QuestionsQuestions (Republic Act No. 10365)
Covered persons include, among others: (1) BSP-supervised/regulated financial institutions such as banks, non-banks, quasi-banks, trust entities, foreign exchange dealers, pawnshops, money changers, remittance/transfer companies, and their subsidiaries/affiliates; (2) Insurance Commission-supervised/regulated entities such as insurance and pre-need companies; (3) SEC-supervised/regulated securities and investment-related entities (dealers, brokers, salesmen, investment houses, mutual funds, close-end investment companies, common trust funds, and similar persons dealing in currency/commodities/financial derivatives, cash substitutes, and similar instruments/property); (4) jewelry dealers in precious metals and precious stones whose transactions exceed P1,000,000 as a business; (5) company service providers that perform specified corporate/nominee/share director services; and (6) persons providing specified asset/account management or formation/organization services. (RA 10365, Sec. 1 amending Sec. 3[a] of RA 9160).
Yes. The term “covered persons” excludes lawyers and accountants acting as independent legal professionals concerning information about their clients, or where disclosure would compromise client confidences or the attorney-client relationship—provided they are authorized to practice in the Philippines and remain subject to their professional codes and responsibilities. (RA 10365, Sec. 1).
“Unlawful activity” refers to an act/omission or series/combination thereof involving or directly related to specifically enumerated offenses (e.g., kidnapping for ransom, violations of the Dangerous Drugs Act, Anti-Graft and Corrupt Practices Act, plunder, robbery/extortion, illegal gambling, piracy, qualified theft, swindling, smuggling, Electronic Commerce Act violations, hijacking, terrorism/terrorist financing-related offenses, bribery/corruption, fraud/illegal exactions, malversation, forgeries/counterfeiting, trafficking, forestry/fisheries/mining/wildlife offenses, and several special laws including anti-fencing and crimes related to IP, voyeurism, child pornography, child abuse exploitation, and SEC-related securities violations; plus “felonies or offenses of a similar nature” punishable under other countries’ laws). (RA 10365, Sec. 2 amending Sec. 3[i]).
To clarify what items fall within AML coverage for jewelry dealers: “precious metals” include gold, silver, platinum, palladium, rhodium, ruthenium, iridium and osmium, including alloys and certain plating/salt-solution chemicals; “precious stones” include diamonds, ruby, emerald, sapphire, opal, amethyst, beryl, topaz, and garnet used in jewelry making, including those formerly classified as semi-precious stones. (RA 10365, Sec. 3 adding Sec. 3[j] and 3[k]).
Money laundering is committed by any person who, knowing that a monetary instrument or property represents/involves/relates to the proceeds of any unlawful activity, (a) transacts it; (b) converts/transfers/disposes/moves/acquires/possesses/uses it; (c) conceals or disguises its true nature/source/location/disposition/movement/ownership or rights; (d) attempts or conspires to commit laundering acts under (a)-(c); (e) aids/abets/assists/counsels the laundering; or (f) performs or fails to perform acts that facilitate laundering. (RA 10365, Sec. 4 amending Sec. 4).
Money laundering is also committed by any “covered person” who knows that a covered or suspicious transaction is required under the Act to be reported to the AMLC, but fails to do so. (RA 10365, Sec. 4; second paragraph of Sec. 4).
Yes. Any person may be charged with and convicted of both the offense of money laundering and the unlawful activity as defined. (RA 10365, Sec. 5 amending Sec. 6[a]).
No. The prosecution of any offense/violation under the AML law proceeds independently of any proceeding relating to the unlawful activity. (RA 10365, Sec. 5 amending Sec. 6[b]).
The AMLC is composed of the BSP Governor as Chairman, the Insurance Commissioner and the SEC Chairman as members. The AMLC shall act unanimously in the discharge of its functions. (RA 10365, Sec. 7 amending Sec. 7).
Upon a verified ex parte petition by AMLC and after determination of probable cause, the Court of Appeals may issue a freeze order effective immediately, not exceeding six (6) months depending on circumstances. (RA 10365, Sec. 8 amending Sec. 10).
If no case is filed against the person whose account was frozen within the period determined by the court, the freeze order is deemed ipso facto lifted. The rule does not apply to pending cases. The court must act on the petition within 24 hours from filing; if filed a day before a nonworking day, computation excludes nonworking days. A person may file a motion to lift, and the court must resolve it before the freeze order expires. No court may issue a TRO or injunction against a freeze order except the Supreme Court. (RA 10365, Sec. 8 amending Sec. 10).
Covered persons must report all covered transactions and suspicious transactions within five (5) working days from occurrence, unless the AMLC prescribes a different period not exceeding fifteen (15) working days. (RA 10365, Sec. 7 amending Sec. 9[c]).
Lawyers and accountants acting as independent legal professionals are not required to report covered and suspicious transactions if the relevant information was obtained in circumstances subject to professional secrecy or legal professional privilege. (RA 10365, Sec. 7 amending Sec. 9[c]).
Covered persons and their officers/employees are prohibited from communicating (directly or indirectly) to any person/entity/media the fact that a covered/suspicious transaction has been reported or is about to be reported, the contents of the report, or any related information. Reporting also cannot be published/aired through mass media, email, or similar devices. Violation makes concerned officer/employee and media criminally liable. (RA 10365, Sec. 7 amending Sec. 9[c]).
Upon AMLC determination that probable cause exists that monetary instrument/property is in any way related to an unlawful activity (Sec. 3[i]) or a money laundering offense (Sec. 4), AMLC files with the appropriate court through the Office of the Solicitor General a verified ex parte petition for forfeiture; the Rules of Court on Civil Forfeiture apply. (RA 10365, Sec. 9 amending Sec. 12[a]).
Where a court has issued an order of forfeiture in a criminal prosecution for a money laundering offense, an offender or any other person claiming an interest may file a verified petition for declaration of legitimate ownership and segregation/exclusion of corresponding assets. The petition must be filed within 15 days from finality of the forfeiture order; otherwise the order becomes final and executory. (RA 10365, Sec. 9 amending Sec. 12[b]).
If enforcement of a forfeiture order cannot be done because the specific monetary instrument/property cannot be located with due diligence, is substantially altered/destroyed/diminished in value, is concealed/removed/converted/transferred to avoid forfeiture, is outside the Philippines/jurisdiction, or has been commingled such that it’s difficult to identify/segregate, then the court may order the convicted offender to pay an amount equal to the value instead of enforcing forfeiture. (RA 10365, Sec. 9 amending Sec. 12[c]).