Anti-Money Laundering Act

(AMLA)
RA 9160 as amended by
9194, 10167, 10365 and 10927
RA 10168 The Terrorism Financing Prevention and Suppression Act of 2012
RA 11497 The Anti-Terrorism Act of 2020
MONEY LAUNDERING
The act of transferring the monetary proceeds derived
from illicit activities into funds with an apparently legal
source.
Three (3) phases of money laundering:
(1) Placement: the stashing of funds into a financial institution.
(2) Layering: money is moved from one institution to another in a
confusing trail.
(3) Integration: taking of funds from various banks or covered
institution and invest in a legitimate business.
RA 9160 (2001)
RA 9194 (2003)
RA 10167 (2012)
RA 10365 (2013)
RA 10927 (2017)
RA 10168 The Terrorism Financing Prevention and Suppression Act of 2012
RA 11497 The Anti-Terrorism Act of 2020
State Policies
1. To protect and preserve the integrity and confidentiality of
bank accounts
2. To ensure that the Philippines shall not be used as a
money laundering site for the proceeds of any unlawful
activity.
3. To extend cooperation in transnational investigations and
prosecutions of persons involved in money laundering
activities wherever committed.
State Policies
4. To protect life, liberty and property from acts of terrorism and to condemn
terrorism and those who support and finance it; and to recognize it as inimical and
dangerous to national security and the welfare of the people; and to make the
financing of terrorism a crime against the Filipino people, against humanity and
against the law of nations.
5. To recognize and to adhere to international commitments to combat the
financing of terrorism, specifically to the International Convention for the
Suppression of the Financing of Terrorism, as well as other binding terrorism
related resolutions of the United Nations Security Council, pursuant to Chapter 7
of the United Nations Charter.
6. To reinforce the fight against terrorism by preventing and suppressing the
commission of said offenses through freezing and forfeiture of property or funds
while protecting human rights.
Covered institutions/persons (financial and
DNFBP)
(1) banks, non-banks, quasi-banks, trust entities, foreign exchange dealers,
pawnshops, money changers, remittance and transfer companies and other similar
entities and all other persons and their subsidiaries and affiliates supervised or
regulated by the Bangko Sentral ng Pilipinas (BSP);
(2) insurance companies, pre-need companies and all other persons supervised or
regulated by the Insurance Commission (IC);
(3) (i) securities dealers, brokers, salesmen, investment houses and other similar
persons managing securities or rendering services as investment agent, advisor, or
consultant, (ii) mutual funds, close-end investment companies, common trust
funds, and other similar persons, and (iii) other entities administering or otherwise
dealing in currency, commodities or financial derivatives based thereon, valuable
objects, cash substitutes and other similar monetary instruments or property
supervised or regulated by the Securities and Exchange Commission (SEC);
Covered institutions/persons (financial and
DNFBP)
(4) jewelry dealers in precious metals, who, as a business, trade in
precious metals, for transactions in excess of One million pesos
(P1,000,000.00);

(5) jewelry dealers in precious stones, who, as a business, trade in

precious stones, for transactions in excess of One million pesos
(P1,000,000.00);
Covered institutions/persons (financial and
DNFBP)
(6) company service providers which, as a business, provide any of the
following services to third parties:
(i) acting as a formation agent of juridical persons;
(ii) acting as (or arranging for another person to act as) a director or
corporate secretary of a company, a partner of a partnership, or a similar
position in relation to other juridical persons;
(iii) providing a registered office, business address or accommodation,
correspondence or administrative address for a company, a partnership
or any other legal person or arrangement; and (iv) acting as (or
arranging for another person to act as) a nominee shareholder for
another person; and
Covered institutions/persons (financial and
DNFBP)
(7) persons who provide any of the following services:
(i) managing of client money, securities or other assets;
(ii) management of bank, savings or securities accounts;
(iii) organization of contributions for the creation, operation or management of companies;
(iv) creation, operation or management of juridical persons or arrangements, and buying
and selling business entities.
Notwithstanding the foregoing, the term ‘covered persons’ shall exclude lawyers and
accountants acting as independent legal professionals in relation to information concerning
their clients or where disclosure of information would compromise client confidences or the
attorney-client relationship: Provided, That these lawyers and accountants are authorized to
practice in the Philippines and shall continue to be subject to the provisions of their
respective codes of conduct and/or professional responsibility or any of its amendments.
Covered institutions/persons (financial and
DNFBP)
(8) casinos, including internet and ship-based
casinos, with respect to their casino cash
transactions related to they gaming
operations. (RA 10927)
Obligations of the Covered Persons
1. Customer Identification
Covered institutions shall establish and record the
true identity of its clients based on official
documents. They shall maintain a system of
verifying the true identity of their clients and, in
case of corporate clients, require a system of
verifying their legal existence and organizational
structure, as well as the authority and identification
of all persons purporting to act on their behalf.
Obligations of the Covered Persons
2. Record Keeping
All records of all transactions of covered institutions
shall be maintained and safely stored for five (5) years
from the dates of transactions. With respect to closed
accounts, the records on customer identification,
account files and business correspondence, shall be
preserved and safely stored for at least five (5) years
from the dates when they were closed.
Obligations of the Covered Persons
3. Reporting of Covered and Suspicious Transactions
shall report to the AMLC all covered transactions and
suspicious transactions within five (5) working days from
occurrence thereof, unless the Supervising Authority
prescribes a longer period not exceeding ten (10) working
days.
Should a transaction be determined to be both a covered
transaction and a suspicious transaction, the covered
institution shall be required to report the same as a
suspicious transaction.
SAFE HARBOR PROVISION

