10/12/2020

ANTI-MONEY LAUNDERING ACT OF 2001

(R.A. 9160, AS AMENDED BY RA 9194,
10167, 10365)

ATTY. CYRUZ GENEREY G. ASIDOY, CPA, REB, REA

Money Laundering

Money laundering is a crime whereby the proceeds of an unlawful

activity are transacted, thereby making them appear to have
originated from legitimate sources.

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Covered Persons

It refers to natural or juridical persons, to wit:

(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);

Covered Persons

(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;
(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);

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Covered Persons
(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);
(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 Persons

(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; and
(iv) creation, operation or management of juridical persons or
arrangements, and buying and selling business entities.

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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

Covered transactions

Covered transaction is a transaction in cash or other equivalent

monetary instrument involving a total amount in excess of Five
hundred thousand pesos (PhP 500,000.00) within one (1) banking
day.

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Suspicious transactions

Suspicious transaction are transactions with covered institutions,

regardless of the amounts involved, where any of the following
circumstances exist:

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;

Suspicious transactions

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 circumstances 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 transactions is in a 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 transactions that is similar or analogous to any of the foregoing.

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Obligations of Covered institutions

1. Customer Identification
2. Record Keeping
3. Reporting of Covered and Suspicious Transactions

Money Laundering Offense

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;

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Money Laundering Offense

(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."

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Unlawful activities or Predicated Crimes

Unlawful activity’ refers to any act or omission or series or combination thereof

involving or having direct relation to the following:
(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;

Unlawful activities or Predicated Crimes

(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;

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Unlawful activities or Predicated Crimes

(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;

Unlawful activities or Predicated Crimes

(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;

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Unlawful activities or Predicated Crimes

(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;

Unlawful activities or Predicated Crimes

(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."

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Safe Harbor Provision

No administrative, criminal or civil proceedings, shall lie against any

person for having made a COVERED transaction report or a
SUSPICIOUS transaction report in the regular performance of his
duties and in good faith, whether or not such reporting results in any
criminal prosecution under this Act or any other Philippine law.

The report to AMLC will not violate the law on Secrecy of Bank
Deposits, Foreign Currency Deposit Act and General Banking Law

The report to AMLC will not violate the law on Secrecy of Bank
Deposits, Foreign Currency Deposit Act and General Banking Law but
it cannot otherwise communicate to any person or media, fact of
report of covered transaction or contents of the said report nor can
the fact of reporting be published or aired in mass media, electronic
mail or similar devices

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Who and How Inquiry shall be made?

The Anti-money Laundering Council (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

General Rule:
There must be a court order

Exception:
No need of court order in cases of :
1. Kidnapping,
2. Hijacking,
3. Violation of Dangerous Drugs Act,
4. Arson
5. Murder
6. Terrorism

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