REPUBLIC ACT NO.

9160 iv) other entities administering or otherwise

ANTI-MONEY LAUNDERING ACT dealing in currency, commodities or
financial derivatives based thereon, valuable
objects, cash substitutes and other similar
Heart of this law: monetary instruments or property supervised
Sec. 2 Declaration of Policy or regulated by SEC
It is hereby declared the policy of the State
to protect and preserve the integrity and
confidentiality of bank accounts and to COVERED TRANSACTION
ensure that the Philippines shall not be used Sec. 3(b)* THIS IS AMENDED BY RA
as a money laundering site for the proceeds 9194
of any unlawful activity. Consistent with its  is a single, series, or combination of
foreign policy, the State shall extend transactions involving a total amount
cooperation in transnational investigations in EXCESS of FOUR MILLION
and prosecutions of persons involved in PHILIPPINE PESOS (Php
money laundering activities wherever 4,000,000.00) or equivalent in
committed. amount in foreign currency
-based on the prevailing exchange rate
Policy of the state: within five (5) consecutive banking days
1. To protect and preserve the integrity and
confidentiality of bank accounts EXCEPTION:
-except those between a covered institution
2. To ensure that the Philippines shall not be and a person who, at the time of the
used as a money laundering site for the transaction was a properly identified client
proceeds of any unlawful activity. and the amount is commensurate with the
business or financial capacity of the client;
Commitment of the State: or those with an underlying legal or trade
-extend cooperation in transnational investigations obligation, purpose, origin or economic
and prosecutions of persons involved in money justification
laundering activities wherever committed
 It likewise refers to a single, series or
Covered institutions: combination or pattern of unusually
1. Banks, non-banks, quasi-banks, trust large and complex transactions in
entities, and all other institutions and their excess of Four million Philippine
subsidiaries and affiliates supervised or pesos (Php4,000,000.00) especially
regulated by the BSP cash deposits and investments
2. Insurance companies and all other having no credible purpose or
institutions supervised or regulated by the origin, underlying trade obligation
Insurance Commission or contract.
3. i) securities dealers, brokers, salesmen,
investment houses and other similar entitles NOTE: RA 9194 AMENDED RA 9160.
managing securities or rendering services as Amendment is reflected in the 2016 IRR. Covered
investment agent, advisor, or consultant, transaction – exceeding Php 500k only within one
(1) banking day.
ii) mutual funds, closed-end investment
companies, common trust funds, pre-need SUSPICIOUS TRANSACTIONS – regardless of
companies and other similar entities the amount.
1. there is no underlying legal or trade
iii) foreign exchange corporations, money obligation, purpose or economic
changers, money payment, remittance, and justification;
transfer companies and other similar entities 2. the client is not properly identified;
 3. the amount involved is not commensurate Note: There are monetary instruments and
with the business or financial capacity of properties that need to be disclosed and filed
the client; before AMLC.
4. taking into account all known
circumstances, it may be perceived that the
client’s transaction is structured in order Who has jurisdiction to try money-
to avoid being the subject of reporting laundering cases?
requirements under the Act; Sec. 5
5. any circumstance relating to the transaction
which is observed to deviate from the  RTC – has jurisdiction to try all
profile of the client and/or the client’s past cases on money laundering.
transactions with the covered institution;
6. the transaction is in any way related to an  Sandiganbayan – if committed by
unlawful activity or offense under this Act public officers and private persons
that is about to be, is being or has been who are in conspiracy with public
committed; or officers.
7. any transaction that is similar or analogous
to any of the foregoing. Anti-Money Laundering Council (AMLC)
Sec. 7
Composition:
MONEY LAUNDERING OFFENSE 1. Chairman – BSP Governor
Sec. 4 2. Members – Comssioners of Insurance
-proceeds of an unlawful activity are transacted Commission and Chair of SEC
-thereby making them appear to have originated
from legitimate sources

Committed by & Penal Provision (Sec. 14):

(a) Any person knowing that any monetary

instrument or property represents, involves,
or relates to, the proceeds of any unlawful
activity, transacts or attempts to transact said
monetary instrument or property. (7-14 yrs
imprisonment & Php 3M to not more
than value of monetary instrument or
property)

(b) Any person knowing that any monetary

instrument or property involves the proceeds
of any unlawful activity, performs or fails to
perform any act as a result of which he
facilitates the offense of money laundering
referred to in paragraph (a) above. (4-7 yrs
imprisonment & 1.5-3M fine)

(c) Any person knowing that any monetary

instrument or property is required under this
Act to be disclosed and filed with the Anti-
Money Laundering Council (AMLC), fails
to do so. (6 mos - 4yrs imprisonment &
Php100k – Php500k fine)