No administrative, criminal or civil proceedings,

shall lie against any person for having made a
covered or suspicious transaction report in the
regular performance of his duties in good faith,
whether or not such reporting results in any
criminal prosecution under this Act or any other
law.(Sec. 9)
Covered transactions
1. a transaction in cash or other equivalent monetary instrument
involving a total amount in excess of five hundred thousand
pesos (P500,000.00) within one (1) banking day;
2. a single casino transaction involving an amount in excess of
5M or its equivalent in any other currency (RA 10927);
and
3. a transaction with/involving jewelry dealers, dealers in
precious metals and dealers in precious stones in cash or other
equivalent in monetary instrument exceeding 1M.
Suspicious transactions
are transactions with covered institutions,
regardless of the amounts involved,
where any of the following circumstances
exist:
Suspicious transactions:
1. there is no underlying legal or trade obligation, purpose or economic justification;
2. the client is not properly identified;
3. the amount involved is not commensurate with the business or financial capacity of
the client;
4. 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 Act;
5. 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 institution;
6. 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
7. any transaction that is similar or analogous to any of the foregoing.
Money laundering
is committed by any person who, knowing that any monetary instrument or property
represents, involves, or relates to the proceeds of any unlawful activity:
(a) transacts said monetary instrument or property;
(b) converts, transfers, disposes of, moves, acquires, possesses or uses said
monetary instrument or property;
(c) conceals or disguises the true nature, source, location, disposition, movement
or ownership of or rights with respect to said monetary instrument or property;
(d) attempts or conspires to commit money laundering offenses referred to in
paragraphs (a), (b) or (c);
(e) aids, abets, assists in or counsels the commission of the money laundering
offenses referred to in paragraphs (a), (b) or (c) above; and
(f) performs or fails to perform any act as a result of which he facilitates the offense
of money laundering referred to in paragraphs (a), (b) or (c) above.
Money laundering
is also committed by any covered person
who, knowing that a covered or suspicious
transaction is required under this Act to be
reported to the Anti-Money Laundering
Council (AMLC), fails to do so.
Unlawful activity
refers to any act or omission or
series or combination thereof
involving or having direct relation
to the following:
(34 activities)
(1) Kidnapping for ransom under Article 267 of Act No. 3815,
otherwise known as the Revised Penal Code, as amended;

(2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Republic

Act No. 9165, otherwise known as the Comprehensive Dangerous
Drugs Act of 2002;

(3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No. 3019,

as amended, otherwise known as the Anti-Graft and Corrupt Practices
Act;

(4) Plunder under Republic Act No. 7080, as amended;

(5) Robbery and extortion under Articles 294, 295, 296, 299, 300, 301
and 302 of the Revised Penal Code, as amended;
(6) Jueteng and Masiao punished as illegal gambling under Presidential
Decree No. 1602;
 
(7) Piracy on the high seas under the Revised Penal Code, as amended and
Presidential Decree No. 532;
 
(8) Qualified theft under Article 310 of the Revised Penal Code, as amended;
 
(9) Swindling under Article 315 and Other Forms of Swindling under Article
316 of the Revised Penal Code, as amended;
 
(10) Smuggling under Republic Act Nos. 455 and 1937;
(11) Violations of Republic Act No. 8792, otherwise known as the Electronic
Commerce Act of 2000;
 
