robbery" and "Extortion"
6. "Jueteng" (Luzon) and "Masiao" (vis/mmin)
7. Piracy on the High Seas
8. "Qualified Theft"
9. "Swindling"
10. "Smuggling" "Tariff and Customs Code of the Philippines";
11. "Electronic Commerce Act of 2000";
12. "Hijacking" "Anti-Hijacking Law"; "Destructive Arson"; and "Murder", as defined under the Revised
Penal Code, as amended;
13. "Terrorism" and "Conspiracy to Commit Terrorism”
14. "Financing of Terrorism”
15. "Bribery" "Corruption of Public Officers
16. "Frauds and Illegal Exactions
17. "Malversation of Public Funds"
18. "Forgeries" and "Counterfeiting"
19. "Anti-Trafficking in Persons Act of 2003",
20. "Revised Forestry Code of the Philippines
21. "Philippine Fisheries Code of 1998";
22. Philippine Mining Act of 1995";
23. "Wildlife Resources Conservation and Protection Act";
24. National Caves and Cave Resources Management Protection Act";
25. Anti-Carnapping Act of 2002, as amended";
26. "Codifying the Laws on Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition or
Disposition of Firearms, Ammunition or Explosives"
27. "Anti-Fencing Law";
28. "Migrant Workers and Overseas Filipinos Act of 1995", as amended by Republic Act No. 10022;
29. Violation of Republic Act No. 8293, otherwise known as the "Intellectual Property Code of the
Philippines, as amended";
30. "Anti-Photo and Video Voyeurism Act of 2009";
31. "Anti-Child Pornography Act of 2009";
32. "Special Protection of Children Against Abuse, Exploitation and Discrimination";
33. "Securities Regulation Code of 2000";
34. Felonies or offenses of a nature similar to the aforementioned unlawful activities that are punishable
under the penal laws of other countries.
MONEY LAUNDERING
A crime whereby the proceeds of an unlawful activity as herein defined as transacted, thereby
making them appear to have originated from legitimate sources
It is committed by any person who, knowing that any monetary instrument or property represents,
involves, or relates to the proceeds of any unlawful activity:
I. Transacts said instrument or property
II. Converts, transfers, disposes of, moves, acquires, possesses or use it
III. Conceals or disguise the true nature, source, location, disposition, movement or
ownership of or rights
IV. Attempts or conspires to commit money laundering offenses
V. Aids, abets, assist in or councils the commission of the money laundering offenses
VI. Performs or fails to perform any act as a result of which he facilitates the offense
Also committed by any covered persons who, knowing that a covered or suspicious transaction is
required to be reported to the Anti-Money Laundering Council (AMLC). [Sec 4]
1. The Regional Trial Courts shall have jurisdiction to try all cases on money laundering.
2. The Sandiganbayan shall have jurisdiction over cases those committed by public officers
and private persons who are in conspiracy with such public officers. [Sec 5]
ASSET FORFEITURE
II. The verified petition shall be filed with the court which rendered the judgment of forfeiture,
within fifteen (15) days from the date of the finality of the order of forfeiture, in default of
which the said order shall become executory.
The court may, instead of enforcing the order of forfeiture of the monetary instrument or property or
part thereof or interest therein, accordingly order the convicted offender to pay an amount equal to the
value of said monetary instrument or property.
II. This provision shall apply in both civil and criminal forfeiture.
FORFEITURE PROVISIONS
Civil Forfeiture.
When there is a covered transaction report made, and the court has, in a
petition filed for the purpose ordered seizure of any monetary instrument or property,
in whole or in part, directly or indirectly, related to said report, the Revised Rules of
Court on civil forfeiture shall apply. However, no assets shall be forfeited to the
prejudice of a candidate for an electoral office during an election period.
Claim on Forfeited Assets.
Where the court has issued an order of forfeiture of the monetary instrument or
property in a criminal prosecution for any money laundering offense under Section 4 of
the AMLA, the offender or any other person claiming an interest therein may apply, by
verified petition, for a declaration that the same legitimately belongs to him and for
segregation or exclusion of the monetary instrument or property corresponding thereto.
The verified petition shall be filed with the court which rendered the judgment of
conviction and order of forfeiture, within fifteen (15) days from the date of the order of
forfeiture, in default of which the said order shall become final and executory. This
provision shall apply in both civil and criminal forfeiture.
Payment in lieu of Forfeiture.