(12) Hijacking and other violations under Republic Act No. 6235; destructive
arson and murder, as defined under the Revised Penal Code, as amended;
 
(13) Terrorism and conspiracy to commit terrorism as defined and penalized
under Sections 3 and 4 of Republic Act No. 9372*;
 
(14) Financing of terrorism under Section 4 and offenses punishable under
Sections 5, 6, 7 and 8 of Republic Act No. 10168, otherwise known as the
Terrorism Financing Prevention and Suppression Act of 2012:
 
(15) Bribery under Articles 210, 211 and 211-A of the Revised Penal Code, as
amended, and Corruption of Public Officers under Article 212 of the Revised Penal
Code, as amended;
(16) Frauds and Illegal Exactions and Transactions under Articles 213, 214, 215 and
216 of the Revised Penal Code, as amended;
 
(17) Malversation of Public Funds and Property under Articles 217 and 222 of the
Revised Penal Code, as amended;
 
(18) Forgeries and Counterfeiting under Articles 163, 166, 167, 168, 169 and 176 of
the Revised Penal Code, as amended;
 
(19) Violations of Sections 4 to 6 of Republic Act No. 9208, otherwise known as the
Anti-Trafficking in Persons Act of 2003;
 
(20) Violations of Sections 78 to 79 of Chapter IV, of Presidential Decree No. 705,
otherwise known as the Revised Forestry Code of the Philippines, as amended;
(21) Violations of Sections 86 to 106 of Chapter VI, of Republic Act No. 8550,
otherwise known as the Philippine Fisheries Code of 1998;
 
(22) Violations of Sections 101 to 107, and 110 of Republic Act No. 7942,
otherwise known as the Philippine Mining Act of 1995;
 
(23) Violations of Section 27(c), (e), (f), (g) and (i), of Republic Act No. 9147,
otherwise known as the Wildlife Resources Conservation and Protection Act;
 
(24) Violation of Section 7(b) of Republic Act No. 9072, otherwise known as the
National Caves and Cave Resources Management Protection Act;
 
(25) Violation of Republic Act No. 6539, otherwise known as the Anti-
Carnapping Act of 2002, as amended;
(26) Violations of Sections 1, 3 and 5 of Presidential Decree No. 1866, as
amended, otherwise known as the decree Codifying the Laws on
Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition or Disposition
of Firearms, Ammunition or Explosives;
 
(27) Violation of Presidential Decree No. 1612, otherwise known as the Anti-
Fencing Law;
 
(28) Violation of Section 6 of Republic Act No. 8042, otherwise known as the
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;
 
(30) Violation of Section 4 of Republic Act No. 9995, otherwise known as the
Anti-Photo and Video Voyeurism Act of 2009;
(31) Violation of Section 4 of Republic Act No. 9775, otherwise known as
the Anti-Child Pornography Act of 2009;
 
(32) Violations of Sections 5, 7, 8, 9, 10(c), (d) and (e), 11, 12 and 14 of
Republic Act No. 7610, otherwise known as the Special Protection of
Children Against Abuse, Exploitation and Discrimination;

(33) Fraudulent practices and other violations under Republic Act No. 8799,
otherwise known as the Securities Regulation Code of 2000; and
 
(34) Felonies or offenses of a similar nature that are punishable under the
penal laws of other countries.
Anti-Money Laundering Council

shall be composed of:

1.Governor of the Bangko Sentral ng Pilipinas as chairman,
2.Commissioner of the Insurance Commission, and
3.Chairman of the Securities and Exchange Commission as
members.
The Council has been authorized to establish a secretariat
Anti-Money Laundering Council; functions
(1) to require and receive covered or suspicious transaction reports from covered
institutions;
(2) to issue orders addressed to the appropriate Supervising Authority or the covered
institution to determine the true identity of the owner of any monetary instrument or
property subject of a covered transaction or suspicious transaction report or request for
assistance from a foreign State, or believed by the Council, on the basis of substantial
evidence, to be, in whole or in part, wherever located, representing, involving, or related to,
directly or indirectly, in any manner or by any means, the proceeds of an unlawful activity.
(3) to institute civil forfeiture proceedings and all other remedial proceedings
through the Office of the Solicitor General; (AM No. 05-11-04-SC)
(4) to cause the filing of complaints with the Department of Justice or the
Ombudsman for the prosecution of money laundering offenses;
Anti-Money Laundering Council; functions
(5) to investigate suspicious transactions and covered transactions deemed
suspicious after an investigation by AMLC, money laundering activities, and
other violations of this Act;
(6) to apply before the Court of Appeals, ex parte, for the freezing of any
monetary instrument or property alleged to be laundered, proceeds from, or
instrumentalities used in or intended for use in any unlawful activity as
defined in Section 3(i) hereof; (amended by RA 10365)
(7) to implement such measures as may be necessary and justified under this Act to
counteract money laundering;
(8) to receive and take action in respect of, any request from foreign states for
assistance in their own anti-money laundering operations provided in this Act;
Anti-Money Laundering Council; functions
(9) to develop educational programs on the pernicious effects of money laundering, the methods and
techniques used in money laundering, the viable means of preventing money laundering and the
effective ways of prosecuting and punishing offenders;
(10) to enlist the assistance of any branch, department, bureau, office, agency or instrumentality of the
government, including government-owned and -controlled corporations, in undertaking any and all
anti-money laundering operations, which may include the use of its personnel, facilities and resources
for the more resolute prevention, detection and investigation of money laundering offenses and
prosecution of offenders;
(11) to impose administrative sanctions for the violation of laws, rules, regulations and orders and
resolutions issued pursuant thereto; and
(12) to require the Land Registration Authority and all its Registries of Deeds to submit to the AMLC,
reports on all real estate transactions involving an amount in excess of Five hundred thousand pesos
(P500,000.00) within fifteen (15) days from the date of registration of the transaction, in a form to be
prescribed by the AMLC. The AMLC may also require the Land Registration Authority and all its
Registries of Deeds to submit copies of relevant documents of all real estate transactions. (RA 10365)
Freeze Order (RA 10927)
Sec. 10. Freezing of Monetary Instrument or Property. - Upon a
verified ex parte petition by the AMLC and after determination
that probable cause exists that any monetary instrument or property
is in any way related to an unlawful activity as defined in Section
3(i) hereof, the Court of Appeals may issue a freeze order which shall
be effective immediately, for a period of twenty (20) days. Within
the twenty (20)-day period, the Court of Appeals shall conduct a
summary hearing, with notice to the parties, to determine whether or
not to modify or lift the freeze order, or extend its effectivity. The total
period of the freeze order issued by the Court of Appeals under
this provision shall not exceed six (6) months.
Probable Cause
refers to such facts and circumstances which would lead
a reasonably discreet, prudent or cautious man to believe
that an unlawful activity and/or money laundering
offence is about to be, is being or has been committed
and that the account or any monetary instrument or
property subject thereof sought to be frozen is in
any way related to said unlawful activity and/or money
laundering offense.
Probable Cause
refers to the sufficiency of the relation between an
unlawful activity and the property or monetary
instrument which is the focal point of Section 10 of RA
No. 9160, as amended. (Subido vs Republic)
Duties of the covered persons

Implement Freeze Order

Freeze and Report Related Accounts
Furnish Copy of Freeze Order to Owner of Holder
Submit Detailed Return to CA and AMLC
Bank Inquiry (amended by RA 10167)
SEC. 11. Authority to Inquire into Bank Deposits. – Notwithstanding the
provisions of Republic Act No. 1405, as amended; Republic Act No. 6426, as
amended; Republic Act No. 8791; and other laws, the AMLC may inquire into or
examine any particular deposit or investment, including related accounts, with
any banking institution or non-bank financial institution upon order of any
competent court based on an ex parte application in cases of violations of this
Act, when it has been established that there is probable cause that the
deposits or investments, including related accounts involved, are related to
an unlawful activity as defined in Section 3(i) hereof or a money laundering
offense under Section 4 hereof; except that no court order shall be required
in cases involving activities defined in Section 3(i)(1), (2), and (12) hereof,
and felonies or offenses of a nature similar to those mentioned in Section 3(i)(1),
(2), and (12), which are Punishable under the penal laws of other countries, and
terrorism and conspiracy to commit terrorism as defined and penalized under
Republic Act No. 9372.
Bank Inquiry (RA 10167)
The Court of Appeals shall act on the application to inquire into or
examine any deposit or investment with any banking institution or
non-bank financial institution within twenty-four (24) hours from
filing of the application."
  Bank Inquiry Freeze Order
Court
Order PC ML/ULA PC ULA

1. Kidnapping for ransom RPC

2. RA 9165 (Dangerous Drugs Act)
3. Hijacking and other violations under
RA 6235;
w/o Court under RPC destructive arson and murder 1. RA 10168
Order 4. Similar to those mentioned which are 2. RA 11479
punishable in other countries
5. RA 10168
6. RA 11479
AMLA