Where the court has issued an order of forfeiture of the monetary instrument or
property subject of a money laundering offense under Section 4 of the AMLA, and said
order cannot be enforced because any particular monetary instrument or property
cannot, with due diligence, be located, or it has been substantially altered, destroyed,
diminished in value or otherwise rendered worthless by any act or omission, directly or
indirectly, attributable to the offender, or it has been concealed, removed, converted or
otherwise transferred to prevent the same from being found or to avoid forfeiture
thereof, or it is located outside the Philippines or has been placed or brought outside
the jurisdiction of the court, or it has been commingled with other monetary
instruments or property belonging to either the offender himself or a third person or
entity, thereby rendering the same difficult to identify or be segregated for purposes of
forfeiture, the court may, instead of enforcing the order of forfeiture of the monetary
instrument or property or part thereof or interest therein, accordingly order the
convicted offender to pay an amount equal to the value of said monetary instrument or
property. This provision shall apply in both civil and criminal forfeiture.
PREVENTIVE MEASURES
PROHIBITED ACCOUNTS
I. Anonymous Accounts and Accounts under Fictitious Names.
1) Covered persons shall maintain customers’ account only in the true and full name of
the account owner or holder.
2) Anonymous accounts, accounts under fictitious names, and all other similar accounts
shall be absolutely prohibited.
II. Numbered Accounts.
1) Numbered accounts, except non-checking numbered accounts, shall not be allowed.
2) CTRs and STRs involving non-checking numbered accounts shall contain the true
name of the account holder.
I. Purpose of CDD.
1) Covered persons shall conduct CDD for the following purposes:
2) To identify the customer, and its agents and beneficial owners;
3) To determine the risk posed by each customer;
4) To establish, maintain, close or terminate the account or business relationship; and
5) To assess the level of monitoring to be applied.
II. Covered persons shall conduct the appropriate CDD measures, which include the following
procedures:
1) Customer Identification Process;
2) Customer Verification Process;
3) Identification and Verification of Agents;
4) Beneficial Ownership Verification;
5) Determination of the Purpose of Relationship; and
6) Ongoing Monitoring Process;
Covered persons are required to obtain minimum information from the customer, including the
beneficial owner(s) and legal arrangements as provided by law. The guidelines provide a list of such
minimum information and documents from customers.
To verify the identity of beneficial owner(s), covered persons shall use reliable and independent
documentation and data such as, but not limited to, original government-issued photographic identification
documents. Such verification must be made at the time the customer fills out any customer identification
form. If verification is not possible under special circumstances, it should be made as soon as reasonably
practicable as to ensure that AML/CFT risks are effectively managed in accordance with the MLTFPP and
not to interrupt the normal conduct of business.
Furthermore, covered persons are required to regularly update beneficial owner information
throughout the life of relationships with their customers.
RECORD-KEEPING
Record-Keeping.
Covered persons shall maintain and safely store for five (5) years from the dates of
transactions all customer records and transaction documents.
Form of Records.
Complimented by the requirements under the 2018 Guidelines on Digitization of Customer
Records, covered persons shall retain all transaction records either in:
1) their original forms; or
2) such other forms sufficient to permit reconstruction of individual transactions so as to
provide admissible evidence in court.
Covered persons shall keep the electronic copies of all CTRs and STRs for, at least, five (5) years
from the dates of submission to the AMLC.
For low risk customers, covered persons shall maintain and store, in whatever form, a record of
information data and transactions, sufficient to permit reconstruction of individual transactions so as to
provide, if necessary, evidence for prosecution of criminal activity.
Availability of Records
Covered persons shall ensure that all CDD information and transaction records are available
swiftly to domestic competent authorities in the exercise of their official functions or upon order by a
competent authority. Page 72 of 93
Covered persons shall take measures to ensure that customer records are submitted in the
manner, quality and period as would assist the AMLC in its prompt financial investigations and
institution of legal actions. For this purpose, covered persons shall implement the guidelines on the
digitization of customer records issued by the AMLC.
ADDITIONAL:
Record keeping
Covered persons are also required to keep records of the beneficial owner and
identification processes undertaken, consistent with the requirements under the AMLA
and its implementing rules issued by the AMLC. Such records should be kept in a
readily auditable manner, whereby covered persons shall provide the AMLC with
accurate and current information of a customer, immediately upon request in the
conduct of a money laundering investigation.
The information and records should be maintained for at least five years after
the date on which the customer ceases to be a customer of the covered person.
Updating of MLTFPP
Within six months from effectivity of these guidelines, covered persons shall
update their MLTFPP to comply with the duties set forth in the guidelines and
implement the same immediately upon the approval of their board or equivalent
governing body.
Transition Period
As for existing customers, covered persons shall identify and record their beneficial
ownership information within one year from the effectivity of the guidelines.